Wednesday 13 June 2007

Alive, Well and Living in Germany

As the European Central Bank raises the interest rate in conformity with the Maastricht enshrined friedmanite theories on controlling inflation by restricting money supply, Germany follows positively neo- keynesian policies to enjoy a growth rate of over 3%.

Two characteristics stand out: the investments in infrastructure at both federal state and regional Lander levels, using European Union regional funding and allowances; and the utilisation of lower wage and other costs in the newer Union member states, to where medium and low level manufacturing is being rapidly outsourced. This last is particularly important in providing manufacturing to the high, guaranteed German standards that are recognised and sought by consumers; China, India and Brazil aren't getting a look-in.

In the meantime, and with the encouragement of state direction and provision, investment is being poured into cutting edge technologies; the provision of financial and other services as the basis of the moden state's economy has been rejected in favour of highest tech research and manufacturing together with the maintenance of a standard manufacturing base next door (so to speak). Education, education, education has returned high investment by providing a skilled and ready workforce that equally readily is rewarded with high quality work.

While Friedman is doubtless making his hyper-liberal contribution to holding down inflation, the web of trade union/ employers/regional/federal state agreements on wages and conditions, welfare and social provision must have its recognition too; Germany and indeed much of central Europe where this model holds, has updated its trade unions and its workforce relations with other engines of growth and well being.

Ten wasted years after the New Dawn, we have a London city-state and a depessed and dependent hinterland, unreformed unions, inefficient welfare and social provision at enormous cost, with Scotland and Wales making for the hills.

13 comments:

Anonymous said...

Brazil is a critical component of Germany's business model as any girl driving a Mini knows. That Chrysler engine from Brazil simply purs as she strokes the velour.

Newmania said...

trade union/ employers/regional/federal state agreements on wages and conditions, welfare and social provision must have its recognition too;

Like a Prices and incomes Policy ..sounds unlikely to me.

hatfield girl said...

Whoops, V. Perhaps Germany's links are longer standing than is thought. Or perhaps 'one swallow...' can be suggested?

hatfield girl said...

Mitbestimmung is sort of co-determination of economic objectives; the Workforce's presence on Company boards. If memory is to be trusted, this is part of the constitutional post Second war settlement, and has been a force for modern workplace relations and up to date trade unions.

So it's not like a Prices and Incomes Policy hammered out by contending forces facing economic reality, more a permanent co-operation with agreed shared objectives and largely shared information, required by the state, not the product of a particular set of policies from a particular government.

This beach shelves steeply, doesn't it ?

Anonymous said...

Whoops, V. Perhaps Germany's links are longer standing than is thought. Or perhaps 'one swallow...' can be suggested?

Ach Maedel....VW und Daimler usw sind seit langem in Brasilien sowie Siemens, obwohl Siemens vor dem 2ten Krieg dort angesiedelt war.

Mitbestimmung war eine Erfindung der Allierten und die Montanmitbestimmung war was anderes wobei den Aufsichtsrat mit 50:50 besetzt wurde.

Kluegere Firmen brechen sich in etlichen GmbHs um den Scheiss mit Mitbestimmung umzugehen, aber bei VW war es einfacher innerhalb des Staatsbetriebes die Betriebsratsmitglieder zu bestechen. VW bezahlt die Belegschaft 30% ueber den Industrietariflichen Lohn und deswegen ist die Firma ao konkurenzunfaehig und Skoda eine Perle, weil die dort 10% der VW Lohnkosten beziehen.

Industriegewerkschaften und Tarifstrukturen sind fast weg - Newmania ist nicht auf dem Laufenden - die haben Oeffnungsklausel jetzt und die Belegschaft handeln selbstastaendig weil IG Metall soviele Arbeitsplaetze vernichtet hat.

Wenn Firmen wie Siemens soviele MA entlassen ist die Tariflohnstruktur Schnee von gestern

hatfield girl said...

Voyager, There will now be a short intermission while I work out what you said. It looks v. informative and I have now been learning German for 7 months, so it only remains to get the dictionary.

Angels in Marble accepts comments in English, Italian, French, German, Polish, Spanish, and slow Russian (depending who is in the house at the time). As it's just me this evening, the German comment response is painstaking. Best to stick to English till tomorrow.

hatfield girl said...

V, I'll just put the reference and get my coat:

"Brasil - Alemanha" ANO 10 N°1" - Bericht von Axel Simer (seit 1994 Korrespondent der BfAI, São Paulo) Copyright © AHK-São Paulo - Câmara de Comércio e Indústria Brasil-Alemanha 2002
And anyone can look up why Brazil not getting a look in is because they're inside looking out.

Anonymous said...

and I have now been learning German for 7 months,.

Would you like extra tuition ? :-X ;^)

Hint - Sao Paulo has 500.000 people with German antecedents and is the largest German manufacturing centre outside Germany

hatfield girl said...

'Would you like extra tuition ?'

V, At an artistic reception in Berlin a journalist friend (he of the Boulogne sur Mer misadventure, should you care to look back) was hissing a translation of the Mayor of Berlin's remarks into my ear and, after pressing a glass of wine into my hand remarked, smiling loudly, "She can't even say 'thank you' in German'".

I was mortified.

Interested faces waited for my response so I made a personal Berlin declaration:1 year and a thank you would be within my grasp.

Enrolled in the local university course, taught wholly by German lecturers, I am enthralled (and quite distressed at the alienation of our cultures).

If helpless, it's good to have another held-out hand. Thank you.

Anonymous said...

Don't worry the Germans are as ignorant of Britain as the British are of Germany......there are not many like Volker Ruehe and Helmut Schmidt who truly understand.

Hamburg is best of all, and WDR TV also - the only channel to cover Trooping the Colour and such events

You should watch Dalziel & Pascoe, and Inspector Linley and Midsomer Murders on German TV

Anonymous said...

Oh if you ever get into difficulties simply say Sau Preuss and they will think you are a happy Bavarian

hatfield girl said...

The lecturers are not best pleased at what is happening to German; internationalisation is grossly simpifying it, and there seems to be a language developing that has the same relationship to German as international English has to English English. So they restrain severely any break outs into the easy version (everything goes on in German including the teaching medium). I thought I was to try and sound as if I came from Hannover, not Hamburg.

Anonymous said...

Que Hamburg ?