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B Y M A X M A E C K L E R ( N Y U ’ 13)

WIRTSCHAFTSWUNDER 2.0:

GERMANY - THE ODD ONE OUT Audi production in Aurangabad, India.

38

111210 hq.indd 38

n an interview just prior to the Democrats’

I

forces rising at a breathtaking pace in Asia

sweeping defeat in the November midterm

and elsewhere in the world. With regard to

elections, Barack Obama confessed that

Germany, the continued high unemployment

what keeps him up at night is the fact that

and the near stagnating growth figures of

“China, Germany, India and Brazil are moving”.

the early 2000s, supported this impression.

While this is not particular surprising given the

Germany’s

current state of the US economy, it is worth

traditional industrial sector – most of all the

taking a closer look at the list of countries

car industry – was seen as outdated in a world

that cause the President sleepless nights.

where the developed countries outsourced

While China, India and Brazil are all emerging

their industries to low-wage countries around

economies that promise to be economic

the world.

heavy

dependence

on

the

powerhouses of the coming century, Germany,

During the same years, however, the

with a developed economy and an aging

government under then Chancellor Schroeder

population, is clearly the odd one out..

introduced

wide-ranging

reforms

to

the

With a population of just over 80 million

labor-market and the social welfare system,

the central European country is a fraction

collectively known as the Agenda 2010. These

of the size of the newly emerging economic

measures, which, for example, made it easier

powers, but unlike them it is a developed

for fi rms to lay off workers, together with

country and looks back at a long history of

agreements between labor and management

economic growth and stability. Partly for

to abstain from wage increases in return for job

these reasons the country (as well as Europe

security (as a result, real wages have declined

as a whole and more recently

between

the United

2004

and

2008)

have

greatly

States) has often been portrayed as beyond

increased the competitiveness of German

its heyday and in relative decline, just waiting

products, especially when compared with

to be outperformed by the new, more dynamic

those of its European neighbors. This has led

I N T E R N AT I O N A L B U S I N E S S R E V I E W

FA L L 2 0 1 0

11/27/2010 3:13:13 PM

Profile for Daniel Hellwig

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

International Business Review - Fall 2015  

Fall edition of the IBR magazine at the Wharton School.

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