Paper about Germany Trends in terms of Development

1. CENTRE FOR STRATEGIC AND INTERNATIONAL STUDIES
Development Policies and Trends in Germany
MPA Batch 3 , Group 1
Group (1) :
Group Member list
Ko Saw Naing Lin Swe
Ko Zaw Min Min Maung
Ko Chan Myae Aung
Ma Htin Hnin Khine
Ma Thet Thet Mon
Ma Eindra Yar Deive
Ma Khin Soe San

2. OUTLINES OF THE PRESENTATION
 Research Questions
 Aims and Objectives of the paper
 Introduction (Background history of the country ,
brief presentation on economic and political
situation)
 Chapter (1) Political and development situation of
Germany
 Chapter (2) Role of Government in development
 Chapter (3) Main causes of development of
Germany
 Findings and Recommandations

3. RESEARCH QUESTIONS
 What are the driving factors or forces for Germany
to become developed nation?
 What is the Sustainable Development Strategy of
Germany?
 What are the current challenges for Germany to
sustain their development success?

4. AIMS AND OBJECTIVE
 To learn about how government shape the
Germany in the aspect of economic and human
development.
 To understand the determinants or factors for
Germany to become a developed country.
 To understand Germany Economy and lessons
learned of Germany’s road to development.
 To learn the current situation of Germany to sustain
their development success.

5. INTRODUCTION
Germany Flag and Country Map

6. INTRODUCTION
Germany after WW II
Germany Now

7. BACKGROUND HISTORY OF THE COUNTRY
 The country we know as Germany today was throughout history
mostly an association of states
 After the revolutions of 1848, the first German Parliament was
created.
 After a victory in the French-Prussian war in 1871, a unification of the
German states was attained, which initiated a period of great
advances in various areas, the economy, the political area and the
military.
 In 1914, when World War broke out, the fall of the Hohenzollern
dynasty started as Germany was defeated.
 The winning nations impose the Versailles Treaty and the German
territory splits in two once more.
 There was an economic crisis and the German National Socialist
Workers’ Party (Nazi) obtains the power doing away with democracy.
Nazi Germany lasted 12 years (1933-1945). Hitler got the full control
succeeding also the head of state.

8. BACKGROUND HISTORY OF THE COUNTRY
 By 1945, Germany was under the control of the Allied Powers in Europe:
the United States, the USSR, Britain and France.
 In 1949 Germany split into two countries, with the occupied zones
belonging to the three Western powers merging to form the Federal
Republic of Germany (FRG), while the Soviets established the German
Democratic Republic (GDR).
 Built in 1961, the Berlin Wall became known as a symbol of communism.
 It physically divided the Communist West Germany and Democratic East
Germany.
 Germany has the fourth largest economy in the world, and reforms over
the past decade have enabled job creation and driven unemployment to
one of the lowest rates among advanced economies, currently at around
6 percent.
 Although country has rapidly prosper in economic and development, a
study says Germany's birth rate has slumped to the lowest in the world,
prompting fears labour market shortages will damage the economy.

9. BRIEF PRESENTATION ON ECONOMIC AND
POLITICAL SITUATION OF GERMANY
Economic of previous times
 Germany before 1800 was heavily rural, with some urban trade
centers.
 In the 19th century,it began a stage of rapid economic
modernization,led by a heavy industry .
 By 1900,it has the largest economy in Europe a factor that play a
major role in its entry into WW 1 and WW II.
Economy of Nazi Germany
 During Hilter era (1933-1945)the economy developed a hothouse
prosperity ,supported with high government subsidies to those
sectors that tended to give germany military power and economic
autarky,that is economic independent from the global economy.
 1950,Germany overtook Britain in comparative productivity level
for the whole economy primarily as a result of trends in services
rather than trends in industries.

10. BRIEF PRESENTATION ON ECONOMIC AND
POLITICAL SITUATION OF GERMANY
Current Economic
 After reunification in 1990,East Germany had to move away from
a Command economic system and slowly toward a Mixed
system.
 Germany has a type of mixed economic called a social market
economy which has developed after WWII and it includes a
variety of private freedom combined with centralized economic
planning and government regulations.
 Social market economy rested on three main principles:
1. Individual freedom rested on the liberal ideal of individuality.
2. Solidarity meaning that individual is part of a larger society
consisting of mutual dependencies.
3. Subsidiary being a role of the state to shape the relation
between individuality and solidarity .It should give the highest
priority to individual rights and ensure that what can be done
on the part of the individual should be done by it and not by the
state.

11. BRIEF PRESENTATION ON ECONOMIC AND
POLITICAL SITUATION OF GERMANY
Economic Freedom Snapshot
 2016 Economic Freedom Score 74.4
 Economic Freedom Status Mostly free
 Regional Ranking 8th in Europe
 Notable Successes Rule of Law and Open Markets
 Overall Score Changes Since 2012 +3.4

12. BRIEF PRESENTATION ON ECONOMIC AND
POLITICAL SITUATION OF GERMANY
Political Situation
 Germany's commitment to regulatory efficiencies and open market
policies continues to be bolstered by the effective protection of property
rights.
 The rule of law is well-maintained and a strong tradition of minimal
tolerance corruption is firmly institutionalized.
 Rule of Law: Although government transparency is high and anti-
corruption enforced effectively. The law fully protects properly owned by
foreigners and secured interests in both chattel and real property are
recognised and enforced.
 Regulatory Efficiency: The regulatory regime aids dynamic business
formation. No minimal capital is required to launch a new business. The
government has cut subsidies for renewable energy sources but
maintains price controls in other economic sectors such as rental
housing.
 Open Markets: EU members have a 1 percent average tariff rate.
Foreign and domestic investors are generally treated equally under the
law.

13. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.1 Political Situation of Germany
 The Federal Republic of Germany is a federal
parliamentary republic, based on representative
democracy.
 The Chancellor is the head of government, while
the President of Germany is the head of state which
holds a ceremonial role but substantial reserve
powers.
 Executive power is vested in the Federal Cabinet
and federal legislative power is vested in the
Bundestag and the Bundesrat.

14. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.1 Political Situation of Germany
Major Parties in Germany:
 Christian Democratic Union (CDU)
 Christian Social Union (CSU)
 Social Democratic Party (SDP)
 Free Democratic Party (FDP)
 The Left
 Alliance 1990 (The Greens)

15. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.1 Political Situation of Germany
Federal legislative power :
 Federal legislative power is divided between the
Bundestag and the Bundesrat.
 The Bundestag is directly elected by the German
people, whilst the Bundesrat represents the regional
states.
Judicial Branch :
 The Judiciary in Germany is totally independent.
 The organisation of courts is traditionally strong, and
almost all state actions are subject to judicial review.
 Germany has a powerful Constitutional Court.

16. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.1 Political Situation of Germany
Chancellery is in Berlin and Constitutional Court is
in Karlsruhe.

17. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.1.2 Recent politics of Germany
 Red Green Coalition
 Christian Democrat Comeback
 Grand Coalition 2005-09
 CDU-CSU-FDP Coalition 2009

18. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.2 Germany Economy
 Germany has the largest population in the European
Union with 81.8 inhabitants in January, 2010.
 Germany is the 3rd largest country in terms of
immigrants from around the world.
 Germany is known for its well established social security
system which stems from the flourishing German
economy. It ranks 4th in terms of nominal GDP and
5th in terms of purchasing power in the world.
 Germany is the world’s second largest trader both in
terms of imports and exports.
 Germany is also the hub of global scientific and
technological developments.
 The graph in the next slide shows how the real growth
rate has performed since 2007 till 2009. (in percentage)

19. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.2 Germany Economy
The graph below shows how the German economy performed
since 2007 till 2009.

20. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.2 Germany Economy
 Germany is part of the G-7, Group of Seven, G-8, Group of
Eight, and G-20, Group of Twenty.
 At the core of Germany's success and influence lies its
currency.
 The main export and import partners of Germany are:
France, US , Netherlands, UK, Italy , Spain , Russia.
 Germany’s main exported and imported commodities
are: Machinery , Vehicles , Chemicals, Metals and
manufactures , Foodstuffs, Textiles.
 The real strength of Germany trade has been its productive
workforce which according to 2009 figures amounted to
43.51 million.
 The manufacturing industries employed almost 29.7% of
the work force and the growth helped Germany trade in
terms of automobiles and machinery.

21. CHAPTER (1) POLITICAL AND
DEVELOPMENT SITUATION OF GERMANY
1.2 Germany Economy
 Germany’s industry: The Germany industry
sectors employ as much as 29.7% of the total work
force.
 Germany’s manufacturing: Manufacturing laid the
foundation for the German economy.
 Indisputably, Germany produces some of the finest
automobiles in the world besides ships and tools.
 The German industry sectors are well developed
and poised to offer greater value around the world,
thereby fortifying the country’s economy even in
financially turbulent times.

22. CHAPTER (2) : ROLE OF GOVERNMENT IN DEVELOPMENT
2.1 The Federal Government Role
 The German federal government plays a crucial
role in the German economy, sometimes directly
and sometimes indirectly through the effects of
other policies on the economy.
 Unlike the Japanese government, there is no single
ministry that attempts to direct industrial
government and competitiveness, but government
policy can have wide-ranging effects because of the
many offices that play a role.

23. CHAPTER (2) : ROLE OF GOVERNMENT IN DEVELOPMENT
2.2 The Chancellor
 The way the chancellor and his office, the Chancellory, deal with the
economy depends very much on the incumbent's interests and personal
style. For example, under Helmut Schmidt (1974-82), who was very
interested in economic matters, the Chancellory shaped, directed, and
coordinated the economic policy of the entire government economic
apparatus.
 He has used the political, not the bureaucratic, structure to make policy,
working through the CDU/CSU and the FDP or through personal
contacts.
 Germany was the first to introduce social insurance programs including
universal healthcare, compulsory education, sickness insurance,
accident insurance, disability insurance, and a retirement pension.
 Moreover, the government's universal education policy bore fruit with
Germany having the highest literacy rate in the world – 99% – education
levels that provided the nation with more people good at handling
numbers, more engineers, chemists, opticians, skilled workers for its
factories, skilled managers, knowledgeable farmers and skilled military
personnel.

24. CHAPTER (2) : ROLE OF GOVERNMENT IN DEVELOPMENT
2.3 The Minister of Finance and the
Minister for Economy
 In the cabinet, roles are more fixed, although they might
change in accordance with personalities and political
parties.
 He is responsible for the federal budget.
 The minister of finance also accompanies the chancellor
to the annual financial summits and is the main German
spokesperson in the meetings of the Group of Seven
(G-7)
 He is thus in a position to manage not only domestic but
also international financial policy for Germany and to
coordinate the two.

25. CHAPTER (2) : ROLE OF GOVERNMENT IN DEVELOPMENT
2.4 The Bundeskartellamt
The Bundeskartellamt (Federal Cartel
Office) is the institution specifically
instructed and empowered to prevent a
return to the monopolies and cartels
that periodically controlled much of the
German economy between the 1870s
and 1940s.
The Bundeskartellamt has faced a
particularly difficult task in the
integration of the East German and
West German economies.

26. CHAPTER (2) : ROLE OF GOVERNMENT IN DEVELOPMENT
2.5 Interesting points from the SustainableGovernance Indicators 2016 for Germany
 Economic Policies :With a stable, growing economy, Germany falls into the top ranks
internationally (rank 5) with regard to economic policies. Its score on this measure has declined
by 0.2 points since 2014.
The government has reversed a course of liberalization in favor of greater regulation, including
a minimum wage and pension-system expansions.
 Social Policies : With a well-developed welfare system, Germany receives a high overall
ranking (rank 12) in the area of social policies. Its score on this measure is unchanged relative
to 2014.A renewed focus on equity and quality has improved once-worrisome education
outcomes.
 Environmental Policies : As a leader in the renewable-energy sector, Germany falls into the
top ranks (rank 5) in the area of environmental policies. Its score on this measure has improved
by 0.2 points relative to 2014.
The country has launched a phase-out of nuclear power, but has balked at imposing a carbon
tax to reduce use of emissions-intensive coal.
 Democracy (Quality of Democracy) : Reflecting a stable system founded on the rule of law,
Germany’s score for democracy quality places it in the top ranks (rank 5) internationally. Its
score on this measure has improved by 0.2 points overall since 2014.Parties receive public and
private funding, with some transparency concerns.
 Governance :
(a) Executive Capacity : Despite some inefficiencies during crisis periods, Germany falls into
the upper-middle ranks (rank 14) with respect to executive capacity.
(b) Executive Accountability : Despite a few recent oversight challenges, Germany’s overall
score for executive accountability places it in the top ranks (rank 6) worldwide.

27. CHAPTER (3) : MAIN CAUSES OF BEING DEVELOPED NATIONS (OR) DEVELOPMENT OF
GERMANY.
3.1 Reviewing the overall Germany development
 German development policy concentrates on the key sectors of education, health,
sustainable economic development, good governance, rural development and climate
and resource protection.
 Funds are deployed selectively in these areas in cooperation with the partner countries.
Good governance means constructive interaction between the state and society, which
guarantees citizens’ political participation, respect for human rights, social welfare and
the rule of law.
 It also means effective governmental institutions and responsible behavior by the state in
terms of political power and public resources.
 Good governance in any sector is a prerequisite for development measures to have a
sustainable effect.
 Human rights are the guiding principle of German development cooperation.
 Because of good education system and more educated person, from 1895 to 1907, the
number of workers engaged in machine building doubled from half a million to well over a
million.
 Germany is the third largest exporter in the world with 1.13 trillion euros ($1.28 trillion) in
goods and services exported in 2014. The service sector contributes around 70% of the
total GDP, industry 29.1%, and agriculture 0.9%. Exports account for 41% of national
output.

28. CHAPTER (3) : MAIN CAUSES OF BEING DEVELOPED NATIONS (OR)
DEVELOPMENT OF GERMANY.
3.1 Reviewing the overall Germany development
 Germany is the richest country in Europe, and the second richest in the world
after the United States
 The consensus view is that Germany is firing on all cylinders, making its
economic model something worthy of emulation for large economies. Sweden
is often touted as a similar example for small open economies. The reality,
however, is that for every exporter, there must be an importer; So, to the
degree that German economic success is built on exports, it is also built on
global imbalances.
 Germany for building a recovery based not just on exports, but on capital
investment and saving. One reason that Germany is a manufacturing and
export powerhouse is because it has invested in those businesses. Certainly,
wage restraint over the past decade by German labour unions has kept
German companies in the mix. But, at heart, the German export story is about
investment in human and physical capital. And that is definitely worthy of
emulation.

29. CHAPTER (3) : MAIN CAUSES OF BEING DEVELOPED NATIONS (OR)
DEVELOPMENT OF GERMANY.
3.2 Economic stimulus package
 An Economic Stimulus package is an attempt by the government to boost economic
growth and lead the economy out of a recession or economic slowdown.
 This economic stimulus package to Germany very broadly includes infrastructural
investments, social benefits, tax concessions and soft loans.
 A substantial portion of this German economic stimulus package, of about 17 – 18 billion,
is in form of investments to be made in highway construction, educational spending, and
tax cuts for individuals and businesses.
3.3 Ripple effect of Germany’s good education policy
 The government's universal education policy bore fruit with Germany having the highest
literacy rate in the world – 99% – education levels that provided the nation with more
people good at handling numbers, more engineers, chemists, opticians, skilled workers
for its factories, skilled managers, knowledgeable farmers and skilled military personnel.
3.4 Poverty reducing
 The German government sees development policy as an investment in the future that is
in everyone’s interest.
 Its objective is the sustained fight against poverty and structural deficiencies.
 The Millennium Declaration and the eight Millennium Development Goals (MDGs) derived
from it are the main international frame of reference for poverty reduction worldwide and
for shaping sustainable global development. This is the focus of German development
policy as well.
 Reducing worldwide poverty is also in Germany’s interests.

30. FINDINGS AND RECOMMENDATIONS
Findings
 Germany is well manage and maintaining its resources.
 Govenment policy on education development and human
development is curiously good highest literacy rate in the world –
99% which lead to become developed country.
 Concrete policy on development and partnering with others countries
to get more cooperation in sustainable development.
 Germany is practicing social market economy and it includes a
variety of private freedom combined with centralized economic
planning and government regulations such as government
commitment to regulatory efficiencies and open market policies
continues effective protection of property rights. Its means Germany
is well established social security system which stems from the
flourishing German economy.
 Rule of Law and anti-corruption enforced effectively both foreigners
and citizens’ property.

31. FINDINGS AND RECOMMENDATIONS
Findings
 The government provide subsidies in some area and maintains price
controls in other economic sectors.
 Being a developed country, Germany is 3rd largest country in terms
of immigrants from around the world
 Germany has a powerful Constitutional Court and traditionally strong.
So that that every person may file a complaint to that court when his
or her constitutional rights.
 Based on 2009 unemployment rate, it’s grew from 7.8% to 8.2%
because of industrial slow down to lesser imports for productivity.
 Lowest birth rate in the world.

32. FINDINGS AND RECOMMENDATIONS
Findings
 Being a developed country, Germany is 3rd largest country in terms
of immigrants from around the world
 Germany has a powerful Constitutional Court and traditionally strong.
So that that every person may file a complaint to that court when his
or her constitutional rights.
 Based on 2009 unemployment rate, it’s grew from 7.8% to 8.2%
because of industrial slow down to lesser imports for productivity.
 Lowest birth rate in the world.

33. FINDINGS AND RECOMMENDATIONS
Recommendations
 Germany is the seventh most visited country in the world, with a total of 407
million overnights during 2012. Domestic and international travel and tourism
combined directly contribute over EUR43.2 billion to German GDP. Including
indirect and induced impacts, the industry contributes 4.5% of German GDP
and supports 2 million jobs (4.8% of total employment). It is recommended
Germany should maintain its tourism industry to maintain environment,
historical places, create job opprotunities and promote German GDP.
 To reduce crime rates, human trafficking, terrorist and other social affects,
Germany government should develop policy and implementation plan for
controlling migrants as Germany is 3rd largest country in terms of immigrants
from around the world. On the other hand, Syrian refugees coming to
Germany country and relocating these refugees will be very costly. Merkel
(the German chancellor) appeared to bow to political pressure within Germany
to work to place limits on the number of refugees entering the country.
Because, the Paris terrorist attacks created security fears about the flood of
refugees.

34. FINDINGS AND RECOMMENDATIONS
Recommendations
 Government should develop inclusive attractive policy to reduce low birth
rates. Despite economic prosperity, Germany´s biggest threat for future
economic development is the nation's declining birthrate which is among the
lowest in the world. The is prevalent in parts of society with higher education
are responsible for low fertility rates. As a result, the numbers of workers will
decrease and the government spending needed to support pensioners and
healthcare will increase if the trend is not reversed. Plus, many no longer
consider children a central part of life.
 Currently, most of well-known Germany products are export to other countries
as well as all the German well-known high tech raw materials are inport from
other countries. On the other hand, the eurozone economy continues to falter
and will continue to be a pressing concern for Germany in 2016 because of
Eurozone deflation. Germany has the strongest and most stable economy in
the eurozone. However, that means Germany is often required to provide
economic assistance to the rest of the region. Further European economic
issues could begin to have a negative impact on Germany's economy.
However it is, the recommendation goes to Germany is mainly
focus/emphasis on its nation economic stability and sustainable first.

35. ANY QUESTIONS PLEASE
Thank You For Your Kind Attention