The West German Model

First Published in 1981. Routledge is an imprint of Taylor & Francis, an informa company.

Dynamic technological developments in industrial production, the rise of new social movements in national politics, and great changes in the international political economy have left a deep imprint on the Federal Republic. A compelling explanation of West Germany's success in maintaining economic prosperity and political stability under such challenging conditions has continued to elude observers. Under the editorship of Peter J. Katzenstein, thirteen distinguished scholars from both sides of the Atlantic here provide an original interpretation of the political economy of the Bonn Republic during the forty years since its founding, and explore in particular its extraordinary capacity for accommodating change. Whereas studies in political economy have typically focused on one level of political action—either the shop floor, or national politics, or the international system—this innovative account analyzes the interaction of change at all three levels, bringing together case studies drawn from six manufacturing and service sectors.

Since the Financial Crisis in 2008 Germany has performed economically far better than most of its neighbouring countries. What makes Germany so special that nobel prize winner Krugman called it a German miracle and is this sustainable? Is it its strong economic and political institutions, in particular trade unions, which by international comparison are a solid rock in turbulent waters, its vocational training which guarantees high skilled labour and low youth unemployment, its social partnership agreements which showed large flexibility of working time arrangements during the crisis and turned the rock into a bamboo flexibly bending once the rough wind of globalization was blowing? Or was it simply luck, booming exports to China and the East, a shrinking population, or worse so, a demolition of the German welfare state? All along from miracle to fate to shame of the German model: Is there such a thing like a core of Germany? The debate on the German model is controversial within Germany. But what do neighbours think about Germany? The Nordic countries want to copy German labor market institutions. The Western countries admire it for its high flexibility within stable institutions, the Austrians have a similar model but question Germany's welfare arrangements and growth capacities. Many Eastern European countries are relatively silent about the German model. There is admiration for the German economic success, but at the same time not so much for its institutions and certainly not for its restrictive migration policy. The Southern countries see it as a preposterous pain to Europe by shaping EU policy a la Germany and forcing austerity policy at the costs of its neighbours. Can the German model be copied? And what do neighbours recommend Germany to do?

First Published in 1981. The essential stability of the Federal German Republic was once more confirmed by the outcome of the 1980 election. In other respects too, there was little evidence that Western Germany would emulate the 'crisis situation' affecting other West European states. Yet 'stability' is not an immobile condition, and since it results from the interaction of a number of factors - political, social and economic - no single explanation of Germany's performance is likely to be convincing. Furthermore, West Germany has to face several unresolved problems which, although not pointing to a fundamental crisis, remind us that the concept of 'stability' has to be approached with care. The essays in this book reflect these ideas, and they explore a range of issues that are central to the understanding of contemporary German politics. The political focus is apparent in the analyses of the 1980 federal election and in the related contributions on political leadership and the questions surrounding German political culture. However, other themes also merit detailed attention: West German foreign policy and the Deutschlandpolitik as well as problems associated with university reform, the interpretation of German history, and the considerations affecting both the management and the performance of the West German economy. Finally, the discussion is concluded by examining the question of whether the German democracy does have 'secrets' that might explain the stability of the political system.

The post-war emergence of West Germany as the dominant economic power in Europe gave rise to the mythology of the 'economic miracle' and the model policies of the 'social market economy'. This study reveals a mundane reality of class politics in which democratic institutions have become increasingly marginalised by big capital and by an unelected central bank. Economic policy has failed to halt the recent slide into mass unemployment and has reverted optimistically to the plan-less export drives of the fifties. The absence of the earlier advantages, the author claims, bodes ill for the future of 'model Germany'.