THIS WESTERN EUROPEAN NATION HAS EMERGED TO BECOME AN INDUSTRIAL POWERHOUSE. HERE'S WHY.
The behemoth size of the German economy is mainly credited to its rapid industrial advancement. As of 2017, agriculture accounts to a mere 1% of its GDP in comparison to India's 17%. Many major MNC's like Volkswagen, Daimler and Allianze are based in Germany.
According to me, this success is due to:
1. Skilled Education.
In Germany, a student can choose to pursue a technical career from as early as 8th grade and gets skill based training fro that early age. Thus, a student can learn actual skills from an early age which can give real career advancement.
2. Euro Advantage.
As you might know, Euro is used by ALL members of the EU. So there is no fluctuation in value of exports, no trading barriers and above all uniformity in price of goods. The trade policies are pro-globalisation rather than nationalistic giving impetus to trade.
3. Rhine Capitalism.
Germany has a mix of socialism and capitalism with a empowered private sector and proper welfare system. Trade unions also have representatives on company's BOD so their interests are safeguarded.
4. Automation & Strong Capital Goods Industry.
Germany has effectively utilised robots to remain competitive among rising wages. There is also a strong capital goods (machinery and plant required for production) reducing imports and foreign dependence.
5. Major Exporter
Germany is the world's second largest exporter by volume only behind the United States. This explains heavy focus on manufacturing. It is very likely that any product we use has some part/component made in Germany.
Comments would be welcome. Please give your opinions so I can improve this blog.
HAVE A PRODUCTIVE DAY!
Image credit; The Telegraph & Wawamu Stats.