The German economic and social system was once admired for its
capacity to foster international competitiveness as well as social
integration. In the literature on varieties of capitalisms it was
even called the Modell Deutschland. But in the last years, plagued
by mass unemployment and lagging behind in terms of economic
growth, many commentators portrayed it as institutionally incrusted
and hopelessly outmoded. However, the basic institutions
underpinning the German model are currently undergoing significant
changes. The Reda "Green reforms of the labor market and the
pension scheme, recent incidents like the take-over of German
Mannesmann by Vodafone Airtouch, for example, or the evasion of
collective bargaining agreements can be interpreted as significant
attacks on the corporatist structure of the model. Thus, does the
future imply a (more) liberal, market-style economy also in
Germany? And if so, will this transformation solve the problem of
mass unemployment?
Surviving Globalization? explores the future of the German
economy within the institutional and societal framework of Modell
Deutschland. The contributing authors scrutinize important economic
trends, institutional changes and governmental reforms, ranging
from corporate governance and industrial relations to macroeconomic
policies, and from the welfare state to European integration. They
assess the theoretical perspectives informing the current reforms
and raise questions about the feasibility of institutional
transfer.
Thus, Surviving Globalization? provides a comprehensive and
empirically profound introduction to the distinctive features of
the German economic model in the light of globalization,
Europeanintegration, and German unification. In contrast to common
notions about the German economy, it identifies not institutional
rigidities but the macroeconomic exhaustion of Germanya (TM)s long
standing mercantilism, its constant attempt to achieve current
account surpluses, and the specific way of integrating East-Germany
as major causes for its job crisis.
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