After the end of the First World War, the German Empire was loaded with all the mistakes of the war and then stripped of its imperial title. Finally, all possible measures were taken to prevent it from reconfiguring its empire. The conditions of the Treaty of Versailles,
Allied victors in the war.
Germany has been charged with igniting the war and has been fined 269 billion marks to be paid on 42 annual installments, later reduced to only 112 billion marks.
Germany was stripped of its foreign colonies in addition to the loss of some of its territory.
The number of military personnel has been reduced to only 100,000.
Restricted by 15,000 troops to the Navy and stripped of its combat submarines.
Exempted from the efficiency component by identifying 12 years as the maximum engagement period for soldiers in the army and 25 years for officers.
Conscription has been abolished from the ground up.
finally prevented from establishing an air force.
It is almost impossible for Germany to rebuild itself again and if we go beyond the historical context in the next twenty years and Hitler's industrial and military renaissance in Germany enabled it to establish an army The negative impact on the country is the defeat for the second time in another world war that cost Germany everything it has. We are talking about a country that has lost almost all of its economic components and was required to build itself from scratch or from Under zero if you like Ge.
German cities were devastated. Infrastructure in all cities was almost destroyed. There was a severe shortage of food and medicine. Goods were rationed. The value of the Reichmark collapsed to the limit and inflation hit everything. Germany lost about 6 million soldiers and 3 million civilians in war. , And this is unlike those with permanent disabilities, and the German labor market has been hit by a large deficit in the labor force, who will fill this vacuum and how in those circumstances we talk about renaissance? And women at that stage had a majority in the labor market because most men were killed in the war, They became the main component of the labor market, replacing men in the labor market Which was once the preserve of them. At that stage, what was known as the "women of the rubble" emerged at that stage. These women's activities contributed to the rebuilding of the capital by removing the rubble of the houses and assembling them into high hills on the outskirts of the city. The souls of the people by chanting slogans and slogans such as "Impossible not Germany".
Development History in Germany:
In 1949, Germany was divided into two states: East Germany, which became part of the Soviet Union, and West Germany, which followed the US-led western camp. This division began to show the economic features of Germany, which we know today. Has been a success for four decades, but what concerns us here is the experience of West Germany, which has proved very successful as a result of several factors that we will try to clarify as it comes.
Ludwig Ehrhart, a German economist who was appointed finance minister and head of the country's economic council after the war, contributed to his vision of setting the economic system that Germany would pursue to achieve its renaissance, which Earhart called the "social market" system. The rapidity of the German economy, which was severely eroding at that time. Of course, the role of the Marshall Plan and the considerable support that West Germany received could not be overlooked, but this support could not have been achieved if there was no strong basis to organize and manage that Aadat, the system of "social market" succeeded in the integration between the capitalist and socialist orientations and taking advantages of each approach and directed in the form of laws helped save the economy from the slump, and can be summarized Udwich Erhart strategy in the following points:
- Replace the old currency (Reich Mark) with another new currency (Mark) to reduce the inflation and to restore the Germans confidence in their currency, every 50 Reich Mark converted to Mark with a grant to every citizen is estimated at 50 marks.
2 - abolished the system of pricing of goods, which paved the market to accept the capital policies to be applied.
- After the market has been paved, it has implemented explicit capital policies such as the freedom to own means of production and investment.
4 - took socialist policies at the same time, but from a social perspective, such as control of interest rates through the central bank, which contributed to control of high inflation rates.
5 - allowed the intervention of the state in enacting laws that guarantee the standard of living of the poor.
6 - The enactment of laws allowing the participation of workers in the boards of directors, which reduced the domination of capitalists in terms of workers' rights.
7- Interested in small and micro enterprises to the maximum extent and put them as a basis for the economic pyramid followed by medium companies and finally put giant companies at the top of the German economic pyramid.
8 - Develop a program dedicated to lending unemployed people with very simple benefits provided that the loan is intended to start new projects to reduce the deficit in some of the goods and services needed by the market has contributed to reduce unemployment rates and reduce the rate of import and also raise the rate of consumption and price control.
The application of the system in the previous form bases the increase in the number of companies operating in the market in all fields. The small and micro companies specialized in manufacturing the spare parts and supplementary products needed by the large companies in the market and specializing the medium companies in the import and export medium industries that the market needs permanently such as wood products, textiles and food products. The giant companies in the fields of the automotive, pharmaceutical, telecommunications and technological fields have become small companies an important resource for larger companies is indispensable and this helped to Takaful economy This remarkable system gave the private sector an opportunity to participate effectively in the process of promoting the economy, representing most of the economic train cars, while retaining the role of the captain of the train and the owner of the first vehicle.
Historically, the material resources of the western half of Germany were higher than those of the eastern half. After the division, and because of the great economic development of West Germany, migration from the eastern half to the western half represented a dream for citizens in the East. In the West there is democracy and a social dimension, This greatly increased the emigration rate to 3 million immigrants, most of whom were skilled workers, which was the reason for the prosperity of the West German economy of course, but it increased over time and forced East Germany to build the Berlin Wall in 1961 to maintain Z remainder of their labor, which skilled economy affected their departure to the Western half.
Module Stage:
The political factors and the general economic weakness in some Eastern European countries led to revolutions that overthrew the communist regimes, which contributed to the arrival of the protests to the capital of the East German Republic where the people called for freedom and democracy in the same way as their western neighbor. The authorities had to organize a referendum on unity with West Germany, The Berlin Wall is now past, and despite the joy of the storm, a great challenge for the united German Republic is how it will deal with the additional burden of joining its neighbor. Oriental to it?
The East German economy was experiencing a near-sustained slowdown because the state controlled everything in it, which contributed to the reluctance of investors to invest in that country, and the freedom of ownership was not available from the basis, how will come investment, in contrast, Western trade had laid the foundations of capitalism Years of experience and experience have been outstanding. The German miracle came first in absorbing these additional numbers and also in absorbing their productive, cognitive and social backwardness. 16.11 million people were added to the population. The state had to deal with their poor productivity in addition to providing them with services commensurate with what was offered in the western half. Was already significant but the results of the social market system were enough to modify those conditions.
In the beginning, there was a significant drop in growth rates and sometimes even negative figures, which is a major economic setback. However, the German reform program, which stipulated increasing investment in the eastern half at rates higher than the Western half and on an annual basis, The results showed that after a period of time, the infrastructure of the Eastern half improved. The number of projects increased and the productivity of the individual increased. Before the merger, East German productivity was only 25% of the output produced by the West. Germany Germany Endodontic achieved a 10% average growth rate per year, while its eastern neighbor was achieved 2.5% at the most. Gradually, signs of growth have been seen in educational and health institutions and all aspects of social infrastructure, and Western Germany has harnessed all its potential to lift its eastern neighbor from its ordeal.
After all these years of application of the German reform program and the strict application of quality standards to German products, it has become the confidence of the whole world. Germany has turned from an exhausted economy that shows no sign of future reform to the strongest European economy and the fourth most powerful global economy with a GDP of $ 3.1 trillion With a growth rate of 1.7% despite having the largest European population of 84 million. The world's third-largest exporter with $ 1.24 trillion, the third largest importer of $ 989 billion, the world's highest trade surplus in 2014, foreign exchange reserves of $ 173.7 billion, and the third largest country in the world to accept immigrants, To benefit from the migration of competencies to it.
It has the largest social insurance reserves in Europe and the first in the field of health. It has more than 2,000 hospitals and treats everyone living on its territory even if it is not German. The public debt is about 79% of GDP with an excellent inflation rate of only 0.2%, and the labor force is excellent about 45 million people (53.5% of the population) with an unemployment rate of only 4.6%, one of the best in Europe,
We can conclude from the above that what Germany has done is an economic miracle without a doubt. This perception supports these difficult circumstances, but the impossibility of the state of defeat in two world wars, which lost all its foreign colonies and all its resources. Was wiped out just as happened in Dresden or Cologne, and killed her men and wounded her youth, and humiliated and raped women, and the rest of the people were displaced and lived among the ruins of their cities for years, and was divided into two parts and was able to overcome their differences and reunited again, and after all this has become a pivotal economy, Commercial with most du The world.
