2013年9月19日 星期四

The secrets of German success


Germany, the industrial powerhouse of Europe and the world's second-largest exporter, has achieved an economic success. Despite working fewer hours, having a workforce that is not exceptionally productive, and children spending less time in school compared to its neighbors, Germany's economy has proven to be resilient and powerful. This article discusses the secrets behind Germany's economic strength and explores the lessons that other nations can learn from this remarkable success story.

Imagine a country whose inhabitants work fewer hours than almost any others, whose workforce is not particularly productive and whose children spend less time at school than most of its neighbours.

But the country described above is none other than Germany, Europe's industrial powerhouse and the world's second largest exporter; a country whose economy has single-handedly stopped the eurozone falling back into recession and the only nation rich enough to save the euro.

When you consider that only the Dutch work fewer hours among the 34 members of the OECD, that German children spend 25% less time in the classroom than their Italian counterparts, and that there are six more productive economies in Europe alone, these facts appear all the more remarkable.

While the rest of Europe gorged on cheap credit throughout the 1990s and 2000s, German companies and individuals refused to spend beyond their means.One reason for this is that real interest rates in Germany remained stable, unlike those in other European economies.

In the UK, Italy, Spain and Portugal, for example, higher inflation meant real rates moved down, so there was a huge incentive to borrow money.

But cultural differences are just as significant - quite simply, Germans are uncomfortable with the concept of borrowing money and prefer to live within their own means.

The reforms laid the foundation for a stable and flexible labour market. While unemployment across Europe and the US soared during the global downturn, remarkably the jobless number in Germany barely flickered.

German workers were simply willing to work fewer hours, knowing that they would keep their jobs because of it.

They were all the more willing to do so due to the stronger bond that exists between workers and employers compared with many other countries.

"There is a culture of business owners acknowledging and rewarding the efforts of the workforce," says Andreas Woergoetter, head of country studies at the OECD's economics department.

No wonder, then, that Germans work fewer hours than most.

Vocational Education System:

These programs enable young adults to spend more time in on-the-job training than in traditional classrooms.

Apprentices aged 15 to 16 spend more time in the workplace receiving on-the-job training than they do in school, and after three to four years are almost guaranteed a full-time job.

In Germany, there is less stigma attached to vocational training and technical colleges than in many countries.

"They are not considered a dead end," says Mr Woergoetter. "In some countries, company management come from those who attended business school, but in Germany, if you're ambitious and talented, you can make it to the top of even the very biggest companies."

The German education system, therefore, provides a conveyor belt of highly skilled workers to meet the specific needs of the country's long-established and powerful manufacturing base, which is rooted in the stable, small-scale family businesses that have long provided the backbone of the economy.