Section A
Skyler Ross
POLY SCI 315 Section A. & B.
Chief Executive Officer - Germany
With the anticipated trends that are happening to Germany when it comes to Power,
Currency and Globalization, we must be very cautious but also very demanding when it comes to making treaties with other countries. Power is going to be the overlying element that Germany might have to gain what it needs to increase overall. In the next few year Germany will significantly drop in power in 2002 through 2005. We are starting this Simulation off in a loosing way, because we are starting from the lowest point in our Power, but it should go higher than it previously was. This starting from the lowest point in our power put Germany at a disadvantage to the other countries and Germany needs to make sure that we don’t let other countries take advantage of us during our weakened state. Our Currency will heavily follow the loss of power in our country and dramatically drop and then rise extremely high after that. Right now, in 2005, our Currency is going to rise dramatically and we should take advantage of this opportunity and increase trade amongst the countries. We export $1.016 trillion
1
and import
$801 billion
2
which gives us a profit of about 215 billion per year. With the increase of our currency, we should be able to gain even more of a profit. Lastly, we are increasing in our globalization at a steady rate. Our GDP is the 5 th
highest in the world
3
, and 1 st
in the EU
4
. In the simulation, we are the forth highest and they should give us a good way of helping out other smaller countries as we as, we have the ability to help the larger countries and try to gain things in return.
Section B
When it comes to economic growth, a way we can do this is by using our military to train other militaries to continue peace around the world. Our military is now a defense force
5
rather than a military that can be used against people like an attack force. We have a wide range of branches like the German Air Force, Army and a Joint Service Support Command. The GDP of the militaries budget is dropping and is now at 1.2%. We also have the highest rate of disarmament among the CFE (Conventional Forces in Europe) signatories, with the exception of
Russia.
6
The way we will train the other people will be through our rapid-reaction units which are growing in number with the tightening of our military budget. From 1990-2000, 37,000 were moved to rapid-reaction units.
7
All NATO forces have a group of their military, USA being the largest, within the German borders. Germany is happy to grant them with housing, training grounds, airfields, schools, hospitals, and certain logistics. The money form all this is actually coming from the soldiers themselves. They put more revenue into the country through, Allied wages paid to German employees, orders by Allied forces placed with German firms, and spending by soldiers and their families in Germany.
8
Beside the military, we also have Federal and Land Police Agencies in our country.
9
Now knowing all of our military, I think that we will be able to help out other countries with their problems of keeping peace. We have already started helping keep peace and spread
democracy to other countries. We currently have ,180 troops stationed in Bonsnia-Herzegovina;
2,650 Bundeswehr soldiers are serving in Kosovo; 3,900 Bundeswehr troops are assisting the US anti-terrorism operation called Enduring Freedom off the Horn of Africa. Germany is also the largest contingent of the NATO-led ISAF Force (International Security Assistance Force) in
Afghanistan, with about 4,500 German troops.
10
With all this experience, I hope that other countries see our drive for freedom and take our offers to help them because like our Foreign
Policy is, Peace and freedom are at the core of German foreign policy.
Germany’s Policy for Spring ‘06
Peace and freedom are at the core of German foreign policy. That is our motto and we are going to do that from day one, until the last day we are Germany. Our policy is to strengthen our East Germany. Our East German is still to this day, recovering form the after math’s of
WWII. We did not have the time or money like the other countries had to re-build their countries and their people and begin to prosper again. We were hit hard after the war with payment we had to make to other countries to rebuild their countries and now we are finished with that and really focusing on Germany and will re-build her just as we were before. Like I’ve stated before, the thing that is really holding us back is East Germany, but we have solutions to solve this problem. We will start by increasing and strengthening our internal economy buy stabilizing the growth rate of the Euro so other countries will not be so hesitate to trade with us.
Next, we will increase trade with all countries that are will to trade with us. We are one of the main powers in the WTO (World Trade Organization) and have reached this through hard work and keeping our faith in other countries goods and services. Are biggest exports are machinery, vehicles, foodstuff, and metals. We would like all other countries to be open to discussion to trade with these and many other goods and services.
Another one of our goals deals with our policy directly; it is to help other countries train their military as well as police forces in defending against Terrorism. We will send some of our rapid-reaction units to come to your country and they will help train your countries military and police forces. We are will to do this because we would like help in stomping out the terrorism acts and would like peace to come to this world. I think it would be helpful if we had other countries militaries and police forces to help us in our fight for freedom and peace around the world. We will not, however, be doing this for free. We are doing this to increase relation with other countries in the form of trade with goods and services. We are trying to increase the money flow in Germany so that all of Germany is stable and well.
Stabilization of the Euro, increase trade with other countries, and the willingness to help train you military and police forces to deal with terrorism is three policies that Germany is proposing. If countries are willing to take it, I think it would be good for not only the other country, but for ourselves as well. All policies for Germany will be for one reason and one reason only, to promote our motto: Peace and freedom are at the core of German foreign policy.
Skyler Ross
Chief Executive Officer
Germany
1 CIA-The World Factbook. http://www.odci.gov/cia/publications/factbook/fields/2078.html
, accessed on Feb. 16,
2005.
2 CIA-The World Factbook. http://www.odci.gov/cia/publications/factbook/fields/2087.html
, accessed on Feb. 16,
2005.
3 Wikipedia. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP) , accessed on Feb. 20, 2005.
4 Wikipedia. http://en.wikipedia.org/wiki/European_Union#Member_states_and_enlargement , accessed on Feb. 20,
2005.
5 Wikipedia. http://en.wikipedia.org/wiki/Germany#Armed_Forces , accessed on Feb. 20, 2005.
6 German Army Equipment. http://www.germanculture.com.ua/library/facts/bl_inventory.htm
, accessed on Feb. 21,
2005.
7 German Culture. http://www.germanculture.com.ua/library/facts/bl_army.htm
, accessed on Feb. 21, 2005.
8 Foreign Military Relations. http://www.germanculture.com.ua/library/facts/bl_foreign_mil_rel.htm
, accessed on
Feb. 21, 2005.
9 Police Agencies in Germany. http://www.germanculture.com.ua/library/facts/bl_police.htm
, accessed on Feb. 21,
2005.
10 German Culture. http://www.germanculture.com.ua/library/facts/bl_army.htm
, accessed on Feb. 21, 2005.
Marcy Ann Castro
R. Chadwick
POLS 315
February 21, 2006
Germany IFS
Section A
Graph 1.1
Gross Domestic Product –Billion $ (2000-2100)
Figure 1.2
GDP Annual Growth Rate 2000-2020
Figure 1.3
GDP Annual Growth Rate 2000 - 2100
Figure 2 Globalization Level Index 2000-2020
As the fifth largest economy in the world and the dominant economic system in Europe,
Germany’s power lies in its continued economic success and stability. As Figure 1.1 shows, over the next century Germany will see a steady increase in its GDP. Despite a slump in the early millennium, GDP growth rate will see a steady increase rising to a possible 3.5 rate before 2020.
Although Germany’s current and immediate economic success will ensure it an adequate power position for the next decade, Figure 1.3 stretches this scenario over the century, showing a steady decrease in the GDP growth rate. This is not something that the German government can afford to ignore. The “integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 billion. Germany's aging population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers” 10
As Germany continues to rise as a leading global
power, it must work to maintain its economic status and seek out new opportunities and trade with other emerging markets. Currently “Germany is the largest trading partner of most
European countries”, the world’s leading exporter, and the second largest importer of goods.
10
International trade and marketing is the most vital part to sustaining the German economy and power structure.
In order to strengthen its economic base and ensure economic stability, the German market should look to improve international trade relations with those nations outside of Europe, specifically Indonesia, China, and Japan. Each of these nations had goods and natural resources which can be traded with Germany for consumer goods, machinery, foreign aid, or military training. Establishing relations with these nations could revitalize the domestic economy and possibly open up new ventures in a lagging East Germany. In continuing to build Germany’s world power index and globalization levels, the German domestic economy must be reformed to boost economic growth and to decrease a staggering 11.6% unemployment rate.
In addition to building new trade policies, Germany must continue to “promote a stable market-economy liberal democrazy in Russia” 10 . Germany is currently working with Russia “in building a gas pipeline at the bottom of the Baltic sea directly from Russia to Germany”
10
. New energy policies are leading towards a nuclear power phase out. These factors with the recent ratificiation of the Kyoto Protocol will push Germany ahead with its energy policies.
Section B
The role of collecting intelligence on Germany’s foreign affairs and the development of policies affecting Germany and her interests belongs to the Bundesnachrichtendiesnst (BND).
This Federal Intelligence Service provides “important information for foreign affairs and national security decisions.”
10
Issues of domestic intelligence are handled by the
Verfassungsschutz (Federal Office for the Protection of the Constitution). Currently, the BND is headed by President Ernst Uhrlau, who was recently sworn in this past December. As the leader of the German intelligence community, he prevented the reduction in financing and authority of the special services, ensuring that “special services still play an important role in guaranteeing of security and vital activities of the State and society. At the same time, he considered that special services should be adapted to the new calls and threats that Germany and the Western
Civilization are facing – international terrorism, and organized crime.”
10
Germany’s foreign policy is based on the ideals of peace through foreign relations and resolving conflicts. It is the responsibility of the BND to provide intelligence to the Federal
Government in order to strengthen bi- and multi-lateral cooperation, improve negotiating position on our interests, and identify potential threats in order to alleviate conflict.
10
Regarding
Iraq, although, Germany has maintained a status of opposing the war, they are still training military troops outside of Iraq, showing their pledge to fight against terrorism.
Section C
For this simulation, German intelligence policies and goals will not differ from that of its current state. High priorities will remain international terrorism, organized crime, international arms traffic, and the proliferation and illegal transfer of technology. The German military will look to expand in its training of foreign military troops in order to combat the ongoing threat of terrorism on a global scale, specifically in North and South Korea and Indonesia. Trading with these nations would aid in their internal conflicts while providing a needed boost in the German economy and unemployment. We expect to maintain our alliance with the USA in working to bring an end to international terrorism. As one of the leaders in the technological front, we will
look to expand this ever-growing market, while still protecting German interests and the illegal transfer of this technology.
In addition to expanding our military training, Germany would like to increase its levels of trade with other countries. As the leading European exporter, we would like to expand our markets East to the Asian market. Increasing peace, trade, and the general quality of life are our primary goals for the next decade. These factors are not just vital in German policy, but affect world policy and diplomatic relations. Through the expansion of the German market and military aid to those dealing with internal conflicts, we expect to see a steady rise in the overall power and economic demographic. Trade would be of a benefit not only to the German economy.
Internally, Germany’s primary goal should be stimulating a stagnant economy. The unification of the East and West has slowed down Germany’s economic growth and forecasts a low GDP rate in the coming decades. An unemployment rate of 11.6% also continues to hold the economy back and poses risks to social security and increases in taxes. Again, here is where a new trade market and renewed interests could provide the necessary boost to the economy.
The Federal Intelligence Service will continue to seek alternative methods in improving foreign relations and protecting Germany and her interests. While working for these goals, the
German government will also look into the future consolidation of its federal services – the
Federal Intelligence Service, the Federal Office for the Protection of the Constitution, and its military services - in order to better serve the German people.
David Adamson
CIO2
Pols. 315
INVESTMENTS
ANNUAL CARBON EMMISIONS FROM FOSSIL FUELS
TAX RATE BY CENTRAL GOVERNMENT
POWER INDEX
As the EU only representative in the simulation and with great potential and ambitions to once again become a strong international voice, Germany is poised to peacefully, quietly and intelligently approach the world forum. With Security based policy in a post 9-11 world, we believe will allow us to keep the crucial 100% backing of the United States and their allies.
While we also boast a world leading economy only behind the United States and Japan (Wiki) lack of natural resources allows us an excellent opportunity to trade not only our high quality products but the possibility of training other countries work force, much like we have done in
Iraq, mainly by training Iraqi military and police personnel outside the country. Our stance on
Iraq, standing along side Russia in opposing the war while training troops with the USA outside of Iraq shows our countries strong alligence to liberty and justice not popularity. (Wiki)
With an automobile sector to be envied by most of the world along with shipbuilding and telecommunications our technology and manufacturing possibilities are endless. German company Volvo’s merger with Ford opened doors to a larger consumer market and visions of helping our struggling economy which has been hindered by high unemployment and a drained social security system caused by an aging population. (Wik)
Section B
In order to properly execute our plans for a model Germany, we will continue with
Germany’s movement away from fossil fuels and a nuclear energy phase out. (Wiki) With technology and scientists from our friends and allies we can create jobs and reduce carbon emissions from fossil fuel by .11 billion tons annually by the year 2020. (IFS) By doing this we not only reduce dependency on foreign oil and in the long term save on health care and other consequences of global warming.
By keeping our political mindset as one of peace and security while keeping strong allies our military expenditures and thus tax rate looks to be able to stay fairly consistent, going up
merely .05% in the next 15 years. Our leaders do understand that tax revenue without rate increase is very dangerous and difficult with an aging population and an 11.6% unemployment rate, (wiki) so a plan of increased investment is also in the works. Ideally we would like to raise our investments 350 billion dollars to almost $700 billion dollars a year by 2020. With strong investments we not only build important allies but also keep money in our citizen’s pockets while still having Government revenue. (IFS)
Through these plans and careful execution we see that our power index will rise and the respect in the world community will follow suit.
Section C
As Chief Intelligence Officer my policies will first, and foremost, will be, along with our
Military, to protect our great nation. Protection not only includes properly recognizing and dealing with real threats but also investigating other nations military and economic plans. Our
CMO and I will work very closely to assess threats and alliances while focusing much of our financial assets to strengthening our economy.
With North Korea being our main threat I will find out more about their plans for peace, if any, and keep our CMO well informed of any force that must be used as a pre-emptive defense. A strong North Korean knowledge will be extremely valuable and help ease any tensions in the region.
The economic growth plan of China is extremely important for our unemploymentplagued society. Through investment along with working extremely hard to make sure it are
German cars and not Japanese or American automobiles will keep us on top of the car trade.
The CBO and I will look for the best ways and opportunities to make this move, after a trustful alliance has been formed.
Much of my time will be spent of the United States and their policies. As the leading super power in the world, we must respect them and their power while not becoming their
European puppet. We will continue to stand for what we believe is moral and right and not what
Americans find popular. If we need to lie to protect our country from attack or sanctions, then a proper strategy will be debated. Perhaps leaking faulty intelligence is in order. Most importantly we must keep things peaceful in order to strengthen our economy and world standing.
Works Cited
Wiki Pedia http://en.wikipedia.org/wiki/Germany#Economy
CIA – The World Factbook http://www.odci.gov/cia/publications/factbook/geos/gm.html
Falelua Lafitaga Jr.
TR 1030-1145
POLI SCI 315
Section A
Graph A
Graph B
Graph C
As the CMO of Germany I’ve found graphs A, B and C great assets to when developing policies and relating to other countries. Germany being one of the world’s leading industrialized countries and located in the heart of Europe shows its significance in the world of economy and other fields.
10
Graph A, shows the exports of largest industrial countries such as USA, Japan, China and
Germany based on its security. With these industrial countries we can foresee who our biggest threat is and how Germany can create policies that can benefit later in the next two decades. We can also determine who we should seek partnership or allies especially considering Germany being the heart of Europe.
Graph B, Global Partnership graph whereas to develop a global partnership for development deals with the debt problems of developing countries through national and international measures in order to make debt sustainable. This graph shows the progression of
Germany would be after 1991 and will continue to skyrocket as to the threat seems to drop but the current path in which Germany is headed shows uncertainty if it will fall or rise. In this conclusion we need to seek improvement for the survival of Germany and her economy.
Similar to Graph B, graph C deals comprehensively with debt problems of developing countries through national and international measures in order to make debt sustainable in a long term. The security graph shows Germany current path seeping down fast as to the investment graph is progressing. In order to reach Germany’s goal trends that pose threat to Germany needs to be adjusted and reformed. Where to start?
As the CMO of Germany we must start within our community, establish awareness, promote education and reform, create or enforce our policies within and commercially.
Section B
As said before, Germany is the largest European economy and placed third largest in the world behind Japan and United States. The World Trade Organization (WTO) identifies
Germany as the world’s top exporter. France, United Kingdom, Unites States, Italy, Netherlands and other European countries are Germany’s trading partner. In 2005, totaling Germany’s exports is $1.016 trillion of machinery, vehicles, chemicals, consumer electronics and other stuff.
As for imports, Germany is the world’s second largest importer of goods with a total of $801 billion in imports.
10
Geographically, German lies center of the EU which brings forth friendship and economic ties among Germany’s neighbors. Germany engages in human rights, combating terrorism and promoting peace.
10
Germany’s military budget has not kept up with the expansion of Germany’s security. Although they have changed from protecting Germany’s borders into a mobile unit deployed around the world.
10
What can a CMO demands to handle a leading industrialize country such as Germany?
After brushing up on the facts of Germany, I would look towards the security of Germany after all it borders the Baltic Sea and the North Sea between the Netherlands and Poland, south of
Denmark. With Germany’s location it can be access through all known transportation, land, air and water. Ensuring the safety of Germany as well as its exports and imports more money should be allocated in the military budget. As for my other group members I would need help in how we can fund or invest money without increasing the unemployment rate. I would expect dissatisfy group members to believe budgeting towards other fields than my department for that is the whole purpose in making policies. Creating policies and eliminating them or reforming weaker ones that can help by using the ‘knocking two birds with one stone’ method. I would believe that my main concern is Germany’s protection and her interests.
German’s Foreign Policy
As Europe’s largest economy and second most populous nation, Germany remains a key member of the continent’s economic, political, and defense organizations. But despite being the number one economic power in the European Union, Germany looks upon increasing and stabilizing a peaceful order in the world. As the CMO of Germany, our country would like to
increase our Foreign Policies with many countries, not only in Europe but also around the world.
Our main objective is to help aid other countries, increase trading with our old and new countries and promote peace around the world. We would like to increase our military support for peace and help around the world like the support that we have shown in the war in Iraq by offering to help reconstruct efforts in Iraq. In doing so, we have highly trained Iraqi’s military and their police personnel.
As Europe’s largest economy and as a nation that relies heavily on international trade, we would like to increase our foreign trading policy with the many countries that we have traded with and the many other countries that we had never traded with. We would like to keep our exports and imports stabilize, but keep our exports higher than our imports. We would also like to increase productivity on Agriculture. Germany has been a state of decline when it comes to
Agriculture even though we are the world’s largest producers of milk, dairy products and meat.
Our military has been a problem for us since after the world war. Germany’s main goal now is to increase support and peace. We have shown the world by helping in the war in Iraq and we would also show the world by increasing our military so that we can do more good around the world. Iraq is not the only place where help and aid is needed. Our military is only to promote peace and lend a hand help where ever needed in the world. We will not help others fight in a war but we will train, support them with what ever they need like technologies, aid, or food supply.
As a CMO in the country that remains a key member of the continent’s economic, political and defense organizations, these are our Foreign Policy that we would like to see increase for the better of Germany and it’s people.
Michael Donlin
CFO
Pols. 315
Section A
Graph A
Graph B
As the Chief Foreign Officer of Germany I have found Graphs A and B to be particularly useful in illustrating and developing Germany's foreign policies. Essential to Germany's foreign policy is the idea that peace and freedom are what drives our decisions. Peace, freedom, and prosperity for all are core to Germany's foreign policy. To facilitate this policy Germany would like to become one of the world leaders in foreign aide and also maintain its strong economy.
Graph A projects Germany's level of foreign aide, in billions of dollars, up to the year
2020. It is one of Germany's goals to become a world leader in foreign aide, and increased foreign aide expenditures are one of the ways Germany hopes to achieve this goal.
In order to have large expenditures for foreign aide, Germany needs to maintain a generally wealthy economy. Germany currently has Europe's largest economy and the fifth largest economy in the world. Although plagued with chronic unemployment, Germany still manages to maintain a positive rate of growth and expects to do so for the foreseeable future.
Graph B illustrates Germany's gross domestic product, in billions of dollars, up to the year 2020.
The graph shows, as is expected, that Germany's economy will continue to grow.
Section B
The most important thing to keep in mind when developing Germany's foreign policy is that peace and freedom are at its core. This is plastered right on Germany's official foreign policy webpage. Peace, freedom, and prosperity for all. Of course, with Germany's history, it is no surprise that this is the stance it takes on foreign policy. As the antagonist in both World
Wars, Germany needs to put peace and freedom in the forefront of all its foreign decisions to gain and maintain the world's trust and so it does not repeat any of its past mistakes.
This will be my main priority when facilitating Germany's policies. As Germany's Chief
Foreign Officer I will work with my fellow officers and make sure that all policies establish peace and freedom as a top priority.
Germany is unable to have her own military, but is able to train other country's militaries.
Training other country's militaries is a way for Germany to make money and indirectly spread her military might. However, training a foreign military with the intent to strengthen that military's power to start a war will be something we will try to avoid. If Germany trains any foreign militaries it will be in order to strengthen a country's resistance to terrorism or other crisis with impending doom on its peace and freedom.
Germany's economy is one of the largest in the world. An increase in trade will not only benefit Germany's economy, but also help foster relations between countries. The result will not just be a more prosperous Germany, but also a more prosperous world.
These are the sort of decisions and motives to keep in mind when making German policies.
Michael Donlin
Peace and freedom are at the core of German foreign policy . As a member of the
European Union and the fifth largest economy in the world, Germany is in a position to make a difference and is prepared to assume greater responsibility in this changing world. By focusing on our priorities – creating a stable, lasting peaceful order in Europe; further developing international relations; preventing and resolving conflicts – we hope to foster an age of lasting peace and prosperity for all.
To achieve our goals we aim to spread democracy through the world. On a global level we hope to further develop the Atlantic Alliance and strengthen international organizations.
Above all we want to promote the United Nations and the Organization for Security and
Cooperation in Europe, and develop a more active and important role for Germany within these organizations.
Increasing trade plays a large part in fostering prosperity. Germany hopes to further develop partner-relationships with European Union bordering regions in the interest of promoting development and stability. This means an increase in trade particularly with Russia.
Increased globalization is another effect of Germany’s increased role in world relations.
Through increased interests in bringing countries closer together with peaceful diplomatic relations and trade the world will be made smaller, and peace and freedom can flourish.
An effective German policy will help boost the household consumption of the world.
With increased trade, households are able to consume more in the future and enjoy a Germanfacilitated prosperity.
Peace, freedom, and prosperity are inevitable outcomes of Germany's foreign policy.
Eric Unglaub
CTO
Pols. 315
SECTION A
As International Trade officer I think it’s important to look at our economies info-structure and examine where we can improve. GDP growth looks stable and PPP is increasing so those are good signs that trade is going to be increasing. We need to find more partners and broaden our trade networks to accommodate our growing economy.
Some things that could be problems for Germany in the future are that it could be growing too fast and might plateau and sink into recession. I think growth needs to be regulated so that our internal info-structure grows along with our economy.
I found that our health plans and social services seem to weighing our economy down and are preventing growth and expansion. Something needs to be done with that.
I chose these graphs that represent the whole of Europe because Germany is basically the strongest economy in Europe the graphs show just how fast it is growing despite rumors of stagnation.
Germany will broaden trade alliances and increase trade with existing ones. Germany has a strategic geographic position and has comparative advantage in manufacturing and production of many products.
SECTION B
Here is some data I collected from the WorldFac book shows exchange rates ect.. Important to note that the euro is getting stronger compared to the dollar this is vary important to trade because this makes the dolor weaker and Americans will become less likely to want to buy our goods because they will be expensive for them. We should try to stabilize the euro so that we can attract more trade from different partners.
Germany already has a large trade surplus which is good but this could still increase we are looking for countries interested in investing in our industries especially manufacturing IE: cars, airplanes, technology ect..
We are actively looking for energy solutions. Right now we need food and oil we will be looking to Russia or Indonesia to form a partnership to trade oil. We would be willing to send
corporations into Indonesia to help with oil extraction ect.. We want to increase existing trade with US for food items and cars. Also we want to maybe outsource some production to Japan or other Asian countries in exchange for trade contracts. We hope this will increase our production capacity.
As International Trade officer I think it’s important to look at our economies info-structure and examine where we can improve. GDP growth looks stable and PPP is increasing so those are good signs that trade is going to be increasing. We need to find more partners and broaden our trade networks to accommodate our growing economy.
It looks like the purchasing power of the Euro is increasing so that’s good for our domestic economy but for foreign countries interested in trade they will be reluctant because their money wont be worth as much and they will be likely to buy from other countries where their money is worth more. We should try to stabilize the Euro by increasing interest this would help prevent too much depreciation and would encourage trade.
Another thing to consider is what to do about the East German problem most of West German assets are being sent over to the east for social service and trying to get their economy on their feet. I’m open to suggestions about what to do about that.
Some things that could be problems for Germany in the future are that it could be growing too fast and might plateau and sink into recession. I think growth needs to be regulated so that our internal info-structure grows along with our economy.
I found that our health plans and social services seem to weighing our economy down and are preventing growth and expansion. And those damn East Germans are draining recourses.
Something needs to be done with that. We could rebuild the wall.
Germany will broaden trade alliances and increase trade with existing ones. Germany has a strategic geographic position and has comparative advantage in manufacturing and production of many products.
http://www.odci.gov/cia/publications/factbook/
I’ve included in my essay a whole lot of quality info I analyzed it and highlighted the important stuff so you don’t have to read it all.
Basically what I think we need to do is:
1. Decrease Regulations on Business and Trade
2. Lower taxes
3. Find Solution to East Germany
4. Encourage foreign investments in our industries (cars, machinery)
5. Encourage Stabilization of the Euro
Alice Y. Huang
Chief Business Officer
Essay Section A.B.C
Section A.
Given the current anticipated trends, Germany’s economic future remains stable with possible little growth in gross domestic product (GDP). Base on futuristic forecast, GDP growth rate stays at 2.5% until the year 2020. This stagnant trend continues even while investment grows. Future investment grows at a steady pace and could potentially reach a level of almost
$800 billions of dollar. Exports and imports increase at a constant pace growing by 5 times by the year 2020. These models show Germany’s capability in sustaining their economy.
Section B.
Currently, Germany has the 3 rd
largest economy in the world, largest economy in the EU, and a technologically advanced infrastructure.
10 Despite having a strong economy, the country’s
stagnant growth has become one of the slowest in the European region. The reason for this lag in growth is seen in the uneven distribution of economic activity between west and east. “The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 billion.” 10
“In particular, eastern Germany lacks a solid base of small and medium-sized companies, which provided the foundation for West Germany
's economic prosperity.” 10
Inflexibility in labor market structure such as strict regulations of laying off workers and the setting of nationally based wages have made unemployment a big problem. Currently unemployment is at 11.6%.
10
Another possible reason for high unemployment rate is due to weak domestic demand which has been slowing down economic growth. Stagnant demand directly links the cause to inert wage. Low demand has not only caused high unemployment but high social security costs and high government debt.
10
Germany’s resource however lies in their skilled labor.
The inefficiency in Germany’s tax system has caused a government deficit. The taxation system allows business to lower amount taxable from profit resulting to government paying more money than they receive. While this type of tax system encourages exports, government is left with an outstanding deficit. This deficit also directly links to the inefficiency in the current social security system. Social security payments are exceeding current revenues due to
Germany’s aging population.
10
Currently the goals of the government have been to support market competition and working to ease financial burden on public budgets.
10
As mentioned earlier, West Germany’s economic efficiency lies in its small and medium size firms. The government continues to support the conditions for these smaller firms and thus promoting healthy market competition.
Business however tries to neutralize competition by colluding or merging. What prevents them
from monopolizing the market could be seen in the 1957 Law against restraints of competition.
“Compliance with the law is monitored by the Federal Cartel Office in Berlin and the antitrust authorities of the states.” 10
A market economy should not be heavily regulated because it could hinder possible growth in certain sectors and cause undesirable results. However a market economy unregulated by macroeconomic policies could lead to devastating downturns in an economy.
Macroeconomic policies are used to control inflation, unemployment, and a balance between imports and exports. These types of policies assure healthy economic growth.
Section C
As Chief Business Officer of Germany, I am adopting policies that would allow for stable yet increased economic growth. What needs to be addressed accordingly would be the problem of unemployment, wage rigidity, government deficit, and the protection of small and medium size businesses. In addition, economic inequality between East and West Germany needs to be minimized. Stabilizing the internal infrastructure of Germany will ensure a sustainable economy.
Policy #1 (unemployment & wage rigidity): Adoption of regulatory, macroeconomic policy in reducing unemployment. This regulatory policy will set wage base on regional capabilities (East and West Germany). The answer to reducing unemployment lies in more investment which creates jobs with a secure future. Achieving this will entail the efforts not only of government but of the business sector as well. In addition, labor rights needs to be improved to protect job security.
Policy#2 (government balance sheet): A fiscal policy of ensuring revenues exceeds expenditures
(e.g. social security payments) needs to be accessed. This policy alters aggregate expenditures and tax collections to surplus or balanced budgets. Additionally reducing pressure on the current social security system, privatization of social security should be implemented.
Policy#3 (business sector): Policy to subsidize and promote new small and medium businesses in eastern Germany. Free market competition would allow the east to catch up to the rest of
Germany. This policy would ensure economic equality throughout the country and thus creating more jobs. The policy should also provide necessary conditions for survival of these businesses.
Policy#4 (Exports): Exporting skilled labor and training would ensure trade surplus and help reduce unemployment.
Jasmine F. Poumele
POLS 315
Essay 1
Household Savings:
As the Chief Support Officer of Germany, the savings for each household is important for the well-being of each individual. As you can see, we reach our highest peak in the year 2006, and then there’s a huge drop the following year. The lowest point is six years from now, and its average continues from then on until the year 2020. We need to plan ahead to prevent financial burdens within our country.
Agriculture:
The Agricultural demand is pretty high at this time, and as you can see, we might expect a downfall. The society as a whole, rely on our demands for jobs and household income. We need progression to prevent this from happening.
Section B
Germany
My main goal is to confirm the well-being of the people of Germany in the long run. Given the fact that our government is a federal republic, on behalf of the people of Germany, we favor a democratic government, where they aspire to serve rather than ruling over the people. With a democratic government, policies will be decided by the preference of the real majority, and every law must consider the interest of the people equally. We consider it to be the only ethically legitimate form of government. A democratic government could also be a resolution to conflicts occurring within our nation. In order for us to gain the support of the people, we must take into consideration the indirect demands they make sporadically and their essential needs.
As Chief Support officer, I want to ensure the security and welfare of the people.
“Germany has one of the world's highest levels of education, technological development, and economic productivity“.
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We can benefit with the contributions of each talented individuals within these vital fields. Especially our Agriculture. I want to guarantee the financial welfare of farmers, so that we can maintain the high level of food production for exports. “Exports traditionally have been a key element in German macroeconomic expansion“ 10
. I also want to guarantee the financial welfare of industrial workers who also have contributed significantly to our exports. “German export sales are concentrated in motor vehicles, machinery, chemicals, and heavy electrical equipment“ 10
.
It has come to my attention that our population is now at an estimate of 83 million, whereas the number of homeless people in Germany is increasing. “The number of people living on the streets, in shelters and in welfare hotels has been estimated at close to one million.” 10
This is too great of a number, and I want to ensure the social security of these people. I will establish an organization where we will fundraise from politicians, people of power and wealth, and those who would like to contribute freely their time and money to help create housings for the homeless and the elderly whose families are not willing and able to take care of them. This organization will consist of officers with knowledge in organizing and maintaining a wellstructured program for the benefit of the unfortunate. We only ask that the government consider providing social services and adequate social welfare benefits which include pensions, health insurance, accident insurance, disability payments, unemployment insurance and support for families. As education is vital to each individual, I also suggest education assistance for lowincome individuals and families.
Section C:
As the Chief Support Officer for Germany, I consider the maintenance of international peace and security as the major theme in our agenda. We, the people, are strong supporters of peacekeeping and prosperity in Europe, but favor great restrictions on the promotion of the
United Nations and the Organization for Security and Cooperation in Europe. It is our desire that Germany play a notable and special role in international relations because of our past reputation. We want to create a stable, lasting peaceful order in Europe; we can do that on our own grounds without having to rely on our neighbors, whom, we should not depend on. If our
Military takes full responsibility on national security, we will contribute to their funding. We need to build our government and our economy for the benefit of the people in the long run, and
we need to rely on our military for security and protection.
It has also come to my attention that our Agricultural demands and trade status are at a high level. With this in hand, I want our government to guarantee the financial welfare of farmers through programs of price supports, subsidies, and agricultural grants. The Head of
Agriculture will also be a farmer who has knowledge of policy-making will be beneficial to farmers. In addition, we have created a single democratic party divided into two factions. One will prioritize economic and social justice, and environmental protection, the other will be concerned with controlling inflation, fiscal responsibility, and cooperating in the European security system. This Democratic Party will represent the interests of women, youth, workers, middle class, business and industry, public politics, unskilled workers and refugees. Our concerns will range from programs aimed at legislative reform, to discrimination against women at work and at home, to school reform to urban development to environmental protection. We want the government to guarantee the well-being of laborers and that there will also be employment opportunities and financial welfare for the unfortunate and the unskilled.