751-Sabar Institute Of Management, Tajpur - Gujarat Technological ...

1.3 Country Profile
Germany is Europe's most industrialized and populous country. Famed for its technological
achievements, it has also produced some of Europe's most celebrated composers, philosophers
and poets.
Achieving national unity later than other European nations, Germany quickly caught up
economically and militarily, before defeats in World War I and II left the country shattered,
facing the difficult legacy of Nazism, and divided between Europe's Cold War blocs.
Germany rebounded to become the continent's economic giant, and a prime mover of European
cooperation. With the end of the Cold War, the two parts of the country were once again united,
although the economy of the former east continues to lag behind that of the former west.
Germany's economic success since World War II is to a large extent built on its potent export
industries, fiscal discipline and consensus-driven industrial relations and welfare policies. It is
particularly famed for its high-quality and high-tech goods.
Germany's export-dependent economy was initially hit hard by the global financial crisis of
2008-9, which triggered the worst recession since 1949. But by 2010, its exports had helped the
country to rebound more robustly than most other EU members.
However, an ageing population has led to concern over the continued viability of Germany's high
welfare and health spending. There is also a debate about how to improve integration of the
many post-war immigrants whose labour helped fuel the economic boom.
In addition, what was once the German Democratic Republic, the former Soviet-dominated east,
has struggled to catch up with the more affluent west after reunification, while people in west
had to pay a higher than expected financial price.
The pain of Germany's Nazi-era history remains a sensitive element in the country's collective
modern-day psyche. Out of the devastation of World War II grew an awareness of the need to
guard against any such catastrophe recurring on the continent.
In the 1950s Germany was one of the six founding nations in the original European Economic
Community from which the European Union was eventually to develop and in which Germany is
a key player. Franco-German cooperation was central to European economic integration in the
1980s and 90s.
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