Position and Significance of the Economic and Social Development Process of Germany (1990

Trade exchange is increasing. The advantage in Germany's trade exchange is high-tech industrial goods such as: Automobiles and motor vehicle spare parts; machinery and equipment; chemical products; pharmaceuticals... "Technology-based exports are the key reason for the success of the German economy" [39; p.82]. Besides, agricultural trade has also increased over the years.

Another manifestation of the German economy's connection with the external market is through foreign direct investment in Germany. In the German economy, foreign direct investment has always had a large gap compared to foreign investment in Germany. In 1995, German direct investment abroad was 196,734 million Euros and foreign direct investment in Germany was 121,605 million Euros. By 2015, German direct investment abroad had increased to 1,055,205 million Euros, foreign direct investment in Germany was 473,767 million Euros (Table 3.4 and Table 4.5).

Germany has become an economic locomotive, leading the growth of the EU. For Germany, the EU has always been the most important market in the growth process of Germany. Since 1990, Germany's economic and social development goals have always been consistent and shared with the development goals of the EU such as economic transformation, sustainable development or public finance reform and solving the immigration problem. In the early period after unification, Germany's economic and social development encountered many difficulties, but Germany still contributed an important voice to the expansion and reform of the EU such as the birth of the Maastricht Treaty (1993), the Nice Treaty (2001), the Lisbon Treaty (2007, 2009) ... and the expansion of the EU.

Since 2008, when the global financial and economic crisis and then the sovereign debt crisis occurred, causing European countries to fall into recession, Germany has demonstrated its leading role in the EU. Germany is the most successful country in the EU in dealing with the crises. Not only that, Germany has maintained economic growth and social stability. The economic stimulus packages, labor market reforms, employment and budget cuts in Germany "are considered models for other EU countries to learn from and follow" [66; p.118]. From its successes, Germany has provided relief to countries in the region. On February 27, 2012, the German Parliament approved the first financial bailout package of the Eurozone for Greece. Germany also directed the EU to approve the second bailout package for Greece on March 14, 2012. Under the leadership of Germany, the EU countries have gradually recovered from the economic crisis. Never before has Germany's position and role in the EU reached such a high level. Germany is a model for growth and integration in the EU.

Maybe you are interested!

5.1.5. The role of German Chancellors

Chancellor Helmut Kohl (1930 – 2017) was the “father” of the German unification process. At the same time, he also ran the Government of the unified Germany from 1990 to 1998. At that time, Chancellor Helmut Kohl made a prediction: The

The merger of East Germany into West Germany would easily and quickly create “Blühende Landschaften ” (bright prospects) [39; p.79]. Therefore, “Chancellor of reunification” Helmut Kohl issued and implemented many measures at the same time to create a complete change in the East German economy and society. The success of Helmut Kohl’s government was the completion of the privatization process in East Germany during 1990-1994, laying the foundation for the comprehensive reconstruction and transformation of the East German economy. He showed great determination for the process of completing German reunification. However, complete reunification was not achieved during his tenure as Chancellor. As a political icon, Chancellor Helmut Kohl “was never interested in economics” [39; p.79]. During the 1990s, Germany maintained a social market economy that was extended to the newly merged states, but the German economy grew unsteadily and stagnated by the end of his term.

From 1999 to 2004, the Chancellor of Germany was Gerhard Schröder. His mark on the German economy and society was the promulgation of policies to reform and modernize the labor market, and comprehensively reform society through the Hartz reform packages and Agenda 2010 in 2002-2004. However, the real effectiveness of the economic and social reforms has not been achieved. In fact, the German economy and society have fallen into the most serious crisis since World War II.

Since 2005, the Federal Republic of Germany has been run by the Government of Chancellor Angela Merkel. The dynamic management of the Federal Government headed by Chancellor Angela Merkel during the years 2005 - 2015 was one of the leading factors determining the success in the economic and social development of Germany. Although Germany has continuously experienced many major challenges, Chancellor Angela Merkel has always made timely adjustments and appropriate solutions to ensure economic growth and social stability.

The first major challenge was the economic and social crisis and stagnation of the Federal Republic of Germany at the beginning of the 21st century when Chancellor Angela Merkel took office. In that context, Chancellor Angela Merkel led Germany to resolutely implement comprehensive economic and social reform policies; reform the labor market and employment. Therefore, the German economy gradually recovered and returned to the growth trajectory.

The second major challenge was the global economic and financial crisis in 2008, which caused the German economy to fall into a growth rate of -5.61%. Immediately, Chancellor Angela Merkel's government implemented a new labor market reform policy, which was the short-term employment policy. Instead of laying off employees, German businesses reduced working hours. Therefore, Germany's unemployment rate did not skyrocket during the crisis, which posed a risk of social unrest. Other capitalist countries may not agree with Chancellor Angela Merkel's policies, but that is how she created Germany's economic success and maintained social stability.

The third major challenge is the severe sovereign debt crisis that is taking place in Southern and Central Europe. Therefore, overcoming the sovereign debt crisis is the focus of Chancellor Angela Merkel’s second term. The Angela Merkel government has supported the Euro rescue package: the Financial Stability Act for the Monetary Union (WFStG) by which the Federal Republic of Germany ensures the maintenance of the solvency necessary for financial stability in the European Monetary Union and the Euro Stability Mechanism Act of May 2010. Chancellor Angela Merkel and her government have performed a very good role in leading the EU out of the debt and financial crisis of 2010-2012.

The fourth major challenge was the European migrant crisis in 2015. The wave of refugees from West Asia and North Africa flooded into Europe unexpectedly and was the largest since World War II. The confusion and anxiety of European governments sparked a new populist movement. At that time, the German Federal Government led by Chancellor Angela Merkel made a humanitarian decision that affected the EU's common policy in dealing with the refugee problem. That is: the Federal Government allowed refugees entering Austria and Hungary in early September 2015 to enter Germany without having to register in Hungary under the Dublin Agreement. Chancellor Angela Merkel's humanitarian decision contributed to the respect the world has for her. The American Time magazine wrote: "Whenever Europe faces a crisis (from the crisis in Greece, Refugees, IS), Merkel intervenes. She embodies values such as humanity, honesty, and empathy, and thereby shows that Germany's great strength is to build, not to destroy. She is truly the leader of the entire continent" [254]. On the other hand, Angela Merkel also faced criticism from some people in the Federal Government, putting her in a great political challenge. However, Chancellor Angela Merkel's success in the 2017 election affirmed her great role and contribution to the development of Germany.

Chancellor Angela Merkel's contribution to the economic and social development of the Federal Republic of Germany is also reflected in her determination to pursue, commit to and implement the sustainable development strategy in Germany. While still holding the position of Federal Minister for the Environment, Nature Conservation and Nuclear Safety, Angela Merkel convinced delegates of participating countries to join a mission to reduce global greenhouse gas emissions at the 1995 United Nations Climate Change Summit in Berlin. During her tenure as Chancellor, Angela Merkel has taken the sustainable development strategy as the foundation for guiding the economic and social development policies of the Federal Republic of Germany. In 2011, after the tsunami and nuclear disaster in Fukushima, Japan, Chancellor Angela Merkel closed 7 old nuclear power plants and pledged that by 2022, all nuclear power plants in the Federal Republic of Germany would stop operating, and Germany would stop supplying nuclear power.

Angela Merkel – a woman from Eastern Germany, holding the position of Chancellor of Germany since 2005 has become a symbol of unity and success of the Federal Republic of Germany. Chancellor Angela Merkel has also become one of the most powerful people in the world, leading Germany and the EU.

Germany's laws and political model have created conditions for Prime Ministers to have no time limit in power. Thanks to that, good governments and good policies are maintained. Over the past 25 years, Germany has had only 3 Prime Ministers taking turns leading the country. Each person has left their own mark and there is a legacy expressed through continuity and adjustments in national development policies. The effectiveness of the policies is reflected in the economic and social achievements of the Federal Republic of Germany.

5.2. Position and significance of the economic and social development process of the Federal Republic of Germany (1990 - 2015)

5.2.1. For Germany

The period from 1990 to 2015 was a very new period of development in the history of Germany. During this time, Germany had to carry out two tasks at the same time: economic and social transformation and development. The results achieved in those 25 years have a very important position for the economic and social development of the Federal Republic of Germany in general.

It can be seen that, within 25 years (1990 - 2015), a unified Germany was truly formed in the center of Europe. Germany is a large country in Europe, but the process of German unification took place more slowly than many other countries. Germany was first unified in 1871. Only a few decades later, when World War II ended, Germany was divided again. Even the word "Germany" used to record the nationality of German people only really appeared in 1934. However, in more than two decades after the Cold War, Germany was truly unified thanks to the economic and social development measures of the German Government and the contributions of the people of the West. Germany has built a developed capitalist economy with a very high social security system for the German people. The achievements of economic and social development in the years 1990 - 2015 have truly spread the results of unification from the superstructure to the infrastructure in German society.

The economic and social development of the Federal Republic of Germany in the 25 years after reunification also continued to affirm the success of the social market state model. In the 1990s, when the German economy fell into recession, the unemployment rate increased. At that time, there were many doubts about the obsolescence, backwardness and the risk of collapse of the German welfare state. However, the German Government promptly introduced comprehensive economic and social reforms. Policies on modernizing the labor market and employment; reforming the health insurance system; reforming pensions and adjustments after the regional and world economic and financial crises have brought success to the German welfare state.

Germany. From 1990 to 2015, Germany's GDP increased almost threefold. The Federal Republic of Germany continues to demonstrate the correctness of the social market state, the dynamism and resilience of the German economy.

The economic and social development of Germany since reunification also shows that Germany has found a suitable development path for Germany between the turn of the century and the ongoing industrial revolution 4.0. At the end of the 20th century and the beginning of the 21st century, the German economy fell into the most stagnant state since World War II. Germany struggled to find solutions for the country's development. However, the stable political conditions created a very favorable environment for Germany to implement economic and social development solutions. Entering the 21st century, Germany adjusted the social market economic model and paid special attention to sustainability and environmental factors. Germany built the backbone of the economy on industry and services. In particular, to create flexibility and sustainability for the economy, Germany focused on investment in small and medium-sized enterprises. It can be said that a new development model has been formed in Germany. Germany's prosperity after reunification is thanks to its green, sustainable economic and social development based on science and technology.

If we consider the historical process of Germany in general, the years 1990 - 2015 were a very special period of socio-economic development. Germany created a modern infrastructure system and a solid social foundation. That will continue to be the factor that creates the success of the German economy in the following years.

5.2.2. For the EU and the world

After reunification, Germany gradually rose to become the leading country in Europe and led the EU member states. Germany has never achieved such a high position in the EU, especially under the rule of Chancellor Angela Merkel.

Since 1990, with a population of over 80 million people, Germany has been the most populous member of the EU. At the same time, Germany is also the country with the largest contribution to the European Union, with the largest number of seats in the European Parliament (95/751 seats) [268]. Every year, Germany has contributed more than 20% of the EU budget. Germany not only shows strong economic potential but also shows the ability to recover quickly after each crisis to continue to maintain economic growth and high living standards for its people. After the period of decline in the late 1990s - early 2000s, Germany has risen to become an economic giant and has a record low unemployment rate. Therefore, Germany has become a model for EU members. Each country seeks to learn from German measures and policies. At the same time, Germany has also risen to a dominant position in the process of planning common development solutions for the EU. If before 1990, the most influential member of the EU was France, then the leading position belonged to Germany. Reality shows that: “First, the terms of the treaty

The relevant drafts, which were agreed upon by all members, reflect the German way of working and values. Over the years, the European Commission has become fully imbued with German economic thinking. Second, the model that Germany represents is a successful model” [39; p.188]. From 2010 to 2012, when the sovereign debt crisis occurred, Germany was the country that advocated the implementation of the “cash for reform” model [268] with a focus on the “austerity” policy to help Southern European member states. Since then, it has become the common policy of the EU. Until 2014-2015, when the immigration crisis divided EU member states. However, Germany has shown its leading role in the EU by regulating member states to implement the open border policy and accept immigrants. Thus, although Germany was once a founding country of the EU, its position and prestige in the EU has never been as great as in the first decades of the 21st century. Germany leads the economy and at the same time dominates the EU's development policies and measures.

Germany not only leads the EU but also plays a pivotal role in EU integration. From the very beginning of the European unification process, Germany has been a driving force in the regional integration process, one of the great achievements of the post-war period. The “European Coal and Steel Community” established in 1951, initially with 6 countries initiated by Germany and France, has become a European Union (EU) with 27 member countries (After the Brexit event in the UK starting in 2014, officially from 2020). In early 1993, the entire common domestic market of the 12 member countries of the European Community was opened. With a population of 345 million people, this market is an economic area with the largest purchasing power in the world. The monetary unification process went through stages, the first stage starting in mid-1990. In this stage, capital exchanges between members were liberalized and economic policies between partners and cooperation between national banks was increased. In the second stage starting in 1994, the European Monetary Institute prepared for the establishment of the European Central Bank headquartered in Frankfurt am Main. Germany supported the process of European monetary and financial unification. With German initiatives, the common European currency (Euro) was officially circulated from January 1, 1999, and has always been a strong currency in international transactions. In addition to benefiting from the Euro, defense and security policies are mainly implemented within the EU framework, which also reduces Germany's military spending. With its central location and connection between East and West both geographically and historically, Germany advocates expanding the EU to Eastern and Southern European members. With an export economy focusing on the EU market, Germany has been successful in the process of linking EU members. At the same time, the EU also creates conditions for Germany to increase its influence in the world.

Economic and social successes have also made Germany's position, role and contributions to global issues increasingly change. In the field of

Economy, after 25 years of reunification, despite many difficulties due to the economic transition in the East and the impact of external financial crises, Germany is still one of the largest economies in the world. In 2015, Germany was the 4th largest economy in the world after the US, China and Japan. At the same time, Germany's global competitiveness has also been enhanced by economic development and domestic reforms. According to the World Economic Forum (WEF), the Global Competitiveness Index (GCI) is assessed according to a set of 113 criteria under 12 pillars of competitiveness: institutions; infrastructure; macroeconomic environment; health and primary education; higher education and training; goods market efficiency; labor market efficiency; financial market development; technological level; market size; business efficiency and innovation. Based on such assessment by WEF, Germany's GCI index has increased rapidly from the beginning of the 21st century to 2015. In 2001, Germany was ranked 17th/75 in terms of global competitiveness [246; p.15] and by 2015, Germany had risen to 4th/140 [247; p.7]. Germany is also a key member of international economic organizations such as the IMF, WTO, G7, G20... That has made Germany's international position increasingly enhanced. In addition, besides the core relationship with the EU and transatlantic partners, Germany has focused on expanding economic relations and diplomatic relations with other economies such as China, India, Southeast Asia... These results are proof of the comprehensive economic and social success of the Federal Republic of Germany since 1990, especially under the leadership of Chancellor Angela Merkel.

In terms of politics, security, military and peacekeeping in the world, Germany has participated more and more actively since reunification. In addition to strengthening and expanding diplomatic relations with countries around the world, Germany also considers crisis prevention and peaceful conflict resolution as the focus of its foreign policy. Within the framework of the collective security and defense system established by international organizations such as the United Nations (UN), the European Union (EU) or the North Atlantic Treaty Organization (NATO), since 1992, the German armed forces have participated in 40 foreign missions. Each year, Germany contributes about 161 million USD to the regular budget of the United Nations and about 466 million USD to UN peacekeeping missions. Since 2013, when the amount of money that Germany contributed to the United Nations High Commissioner for Refugees (UNHCR) increased fourfold, with 387 million Euros per year, Germany has officially become the second largest contributor after the United States to this agency [221; pp. 43 - 44]. In particular, Germany is also the country with the most troops participating in the United Nations' peacekeeping missions around the world among the developed Western industrial countries. The Federal Republic of Germany has also become a key member of the 57 members of the Organization for Security and Cooperation in Europe (OSCE), participating in resolving the conflict in eastern Ukraine. On the other hand, its important role in

Germany's global political and security foundation is also demonstrated by its great contributions to disarmament, arms control and nuclear non-proliferation activities, towards a nuclear-free world such as: Germany quickly implemented the Nuclear Test Ban Treaty; Together with members of the United Nations Security Council and the EU, it signed the Vienna Nuclear Agreement with Iran (July 2015)...

As a country with a very large welfare system, in its international role, Germany has closely cooperated with the international community to carry out tasks of poverty reduction, promoting sustainable development, food security and human rights in the world. Germany has become an important partner of the Food and Agriculture Organization of the United Nations (FAO), contributing to food security and nutrition, hunger prevention, resource protection, land safety, etc. From 2002 to 2017, Germany contributed 132 million USD to FAO to carry out the activities of this organization [271]. At the same time, in the process of cooperation with countries, Germany pays great attention to improving living conditions and democracy in countries, especially African countries, Southeast Europe and some countries in Asia and South America. Germany is also a leading country in developing renewable energy, implementing sustainable development goals with an increasing domestic proportion and the lowest carbon emissions among major economies in the world.

Thus, from an economy that faced many difficulties after reunification, Germany has returned to its position as an economic giant with the lowest unemployment rate among the world's leading economies. Germany has demonstrated its position in a new regional and world order. Germany's role is increasingly important in the EU and the international community. Germany's values and contributions are Germany's strong commitment to the international community to solve global problems, towards a world of sustainable growth and more security.

5.3. Some experiences from the economic and social development process of the Federal Republic of Germany (1990 - 2015)

Studies on the economic and social development of the Federal Republic of Germany have shown that Germany has been very successful with its social market economy model. In which, economic growth always goes hand in hand with a high social welfare regime. The German development model is very special, in which there are both free market elements of the UK and US style, a large role of the French-style state, and a very high welfare regime of the Nordic capitalist countries. Up to now, this model has not been copied in any country. However, with a very successful economic and social transformation after the Cold War, it is possible to draw experiences for countries that have been and are carrying out reforms and transformations, including Vietnam. Although the practices of Vietnam and many countries that are carrying out economic and social renovation are different from those of Germany, valuable experiences can still be found.

Position and Significance of the Economic and Social Development Process of Germany (1990 - 2015)

Comment