Учебно-методическое пособие по работе с темой "COUNTRY PROFILE". Дедова С.А. - 32 стр.

7. Read the text. Discuss the advantages and disadvantages of German             was the first time that notions such as «German quality», «German working
  economic model.                                                                capacity», and «German responsibility» appeared.
                                                                                        In the same period, the modern structure of the German economy
                       EUROPEAN LOCOMOTIVE                                       took shape. The major emphasis was put on industry, especially production
                                                                                 of goods with a substantial share of added value. Cars, machines, airplanes,
        Today’s Germany is one of the poles of the world economy, the
                                                                                 chemical and pharmaceutical products all secured the growth of exports,
world’s third largest after the United States and Japan and the No. 2 ex-
                                                                                 which became the driving force of the West German economy. In the late
porter of industrial products. In many senses, Germans owe these achieve-
                                                                                 60s, economic growth began to slow. As a means of further development,
ments to the German economic model and to the key principles of socio-
                                                                                 West Germany opened its borders and invited thousands of economic mi-
economic development that began in the late 1940s an attempt to restore a
                                                                                 grants from Spain, Portugal, Italy, Yugoslavia and Turkey to come work
country ravaged by war.
                                                                                 for decent wages. The low and stable cost labour maintained against the
        This model has allowed Germany not only to provide a high stan-
                                                                                 new technological background ensured the high efficiency of the economy.
dard of living to its citizens, but also to become one of the world leaders by
                                                                                 Thus, the government could afford to increase spending on social pro-
the end on the 20th century.
                                                                                 grams. As a result, the philosophy of a social market economy remained
        Contemporary Germany rests on the principles of a social market
                                                                                 popular not only in Germany, but also outside the country. It is this eco-
economy, elaborated by Ludwig Erhardt, a professor at Frairburg Univer-
                                                                                 nomic model to which political stability, sustained development, a low in-
sity. In 1945, American and British occupation authorities offered him a
                                                                                 flation rate and high living standards are attributed.
position in the economy office of the occupied territory. This nomination
was the impetus for a process that later called «the German economic mira-
                                                                                 1) Translate the underlined word combinations. Use them in the sentences
cle».
                                                                                 of your own.
        Erhard suggested building an economic system that would marry the
                                                                                 2) Match the words to their definitions.
free market with state control. From classical liberalism, the social market
economy borrowed the idea that market mechanisms are the most efficient           a) ravaged          1. very important part of a system of beliefs
method to organize business activities. The role of the state, it held, was to    b) impetus          2. someone or something that produces a strong ef-
provide conditions for the market’s development. Therefore, the short-term        c) short-term       fect on people or situations
fiscal measures to stimulate economic growth were completely out of the           d) pillar           3. to destroy, ruin, or damage something very badly;
question. Priority was given to price stability and investment.                   e) driving force    devastate
        At the same time, Erhard pinned great importance on state control         f) sustained        4. something that for a long time
over market competition, which was introduced to undermine monopolies,                                5. continuing for only a short time, or concerned
until that time, a German tradition. Another important aspect of a social                             only with the period that is not very far into the fu-
market economy was focusing on the formation and numeral growth of the                                ture
middle class, viewed as the pillar of the economy. Thus, all citizens re-                             6. feeling an influence that makes people or helps
ceived equal access to old-age pension schemes, health care and education                             something to develop or continue doing something
regardless of wealth or origin.
        The realization of Erhard’s program as well as help from overseas
under the U.S. Marshall’s Plan made the German economic miracle possi-           3) Answer the questions.
ble. West Germany was gaining momentum at an inconceivable rate – 8.5              1. What is «the German economic miracle»?
percent growth of GDP per annum, while prices stayed stable. Unemploy-             2. What are the basic features of German economic model?
ment dropped from 8.2 percent in the 50s to 1 percent in the early 60s. It         3. What do you know about current situation in German economy?

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