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Pertinent
Historical Question: Which Country Really Rules the World? (Part II)
Wednesday,
June 15, 2009
By
Ivan Simic

Weimar
Republic established extraordinary relations with both the United States and
the USSR, and was admitted to the League of Nations as a permanent member,
which gave her a good international position and the ability to veto.
The Great
Depression later harmed Germany as it did to the rest of the western world,
which was subject to debt repayments for loans. Yet, Germany survived
financial crises thanks to production of steel, large foreign investments and
German industrial influence in the United States.
Nazi
Germany or the Third Reich arose in the wake of the national shame,
embarrassment, anger and resentment which resulted from the Treaty of
Versailles. More or less everybody knows that Adolf Hitler was the ruler of
Germany from 1933-1945 and leader of Nazi Party from 1921, and that Germany
eventually lost the World War II.
In June
1933, the "Reinhardt Program" was introduced. It was an ambitious
project for the development of infrastructure. It combined indirect
motivations, such as tax reductions, with direct public investment in
waterways, railroads and highways. In addition, the German car industry
experienced a boom and military spending in Germany exceeded 10% of GNP
(higher than any other European country at the time).
By the late
1930s, the aims of German trade policy were to use economic and political
power to make the countries of Southern Europe and the Balkans dependent on
Germany. The German economy would draw its raw materials from that region, and
the countries in question would receive German manufactured goods in exchange.
Already in 1938, Yugoslavia, Hungary, Romania, Bulgaria and Greece transacted
50% of all their foreign trade with Germany.
Nazi regime
encouraged German businesses to form cartels, monopolies and oligopolies,
whose interests were then protected by the state. As big business became
organized, it developed an increasingly close partnership with Hitler and the
Nazi government. The government pursued economic policies that maximized the
profits of its business allies, and in exchange, business leaders supported
the government's political and military goals. Those German businesses
include; Krupp, Thyssen, IG Farben, Deutsche Bank, Siemens, Salzgitter, Munich
Re, among others.
After the
end of WWII, Germany was divided to four regions: West Germany, East Germany,
Saar protectorate and Ruhr area. The Allies decided to abolish the German
armed forces as well as all munitions factories and civilian industries that
could support them. This included the destruction of all ship and aircraft
manufacturing capability.
The first
level of industry plan, signed by the Allies in March 29, 1946, stated that
German heavy industry was to be lowered to 50% of its 1938 levels. German
steel production capacity was set at about 5,800,000 tons of steel a year,
equivalent to 25% of the prewar production level. Germany was to be reduced to
the standard of life it had known at the height of the Great Depression, car
production was to be set to 10% of prewar levels, among others. In
addition, the costs of the occupation were charged to the German people, about
$2.4 billion per year. The first plan was subsequently followed by a number of
new ones in order to destroy German industry for the next century.
From May
1945 until September 1947, the US, UK, and France exported German coal for
$10.50/ton, while the world price floated closer to $25-$30 per ton. During
this period, the Allies took roughly $200,000,000 out of the German economy
from this source alone. Germany received many offers from Western European
nations to trade food for desperately needed coal and steel, however, the
Allies disallowed the Germans to trade.
Allies also
confiscated large amounts of German intellectual property. The US and the UK
pursued a dynamic program to harvest all technological and scientific
experience, as well as all patents in Germany. The so called intellectual
reparations taken by the US and the UK amounted close to $10 billion.
Additionally,
the Ruhr Agreement was imposed on the Germany as a condition for permitting
them to establish the Federal Republic of Germany. By controlling
the production and distribution of coal and steel, the International Authority
for the Ruhr in effect controlled the entire West German economy. French were
very interested in Ruhr area since their first occupation of Ruhr in January
1923, as a reprisal after Germany failed to fulfill reparation payments
demanded by the Versailles Treaty. French aimed at dismantling German heavy
industry, to place the coal rich Ruhr area and Rhineland under French control
(or at a minimum internationalize them), and also to join the coal rich
Saarland with the iron rich province of Lorraine. Consequently, in 1947,
France removed the Saar from Germany and turned it into a protectorate under
French economic control.
In 1951,
West Germany agreed to join the European Coal and Steel Community (ECSC). This
meant that some of the economic restrictions on production capacity and on
actual production that were imposed by the International Authority for the
Ruhr were lifted, and that its role was taken over by the ECSC. The area
returned to German administration in January 1, 1957, but France retained the
right to mine from its coal mines until 1981.
Failure to
win the war did not affect Germany that much, as Germany managed to secure its
local industry and foreign business investments. For Hitler was important to
secure private investments of its countryman and financiers, since he
personally believed in private capital. One of such cases was the Lex Krupp, a
document signed into law on November 12, 1943 by Adolf Hitler to avoid
inheritance law and ensure that the Krupp family enterprise remain intact.
Despite all
oppressions against Germany and the German people, West Germany, soon
benefiting from the currency reform of 1948 and the Allied Marshall Plan, saw
the fastest period of growth in European history from the early 1950s. This
period soon became known as the "economic miracle" or
Wirtschaftswunder. Industrial production increased by 35%. Agricultural
production substantially surpassed pre-war levels. The poverty and starvation
of the immediate postwar years disappeared, and Western Europe and especially
West Germany embarked upon an unprecedented two decades of growth that saw
standards of living increase dramatically.
After
everything that happened to Germany, in 1955, West Germany joined NATO. A
major reason for Germany's entry into the alliance was that without German
manpower, it would have been impossible to field enough conventional forces to
resist a Soviet invasion.
On October
3, 1990, German Democratic Republic (East Germany) joined the Federal Republic
of Germany (West Germany), making today’s Federal Republic of Germany (Bundesrepublik
Deutschland).
Germany
rapidly prospered after WWII, regaining its position as the strongest European
country and economy.
Today,
despite all wars, reparation payments, destruction of land, exploitation of
industry, Germany is standing strong. Germany is a federal parliamentary
republic of sixteen states. Germany is a member of the United Nations, NATO,
G8, the OECD, IMF, among others. It is a major economic power with the world's
fourth largest economy by nominal GDP. It is the largest exporter and second
largest importer of goods in the world. Germany has a high standard of living
and comprehensive system of social security.
Germany’s
economy has enormous impact on our lives as we speak. If we look around us, we
will find that German products are dominating our lifestyles. Companies like
DHL, T-Mobile, Adidas, Puma, Audi, BMW, Mercedes, Hugo Boss, Henkel, Bayer,
among others are key factors in today's life.
It is not a
secret that Germany is the most influential and most powerful country in
Europe since the 3rd century, and now European Union. However, how did Germany
managed to have such influence on the United States of America.
For the
past century, German influence in United States was seen trough wealthy
individuals, Government officials and companies like Krupp, Thyssen, IG Farben,
Deutsche Bank, Siemens, Salzgitter, Munich Re and one political party;
The Christian Democratic Union of Germany (CDU).
Ivan Simic lives in Belgrade, Serbia. Address: Paloticeva 12,
11000 Belgrade, Serbia, Tel: +381 63
7508500.
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