German investments abroad and foreign investments in the Federal Republic

The investments of residents of the Federal Republic of Germany in economic areas abroad and of non-residents in the economic area of the Federal Republic are the subject of the following article. Their development over the last fifteen years is analysed in regard to their geographical location and distribution over the various economic sectors. One of the questions to be examined is whether German investments in foreign countries are an alternative to exports from the Federal Republic or a necessary complement to such exports.     

The relationship of the GDR to the World Bank Group

In the World Bank’s last annual report the Federal Republic of Germany was described as a leading member of the World Bank Group (IBRD, IFC and IDA). The Federal Republic has subscribed about $ 1.4 bn to the capital of the World Bank and to date contributed $ 1.1 bn to IDA. The second German state, the German Democratic Republic (GDR), on the other hand, is taking a negative attitude to the World Bank Group. Why does it do so?     

Why more stable prices than abroad?

In many of the western industrialized countries the rate of inflation — high as it was — almost doubled between 1973 and 1974 whilst in the Federal Republic it did not escalate any further, the oil price explosion notwithstanding. Are the basic economic and social conditions in the Federal Republic more conducive to stability than elsewhere?     

The Federal Republic in the North-South dialogue

For some time now the Federal Republic of Germany has been the largest exporter in the world, with a slight lead over the USA and some way ahead of Japan and the Soviet Union. It has therefore an important role to play in the North-South dialogue. The increasing mutual dependence of the Federal Republic and the developing countries is described by different scenarios in the following article.     

Strategies for survival

In the debate about relocation to the developing countries of “structurally weak” industries the clothing industry has attracted the special interest of academic and political economists in the Federal Republic of Germany. The following article constitutes a summary of the most important findings of a study of the conditions under which this industry will be able to ensure its continuing existence in the Federal Republic in the future.     

The Federal Republic in the North-South dialogue

For some time now the Federal Republic of Germany has been the largest exporter in the world, with a slight lead over the USA and some way ahead of Japan and the Soviet Union. It has therefore an important role to play in the North-South dialogue. The increasing mutual dependence of the Federal Republic and the developing countries is described by different scenarios in the following article.

     

Outlets for developing countries in the German market

As one of the biggest trade partners of the developing countries the Federal Republic of Germany is of necessity one of the states to which these countries will address their trade-political demands at UNCTAD V. An analysis shows however that, as the classic competences for trade policy decisions have been largely transferred to the EC, the Federal Republic is left with very little scope for action.     

Economic impact of foreign labour

Over 2.3 mn foreign workers are now employed in the Federal Republic of Germany. They account for 10 p.c. of the total labour force. How many foreigners will work in the Federal Republic in future is necessarily a matter for conjecture. Labour market experts forecast that — depending on the rate at which the productive potential is used — between 2 and 2.8 mn foreign nationals will be constantly employed until 1985.     

An optimistic look at the year 1968

After almost twenty years of unparalleled economic growth, the Federal Republic of Germany has experienced a setback in 1967. The Federal Republic's Government is attempting to overcome this crisis with purposive economic policies. INTERECONOMICS had the opportunity of speaking to the Federal Minister for Economic Affairs, Professor Schiller, about development prospects for the German economy for 1968.     

Germany’s trade with Latin America

This study analyses the development of the Federal Republic’s foreign trade relations with 20 Latin American states within the 15 years from 1963 to 1977. It examines primarily the exchange of goods between the Federal Republic and the seven most important Latin American countries which on an average of the last 15 years accounted for more than 75% of the German foreign trade with the Central and South American states.     

Development aid and employment in the Federal Republic of Germany

The discussion on an increase of development aid is overshadowed by uneasiness about job opportunities at home. Against the demands for a sizeable increase of development aid funds it is often argued that such aid draws purchasing power away from the internal market if it is not tied to deliveries by the Federal Republic of Germany. Recent data show however that, since these “ties” were largely abolished in 1973, most funds allocated to development aid have still been flowing back into the Federal Republic in the shape of export orders.     

Effects of German development aid on the internal economy

The importance of economic cooperation with the Third World for the internal economy is attracting increasing attention in the discussion of development aid topics in the Federal Republic of Germany¹. In this context it is of interest how the German development aid bears on the internal economy of the Federal Republic through feedbacks (in the form of contracts for German firms) from its bilateral and multilateral development aid payments. The following article presents the results of a relevant inquiry for the year 1976².     

Cooperation with take-off countries

In consequence of the growing economic differences between the developing countries themselves, the Government of the Federal Republic of Germany has developed, alongside plans to combat absolute poverty, a concept for cooperation with relatively advanced developing countries. Rainer Offergeld, Federal Minister for Economic Cooperation, explains this concept.     

Trade relations with the Communist countries

After the Federal Republic of Germany, Japan is the second largest trade partner of the Communist countries as a whole and of the Soviet Union and the largest partner of the People’s Republic of China. It has only been in recent years that Japan gained this formidable position in the trade with the East.     

Technical aid by GAWI

The contribution deals with the origin and development of GAWI (German Aid Company for Developing Countries Ltd.) and its present activities in the field of technical aid of the Federal Republic of Germany.     

Adjustment to changing international conditions

The structural changes in the world economy have made themselves increasingly felt in the Federal Republic of Germany over the past few years. For the first time since 1965 there is again a current account deficit, since merchandise trade is no longer able, due to the worsened terms of trade, to finance the traditional deficits on services and transfers. What policy should the Federal Government follow in order to help German industry adjust to these changes?     

Multinationals and structural changes

The effects of the activities of multinational corporations on the economy of the Federal Republic of Germany have hardly ever been examined empirically. The role of the multinational corporations (MNCs) in the process of structural change had not been studied either until an enquiry was recently undertaken for the Federal Ministry of Economic Affairs¹. The following article is based on the expert report which deals with this and other aspects for the first time and is to be published shortly.     

Effects of the Southward extension on the EC—Labour market

The European Community will be enlarged in the next few years by the accession of Greece, Portugal and Spain. Which will be the consequences for the labour market of the EC and the Federal Republic of Germany in particular?     

The aim remains: Monetary union

No doubt the monetary measures taken by the Government of the Federal Republic on May 10 have caused quite a stir. The question is: Can the European economic and monetary union still be achieved, in spite of the German measures?