How major economies learn from others to transform themselves (2)

15:05, October 17, 2010      

Email | Print | Subscribe | Comments | Forum 


The German economy was catapulted to overtake France and Britain in the middle of the 20th century partly thanks to an economic model different from the laisser-faire capitalism of Britain and the United States.

The model of social market economy adopted by Germany combined private enterprises with measures of government regulation in an attempt to establish fair competition, low inflation, low levels of unemployment, quality working conditions, and social welfare. It transformed and reshaped the whole social and economic system of post-War Germany.

Japan also owed its economic success and steady economic growth in the 1970s and 1980s to reforms and adjustments of its industrial structure.

It also stepped up technological innovation and started outsourcing thereafter to consolidate its competitive edge in energy and environment technologies and electrical appliances as trade frictions with other developed economies grew.


The German government worked to prevent social inequality and income gaps through interventions and the setup of a sound social security system.

Germany launched reforms to shake up its pension system, health insurance and unemployment benefits, with the German parliament passing a series of laws and decrees on social security. The well-established social security system also contributed to the stability needed for economic growth.

As an important innovation, Germany encouraged and give employees the right to be involved in certain corporate decisions. They also encouraged employees to hold stocks in the companies they work for.

In Brazil, the ruling Workers' Party adopted a series of economic policies in favor of the poor, such as the Zero Hunger program.

Under the program, Brazil established the Ministry of Social Development and Hunger Eradication (MSDHE) to provide social relief and subsistence allowances to elders aged 65 or above and the disabled, and offer food to the poor.

The MSDHE had a record-high budget of 12 billion U.S. dollars in 2009. Brazil's Institute for Studies on Labor and Society said nearly 3,000 Brazilians were pulled out of poverty in 2004-2008, cutting the nation's poverty rate from 33.2 percent to 22.9 percent.

Source: Xinhua
【1】 【2】


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion