by John Brian Shannon
Read Hans Kundnani’s article here.
The solution for more success cannot be aiming for less success!
But this is one of the counter-intuitive prescriptions being offered up to Eurozone members in order to stabilize an imbalance presently occurring between uber-successful Germany on the one hand — and the (economically, at least) failing Eurozone member nations on the other hand.
The astounding post-WWII success story named Germany is one that other nations in Europe should be emulating.
Instead of Germany trying to slow down to the speed of the other Euro nations — those nations should be gearing-up with German assistance, to become full partners in Germany’s success. Which will then become their success!
Let me say it another way. When one finds a good working model, one does not abandon that model – he seeks ways to improve on the performance of that model.
There is nothing wrong with the German model. I quote your words, Hans, to prove my point: “Germany will have a trade surplus of $220 billion in 2012 – bigger than any other country in the world, including China. (The institute predicts Germany will also have a trade surplus with China for the first time since 1988.) If there is a new “economic miracle”, it is one produced by exports.”
What needs to happen in Europe is harmonization with Germany — not the other way around, for such would be a slow spiral of economic death for the continent.
How would that work in practice? In this post, I describe but one way out of many possible ways to accomplish that goal.
All manufacturers know about ‘just-in-time-delivery‘ of parts to a manufacturing location. It is the time-tested method (and really, the only method in use nowadays) for cost-effective and profitable manufacturing, whether it be ‘white goods’, cars and trucks or electronics — among other manufactured goods.
The Euro nations need to produce billions of parts for German manufacturers and reliably deliver them in a timely fashion to German companies. This way, nations become part of their own solution and part of Germany’s success — which leads to an even greater Eurozone success story.
The ‘have not’ nations of Europe must become part of the solution, becoming ‘have’ nations in the process. And they can if they follow an outstanding (and longstanding) German success model.
In a larger context, the next 24 months may well be Europe’s coming-of-age moment, the place where it shakes off U.S. post-WWII control and direction to become a fully-fledged sovereign entity with a semblance of shared success and wealth – or it will begin a long, slow regression into what it once was, a collection of fractious, medieval states.
John Brian Shannon
- Euro-Area Exports Increased 2.4% in June, Led by Germany, Italy – Bloomberg (bloomberg.com)
- Showdowns that will define Europe’s future (telegraph.co.uk)
ABOUT JOHN BRIAN SHANNON
I write about green energy, sustainable development and economics. My blogs appear in the Arabian Gazette, EcoPoint, EnergyBoom, Huffington Post, United Nations Development Programme, WACSI — and other quality publications.
“It is important to assist all levels of government and the business community to find sustainable ways forward for industry and consumers.”