Germany, Defeated in World War II
Contrary to Expected Economic and Political Turmoil
Successfully Established a Cooperative Economic System
Built Foundations of Party Alliances and Pragmatic Politics
A Nation Led by Policy, Not Individuals

[How About This Book] The Politics of 'Johwa' in Germany, Absent in Korea... View original image

The measures taken by the Allied forces, who seized victory in World War II, against the defeated Germany were harsh. They aimed to reorganize Germany into an agricultural and livestock country to prevent it from starting another war. First, they economically dismantled the conglomerates to block economies of scale and limit economic growth. Politically, they allowed various political forces to enter the parliament to foment confusion. They believed that internal conflicts would make unity difficult and lead to exhausting political strife.


However, the Allies’ expectations were largely off the mark. These measures actually helped Germany’s growth. In place of monopolistic conglomerates, numerous strong small and medium-sized enterprises emerged, and Germany developed formidable manufacturing competitiveness. Ownership and management were separated, and industrial unions were established to reduce disparities in workers’ treatment within the same industry. Instead of excessive struggles, unions gained opportunities to participate in major corporate decisions, laying the foundation for a cooperative economic system.


The same applied to politics. With various political camps entering parliament, diverse voices were represented, and street protests naturally decreased. A political structure where it was difficult to secure a majority enabled party coalitions, establishing a rational and pragmatic political foundation that prioritized debate and consensus over antagonistic politics.


Some of these issues were also adopted domestically. Examples include the Constitutional Court and the proportional representation system. Kim Jong-in, the author known as a ‘Germany expert’ who contributed to improving Korea-Germany relations and received the First Class Cross of Merit from the German government in 2008, confesses that policies he proposed, such as the worker savings plan with government interest supplements (1976) and mandatory health insurance for workplaces with over 500 employees (1977), were inspired by observing German cases.


Many coincidences lie behind the revival of the German economy. Ludwig Wilhelm Erhard, who took charge of Germany’s economic command immediately after World War II, announced a currency reform policy on June 20, 1948, under the occupation forces’ orders, simultaneously revealing his own economic principles. "From now on, rationing will be abolished. Price controls will be lifted. Free enterprise and a market economy will be introduced." Erhard was taken to the occupation headquarters for interrogation but fortunately gained six months to implement his ideas, which opened the door to Germany’s economic revival. Benefiting from the U.S. Marshall Plan under the policy of ‘we must revive Germany first to save the free democratic camp’ as a check against communist forces was also a stroke of luck for Germany. Erhard was later praised by the public as "the man who fed us," serving as Minister of Economics for 14 years and eventually becoming Chancellor.


The author explains that Germany is a good example of overcoming the imperfections of democracy. Here, imperfection refers to the vulnerability of democracy to ‘poverty’ and ‘demagoguery,’ as seen when Hitler, blaming all misfortunes on Jews and communists amid severe hardship after World War I, seized power. However, Germany changed after this experience. Although the German political sphere was divided over whether the responsibility for World War II lay solely with the Nazis or with Germany as a whole, the German people chose the latter, fostering a reconciliation atmosphere both domestically and with neighboring countries. Incidentally, at that time in Germany, even the word ‘conservative’ was taboo, and parties used ‘Christian’ in their names to convey a conservative image, such as the ‘Christian Social Union.’


The author points out the problems of Korea’s presidential system, saying that in Germany there is no ‘progressive’ or ‘conservative,’ only ‘policy.’ "The executive and legislative branches constantly clash, causing the whole country to boil like a political civil war 365 days a year, or the presidential power group, monopolizing both the majority seats and the executive, turns the legislature into a puppet and runs wild like Nazi Germany."


In contrast, Germany, having painfully experienced the abuse of democracy, adopts a German-style parliamentary system that empowers a chancellor elected by parliamentary consensus. It was judged that a dual executive system, where the president and chancellor share power, makes proper checks and balances difficult. The Allied forces’ measures also helped. They intended to prevent majority formation to plunge Germany into political strife and confusion, but Germany instead ‘learned to unite through harmony and compromise.’


The politics of harmony and compromise enabled so-called ‘coalition governments,’ realizing predictable, policy-centered politics. In Germany, when a coalition is formed between parties, a coalition agreement document is adopted and published, often running 500 pages. It details "what we will do and how" to prevent future misunderstandings and conflicts, allowing citizens to predict "how Germany will proceed in the coming years." The ‘shadow cabinet,’ where German parties pre-select and disclose candidates for chancellor and ministers in advance, follows the same logic.


The author criticizes, "In Korea, it is unimaginable in German politics that a ministerial candidate suddenly appears overnight, accompanied by strange rumors about connections to the president, regional ties, or relations with the first lady. A normal country is one led by ‘policy,’ not ‘people.’ A country where policies change depending on who the president is, and ministers, ruling parties, and civil servants all only try to please the president, cannot be called normal. (Omitted) It is merely a quasi-monarchy."



How Germany Became a Top Nation | Written by Kim Jong-in | Oneul Sanchaek | 348 pages | 18,000 KRW


This content was produced with the assistance of AI translation services.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing