The Crisis and Germany: The Trading State Unleashed

Based on interviews with the main German actors and on secondary sources, the article examines the recent development of the German political economy, and the German strategy vis-à-vis the Euro zone. Germany is a trading state whose economic growth is strongly export-led. Until the years 1990s, strong institutional rigidities, both in industrial relations and in the welfare state, contributed to reconcile export growth with household consumption, thus keeping the German “tiger” on a leash. From the early 1990s on, however, both industrial relations and social protections have been strongly liberalized, thus further stimulating external competitiveness and reducing the role of consumption in the German growth model. The unleashed trading state shapes the German response to the Euro crisis and the austerity policies that Germany imposes to Europe. These policies are strongly supported by political parties, social actors, and public opinion in Germany, and the likelihood that they change in the near future is minimal

Why did the League of Nations fail?

Why did the League of Nations ultimately fail to achieve widespread disarmament, its most fundamental goal? This article shows that the failure of the League of Nations had two important dimensions: (1) the failure to provide adequate security guarantees for its members (like an alliance); (2) the failure of this organization to achieve the disarmament goals it set out in the 1920s and 1930s. Thus, it was doomed from the outset to fail, due to built-in institutional contradictions. It can also be modeled and analyzed as a potential military alliance. The results are fairly conclusive: The League of Nations did not function as a pure public-good alliance, which encouraged an arms race in the 1930s.League of Nations, Disarmament, Military spending, Alliance, Arms race