Question

In the long run is the German model a good one?

Answer 1

The German Model is used to describe Germany's means of using industrial relationships, vocational training, and closer relationships between the financial sectors to generate prosperity.

In the German model unions are organised at the industrial level, these unions negotiate wage determination with the association of employers. Apart from the union the German model also aims at maintaining good relationships with the regulators and other related parties. The system of vocational education is also one of the most important component that is prevalent in the German Educational system,

The German model has both its advantages and disadvantages. Since the implementation of this model the German prosperity has reduced and the unemployment rates have increased as well. The most important reason for the failure of the model is the failure to maintain high performance standards which is very crucial for the implementation of any policies. For the German model to be successful in the long run the the framework needs to be redesigned and further reforms needs to be done. Once the reformation is undertaken and the framework is more rigid it would definitely help in overcoming any major financial crises in the future as all the regulations laid down in this model would need to be compulsorily followed by each of the organisations and timely reporting to be done as well. Thus in the long run the German model would be a good one if all the rules laid down are adhered to.