How far do you agree that government intervention was the most important factor in German economic development in the years 1945-89?

Introduction

• Govt intervention = deliberate action by the state to influence economic activity

• Criteria = Scale of impact, whether growth would have occurred anyway, whether intervention consistently produced good results

• Most important enabling factor bc creation of social market economy

Paragraph 1

• Govt intervention not most important factor in economic development?

• 1949-60 - Bc of private investment, GDP up to DM300bn

• GDP growth fell to 2.3% in 1976

• 1983 - growth 2.5%

Paragraph 2

• Govt intervention was most important

• Govt share of GNP from 31% to 49% 1960-82

• 1975 - Govt debt 26% after Oil Crisis

• Present across whole period (Social Market 1950s, 1960s Keynesian so intervention played half of the role etc)

Paragraph 3

• Private investment and productivity also important

• 1959-67 - Productivity growth 6.9% annually

• Capital stock growth 3.2% 1970s

• Scale of industrial expansion enormous, 1950-60 industry production up 149%

Paragraph 4

• International trade + global economy

• Export growth = 6.8% 1950-58

• Exports rose to 17% of GDP in 1960

• Did slow down later on, annual export growth 1983-89 2.75