Will The Rhine model of capitalism be the preferred capitali
Peter Ludlow, Director of the Center for European Policy Studies once said "We are all Germans.... The whole EEC is obtaining German virtue- low inflation, a strong currency and a good mix of growth and social welfare" (Hampden-Turner and Trompenaars 201). Although the European Union has changed since Ludlow spoke about the European adoption of the German social economic system, Germany remains to be the most important aspect of the European Union. After the Second World War that ruined the European economies, the Rhine model had reign over Europe. Although they had strong control, the Rhine model is now struggling and is losing grip on the European economy. On the other hand, the Anglo-Saxon model of capitalism is catching up and is ahead in "areas such as shareholder value and corporate governance, not to mention information technology" (Hunt). Nowadays the European Union is split up in two segments of both Rhine model and Anglo-Saxon capitalism, but eventually the Rhine model will be accepted as the preferred capitalistic system in the European Union over the Anglo-Saxon model. The other major capitalistic system is the Anglo-Saxon that has its roots in the British economy. In both the United States and the United Kingdom
Especially with the enlargement which will be introduced on the first of May 2004 (Enlargement). Anglo-Saxon capitalism, which is also known in the United States as the Anglo-American model, is the leading form of capitalism. Stability and solidarity help to provide an economically and socially prosperous future. Furthermore, the "elements of this model are also found in Scandinavia and, most crucially, Japan" (Saunders 108). The Rhine model is one of the two important capitalistic models in the European Union. The Rhine model will be accepted as the only and ruling capitalistic model in the European Union. The economic factor is that "Rhine capitalism is a high-cost system which is finding it hard to compete with the newly emerging low-cost capitalist countries" (Saunders 111). A dynamic economy does not guarantee a socially well developed system. In the end we all want someone to look after us instead of a pure individual focused society. In addition, "the theory says that change is not best accomplished by sudden and violent disruptions which overthrow the status quo, but by a process which allows continual modifications to be made and incorporated" (Pirie). The German Sozialmarktwirtschaft creates a strong social security system where the government improves social welfare, provides good infrastructure and creates an excellent education system. France and Germany are in the end of the top twenty. Everyone looks after each other and the government contributes enormously to establish a strong, social and peaceful community. One other disadvantage of the Rhine model is limited in an economic sense; it does not have as much creativity and dynamicity as the Anglo-Saxon model due to the governmental interference in the economy.
Common topics in this essay:
European Union,
German Sozialmarktwirtschaft,
Albert France,
France Germany,
Madsen Pirie,
Pirie Dynamicity,
World War,
Anglo Saxon,
rhine model,
Crouch Streeck,
Development Index,
anglo-saxon model,
european union,
model capitalism,
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model countries,
anglo-saxon model capitalism,
rhine model capitalism,
social welfare,
system rhine model,
model due,
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rhine model countries,
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Acceptance Essays
