Economic Revival of Germany: A New Economic Hegemon in the European Union (Post World War II)

Abstract

After the Second World War, countries of the European Union had collapse and their economies have severely damaged. Because of this, they had to face an economic recession. To face this great depression different countries adopted different economic models and political economic policies. But Germany is the only country which was recovered stronger and quicker, when compared to other countries. This economic recovery known as “Wirtschaftswunder”. According to the political economic performances of the Germany, without a doubt, it has achieved a remarkable millstone in development process. Therefore, the problem of this study is, how Germany was able to achieve economic stability and economic growth, compared with other European countries. Based on the research problem, objectives of the research are to identify the German hegemonic role in the European Union and to explore the development policies which have been implemented to enhance Germany’s economic growth and stability in past Second World War scenario. To conduct this research, qualitative and quantitative methods have been used. Due to the difficulty of gathering primary data, because this research is based on another country, secondary data have been used. IMF economic statistics data used to analyze and examine the rapid economic growth of Germany compared to other states in the European Union. This study used the descriptive analytical tools and techniques to analyze the data. From this study we can learn how Germany recovered from these major crises by adopting and implying economic theories and in the future, we can apply these theoretical findings of the research to contribute to the economically struggling nations to strengthen their economy