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In 1945, at the end of World War II, Germany's economy lay almost in total ruin. Both West and East Germany had to be rebuilt by the controlling Allied powers. The West German economy recovered at an amazing rate in the 1950's. This recovery is described as West Germany's "economic miracle." In East Germany, the Soviet Union set up a strong Communist state where the government controlled the economy, including production, distribution, and pricing of almost all goods. Under this system, East Germany grew to be one of the wealthiest Communist countries, though it lagged well behind West Germany. In 1989, popular protests forced the government of East Germany to make political and economic reforms. As part of these reforms, free, multiparty elections were held in 1990. East German voters elected officials who favored unification with West Germany. One of the first steps toward the unification of East Germany and West Germany was the union of the two economies. Economic unification began on July 1, 1990. East Germany adopted West Germany's currency and began to operate under a free enterprise system. After unification,
Germany remained a member of the European Community (EC), an economic
association of European nations. In the 1950's, West Germany had helped
found several European economic groups that had become the basis for
the EC. The EC helped strengthen Germany's economy through increased
trade with other member nations of the association. In 1993, the EC
became incorporated into the European Union (EU), which works for both
economic and political cooperation among its member nations. ::overview::manufacturing::service
industries::agriculture::mining::
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Manufacturing is the foundation of Germany's economic strength. Germany has several major manufacturing regions, and there are factories almost everywhere. The Ruhr is the most important industrial region and one of the busiest in the world. It includes such manufacturing centers as Dortmund, Duisburg, and Dusseldorf. This region has more than 8 million people. It produces most of the nation's iron and steel and has important chemical and textile industries. Much of Germany's steel is used to make automobiles and trucks, industrial and agricultural machinery, ships, and tools. Germany is the world's third largest manufacturer of automobiles, after Japan and the United States. The country also produces large quantities of cement, clothing, electrical equipment, and processed foods and metals. The chemical industry produces large quantities of drugs, fertilizer, plastics, sulfuric acid, and artificial rubber and fibers. Other important products that are manufactured in Germany include cameras, computers, leather goods, scientific instruments, toys, and wood pulp and paper. ::overview::manufacturing::service
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Service industries are those economic activities that produce services, not goods. Service industries account for a large share of Germany's economic production. The most important group of service industries in Germany is community, government, and personal services. Community services include such economic activities as education and health care. Personal services consist of such activities as advertising and data processing, and the operation of cleaning establishments, repair shops, and beauty salons. Government includes both public administration and defense. Other service industries are finance and insurance, trade, transportation and communication, and utilities. ::overview::manufacturing::service
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About a third of Germany's food must be imported. Germany is one of the world's largest importers of agricultural goods. The chief grains grown by German farmers include barley, oats, rye, and wheat. Sugar beets, vegetables, apples, grapes, and other fruits are also important crops. Fine wines are made from grapes grown in vineyards along the Rhine and Moselle (or Mosel) rivers. Livestock and livestock products are important sources of farm income. Large numbers of farmers raise beef and dairy cattle, hogs, horses, poultry, and sheep. Many German farms are 25 acres (10 hectares) or less in size. Most of these small farms are operated part-time by farmers who have other jobs. In eastern Germany, most of the large farms that were formerly controlled by the East German government have been broken up and sold to individuals. ::overview::manufacturing::service
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Germany has large supplies of potash and rock salt. It also has some copper, lead, petroleum, tin, uranium, and zinc. In the 1800's, coal deposits near the Ruhr River helped German industries grow. But by the 1970's, most of the high-quality deposits had been exhausted. Eastern Germany produces large quantities of a low-quality coal called lignite. ::overview::manufacturing::service
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Germany is one of the world's leading trading nations. It imports great amounts of food, fuel, manufactured goods, and industrial raw materials. The country's major exports include automobiles, chemicals, iron and steel products, and machinery. Germany trades with countries in all parts of the world. More than half its trade is with European Union nations. Switzerland and the United States are also important trading partners. ::overview::manufacturing::service
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Coal is still a major source of electrical power in Germany, but its use has declined since 1970 as oil-burning and nuclear-powered generating plants have become more common. In southern Germany, mountain streams are used to generate hydroelectric power. Germany has some gas fields, but it must import most of its natural gas. The nation also depends on imported oil, mainly from the Middle East. ::overview::manufacturing::service
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Railroads and highways connect all parts of Germany. Germany has one of the most extensive railroad networks in the world, providing passenger and freight service. Its highway system includes about 6,500 miles (10,500 kilometers) of four-lane highways called autobahns. Adolf Hitler began building the autobahns in the 1930's. Today, Germany has one of the world's highest rates of private automobile ownership. The Rhine River and its branches carry more traffic than any other European river system. Canals connect the major rivers of Germany. The chief seaports are Bremen, Hamburg, and Wilhelmshaven. Germany's largest airline, Deutsche Lufthansa, flies to all parts of the world. Major airports operate at many cities, including Berlin, Dusseldorf, Frankfurt am Main, Hamburg, Leipzig, and Munich. ::overview::manufacturing::service
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Germany has about 400 daily newspapers. The largest is the Bild Zeitung of Hamburg. Several other large newspapers circulate throughout the country. The press is free from government censorship. Germany has public and private broadcasting corporations that offer radio and television programming. On the public channels, commercials may be broadcast at only a few times a day. The public broadcasting corporations receive money from license fees paid by owners of radios and TV sets. Private broadcasting companies finance their operations with advertising revenues. ::overview::manufacturing::service
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::quick
facts - history - the
people - ways of life - the
land - the government::
::the economy - the arts - the climate:: |
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James
J. Sheehan, "Germany," World Book Online Americas Edition, http://www./wbol/wbPage/na/ar/co/222500,
October 7, 2001.
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