Economic Development of Uk and Germany

430 Words2 Pages
UK and Germany both experienced successes and failures at different times with their economic development. The initiator of the industrial revolution, UK did not continue to reap its benefits to as great a degree as other developing nations. UK was among the first to establish a constitutional system which supported the right to private property. Combined with its foray into the banking as well as the public & private credit system, UK was able to be the leader in the first industrial revolution. However, it was surprising to see UK focus more on growing its empire and foreign investments instead of investing in domestic initiatives. The lack of investment in domestic manufacturing led to UK lagging behind in manufacturing and unable to compete with other western nations in capital intensive industries. Furthermore, it was surprising to see UK implement free trade much earlier than several of the other nations. While other nations sought to protect and grow domestic manufacturing, UK had to be careful not to upset other nations as it was greatly dependent on them for goods and investments. Despite trade deficits, UK still continued to show growth and continued to remain a power in the modern society. In contrast to UK, Germany lagged behind in the industrial revolution initially due to its segregated states. The unification of the German states and its intense trade rivalry with UK propelled Germany into rapid economic development. Whereas the banks in the UK mostly concerned themselves with short term loans and being hands off, Germany’s banks were very much involved in the running of the industries. The banks had a lot of power in the strategic decision making of the corporations and helped shaped their future. I was also surprised by how progressive Germany was in implementing social welfare and insurance for its workers. Additionally, Germany’s focus on
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