Successfully absorbed major shocks Germany’s social systems have repeatedly and successfully absorbed major shocks over the last few decades, reunification being the most notable example. This event created three Herculean tasks. The first was to protect individuals who became unemployed as a result of the collapse of socialism. In EastRead More →
Functioning social system boosts citizens’ resilience Social systems contribute to economic success and political stability in many ways. They mitigate the negative social effects of the Schumpeterian ‘creative destruction’ caused by international competition to which Germany, as an open economy, is particularly exposed. Anyone who loses their job in GermanyRead More →
Social insurance schemes Social insurance schemes are being effectively supplemented by welfare and/or basic social security as a last line of defence. There are also voluntary welfare organisations such as churches as well as corporate social policy institutions, particularly occupational pension schemes and sick pay in the event of extendedRead More →
Characterised by self-administration In their current form, however, social insurance schemes are not purely a state matter but are instead characterised by self-administration, i.e. Significant (joint) decision-making powers by employer associations and labour unions. This encourages social harmony and makes it easier to take economic concerns into account. As aRead More →
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