The economy of Germany is a highly developed social market economy
. It has the largest national economy in Europe, the fourth-largest by nominal GDP in the world, and fifth by GDP (PPP).
For Mr Svanberg and the European Round Table of Industrialists he heads, the social market economy
that characterises the old world is an asset, not a liability: "I actually think [capitalism] works better here than it does in the east and west."
The Konrad-Adenauer-Stiftung Cambodia (KAS) on Friday celebrated the foundation's unique contribution to the promotion of democracy, the rule of law and a social market economy
in the Kingdom at a 25th-anniversary gathering in the Phnom Penh.
The then dominant Keynesian economics and the more advanced social market economy
model embraced by Northern Europe came increasingly under attack from the adherents of neo-liberal economics, meaning the followers of Friedrich Hayek who worship on the altar of free trade and who spurn any form of government interventionism in the market.
So it happened in the history of Germany after World War II, when the centrally controlled war economy collapsed with the fall of the Nazi dictatorship and a new order, the social market economy
, was established in the west of the country.
The German model of the "social market economy
" put the emphasis on the social dimension; the Japanese one, on the human dimension; and the American one, on the economic dimension.
There are three basic economic models: free market, planned economy, and the social market economy
. The free market dictates that the volume of goods and the prices in the market are results of the agreement between the buyers and sellers.
FILE PHOTO: German Chancellor Angela Merkel speaks during the "70 Years of Social Market Economy
" anniversary event at the Federal Ministry for Economic Affairs and Energy in Berlin, Germany, June 15, 2018.
The 38-page paper titled 'Intervention and Non-intervention: Policy Ideas for a Social Market Economy
in Malaysia' said the government's cash transfer scheme under BR1M was both 'inadequate and unsustainable' as over 85 per cent of recipients finish spending the cash aid within one month.
"Europe should base its future on the economic model of a social market economy
," he says.
It discusses the aims of EU law to achieve a competitive social market economy
, and the resulting controversies; how the retreat of the welfare state has impacted the provision of housing and the expansion of mortgage credit, and the role of vulnerability in housing; how the current EU legal framework recognizes the different types of vulnerability in mortgage law; and suggestions for the neglected types of vulnerability in mortgage law.