Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Government & Politics germany germany Germany is currently experiencing a labor shortage, which is adversely affecting their Gross Domestic Product. If current trends continue in Germany the country could find itself in a serious recession. This would not only effect Germany but all of Europe as well for Germany is the single most important trading partner for almost all of the European countries (Bogdanowicz). This is not a new situation in Germany, for the past seven consecutive quarters activity in the construction sector of the German economy has declined (German GDP). Not only did German industrial output fall, but this was also the lowest annual increase in Gross Domestic Product since the first quarter of 1997, when the Gross Domestic Product increased by 0.1 per cent. According to Berlin’s finance ministry, "Growth has come to a standstill. GDP figures show without a doubt that the risks to the economy have not grown any smaller." (Scally). Without drastic measures taken by the government Germany could find itself a victim of an economic recession. The German government controls the flow of money in a country as well as various global trade programs. There are various political maneuvers a country can do in attempts to prevent a recession. However despite the decline of Germany’s Gross Domestic Product, the country’s political leaders are denying the beginning of a recession. Instead Federal Labour Office President Bernhard Jogoda claims, “We have a slowing economic growth - that's a big difference." (German Finance Ministry). German economist predict by the end of the year the economic momentum will accelerate considerably. Germany stands a chance of averaging 2% Gross Domestic Product growth this year, which is similar to the government's official forecasts (Bundesbank Rules). If a country ignored the evidence and denies a problem they cannot effectively handle the situation for it will not go away on its own. Regardless of the government’s denial of a recession, there are several possible causes of the current economic situation in Germany such as the lack of skilled labor as well as a decline in trade. Due to the global economic downturn the German Finance Ministry blames the decline in global exports as a contributing factor to the unfortunate situation of the economy (German Finance). This lack of trading has led to the careful attitude of German investors as confidence in German business has declined for the fifth month in a row (Bogdanowicz). The most probable origin of this state of economic affairs is the serious deficiency of German skilled workforce. The country’s birth rate is among the lowest in Europe. The German population is expected to fall from 82 million to less than 60 million people over the next fifty years and the workforce will be nearly cut in half (Germany Pressed). Interior Minister Otto Schily, “We must recognize that to secure our prosperity, out future, we are dependant on people from other countries with skills that we desperately need”(Germany Pressed). In order to salvage the German economy, experts say that at least half a million-immigrant workers will be essential (German Region). If a country is on the brink of an economic crisis and their supply of skilled labor is dwindling then a country should reevaluate its immigration policies and recruit labor from other parts of the world. Germany has traditionally abstained from large-scale immigration. The numbers proposed by are actually quite modest, given the dire projections due to the country's aging population and declining birthrate (German Work). With backing of the CDU-CSU, Christian Democrats, and the FDP, liberals, the two major political parties in Germany the current immigration proposal attempts to, “fill a gap in certain sectors of the Germany economy where migrant labor is needed but would also establish a points system to evaluate the suitability of other candidates for immigration according to age, education, origin and knowledge of German culture” (German Ruling). This ease immigration rules is in attempt to attract more world-class executives to German businesses (Germany Pressed). By opening immigration Germany hopes to entice a mix group of permanent immigrants as well as younger workers who want vocational training and temporary workers (German Ruling). Germany also plans to expedite the process for individuals who are highly skilled in science and technology fields. Not only is Germany easing its immigration restrictions, they are proactively trying to entice people to move to Germany. Germany would be the first European country to actively have an immigration policy (Luscher). German businesses complain they cannot get enough qualified workers in the information technology sector (German Work). In order to fill these voids in the workforce, the government will participate in proactive immigration recruitment. Beginning September 5th a German city is preparing to send planes pulling banners saying "Back to Germany" to fly over such major U.S. cities as New York, Los Angeles, and San Francisco, in an effort to persuade Germans working abroad to return and fill labor shortages in the country (German Region). Officials in Stuttgart say they want to lure back high-tech employees hurt by the economic downturn in the United States. The city is also preparing a Web site plugging the advantages of returning. Not only are cities independently seeking immigrants 30 firms including luxury carmaker Porsche and mobile phone company Debitel, the $230,000 campaign also includes ads in the New York Times and on Germany's international television channel, Deutsche Welle” (German Region). If a situation is serious enough a country as well as companies within that country will actively attempt to recruit new immigrants. This is no the first time these policies have been adopted by a county. A few years ago when Canada experienced a worker shortage, which was adversely affecting the economy, the Canadian government reformed their immigration policies and actively recruited immigrants from other countries to salvage their economy (Perine). Canada has since recovered from its workforce shortage and has reverted to its previous immigration policies. Bibliography: Ait-Abdelmalek, Ouerdya. “German Work Permits for Foreign IT experts Prove Insufficient” International News. July 31, 2001. Available: www.lexis-nexis.com Bogdanowicz, Tom. “Recession fears hit Germany” CNN.COM. June 22, 2001. Available: www.cnn.com “Deutsche Bundesbank Monthly Report” January 2001 “German GDP Grows 0.6 per cent in Second Quarter” Financial Pages. August 23, 2001. Available: www.lexis-nexis.com “German Finance Ministry Rules out Recession” Financial Pages. August 27, 2001. Available: www.lexis-nexis.com “German Region Tries to Woo Back High-tech Workers From United States” International News August 25, 2001. Available: www.lexis-nexis.com “German Ruling Party Seeks Compromise over Immigration Proposals” International News. September 9, 2001. Available: www.lexis-nexis.com “Germany Pressed Over Immigration” CNN.COM. July 5, 2001. Available: cnn.com Luscher, Bettina. “Germany Tackles Labour Shortage” CNN.COM. July 5, 2001. Available: www.cnn.com Perine, Keith. “For Export Only” The Industry Standard. June 4, 2001. Available: www.thestandard.com Scally, Derek. “Bundesbank Rules Out Recession” Financial Pages. August 16, 2001. Available: www.lexis-nexis.com Word Count: 978
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