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Why German Economy and manufacturing is able to shine on the top of the world

Note: this was the story in 9 years ago, not tody. That time was the Germany under Merkel’s leadership, not the Germany today under red and green lights fading shining.

Only the street boys and street girls govern own country by red and green lights.

Please look at that how Germans play their democracy. According to Grand coalition (Germany) - Wikipedia that was last edited on 18 April 2019, after the inconclusive result of the 2005 German federal election, neither of the traditional coalitions could form a majority government. Another possible coalition existed, comprising the SPD, Greens, and the Party of Democratic Socialism (PDS), PDS, the successor party to East Germany's ruling Socialist Unity Party, the SPD, CDU/CSU to agree to form a grand coalition with CDU leader Angela Merkel as chancellor and an equal number of cabinet seats for each party.

I really doubt that whether the great Germans themselves can quickly sort out these political parties and their sacred political goals; and eventually; in the final analysis, what on earth; they want to do and what actually they can provide for Germans.

Thank Harvard University for awarding Honorary Doctor of Law to former german chancellor Angela Merkel; who was the most worthwhile for got the honor and helped world gained the most worthwhile return: “tear down walls of ignorance and narrow-mindedness, for nothing has to stay as it is,” to get rid of state of “describe lies as truth and truth as lies.”

Suppose that it is not the street boys and street girls playing with red and green lights, Merkel was still in power,  the Russian and Ukraine Agent War would not happen.

In order to avoid wars, European countries promoted integration and established the European Union in uniform use of the Euro; however, human inborn selfish instinct driven EU as new kind of disaster.

Jan 2019, article EU on the brink: German eurosceptics threaten 'DEXIT' unless EU parliament is ABOLISHED reports that European Parliament has 751 MEPs, 44,000 officials and 11,000 employees that cost over €8billion a year; 4,000 of them earn more than €290,000 a year in more than of Angela Merkel’s salary.

May 2014, article Luxury EU Junkets for MEPs Cost Taxpayer Over euro 5m a Year reports that the "Members of the European Parliament have been spending more than €5m a year on alleged “fact finding” trips to some of the most luxurious destinations on the world and were accompanied by the team of servants.

Jan 2023, article The EU's "crazy salary increase" caused controversy, von der Leyen's daily salary exceeded 1,000 euros reports that as people across the European Union are currently struggling with high inflation, EU officials crazy increase salary, 50,000 EU employees can expect a second salary increase in 7 % within 6 months, salary plus allowances, von der Lein's total income is about 36,000 euros per month in daily salary exceeds 1,000 euros. The salary increases are borne by taxpayers, but under inflation, the salary of ordinary German workers has not adjusted.

However, taxpayers honestly cost so much to establish such a huge complex political system; by own hard earned money in self living frugally to feed so many lawmakers; only with a hope that they will make a better life with a livable social environment; however they reward the honest taxpayers an increasingly unlivable homeland. This is not limited in the EU; there were many reports of democratic politicians raised own payments when people going to starve.

                  --- Frank   Oct. 6, 2023

The Red and Green Lights Collapse of Germany Industrial Giants

YouTube video: Germany Industrial Giants Collapse | Energy Catastrophe Unleashes Chaos In Industries

October 6, 2023 https://www.youtube.com/watch?v=ABpA643_8z4&ab_channel= 

In recent decades, Germany enjoyed lots of economic success, like making fancy cars and high-tech stuff that everyone wanted to buy. They were so good at it that they made tons of money by selling things to people in other countries, and their government had a lot of cash. People even wrote books about how Germany was doing things right.

But things have changed. Now, Germany is not doing so well in the world economy. It's one of the worst among rich countries. The International Monetary Fund and the European Union say Germany's economy is going to shrink this year. This all started because Russia invaded Ukraine and stopped giving cheap natural gas to Germany. That hurt Germany's factories, which need a lot of energy.

People in Germany are really worried about this. They're afraid that their country might lose its factories and good jobs because it's getting too expensive to make stuff there. The boss of a big German chemical company says Germany might stop being an industrial powerhouse. He looks out of his fancy office and sees old factories and mines that used to be important but aren't anymore.

Thanks For Watching Our Video; Germany Industrial Giants Collapse | Energy Catastrophe Unleashes Chaos In Industries 

Now, the place where coal mines used to make everything dirty is becoming clean. They've got wind turbines and green areas instead of pollution. But losing the cheap Russian gas hurt Germany's economy. They even had to ask a company to keep an old power plant running because they didn't have enough energy.

That company is trying to change things. They're going to use gas and maybe hydrogen instead of dirty coal to make stuff. They want to be good for the environment by 2030. But for now, Germany is in a tough spot because of what's happening outside their borders.

One idea that's causing a big argument is whether the government should set a limit on how much factories can be charged for electricity while they switch to clean energy. This idea is proposed by Vice Chancellor Robert Habeck from the Greens Party, but not everyone likes it. 

Chancellor Olaf Scholz and his friends from the Free Democrats think it's a bad idea, and so do environmentalists who say it would keep us using dirty energy for longer.

But Christian Kullmann, the boss of that big chemical company we talked about earlier, thinks it's a good plan. He says that bad decisions from politicians caused the high energy prices, and it's not fair for German businesses and workers to pay for those mistakes.

Gas prices have doubled since 2021, and that's causing trouble for companies that need gas to make things like glass, paper, and car parts. Plus, China, one of Germany's biggest trade buddies, isn't doing so well economically anymore.

All these problems show that Germany has some problems it didn't notice during the good times. They're not very good at using technology in government and business, and it takes forever to approve clean energy projects.

Germany also didn't spend money on things like roads, trains, and internet in the countryside, and that's why they had extra cash before. Depending on Russia for gas was also a mistake, especially with the Nord Stream pipelines, which were turned off because of the war.

And now, it's really hard to build wind turbines because people don't want them near their homes. There's even a big delay in a project to bring wind power to the southern part of the country.

Meanwhile, the United States is giving lots of money to companies that want to invest in clean energy, and that's making Germany jealous and worried that they're falling behind. So, everyone is competing to have the best new technologies that make money and help the country grow, and Germany is trying to figure out how to keep up.

But what is causing the continued plummeting of Germany’s economy? The loss of cheap natural gas from Russia has contributed to the problem, but the decisions made during the prosperous years are also being questioned.

The days are gone when jobs were abundant, and the government's coffers swelled, while other European nations grappled with debt. Germany was even held up as a model for others to follow. 

Today, both the International Monetary Fund and the European Union predict Germany will shrink this year. This downturn came in the wake of the conflict between Russia and Ukraine and the subsequent loss of cheap natural gas from Moscow. 

This was a severe jolt to Germany's energy-intensive industries, which have long driven Europe's manufacturing sector. This sudden economic underperformance has sparked a flurry of criticism, debates, and disagreements about the way forward. 

                                     --- Frank   Oct. 6, 2023

Why German Economy Can Fly Against Economic Recession

         Frank Li  Feb. 16, 2014, in Waterloo, Canada, Updated Sep. 17, 2017. Feb. 2, 2019. Jan. 13, 2020

         http://www.kwcg.ca/bbs/home.php?mod=space&uid=61910&do=blog&id=3788

   Never follow others; but going on own way, make German economy fly against economic recession.

   I remember that Professor Zhang Weiwei at Fudan University of Shanghai China once said that, the German Chancellor Angela Merkel asks a German economist, why do we have no world-class economist that won the Nobel Prize? The economist answered, please do not worry, if there is the world-class of economist, there will be no first-class economy.

           --- Frank  Sep. 17, 2017 in Waterloo, On. Canada

   Germany may be one of the few rich countries relying on the hard working rather than that of natural resources, which has attracted great many people to explore the secrets. However, most of them have focused on the macro policy with ignoring the micro details, such as, the Robert Bosch GmbH, a German Company ranked 131 in 2013 global fortune 500:

   In 1930s, it once listed, but to be delisted by the founder Robert Bosch since he found many fatal hazards as a listed Company, especially that dividend makes staff lazy.

   The wages of the Board members are lower two salary grades than that of the general operators who are working in the production line.

   I do not know whether it is universal in the Companies of Germany? However, even as an occasional individual case, the wise approach of the Robert Bosch is enough to be awe-inspiring. It shows the rational of Gemans.

   Here, I am trying to dig some trivia that is often to be unseen or to be seen but to be treated as not worth to mention. I believed that those are easily despised or neglected by others, are just precisely the most important. They are the true reasons or may be called as DNA that Germany has been success outstanding. 

             --- Frank    Feb. 23, 2014   in Waterloo, On. Canada

             Content

   The motivation of the topic

1. German has Civilized Labor Unions as Works Council

2. The Rational Macroeconomic Policy of GermanyThe DNA of the Success of German Manufacturing

4. Delisted, since public financing has fatal hazards

5. Board members' wages lower than that of general operators

6. Legislated Vocational Training System

7. Family businesses firmly rooted in Germany

8. Many invincible SMEs with leading global technology

9. Germany: national organized R&D ensures competitiveness

9.1. Enterprises are the main body of scientific research

9.2. R & D, Gov collaborates with civil organizations

9.3. The unique management of research funds

9.4. The audit of the research project 

9.5. The supervision of the research projects

10. To provide comprehensive after-sales service

11. Boosting employment by creating low-income jobs

12. Stringent government and Rigorous steady administration

13. The industrial and commercial centers throughout the world

14. German co-operates with Russia not sanctions on Ukraine crisis

     Some reports regarding Germany

More coming soon, I am Googling........

    <<<<<<>>>>>>

The motivation of the topic?       

     In the morning, Feb. 16, 2014, I happily read the article Volkswagen's US workers vote against joining union, and produce a feeling that smart Germans civilize Americans to stop their semi-civilized behavior of chiseling holes on own lifeboat.

     I am too excited and think of a lot about the wisdoms of Germans with strong desire to speak out.

1. German has Civilized Labor Unions as Works Council

      Feb. 9, 2014, in article Management is the Art of Playing Human Nature,  I indicate that the Enterprise is as same as that of lifeboat to be shared by owner and employee to struggle for survival. 

      But, the Labor Union organize labors against business owner irrationally to play a negative role of chiseling holes to sink own lifeboat.

      In the early initiation stage of the Labor Union, it played a positive role in protecting the rights of the labors in the chaotic years of lack of legal regulation. But, today, governments have well legislated for protecting the rights of the labors with the support of thoughtful social welfare. The existence of the Labor Unions has lost the positive significance.

      I am not intended malicious criticizing Unions at all, indeed, I appreciate the kind intention of the Labor Union to protect the interests of the labors.

      However, in nowadays, with a great good will, the outcome of the Union's efforts is detrimental to the interests of the labors to cause losing more with playing a disservice role. Such as that, once business failure, the Unions' members are also out of work without job to make livelihood for their families. It is not easy to get new job in nowadays economic downturn times.

      The facts have proved that the historical mission of the Labor Union has completed, it should go to enjoy rest in the grave.

      Though, what happened in Olkswagen's US was the will of the staff from local Americans, but, the positive impact of the German corporate culture can not be neglected. It is that smart Germans bred Americans into fully civilized from semi-civilized state.

      In Germany, there also similar organization - Works council as that of Labor Union in North America, but, the initial purpose and actual effect has essentially different. In Germany, it is mainly for promoting workers to participate in management of the companies they work for, and helping full exertion of workers' intelligence.

      Canada, as a country of North America, there is Labor Union similar as that of in the United States, but, even worse with own unique fatal DNA. 

      Recent years, in Canada, there more and more businesses are failed. The most of failures have the fatal impact of the Labor Union or the impact of the workers' ideological from Union's Culture. 

      In view of this, according to my personal experiences from intended working in the different types of enterprises of Canada in the past 12 years, I have written many articles to talk about business management, especially, with the purpose of reversing the absurd corporate culture.

      I have a long-standing impression that German is the most rational on this Earth. Also, I have a lot of memories about their samart approaches in many aspects.

     But, now, I would like to focus on economy and corporate management.

     2. The Rational Macroeconomic Policy of Germany 

     In the last century, after the U.S. President Roosevelt successfully saved the Great Depression by the means of the government intervene in the economy, the most of countries take Keynesian theory, such as, Fiscal Deficit, as the magic to stimulate their economy. Now, most of them are debt-ridden, and some of them become losers with bared buttocks and broken spine.

     However, at that time, rational Germans did not silly go with the flow. May be that they have foreseen that Keynesian Fiscal Deficit is the economic heroin with instant excitement, but long-term fatal. So, they adopts own Freiburg School neoliberal theory that can sustain for long-term stable development. 

     Now, nearly 80 years practices have shown that the choice of Germans was smart prescient.

     Feb. 9, 2014, in the article <The Fed's waning magic in the age of Yellen>, the writer Edward Luce said that: "Every chairman of the US Federal Reserve seems to get hit by a crisis in their first year. Whatever might blindside Janet Yellen, she starts off with a problem that affected none of her predecessors: the Fed has run out of ammunition. Moreover the one remaining weapon the Fed thinks it has – the hocus-pocus of 'forward guidance' – is a gun that fires blanks."

     Many facts show that Fiscal Deficit is not only has lost its positive effect, but also has become economic heroin, and the addiction is quick growing in most of countries. Great many countries have become drug addicts, if, stop using drugs, they certainly can not stand. However, if, continue in drug use, destined to premature death. NowFiscal Deficit has become unbearable economic nuisance. 

     However, those are not the fault of the great Keynes, but the fault of the dogmatists of the policy makers due to they are too ignorance to make a rational judgement independently with a instinct that can only draw a tiger by copying home-cat, without ability for making a solution according to the actual objective situation in changing constantly.

     As my view, one kind of medicine corresponds to one kind of disease, the disease has changed, and the good medicine may become deadly poison.

     Nowadays, compared with that of formation period of Keynesian theory in before and after 1930s, the big changes in the economic structure, the large increase in the economic capacity, the over triple times increase in the population, and the bestial mad plunder of over-developed Financial Economy to the Real Economy, especially, the rapid free flow of the large amount of international hot money that large enough to destroy the economy of a nation, and the access is as easy as that of just a finger click. 

    International situation has undergone earth-shaking changes; however, the governments worldwide are still dogmatically continuing Keynesian economic theory that developed under old situation and certainly is not suitable for new problems.

     In the article The Precious Legacy that Keynes Left to Us, I said that:  

     "In my view, the greatest contribution of Keynes was not the <The General Theory of Employment, Interest and Money> but <The end of laissez-faire>." "The way of his bold but sensible questioning about orthodoxy with advancing ideological could help us to advance the way of our thinking, and avoid to fall into the trap of dogmatism, it is the prerequisite to do any thing correctly."

    "The world is in constantly developing, the objective conditions are constantly to be changed, and the nature of the problems will be changed, too. Only boldly breaking the restraints of old ideological frame, the horizons of vision is able to be expanded, the new innovative ideas can be find, the innovation is able coming true. So that, when facing particular new problems, we can quickly identify specific new solutions."

     "This the Precious Legacy that John Maynard Keynes Left to Us." 

      We are aware that, the Fiscal Deficit has caused the European Sovereign Debt Crisis, and the Freiburg School neoliberal theory helps industrious Germans playing a role as that of the savior for those European losers under Sovereign Debt Crisis.

      Facing new social and economic issues, in 2003, Germns timely develop new solution <Agenda 2010> with aimed at reforming the German social system and labour market to improve economic growth and thus reduce unemployment.  

      Of course, Germans is success again with new economic miracle.    

      Mar. 19, 2012, Thomas Schulz published article 'We Need To Learn from Germany': How the German Economy Became a Model?.

     “It wasn't so long ago that many viewed Germany's economic model as outdated and the country as the "sick man of Europe." These days, however, even the Americans have come to praise parts of it, though they still doubt whether they would be able -- or willing -- to adopt it wholesale.”

     Googling, you will find a lot such reports of recognition.

      3. The DNA of the Success of German Manufacturing

      Now, let's look at the smart of Germans in terms of corporate management.

      In May 28, 2012, I once wrote an article The DNA of the Success of German Manufacturing with that, the driving force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is with profit-related bonus to motivate all of staff to pay their full talent into the business running. 

     The idea was initiated as earlier as 1872 by Mr. Friedrich Alfred Krupp who was the owner of German steel manufacturer of the company Krupp. Now, in all German businesses, their staff can use computer network systems to easily submit or query their rationalization proposals. 

     4. Delisted, since public financing has fatal hazards for enterprises

     In the article Dividend Makes Industrious German Lazy, I introduced with that:

    "Robert Bosch, the German industrialist, engineer and inventor. He has found the Robert Bosch GmbH in 1886. His philosophy is that: we should all strive to improve current situation.'”

    "As that of general popular practice of business operation world widely, in 1930s Robert Bosch GmbH once had listed and gave the stock to the management team. After a while, Mr. Robert Bosch found the top mangers changed their habit and attitude, they went to lazy and not work as hard as before. The dividend income encouraged them paying attention on enjoying life. So Mr. Robert Bosch changed his mind to have bought back the stock and delisted."

    "At that time, only three people knew this secret, and it was disclosed until recently by Mr. Franz Fehrenbach, the former president of Robert Bosch GmbH, (the incumbent president is Volkmar Denner since July 1,2012) when he was accepting the interview of talk show of China Central Television in May 20, 2012."  The name and the link of the video is as follow:

    Decoding the successful Gene of made in germany (Translated from Mandarin)

    http://www.youtube.com/watch?v=c59dM6AYTXI

    Note: the Moderator presided in Mandarin, but the answer of Mr. Franz Fehrenbachin English, which revealed a lot of secret detals in Macro and Micro management in German manufacturing sector, it has high reference value.

     "The delisting has played a positive effect to the development of the enterprise. The interview also has revealed that Robert Bosch GmbH is ranked at 119 in the world’s top 500 enterprises. The sales revenue is 50 billion euros, in which the profit is about 8%. It is inventing 16 patents a day. Its technology is playing a role of determining the level of the development of the automotive industry of the world and is earning most of the profits of the vehicle manufacturing."

    "Mr. Robert Bosch also summarized other bad effects as listed Company."    

     "1. Loss of autonomic power in decision-making."

     "2. Loss of autonomic power in financing."

     “3. The pursuit of the stock market value will be made fall into a short-term behavior in business running, to affect long-term development investment."

     "4. Listed Company can not keep excellent CEO, they may be ousted due to poor short-term profit caused by focusing long term investment. Some prospective researches may need long time to reach practical results, such as, 5 years, 10 years, even more." 

     5. Board members' wages lower than that of workers

    In above interview, when talking about the payment, Mr. Franz Fehrenbach said that, the workers in Robert Bosch GmbH belong to the Metal Union, the salary is highest in the Germany compared with other industry or Unions, The wages of the Board members lower two salary grades than that of the workers. We think that amount of payment is enough and reasonable. After heard what he said, the onsite audience were laughing loudly with unbelieving look, Mr. Franz Fehrenbach immediately explained with that: this is not a joke, it's true. Our annual report has this information; you can find the payment of each board member.

    I think that, besides Germans, for any people in any countries, the wages of the Board members lower than that of their workers is incredible, not mention that even lower two salary grades.

    In my memory, German Chancellor Angela Merkel is the first Head of State to criticize the unreasonable high payments of the corporate executives.

    Feb. 17, 2014, morning, I read article <Dell finally goes private, delisted Tuesday, Oct. 29, 2013>. It shows the smart of Robert Bosch of the founder of the Robert Bosch GmbH. 

     6. Well Designed and Legislated Vocational Training System

     The success of German-made thanks to their excellent industrial workers, and all this, thanks to its unique system of vocational training. I admire the smart cost-calculation methods of German companies fund vocational training.        
     Following is reproduced from article <The German Vocational Training System: An Overview>.http://www.germany.info/Vertretung/usa/en.html

     "The German vocational training system, with its combination of classroom and business, theory and practice, learning and working, is recognized worldwide as a basic and highly effective model for vocational training. The dual system is firmly established in the German education system, having, as it does, firm roots dating back to the Middle Ages. An essential characteristic of the dual system is the cooperation between largely private companies, on the one hand, and public vocational schools, on the other. This cooperation is regulated by law."

     "In Germany, more than 50 percent of all students who were college-bound in high school but decided against university apply for vocational training, and many companies participate in vocational training. Companies provide training voluntarily, and often at their own expense, because they believe that this is the best way to meet their own need for skilled staff. Private companies bear two-thirds of the total costs spent every year on (initial) vocational training in Germany – costs which amount to an average of 15,300 euros per trainee per year. Businesses that take part in the practice consider training their own new employees the best form of personnel recruitment. Training companies save on recruitment costs and the cost of new-employee training. They also avoid the latent risk of hiring the wrong employee for the job. The main benefit for trainees is receiving market-relevant training that improves their chances in the labor market while simultaneously improving social skills and developing personality. Finally, the state, too, benefits from the dual system through easing the burden on public budgets by participation of the enterprises and by keeping the workforce up to date."

     7. Family businesses firmly rooted in Germany

     This section is the excerpt translation of Oct. 23, 2013 <Decrypt German economic model> in Mandarin, the link is as follow.

     http://bbs1.people.com.cn/post/2/0/2/134446028.html

     In Germany, there about three million companies, 99% are SMEs, most of which are family businesses. For family businesses, the honestly operation of the company is all of their work. While in the UK, a company may already involved in the capital markets, there may be financing from big business, and then one day decided to close the plant in the UK, to move their production lines overseas. In Germany, the family business is the life of the family, the families remain in Germany, and the companies will stay in Germany.
     Most of German family businesses have a strong capital base, so no need for public financing in the stock exchange. Therefore, no need to have to adjust according to the situation of the stock market quarterly, but to develop long-term goals to achieve it step by step without rush. This ensures the business plan from a long-term focus to avoid the negative impact of excessive scale expansion to the enterprise.

     8. Many invincible SMEs with leading global technology. 
     This section is the excerpt that translated from an article in mandarin, the link is as follow. 

     http://finance.sina.com.cn/economist/jingjiguancha/2007.shtml
     Germany has a lot of Small and Mid-sized Enterprises - SMEs. They are mostly very professional to focus on one or several products, they are keeping update to get competitive advantage of not being exceeded in the international market.
     Germany has a large number of companies following the Volkswagen, BMW, Mercedes-Benz came to China, which including parts, switches, steering wheel, wires, spark plugs, and more. Similarly, Siemens and other big environmental energy companies have brought their supporting enterprise community into Chain.

     9. Germany: national organized R&D ensures competitiveness

     This section is the excerpt translation from July 31, 2012 <Germany: national organized R&D ensures competitiveness> in Mandarin, the link is as follow.

      http://www.chinatopbrands.org/a/pingpai/ppb/20120731/4104.html

     Note, before as an independent technical immigrant into Canada, I was working in a research institution of China, with a deep feeling of that, because the particularity of research activities, the waste of research funds is widespread, also, it is difficult to control the results of the researches, which leading to low efficiency in research funds using. I think that for Canada will be also, with no exception. The management approaches in Germany may provide a good inspiration. 
     The success for Made in Germany comes from its efficient operation of the well co-ordinated multi-level scientific research system. 

     9.1. Enterprises are the main body of scientific research

     In Germany, enterprises have been the main body of scientific research. In 2010, the total investment in R & D from German companies is 49 billion euros which accounting for 70% of the total research investment.

     Generally, German large enterprises establish R & D department to hierarchical carry out research activities. The researches focus on exploring strategic technologies to develop autonomy innovations.

     In Germany, the R & D investment of SMEs is relatively small, about 8 billion euros per year. But German government and funding agencies provide a variety of funding support at all levels, or joint R & D projects. The cooperation of SMEs with universities and research institutions are common and depth.

In overall, the vitality of German enterprises' innovation comes from its advantage of the overall research system. The research bodies at all levels focus on enterprises' innovation through reasonable cooperation to have achieved good results.

     9.2. R & D, Gov collaborates with civil organizations

     In R & D, Gov collaborates with civil organizations, due diligence respective responsibilities. The government constantly improves the laws and regulations to timely introduce innovative incentives for innovation to have played "escort" role with providing financial support to enterprises and research entities. In recent years, the average investment is about ? 20 billion or so. To promote technical standardization is also the focus of the government to aim at grasping the speak right in the industries, to help German companies take the initiative.

     Between decision-making and executive departments, there is an Advisory Groups that formed by German Science joint conference, Scientific Committee, and Academy Alliance, etc. With the background of comprehensive understanding of the national research and education, to make recommendations to government on the development strategy and major project, as an important link between the government and the research subjects.

     9.3. The unique management of research funds

     In the management of research funding, Germany has a number of large-scale professional research funding organizations, for example, the German Research Association and other public institutions.

     They get a lot of money from government each year, and then allocating the funds based on national strategy by their profound understanding for the forefront of the technology trends with professional decision-making, which can effectively improve the efficiency of R & D funds allocation.

     Also, the private research funding agencies are financially strong with according to their own preferences to fund research subject or scholarships, to play a useful supplement to public research funding.

     9.4. The audit of the research project

     In Germany, research activities have a relatively sound and fair rules, the management for research project is more scientific.   
     Everything speaks depending on the strength of the project. The healthy competition promotes scientists to concentrate on their researches full-heartedly.

     In Germany, the experts of project audit committee are merit-elected by government commissioned agencies. The members must have no benefits association with the project applicant. As long as the project is superior enough, the applicant will surely win.

     9.5. The supervision of the research projects

     In scientific management, the government focuses on the fair and transparent of the selection process, but, rarely involved in the actual operation, to commission independent professional service provider to take charge for coordination and supervision.

     Those professional service providers is the major feature of the German research system, in Germany, there are about 20 such service providers, better known is Jülich Research Center, DLR research institute. Their position is independent academic agency to sign contracts on specific projects with government, according to the authority responsible to manage the project in pre-assessment, quality control, regulatory progress, application promotion and public relations work.

     The management teams generally submit progress reports every six months to the management, and conduct a comprehensive annual general report, management staff will regularly visit the laboratory, enquire about project progress. Because managers are also professionals, so communication is often smoothly. 

       10. To provide comprehensive after-sales service

       This section is the excerpt translation of Oct. 23, 2013 <Decrypt German economic model> in Mandarin, the link is as follow.

       http://bbs1.people.com.cn/post/2/0/2/134446028.

      German companies are not only producing high quality products, the label of Made in Germany are included a range of ancillary services elements: "after the sale of a machine, the company is also responsible for the installation, to train operators for buy-side firms, 24-hour service hotline. The ultimate effect is to achieve fully guaranty of the machine effective functioning.

       11. Boosting employment by creating low-income jobs

      This section is the excerpt that translated from an article in mandarin, the link is as follow. 

      http://finance.sina.com.cn/economist/jingjiguancha/2007.shtml

      In 2013, German job market has created a miracle in the history of the Federal Republic while the unemployment rate continued to rise to the record levels in the neighboring countries. 
     This success thanks in part to government launched Schroeder labor market reform so-called "Agenda 2010" in 10 years ago, in which, the key is to create low-income working class with withdrawal of the job market regulation to increase the flexibility for creating more jobs. of course, it promotes the emergence of a lot of low income work.

      12. Stringent government and Rigorous steady administration

      The section in the excerpt translation of <Decrypt German economic model> that published in Oct. 13, 2013 in Mandarin, the link ia as follow.

       http://bbs1.people.com.cn/post/2/0/2/134446028.html

      Try to improve by small modification in step by step to avoid radical changes as that of the "Agenda 2010". if we seen the whole of Germany as a huge business, then this can be regarded as their usual mode of operation. 
       In Germany, a broad social consensus is that uses the perspective of engineering to look at a lot of things, such as, the political system, is like a gear set, on the whole legal basis, the different administrative bodies are interlocking in each other and mutually reinforcing.  

     13. The industrial and commercial centers throughout the world 

     This section is the excerpt that translated from an Oct. 24, 2007 article in mandarin, the link is as follow.  

      http://finance.sina.com.cn/economist/jingjiguancha/20071024/02114091634.shtml

      German government has established the industrial and commercial centers around the world. They are the organization to provide help for German SMEs world widely.

     14. German co-operates with Russia not sanctions on Ukraine cisis

     When some countries have recklessly insisted to sanction Russian on Ukraine crisis, German shows exceptionally rational and thoughtful with deliberately consider the economic consequences.

     May 18, 2014, report <'It's a dead end': German FM joins chorus of discontent over Russia sanctions rhetoric> said that:"German Foreign Minister Frank-Walter Steinmeier has called for restraint in imposing new sanctions on Russia, as politicians, businesses and the general public in Germany grow ever more skeptical of putting more pressure on Moscow.""The idea of slapping Moscow with any further restrictions appears to be lacking popular support in Germany

    May 13, 2014, Germany Pushes Western Effort to Mediate Ukraine Crisis.

    May 11, 2014, German ex-Chancellor Schroeder defends party with Putin ; says sanctions, isolation pointless.-