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Published in:
Introduction: Dependency as a Research Program: From Situations to Mechanisms of Dependency Read chapter Read first chapter

2021 | OriginalPaper | Chapter

3. The Deformation of the Core by Dependency Relations: The Case of Germany in Europe

Author : Andreas Nölke

Published in: Dependent Capitalisms in Contemporary Latin America and Europe

Publisher: Springer International Publishing

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Abstract

Dependency has usually been conceptualized as a form of economic and political deformation of the countries of the periphery by the countries of the core and by the specific core–periphery relations between the two groups of countries. Much less attention, however, has been given to the effects of core–periphery relations upon the core. Through an inductive analysis of Germany, a core country within the EU and a country with extreme export orientation, I show how dependency also affects core countries. I highlight a number of negative effects on the German economy, social fabric, and political system, among which, extensive wage restraint and reduced public investments to maintain export competitiveness. I conclude arguing that a more balanced relationship would be beneficial for most social groups in both groups of countries, peripheries, and cores.

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previous chapter A Dependency Perspective on the United States, China, and Latin America
next chapter Mechanisms of Dependence: Conceptualizing the Latin American Dependency Research Program for the Analysis of European Capitalism
Footnotes
2
For a more detailed discussion of the issues discussed in this section see Nölke (2016a, 2016b, 2019, 2020, 2021) as well as the contributions by Becker et al. and Vukov to this volume.
 
3
Depending on the theoretical frame, two further growth models can be identified, i.e. the financial services-driven one of the United Kingdom and the dependent market economies in East Central Europe that have been mentioned above. For sake of space, I will focus on the juxtaposition of the German and the Southern European model.
 
4
Actually, there was a very intense debate whether differences in labor cost competitiveness (e.g., Höpner & Lutter, 2014) or inflation increases supported by (inter alia German) financial flows towards the Southern economies (e.g., Storm & Naastepad, 2014) have been the core reason of the Eurozone crisis. Both factors certainly have contributed and are related.
 
5
Somewhat ironically, many social groups in Germany were firmly opposed to the introduction of the Euro, whereas the latter had been greeted unanimously in the Southern European societies.
 
6
For a more detailed discussion of the issues raised in this chapter see Nölke (2020, 2021).
 
7
For a more detailed discussion of the issues raised in this chapter see Nölke (2020, 2021).
 
8
I owe this point to the editors of the volume.
 
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Metadata
Title
The Deformation of the Core by Dependency Relations: The Case of Germany in Europe
Author
Andreas Nölke
Copyright Year
2021
Book
Dependent Capitalisms in Contemporary Latin America and Europe

Print ISBN: 978-3-030-71314-0

Electronic ISBN: 978-3-030-71315-7

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-71315-7_3