The Social-Ecological Market Economy in Germany: General Characteristics, Main Features and Current Challenges of a Unique and Successful Economic System

Abstract

Maintaining high social and environmental standards may be costly in the short term, but these high standards are also key drivers for productivity, growth and sustained long-term technological development. Germany’s general approach is actively shaping the social and ecological character of its economy through appropriate regulation, promoting private initiative and innovation and support­ing development through public-private collaboration. This mix can provide important insights for policy makers in other (developing and emerging) countries, striving for long-run economic stability and smart, sustainable, and inclusive growth. There is no universal quick path for economic growth and social well-being. Both require trust and stability, whose development takes time.