Germany  

German workers have access to very high levels of physical capital, placing the country 17th in this category. The rate of unemployment is low compared to global averages, at 7%, while the inflation rate is also low at 2.1%. The domestic saving rate is standard at 25% of GDP. The interest margin between lending and borrowing rates in Germany is low, suggesting a very efficient banking system, while the number of non-performing loans is a moderate 3.4%. With the third highest rate of household expenditure, equivalent to 28% of GDP, domestic demand and consumer confidence are high. Raw material export concentration levels are very low, while the value of Germany’s exports as a capacity to import is above the global average. However, one area in which the German economy underperforms significantly is low foreign direct investment, which is equivalent to 2% of GDP.

Barriers to entry in Germany are moderate, with nine formal procedures required to start a new business. Nevertheless, with over 65,000 new businesses registered in 2007, Germany ranks within the top 20 in this category. In terms of value added within the service industry, Germany ranks 17th in the world. The level of bandwidth available to German internet users is among the top three in the world, and the number of secure internet servers per capita is within the top 15, at approximately 349 per one million people. Germany spends the most of any country on R&D, at 4% of GDP, as well as ranking fifth in royalty receipts. It also boasts the ninth highest number of personal computers per head, at nearly 66 per 100 people. Still, Germany’s well-known export performance is not driven by technology: ICT exports are moderately low at just under 10% of total goods exports, while the amount of high-tech exports is also low at 17%.

German citizens enjoy unconstrained freedom to participate in political processes, express their beliefs, and participate in political and civic movements and organisations. Germany is classified as a complete democracy, where there is open competition amongst rival political parties for both the executive and legislative branch. The political system has significant constraints on the power of the executive and the executive office is assigned through free and fair elections. The German judiciary is free to act of its own accord without influence from the executive branch of government.

Germany has a near gender equal primary enrolment rate of 98% and the ratio of teachers per pupils at primary age is very good at one to 14. The country also has a high level of secondary enrolment, ranking in the top 20 countries in this category. However, tertiary enrolment rates are lower at 46%. Average years of both secondary schooling and tertiary schooling are very high, boosting the productivity of the workforce. Educational expenditure per student is approximately $10,000, placing Germany in the 15th highest position for this measure.

Germany has a very high number of doctors and hospital beds per capita, ranking the country 15th and 5th, respectively, on these variables. Health-adjusted life expectancy is the eighth highest in the world at 72 years, and only 3% of German citizens are undernourished. Infant mortality rates are also very low, with only four deaths before the age of one per 1,000 live births. Germans have universal access to improved sanitation facilities. More than eight in 10 people are satisfied with their health, and a very high number are satisfied with their quality of water.* With a quarter of people reporting health problems, Germany holds the 66th spot for this variable.* However, on other subjective health measures Germany performs in the first quartile with a fifth of respondents reporting they had felt physical pain the previous day.* A moderate 66% of respondents reported feeling well rested.*

Germany has limited challenges related to refugees and internally displaced individuals, but a significant security challenge with the presence of social groups with a history of discrimination or other grievance. The country also has some problems with human flight, however, Germany ranks in the top quartile in this category. The state rarely uses violence against its own citizens, as politically motivated tortures and disappearances remain essentially non-existent. There have been no German casualties in civil war in 2008, and less than one homicide per 100,000 people, ranking Germany in the top 10, internationally, for the latter variable. Just 8% reported having had property stolen in 2007, 4% reported they had been assaulted or mugged, and three-quarters of citizens feel safe walking alone at night where they live.*

In Germany, the rule of law is enforced equally and the quality of government regulation, particularly with respect to investment and competition, is also very high. The governmental bureaucracy is among the most efficient in the world, ranking the country 14th in this measure. People are able to participate freely in the political process, determining the leaders and laws that govern them. Three in four Germans have confidence in the German armed forces;* however, perhaps surprisingly, 83% of respondents thought there was widespread corruption within local businesses, and 73% thought the same of local government.* A majority of 59% of German citizens have confidence in the judicial system, while 54% have confidence in the honesty of the electoral process.*

German citizens have unconstrained freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. In Germany, nearly eight out of 10 people believe their area is a good place to live for ethnic minorities and immigrants.* Four in five Germans are satisfied with their freedom of choice, ranking in the top third of countries on this variable.*

Social networks are moderately strong in Germany, with a very high 95% of respondents feeling they can rely on their family and friends in times of need.* In addition, the importance of friends is high, ranking within the top quartile of countries in this category, and more than 50% trust in others. Half of all respondents are members of their local religious institution, which can provide a religious support network, and just under half are members of sports groups, ranking the country in the top 10. Membership of arts and environmental organisations, however, is low at 20% and 7%, respectively. More than half of the respondents reported having donated to charity in 2007, while a quarter had volunteered, and 48% had helped strangers.

* Data taken from the Gallup World Poll

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