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Germany Business and Industry
https://photius.com/countries/germany/government/germany_government_business_and_industr~1423.html
Sources: The Library of Congress Country Studies; CIA World Factbook
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    German society is highly organized into associations that represent the occupational, socioeconomic, religious, and recreational interests of individuals--a tradition that dates back to the corporate guild system of the Middle Ages. Most Germans belong to at least one voluntary association, and many belong to several. The vast majority of these organizations (such as sports clubs) have little political significance, but an important core of groups combines a strong organizational base with a particular interest in policy issues. The size of these interest groups varies. Smaller groups represent subsectors of the population, such as farmers. The large associations include trade unions, professional associations, and religious groups. More than 1,000 of these interest groups are registered formally as lobbyists with the federal government, and hundreds more are active at the Land level.

    The primary interest associations in Germany are organized differently from interest groups in the United States. The United States offers a pluralist model of interest groups, in which loosely structured factions compete within the policy process to represent the same social interests. The government offers a neutral forum in which these groups vie for influence on policy. In contrast, many of the major interest associations in Germany reflect a neocorporatist model of interest articulation that channels interests into a number of unified, noncompetitive associations.

    Four large, national "peak" associations (Spitzenverbände ; sing., Spitzenverband ) represent groups of similar interest associations as a whole. The labor unions, business, the churches, and the agricultural lobbying organizations each has its own Spitzenverband . Membership in one of these peak associations is often mandatory for individuals in a given social or occupational sector. Most peak associations are also organized hierarchically, with the national office determining the objectives and directing the strategy of the association as a whole.

    The influence of the interest associations is institutionalized in several ways. Political parties provide one major channel of influence. Although the associations eschew formal party ties and claim to remain above partisan politics--for instance, they do not officially endorse a party at election time--ties between these associations and the parties are close. To take one example, the labor unions maintain a highly developed relationship with the Social Democrats, and a large percentage of SPD party activists are union members. Another forum for interest group activity is the Bundestag. The interest associations not only monitor legislation, lobby members, and testify at hearings, but they also maintain formal affiliations with deputies. Since 1972, when the Bundestag first started keeping records, roughly 50 percent of the members reported either being employed by an interest group or holding an executive position in a group. About 25 percent of the members are affiliated with economic groups, such as labor unions or the business lobby, and about 17 percent are affiliated with religious or cultural associations. Members of key committees such as agriculture, labor, and education are particularly likely to have ties to the relevant groups. The government ministries themselves provide yet another means by which interest groups influence the policy process. The neocorporatist system encourages formal ties between the two. For instance, ministries are required by law to consult with the peak associations about draft legislation that would affect them. To fulfill this obligation, the federal ministries have established standing advisory committees, which include representatives of the relevant interest groups.

    Business and Industry

    There are three levels at which business and industrial interests seek representation. First, business wants its perspective heard as the government formulates policy. Second, business needs representation in negotiations with labor unions. Third, business may desire support in cultivating new clients or suppliers. Each of these objectives is met by a separate umbrella organization.

    The Federation of German Industry (Bundesverband der Deutschen Industrie--BDI) is the most important representative of business interests in the policy-making process. The BDI is the national peak association for thirty-nine separate national trade associations, including associations for the automobile and machine tool industries. Thus, it is the primary representative of the business community in the political process and the principal intermediary between business and government. The importance of the National Association of Manufacturers (NAM) in the United States pales in comparison with that of the BDI in Germany. In western Germany, the BDI's associations represent over 90 percent of all industrial firms; by contrast, the NAM accounts for only a fragment of United States industry. Although private businesses were still in the early stages of development in eastern Germany in the early 1990s, most trade associations have already set up offices there to coordinate the new industries.

    The Federation of German Employers' Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände--BDA) is the second important representative of business. The BDA is a peak association of sixty-four employers' associations, consisting of seventeen regional organizations, including the employers' associations of each Land , and forty-seven national trade associations organized by economic sector. The BDA represents the full range of business activity in Germany, but most of its members are in industrial associations. Almost every medium or large employer is a member of a BDA association. The BDA provides advice and serves as a coordinating mechanism for employers on social and labor policy. Among other things, the BDA negotiates general salary guidelines with unions, and it lobbies Land and federal governments on legislation affecting the interests of its members, such as social security and labor practices.

    The German Chambers of Industry and Commerce (Deutscher Industrie- und Handelstag--DIHT) is the third leg of businesses' representational triad. All companies paying business taxes are required by law to join the local chamber and pay membership dues. Thus, several million firms belong to the eighty-four district and local associations of the DIHT, including the fifteen postunification chambers in eastern Germany. Beyond its national role, the DIHT represents German business abroad, as well as on international trade issues. The DIHT has been particularly engaged in attracting foreign investment to the east.

    Data as of August 1995


    NOTE: The information regarding Germany on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Germany Business and Industry information contained here. All suggestions for corrections of any errors about Germany Business and Industry should be addressed to the Library of Congress and the CIA.

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