 All right, this morning we'll start off with our new case, Germany, and we'll follow the same structure as were the cases for Britain, France, and the US. So we basically will be talking about first German state and historical perspective, then political economy of economic and social policies, then governance and policymaking, followed by representation of participation, and finally some current challenges. Here is what the German lands look like. We have a population of over 80 million, 81 to 82. This is the most populated state within the European Union, which geographically it's smaller than France. It's about half the size of Turkey. I think that that's a good comparison. It's about 380 square kilometers, 360 square kilometers. It's even smaller than Turkey's size. The capital city is Berlin, as you know, currency is the Euro, the Euro. It's a federal country composed of 16 lander. So land is the German word for state province. The plural form of land is lander. So we have 16 lander, which more or less corresponds to medieval kingdoms, principalities, and other trading cities. We do not have natural borders surrounding Germany. So German lands have always been prone to attacks from all sides. So there's no mountain ranges, well, except for the south, but here we have all of this area as mountains. We do not have major rivers separating the land from other sovereign units. And we do not have, you know, yes, there is up north, the Baltic Sea and the North Sea, but most of the land, as you can see, the borders are not in a way naturally or geographically protected. So Germany has been en route to east, west, west, east, and to a certain extent north, south, south, north. And it has been a land of conflict, it has been a land of war, as we shall be talking about. Germany generally, I mean, in general, when you look at the German state on its contemporary geography, in terms of its contemporary geography, we do not have many much resources, natural resources, except for this area, which is bordering France, which is rich in iron and coal, which is next to us, that's Laurent, the neighbouring France. And we have an ethnically homogeneous country, which is also important, which has been changing since the 50s, well, especially since the 60s, with the German very famous, very well-known, Gastarbeiter program, which is the guest worker program. So with the guest worker program, many incoming immigrants, well, guest workers who sought, I mean, Germany sought these workers for them to come and help with the reconstruction of Germany during what's called the economic miracle, the German miracle. And all of these would contribute to the reconstruction effort, development of Germany, the German economy, so that they would be, they were always seen probably until about the 1980s as a productive factor, and that they were generally welcome. We shall be talking about this in detail later on. But when we look at the religious composition, that's also interesting. We have slightly larger than one-third of the population, Catholic, another third Protestant, and another third is about, I mean, it's basically other whatever is there. With the reformation of the 16th century, Martin Luther challenged the Roman Catholic church practices, all of which brought this mix in terms of a third Protestant followers, or followers of Protestantism. So this is what Germany looks like in the current period. I'll show you a map of medieval Germany, and I'll try to compare the maps later on. But everything starts on the land called Germania, or Germania, by about AD 100. AD stands for Anodomini, which is after Christ 100. We have independent municipalities, I'm sorry, independent principalities under the Holy Roman Empire between the 10th century up until the end of, or well into the 19th century. So lands, German lands, became 300 largely independent units, principalities, and these we call them Habsburg Crown lands, which which really span contemporary Austria, what used to be Bohemia, which is around Czech Republic and Slovakia, and parts of Hungary. So large span under Habsburg Crown lands. 16th century reformation, the authority of Catholic Habsburgs had been undermined. So with the 16th century, the Holy Roman Empire was divided into two. One is the Austrian Habsburgs, and the second is the Kingdom of Prussia. And when we talk about Prussia, this is the most largest powerful German state in history. So from the 17th century onwards, we have, or late 16th century, early 17th century onwards, we have a very important state, which is one of the central strongholds among the European powers. All of this came about from the 15th century onwards, through a centralization under a new dynasty, the Hohenzollern dynasty, which later, which was situated in Berlin. In fact, later on, I mean the capital city was Berlin. In fact, later on, it was in Potsdam. They had a Schloss, a castle, the San Susi castle, where, you know, Frederick the Great, you know, from by about mid 18th century until late 18th century reigned. The Prussians, the Hohenzollern dynasty, was very effective in reorganizing the Prussian army along Calvinist lines, you know, many, many military victories, and patronage of arts, enlightenment in Prussia. So 18th century, we see enlightenment in this country. Power was based on mercantilism. What was mercantilism all about? Mercantilism is an economic doctrine. It's a set of policies where you try to export as much as you can, and you try to import as less as you can. And so you basically produce, try to produce for world markets. You follow protectionist policies. You protect your domestic industries, domestic producers, farmers against competition stemming from foreign countries. And we have a centralized bureaucracy, which includes, I mean, of course, as this is a typical example of what we've talked about in the first couple of weeks, the absolute state. So centralized bureaucracy means that we have a strong centralized army, which was a model for many nations that envied their military victories. So this was the largest and most powerful German state by the 17th century, 18th century enlightenment. And we've seen Friedrich der Große as the ruler of Prussian Germany, which was one of the most influential powers in European history. Let's see what the Holy Roman Empire looked like. This is about early 16th century, so 1500s. As you can see, we've got the Austrians, Austrian kingdoms, Bavarians, Burgundians, Rhinish, Franconian, lower Saxon or Saxony, Swabian, upper Saxony. So we have, as you can see, this is Bohemia, contemporary Bavaria, parts of France, Flanders, parts of Belgium and also Netherlands, Holland. So city states, I cannot see Bremen here, but it should be around here. So as you can see, we have principalities, kingdoms and a lot of small units making up in a way one large, less cohesive empire, but then with the Prussians we see the emergence of the First Reich. So Holy Roman Empire was the first German entity in that respect, the First Reich. So it ends with Napoleon's victory in 1806. There was a nationalist reaction within German lands against this defeat and the First Reich, the First Kingdom was founded in early 1800s, so 1806. So basically Prussia and parts of Austria, I mean just about in about 15 years, less than 15 years, we see centralization. The Prussian state was characterized by a centralized army but also a centralized bureaucracy, effective bureaucracy, but it was time for economic integration. As you saw, if you wanted to trade among these different principalities and kingdoms and other sovereign entities, if you were on the Rhine, if you were navigating north, up north, you had to pass through many principalities and kingdoms and as you pass through them, you had to pay, I mean merchants, tradesmen, or had to pay a toll in a way a customs tax to basically ship their products or produce from south to let's say to port cities up north, to Bremen, Bremenhafen, Hamburg and others. So basically, so in order to eliminate this, which in a way are non-production costs, in order to eliminate this, these costs, the Germans invented a customs union, which is in German called the famous Zollverein. It's a customs union between Prussia, 1819 and other German states and this in a way helped to build an even stronger state. Okay, so we have Prussia, the first Reich emerging, had been there, had been expanding economically, had become more wealthy. This was dominated by the Junkers. This is the Land of the Aristocracy and it was defended by a patriotic, very well-organized, very centralized military. When we studied Germany from a comparative historical perspective, we made the literature sociological or political sociological or political scientific literature describes Germany or this evolution in German lands as a revolution from above. In contrast to the first two cases we've seen, France and Britain, those were called bourgeois revolutions, which were brought about by the bourgeoisie, the rising middle classes, but here the literature characterizes Germany as a revolution from above by state elite Otto von Bismarck, who was the minister president of Bismarck, I'm sorry, minister president of Prussia in 1860s. So economic integration was in place, unification of Germany. So by about 1870s the German unification process had been completed, not only economic unification through Solverine, but also political unification under Bismarck and Otto von Bismarck, the minister president of Prussia, in reaction to pro-democracy revolutions, which were suppressed 1840s, 1848. He brings a drive towards modernization and this is through massive industrialization, modernization of the economy through industrialization. German industrialization is a case of late industrialization. It was the British who industrialized first, which was followed by France and Switzerland and others. Germans industrialized late or in comparative terms later than the British and the French, but by about 1900 Germany was number one in terms of industrial production in the world. So manufactured items, Germany was a leading stronghold in the hearts of Europe. The revolution from above, it's a revolution, it's social change, it's political change, it's economic change, has many ramifications in all of these fields. It's a revolution from above in the sense that it was brought up, brought about by state elites with a very influential political leader, Otto von Bismarck, who successfully married the two interests represented by one iron and the other rye. Rye represents the Junkers, the land of the aristocracy, so the agricultural sector, which was highly productive, especially throughout the 19th century. So very productive agricultural sector, but this was a high time for industrialization, economic unification, so all transaction costs, customs duties, transportation costs had been lowered. With the introduction of industrialization followed the railroads, the railways. So the German Bahn system, the railroad system was starting to be built from about this from the 19th century onwards. So the two interests, the agricultural sector and the industrial sector, the manufacturing sector, the land of the aristocracy and the new bourgeoisie, was wedded to one another through this very influential statesman. And in doing so, Bismarck relied on elite support and the process was completed with the reunification process, I'm sorry, the unification process of 1871. So first Reich from 1806, so reaction to Napoleon's defeat, nationalist reaction, consolidation, solferine, Bismarck coming to power, integrating, consolidating all of these lands under one rule, so consolidation economically, consolidation politically. So we see the span of first Reich. Then with the solferine, you see Kingdom of Prussia and all other lands coming under one single market. So economic integration in history, this is one of the very influential models to emulate later on, a century after for the European Union, for the European economic community to be formed. So basically, we see all of these lands, as you can see on the Baltic coast, North Sea and all of these lands, up until the Austrians and the Swiss and the French, you see a very large land composing a customs union. So the tariff system, so you basically protect whomever is there against foreign competitors, which brings more wealth, more power, more wealth, more power. Second Reich, 1871, till the end of World War I. Here, the Kingdom, King of Russia, Kaiser, you know, Germany is unified by Otto von Bismarck, Germany and Prussia as one single land, so we see this period as the German Empire. It's a largely authoritarian state, strong state, controlled and supported by an industrial elite and also the Junkers. So in this sense, it is in this sense, this was the marriage, this was the product of the marriage of iron and rice. So industrial elite and the Junkers produced, I mean, like, gave way to this state. So it's Prussian dominated, it's Protestant dominated, which saw rapid industrialization, which was the main goal of Second Reich. And Germany became the leading industrial power in the world in terms of industrial output by about 1900. So state power is there, banking system was very strong, large-scale industrialization, large-scale investment by the state in many strategic sectors of the period, which were coal, iron, mining, railroads, chemicals, dye industry, electricity, and also machine tools. So you see, I mean, the light industrialization period in a way had been skipped, forget textiles, directly go into heavy industrialization, okay? So high-tech industrialization, characterizing that particular period, which meant that there was social dislocation and opposition, the small middle class pressured for democratization, rising of workers and all segments in societies, of German society, who felt that they were in a way outside of this massive economic wealth. So social democrats, workers, they all demanded not only political but also economic rights. And Bismarck persecuted all opposition, banned the Social Democratic Party, but built the German welfare state. So that's also very important. It built the German welfare state in reaction to all this. So in this sense, Bismarck has been known or Bismarckian way of organizing the society is one example of an iron fist in a velvet glove. So you have the velvet glove of the welfare state, caring, protective, but an iron fist within it. Authoritarian and basically highly centralized, very authoritarian, and does not let any opposition. So this was, so by about 1900, Germany super power became super power in terms of industrial output, but it needed raw materials as well as market access. And this was the high time for late 19th century. This was the high time for imperialism, for colonization activities. And this was sometimes referred to in the literature in history books as the scramble for Africa. So the East, Asia was already colonized. Latin America already colonized. Europe is under colonial powers themselves under the control of these powers. So where would you go? So scramble for Africa. This was the high time for seeking market, seeking raw materials in Africa. Germany had lack of profitable colonies because when Germany was on the scene by about late 19th century, early 20th century, everywhere in the world, wherever that could be colonized, had already been colonized. So they had to expand. They had to find resources. They had to find markets. And they were exposed geographically because of absence of geographical frontiers, protecting them also. And the idea of patriotism, the idea of nationalism, the reaction to Napoleon's defeat early 1900s had always been there. And economic nationalism, protectionism, Seuferein, marriage of iron and rye. So all of these centralized state, powerful state, the German ideals. So nationalist ideals, we want to be number one in the world. We challenge all nations. Had been there. And this all resulted in the breaking up of, well, in fact, the emergence of World War I. And with the World War I, I'm sure you remember from Ottoman history too, Germans were defeated. Treaty of Versailles and others meant that basically we see the end of Germany, which will then lead to another entity, the Weimar Republic. It was a social Democrats who came to power right after the war. They signed the Treaty of Versailles. So monarchy collapses. Social Democrats come to power. They signed the Treaty of Versailles. And this was a time in which Germany had to pay massive war reparations, compensations. Let me, let me summarize this for you. 13 percent of German pre-war territory. So German territory, 13 percent had been lost. So taken away. And this territory contained almost all of iron ore. So three-fourths of iron ore lost. Ten percent of population, which was a productive factor, which is a productive factor, especially during that period, lost. One-quarter of coal lost. All colonies in Africa, as well as in the Pacific, gone. The army surrenders. Fleet surrenders. Locomotives, railroads, wagon cars, trucks. Surrender. They're all gone. Armed forces restructured with a shock as such. War reparations. So compensation, which is 132 billion gold marks, which is twice the size of German GDP. So you have debt, think of it as debt. Think of it as, you know, compensation because they've lost the war. They had to pay in return twice the size of German GDP. So how is this possible? Plus psychologically war guilt. The guilt of having started off a war. So Germans will accept the responsibility of causing loss and damage. So imagine what this could have done to a nation. A nation which was built on a, or around a patriotic military, which was a superpower just 10, 15 years ago. You know, dominates world markets. Economic stronghold. Politically centralized, but devastated. So this was in a way the second major, major defeat in the psyche, the German psyche of the time. So the conditions of the treaty were so heavy that the central bank had to print money in order to pay for all these reparations, compensations. And if there is so much of something in any given market, what happens to its value? If there is so much of something, it just decreases. And this is, I wanted to show you a photo of German banknotes being pulped for use as waste paper. Or banknotes were used to light the stove. So basically the value of the mark had been so, so low, had gone so low that all of this was calling for something else, some change. And this was a period of what's called procedural democracy. Formal political institutions, but without political backing, political support. I have figures for the value of USD, US dollar vis-a-vis the gold marks of the period. So 1, 1 USD is equal to 4.2 gold marks. So this is 1914. 1918 goes up to 14. 1922 goes up to 493. Again in 1923 goes up to 17,792. And again in 1923, later on that year goes up to 4.2 trillion. So this is hyperinflation for you. So this is the value of German money, the gold mark. And that was how, why they were used as, you know, instead of what you were burning the marks. So there was so much instability, economic instability, which brought with it political instability. And in the meantime you had a new leader in the making. Adolf Hitler, leader of Nationalist, National Socialist, German Workers' Party, the Nazi Party, 1920, imprisoned, was imprisoned, put into prison after having tried or staging a coup. The attempt failed. So basically couldn't succeed. He allied with the conservatives. And with that alliance he was appointed as the Chancellor in 1933. And so he was controlling the parliament. And in the meantime there was so much political instability and economic instability. Many thought Hitler was a moderate leader, the conservatives. But later on they realized that this wasn't the case. So here is a leader who comes to power who promises change. And he says, I'm going to change the world for you. He obtains emergency powers from the president. He centralized political power. He controls the media. He bars political parties, bans, I'm sorry, he bans political parties. Excuse me. Unions, all opposition, religion is banned. There is much propaganda, much repression. He says I reject the Treaty of Versailles. I'm going to change the world. Put yourselves in their shoes. Would you vote for them for him or would you not vote for him? Let's all think. So when he promises to rebuild the German economy from scratch, I mean everything is plastered. So rebuild the system through an autocratic economic program, work for longer hours, full employment, public works, the autobahn system was built. So massive investment into infrastructure. If you've traveled in Germany, you see in big cities, 1930s, our deco structures, large, massive, public buildings, which in a way look overwhelmingly large, which has a flag at the top. So this was the time for change. And he attacks what used to be Czechoslovakia and then Poland, World War II erupts, conquers much of Europe between 1939 and 1941, attacks the USSR, 1941. So this is what the German Empire looked like. So just see where German Reich allies and occupied zones. Turkey was neighbour to Germany. So imagine, well, Spain, but as you can see, except for Sweden and Spain, and Spain was a different case. As you can see, Switzerland was independent. But as you can see, massive expansion. Seeing it on the map, I mean talking about it as something, seeing it, I thought, on the map is something entirely else. The idea of an Aryan race brought with it concentration camps. Concentration camps became extermination camps, which later on led to the Holocaust. So millions were gone, evaporated. Millions stood as by standards. And when you look at the death toll, 40 million lives were lost. So on this very high note, let's stop for today and I'll see you next week.