The model of the social and ecological market economy can provide a perspective from which to approach the many unresolved questions in the region, and, after many discussions with our partners in government agencies and the private sector, we have come to believe that Asian perceptions of the state, the economy, and social values potentially match the concepts of the social and ecological market econmy in many areas.

FORWARD:

The social market economy – with an increasingly ecological orientation – has proven a successful model for economic development in Germany. It has been the basis for reforms to increase competitiveness and growth, allowing Germany to become world champion exporter while meeting the challenges of strong immigration, reunification, and increased globalization with little social unrest. It reflects a basic set of values, shared by most Germans, which combines free market with social and ecological principles.

In 2007, the German Federal Ministry for Economic Cooperation and Development issued Social and Ecological Market Economy Principles in German Development Policy, which details how this successful German and European tradition of economic, social, and ecological policy design can be used to orient German development cooperation.

The GTZ Sector Network Sustainable Economic Development Asia immediately took up the issue, and at their 2007 meeting, GTZ advisors in the field of economic policy and private sector development debated the significance of the model of the social and ecological market economy for various Asian countries. Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH is the technical cooperation implementing organization of German development cooperation and is active in most Asian countries. The sector network offers a forum for GTZ advisors and others in the field of sustainable economic development to exchange experiences and discuss international good practices as well as lessons learnt from practical implementation.

It was at this point that the editors decided to assemble this reader in order to further explore the question which its title poses: “The Social and Ecological Market Economy – A Model for Asian Development?” We feel that the model of the social and ecological market economy can provide a perspective from which to approach the many unresolved questions in the region, and, after many discussions with our partners in government agencies and the private sector, we have come to believe that Asian perceptions of the state, the economy, and social values potentially match the concepts of the social and ecological market economy in many areas.

At the core of the reader are articles by GTZ practitioners, primarily members of the above-mentioned sector network, who provide examples of how elements of the social and ecological market economy are reflected in the portfolio of German development cooperation in the region and also reflect on what needs to be done to develop this further. These articles are complemented by the perspective of German researchers and policy advisors, who reflect on the current reform debate in Germany, and the perspective of Asian partner country representatives, who outline their own understanding of why the German model may be of relevance to sustainable development in their countries – using the model not as a blueprint, but as a starting point for dialogue.

An introductory section sets the framework by outlining the different elements of the social and ecological market economy and by reflecting on GTZ’s corporate philosophy in relation to the model.

This book could not have been completed without the contributions of the authors; we want to thank them for their readiness to participate in this project.

Furthermore, we are very grateful to Katja Röckel, who played an essential role in coordinating the logistics of preparing this reader and contributed substantially to its content. We also would like to thank, in particular, Dr. Marianne Scholte for her tireless and outstanding editorial work. Without these two, this reader would not have materialized.

Corinna Küsel
Ulrike Maenner
Ricarda Meissner

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Published by Deutsche Gesellschaft für
Technische Zusammenarbeit (GTZ) GmbH
Postfach 5180
65726 Eschborn
T + 49 61 96 79 – 0
Internet: www.gtz.de

Executive Editors:
Corinna Küsel
Dr. Ulrike Maenner
Ricarda Meissner

Notes on the Contributors:

Dr. Tilman Altenburg Dr. Tilman Altenburg is an economic geographer and has been Head of the Department of Competitiveness and Social Development at the German Development Institute (DIE) since 2006. His particular areas of interest are private sector development, innovation, and inclusive development. Dr. Altenburg joined DIE in 1995 and has carried out research on industrial and SME policy in Latin America, Asia, and Europe, as well as several consultancies for German and international technical cooperation. He has published in The European Journal of Development Research, Development Policy Review, and Development and Cooperation.

Dr. Michaela Baur Dr. Michaela Baur is Program Director for GTZ China in the field of vocational training and labor market policy. For more than 15 years, her focus has been on labor market policy and its interfaces to social and economic policy. Since 2002, Dr. Baur has worked in China in various GTZ-supported programs. After studying political science and economics in Marburg, Frankfurt, and Berlin, she worked in research, consultancy, and development cooperation. Dr. Baur has published in Deutschlandarchiv, Arbeit und Arbeitsrecht, Mitteilungen aus der Arbeitsmarktund Berufsforschung, and several other journals.

Dr. Katja Bender Dr. Katja Bender is an economist and Planning Officer for Social Protection at GTZ Head Office in Germany. Before joining GTZ, she worked as a post-doctoral research fellow and lecturer at the Institute for Development Research and Development Policy in Bochum, Germany. Dr. Bender’s regional focus includes Asian and African countries.

Dr. Dieter W. Benecke Dr. Dieter W. Benecke is an economic consultant specialized in the field of social market economy, theory and policy of development, and cultural exchange. He was Head of the Department of Policy Principles and Planning of the Konrad Adenauer Stiftung (KAS), Director of the Latin America Research Institute (CIEDLA), and Head of the Social Market Economy Dialogue Program of the KAS. Dr. Benecke has been engaged in advisory activity for various international organizations, among them the FAO, ILO, World Economic Forum, and GTZ.

Peter Bolster Peter Bolster is Program Director of the Private Sector Promotion Program in Cambodia. He has 23 years of experience in the field of development cooperation, including assignments in Lesotho, Thailand, and Cambodia. Mr. Bolster is a specialist in handicraft promotion, SME development, and public private partnerships. He holds a master’s degree in law, German language and literature studies, and philosophy. Mr. Bolster also obtained a master craftsmanship certificate as a cabinet maker.

Thomas Bonschab Thomas Bonschab has been Senior GTZ Program Manager of the component Sustainable Regional Development within the Economic and Structural Reform Program in China since 2007. Previously, he was a project manager in the sector project Sustainable Economic Development in GTZ Head Office. Mr. Bonschab’s areas of specialization are economic policy advisory services, private sector development, financial systems development, and vocational training. He also worked as a research assistant at the Chair of International and Development Economics at the University of Frankfurt. Mr. Bonschab holds a master’s degree in philosophy, politics, and economics from the Universities of Frankfurt and Oxford.

Dr. Peter Brimble Dr. Peter Brimble is Managing Director of Cambodia Emerald Limited. He has over 20 years of experience conducting economic, industrial, and business research studies in the Mekong Subregion for private companies, national governments, and multilateral agencies. Dr. Brimble co-founded and managed the Brooker Group PCL, which under his leadership became the first company to list on Thailand’s Market for Alternative Investments, and was founder and President of Asia Policy Research Co., Ltd. He holds a bachelor’s degree in economics from the London School of Economics and a Ph.D. in economics from Johns Hopkins University.

Dr. Le Dang Doanh Since his retirement from government service as an advisor to the Vietnamese Ministry of Planning and Investment (2001-2006), Dr. Le Dang Doanh has been working as a consultant and lecturer. He was President of the Central Institute for Economic Management (CIEM) and Senior Economist in the office of the Secretary General of the Communist Party of Vietnam. Dr. Doanh graduated from the Technical University of Leuna-Merseburg (German Democratic Republic), did postgraduate studies at the Academy of National Economy (Moscow), and obtained a Ph.D. from the University of National Economy, Hanoi. In 2005, he was awarded the German Federal Cross of Merit.

Prof. Feng Xingyuan Prof. Feng Xingyuan is an Associate Professor at the Rural Policy Research Center of the Chinese Academy of Social Sciences and a lecturer at the Sino-German School of Governance at the University of Witten-Herdecke. He was Team Leader of the Cathay Institute for Public Affairs (CIPA) project Capital Freedom Index and Enterprise Watch in China, and Team Leader of the National Development and Reform Commission (NDRC) project Regional Policy and Planning of the EU and Its Major Member States (both 2005-2007). From 1996 to 1999, Prof. Xingyuan was a GTZ Program Officer in the Sino-German Poverty Alleviation Program. His research areas are banking and finance, comparative institutional analysis, and regional development.

Thomas Finkel Since September 2007, Thomas Finkel has been heading the Private Sector Development and Private Public Partnership division of COMO Consult in Hamburg, Germany. From 2003 to 2007, he worked in Vietnam; his last position there was as GTZ Program Director of the Private Sector Development Program. Mr. Finkel joined GTZ in 1999 in the Public Private Partnership Office in Germany, focusing on development partnerships with Southeast Asia. Mr. Finkel holds a master’s degree in business administration from the University of Frankfurt.

Christiane Fleischer Christiane Fleischer is a consultant currently working for COMO Consult GmbH, Hamburg. Her main areas of work are in social and environmental standards, public private partnerships, and private sector development. Ms. Fleischer studied business administration at the Universities of Mannheim and Sydney and holds a master’s degree in governance and development management from the University of Birmingham, UK.

Myriam Hadnes Myriam Hadnes is research assistant at the Wilhelm Merton Center for European Integration and International Economic Order and teaching assistant in microeconomics at the University of Frankfurt. Since graduating in economics from the Universities of Frankfurt and Paris, she has been pursuing a degree in sociology at the University of Frankfurt. Ms. Hadnes received scholarships from the Franco-German University, the German Academic Exchange Service (DAAD), and the University of Frankfurt.

Dr. Nguyen Thanh Hai Dr. Nguyen Thanh Hai is Senior Economist in the Macroeconomic Reform Project supported by GTZ in Vietnam. His areas of research cover the banking system, the capital market, and monetary policy. Dr. Hai is also advising the State Bank of Vietnam and other political institutions, thus supporting the development of a sound financial system. Before Dr. Hai joined GTZ in 1999, he was a research fellow at the economic faculty of the Free University of Berlin. He was awarded a Ph.D. in 1998.

Dr. Eckhard Hein Dr. Eckhard Hein is Senior Researcher at the Macroeconomic Policy Institute (IMK), Hans Böckler Foundation, and Visiting Professor at the Universities of Oldenburg, Hamburg, and Vienna. His main areas of research are in monetary economics, distribution and growth, and European economic policies. Dr. Hein studied economics at the University of Bremen and the New School for Social Research, New York. He has published in Banca Nazionale del Lavoro Quarterly Review, European Journal of the History of Economic Thought, International Review of Applied Economics, Metroeconomica, and Structural Change and Economic Dynamics.

Dr. Ho Sy Hung Dr. Ho Sy Hung has been Deputy Director of the Agency for SME Development (ASMED) at the Vietnamese Ministry of Planning and Investment (MPI) since 2005. He joined the MPI in 1998 and was Head of the Division on SOE Reform. Dr. Hung holds a Ph.D. from the National Economics University (Hanoi). His thesis was on Commercial Aspects in Technology Transfer and Development in Vietnam’s Current Conditions.

Angelika Hutter Angelika Hutter is Senior Advisor in the SME Development Program supported by GTZ in Vietnam, responsible for local economic development activities. She previously worked at GTZ Head Office on local economic development and urban development. Before joining GTZ, Ms. Hutter worked for several German development organizations and consulting firms in Niger, Tanzania, and Papua New Guinea on organizational development in the private sector and civil society. She studied social anthropology, geography, and history in Cologne.

Prof. Dr. Rainer Klump Prof. Dr. Rainer Klump is Professor of Economics at the University of Frankfurt, Germany. His main areas of research are economic growth and development, economic policy, and history of economic thought. After studying economics at the Universities of Mainz, Paris, and Erlangen- Nuremberg, Prof. Klump held academic positions at the Universities of Erlangen-Nuremberg, Würzburg, and Ulm. He has published in the American Economic Review, the Review of Economics and Statistics, and the Scandinavian Journal of Economics.

Johanna Knöss Johanna Knöss is a consultant for GTZ and other international organizations, based in Jakarta, Indonesia. Her topical focus is on international relations and development studies, in particular public health, health systems, and governance projects. Ms. Knöss has worked as Program Officer for the World Bank Indonesia and GTZ. After her graduation in political science, she completed a postgraduate course on quality management in international health at the University of Heidelberg.

Corinna Küsel Corinna Küsel is Head of Section, Economic Policy and Private Sector Development, at GTZ. Currently, she is also the co-chair of the Donor Committee for Enterprise Development. Between 2000 and 2005 Ms. Küsel managed a GTZsupported program for private sector development in Vietnam, and was also the coordinator of GTZ’s Sector Network for Sustainable Economic Development in Asia. Before joining GTZ, she worked for the United Nations Industrial Development Organization as well as for a private sector consultancy company. She holds a master’s degree in development sociology.

Dr. Ulrike Maenner Dr. Ulrike Maenner has been GTZ Program Director of the Macroeconomic Reform Program in Vietnam since 2005. She joined GTZ in 1988 and is a specialist in the field of economic reform, macroeconomic management and forecasting, pro-poor growth, and Poverty Reduction Strategy Paper-related issues. Dr. Maenner has worked in various divisions of GTZ in Germany and was an economic advisor in Swaziland and Rwanda. Before that, she was a research fellow at the HWWA Institute for Economic Research and at the German Development Institute (DIE). In 1987 Dr. Maenner received a Ph.D. in economics from the University of Hamburg.

Moritz Mang Moritz Mang has been a Program Officer in the Sustainable Regional Development component of the Economic and Structural Reform Program in China since November 2006. He studied International Business and Communication in Asia/Chinese at the University of Applied Sciences in Konstanz. Mr. Mang’s diploma thesis was on regional development in China, with reference to current trends in OECD and EU member countries.

Ricarda Meissner Ricarda Meissner has been Chief Advisor of the EU-Vietnam Private Sector Support Program since 2005. Previously, she was Senior Business Development Specialist at the SME Department of the International Finance Corporation/World Bank in Washington DC. From 2001 to 2003, Ms. Meissner was GTZ Team Leader of the Small Scale Industry Promotion Project in Bangkok. She holds a master’s degree in business administration and social anthropology. Ms. Meissner is also a certified trainer in the area of private sector development and new business creation.

Namerta Sharma Namerta Sharma is currently Program Coordinator of the Social Security Program supported by GTZ in Bangalore, India. She has been working with GTZ since 1995 in various capacities. Ms. Namerta’s areas of specialization are micro-finance, micro-insurance, and social security. She obtained a master’s degree in economics from Punjab University, Chandigarh, and a master’s degree in applied economics from the Jawaharlal Nehru University, New Delhi. Ms. Namerta’s master’s thesis on Growth of Market Towns has been published as a monograph.

Antje Pfeiffer Antje Pfeiffer is an associate of the GTZ sector project Employment-Oriented Development Strategies and Projects and also a Planning Officer in the GTZ Economic Development and Employment  Department. Previously, she worked as an associate expert in several China-based GTZ-supported projects, focusing on employment promotion, as well as at the Confederation of German Employers. Ms. Pfeiffer holds a master’s degree in economics from the University of Frankfurt.

Visoot Phongsathorn Visoot Phongsathorn is a consultant working in the area of regulation and private sector development. Previously, he was Deputy Director of the Business and Financial Services Component of the Thai-German Program for Enterprise Competitiveness. Mr. Visoot joined GTZ in 2002 in a public utilities reform project, after having spent two years as an independent consultant for the Thai Ministry of Finance. Prior to that, he worked in the private sector for 16 years. Mr. Visoot holds a master’s degree in business administration and a bachelor’s degree in engineering.

Peter Pozorski Peter Pozorski is a Technical and Vocational Education and Training (TVET) specialist. Since 2006, he has been working in the Human Resource Development for Market Economy Program in Laos as Component Manager for Labor-Market-Oriented Integrated Vocational Education. Mr. Pozorski has worked in GTZ-supported projects as a seconded expert in Morocco, Thailand, and Indonesia. From 2005 to 2006 he worked as Project Manager in the Technical Vocational Education and Training Section in GTZ Head Office.

Dr. D. Rajasekhar Dr. D. Rajasekhar is currently Professor and Head of the Center for Decentralization and Development at the Institute for Social and Economic Change in Bangalore, India. His areas of specialization are micro-finance, social security, local organizations, and the interface between development actors and people. Dr. Rajasekhar has served in different policy-making committees constituted by the central government and the Karnataka government. He is currently involved in a long-term research project on Improving Institutions for Pro-poor Growth in collaboration with Oxford University and the London School of Economics. He obtained a Ph.D. in economics from the Jawaharlal Nehru University, New Delhi.

Cornelia Richter Cornelia Richter is Director of the Planning and Development Department of GTZ. From 1996 to 2001, she was Director of the Asia and Pacific Department of GTZ; from 1994 to 1996, Regional Director of the South East Asia Division. Before moving to GTZ Head Office, Ms. Richter was assigned as Government Adviser in the Ministry of Economics and Planning in Lesotho. Her main areas of work were the coordination of technical and financial cooperation, assisting in the Government of Losotho’s five-year plan and the structural adjustment program and in building up a department for donor coordination.

Peter Roggekamp Since 2002, Peter Roggekamp has worked for GTZ in Bangladesh where he presently manages Katalyst, a multi-donor-funded private sector development project. Previously, he worked for the ILO in East and West Africa, where he supported projects, institutions, and governments in improving the conditions for small enterprises. Mr. Roggekamp has also had assignments in South Africa, Morocco, and Vietnam. He started his career as a mechanical engineer building large factories and refineries. Mr. Roggekamp holds a master’s degree in mechanical engineering and development economics.

Christina Rosendahl Christina Rosendahl is a political scientist who graduated from the University of Leipzig. She is currently participating in the German Development Institute‘s (DIE) postgraduate course for development policy.

Dr. Andreas Stamm Dr. Andreas Stamm is an economic geographer and Senior Research Fellow at the German Development Institute (DIE), where he specializes in technology and innovation policies in developing countries. He was a researcher at the University of Marburg and a consultant for development policy before joining DIE in 1998.

Dr. Jürgen Steiger Dr. Jürgen Steiger is GTZ Director of the Sino-German Economic and Structural Reform Program in China, based in Beijing. Before he joined GTZ in 1998, he was a managing director in an international consultancy company. Dr. Steiger studied economics at the University of Heidelberg, where he also completed his Ph.D. in development economics. He subsequently became a research fellow and lecturer in development economics and international economics at the Department of Economics of the South Asia Institute, Heidelberg University.

Dr. Rolf Sülzer Dr. Rolf Sülzer was GTZ Country Director for India and Bhutan from 2005 until April 2008. He is now Senior Advisor for Impact-Oriented Evaluation of Sectors, Capacity Development, and Country at GTZ Head Office. Dr. Sülzer joined GTZ in 1988 and was Director of the Corporate Organization, Quality Management, and Information and Documentation Division in GTZ Head Office, Country Director for Thailand, and UN ESCAP and Country Director for Indonesia, Malaysia, Timor-Leste, and ASEAN. He holds a master’s degree in journalism and political sciences from the Free University of Berlin and a Ph.D. in socio-economics from the University of Gießen. He is the author and editor of several books on communication, media, organizational management, and restructuring of public utilities.

Frank Tibitanzl Frank Tibitanzl is a Senior Economist at GTZ Head Office. He is Team Leader of the Sector Project on Employment-Oriented Development Strategies and Projects. Mr. Tibitanzl holds a master’s degree in sociology and economics from the University of Frankfurt. Before joining GTZ Head Office, he was team leader for GTZ-supported projects in Laos, Indonesia, and China on macroeconomic policy, employment, and social security.

Dr. Achim Truger Dr. Achim Truger is Senior Researcher in public finance and tax policy at the Macroeconomic Policy Institute (IMK), Hans Böckler Foundation, Duesseldorf, Germany. His main areas of research are macroeconomic effects of fiscal and tax policies, macroeconomic policy, and economic forecasting. After studying economics at the University of Cologne, Dr. Truger served as lecturer and researcher at the Cologne Center for Public Finance, until 1999. He is (co-)editor and (co-) author of numerous books and articles in many areas of macroeconomics and taxation.

Dr. Robert B. Vehrkamp Dr. Robert Vehrkamp has been Project Manager within the topical field Economic and Social Policy at the Bertelsmann Foundation since 2003. He is currently managing the program “Germany as an Economic and Social Site”. Dr. Vehrkamp’s central interests are in the fields of international economic relations, economic policy, and macroeconomics. Before he joined the Bertelsmann Foundation, Dr. Vehrkamp was a research assistant at the Institute for Macroeconomics and Institutional Change, University of Witten-Herdecke. He holds a Ph.D. from the University of Witten-Herdecke. Dr. Vehrkamp has published various books and articles about currency systems, monetary policy, and social justice.

Christian von Drachenfels Christian von Drachenfels holds a master’s degree in political science from Bonn University and is currently working at the German Development Institute (DIE) on investment climate reforms.

Carolin Welzel Carolin Welzel is an associate partner at Publicone, a management consulting firm specialized in the public sector. She is responsible for the fields Corporate Social Responsibility (CSR) and Governance. Previously Ms. Welzel was Project Manager for CSR at the Bertelsmann Foundation, in charge of the development of strategies and organizational models for CSR. Within this field, she advised political players and enterprises in various Asian countries. Ms. Welzel holds a master’s degree in history and political science and a French licence in history.

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