Germany's Balanced Development: The Real Wealth of a Nation

By Kaevan Gazdar | Go to book overview

CHAPTER 4 The Socioeconomic Foundations of Wealth

The sovereign has not been placed in his high position and endowed with the highest power so that he can be lazy and suck the blood of his people. He is the first servant of the state. He is well paid, so that he can maintain the honor of his position, but for this he must work like all servants of state for the common good.

-- Frederick the Great, King of Prussia

In his political testament of 1752, quoted from above, Frederick the Great set the standard by which the rulers and administrators of Prussia would since be judged.1 The many administrative changes carried out during his reign were well planned, modified to suit regional needs and efficiently implemented by a committed bureaucracy.

Frederick's father, the "Soldier King" Friedrich Wilhelm I, had laid the foundations, for Prussia's meteoric rise from a provincial territory to a major power in Europe. The Soldier King's own father, Friedrich I, was a typically extravagant and pretentious potentate, who lived in a world of diamonds, trumpet-calls, and Spanish wigs. Friedrich Wilhelm buried him with all appropriate ceremony--and then "downsized" the establishment. He sacked most of the courtiers, delegated a large percentage of his personal staff to the army, radically reduced the royal life style and balanced his budget by selling unnecessary possessions. Most important of all: he personally supervized the administration.

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Germany's Balanced Development: The Real Wealth of a Nation
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Figures ix
  • Introduction 1
  • Notes 19
  • Chapter 1- The Mittelstand: Microcosm Of The Germany Economy 23
  • Notes 44
  • Chapter 2- Order and the Business Mentality 47
  • Notes 73
  • Chapter 3- Commitment and the Business Environment 77
  • Notes 104
  • Chapter 4- The Socioeconomic Foundations of Wealth 107
  • Notes 136
  • Chapter 5- The Cultural Roots of Order And Commitment 141
  • Notes 164
  • Chapter 6- The Psychological Roots Of Order and Commitment 167
  • Notes 184
  • Chapter 7- Past Miracles, Present Continuity, Future Consensus 187
  • Notes 218
  • Selected Bibliography 223
  • Index 227
  • About the Author 230
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