Last week, I had the chance to present the industrial and economic facets of Germany to MBA students from The University of Hong Kong. Our journey began in Berlin, then proceeded to Wolfsburg, Dortmund, Duisburg, Hannover, and concluded back in Berlin. I extend my heartfelt gratitude to our hosts for their generous insights: Volkswagen AG, TU Dortmund, the City of Duisburg, Future Car Lab, Neoxphere Technology, and Bundesverband Musikindustrie (Federal Association of the Music Industry). This broad array of industries and subjects was enhanced by cultural excursions to Potsdam's Sanssouci, the former Sachsenhausen Concentration Camp in Oranienburg, and several sites that depict the process and impact of Germany's reunification.

This trip occurred against the backdrop of Germany's struggling economy. Since the Greens and Socialists were ushered into power with the support of a small liberal party in December 2021, the nation has grappled with erratic and ideological policies. These are often portrayed to the populace as investments in future competitiveness or as efforts to catch up with the previous government's developmental shortcomings. From being Europe's economic powerhouse, Germany has become the OECD's underperformer in just a few years. To counter the demographic trend of an aging population and a shortage of skilled labor, Germany has opened its doors to immigration. Yet, skilled individuals often opt for regions with lower taxes and simpler bureaucracy, finding better opportunities elsewhere. Nevertheless, immigration remains high, consisting of refugees and migrants, many of whom face challenges integrating into the labor market.

Still there are many things to learn in Germany. Many capabilities have not vanished immediately, but are just getting unfeasible in the country. Also, assets of privately owned SMEs are getting cheap to acquire. And of course, Germany is a lesson on a new kind of political risk, where technocratic political leadership is succeeded by a new class of politicians which are genuinely ideologic, but does not even have the skills, education and character to follow through their own agenda.