Dependent Capitalisms in Contemporary Latin America and Europe. International Political Economy Series (Springer), by Aldo Madariaga, Stefano Palestini (eds.), pp. 55-74, Jan 2021

The Deformation of the Core by Dependency Relations: The Case of Germany in Europe

Dependency has usually been conceptualized as a form of economic and political deformation of the countries of the periphery by the countries of the core and by the specific core–periphery relations between the two groups of countries. Much less attention, however, has been given to the effects of core–periphery relations upon the core. Through an inductive analysis of Germany, a core country within the EU and a country with extreme export orientation, I show how dependency also affects core countries. I highlight a number of negative effects on the German economy, social fabric, and political system, among which, extensive wage restraint and reduced public investments to maintain export competitiveness. I conclude arguing that a more balanced relationship would be beneficial for most social groups in both groups of countries, peripheries, and cores.