DWC-7902 DRAFr Germany's Economic Relations with Developing Countries Antoine Schwartz Jeffrey Katz Irma Jacobsen Maria Cristina Germany Division Working Paper No. 1979-2 February 1979 International Trade & Capital Flows Division Economic Analysis and Projections Department Development Policy Staff The World Bank Division Working Papers report on work in progress and are circulated for Bank staff use to stimulate discussion and com- ment. The views and interpretations in a Working Paper are those of the authorfs) and may not be attributed to the World Bank or its affiliated organizations. February 13, 1979 GERMANY'S ECONOMIC RELATIONS WITH DEVELOPING COUNTRIES I. Introduction and Summary 1. The Federal Republic of Germany (FRG) is today in a highly favorable economic position. Compared to other Western European countries, its per capita GDP is well above the average; its unemployment and inflation rates are lower than the averageland it has a substantial surplus infits external balance. 1976 1977 1977 1977 Per Capita Inflation Unemployment Current Account GDP CUS$) Rate(%) Rate(M) Balanc-e(-$B--) Fed.Rep. of Germany 3,511 3.6 3.6 3.7 European Community 2,855 8.8 n.a. 0.8 United States 5,413 5.9 6.9 -15.3 Japan 2,420 5.5 2.1 10.9 OECD Total 3,362 7.4 5.4 -27.6 2. There are four important economic links between Germany and the developing countries--trade, foreign workers and the return flows of re- mittances, tourism and capital flows. Germany is an important partner in all respects-, except in ODA. 3. Germany has one of the more liberal trade regimes among the industrialized countries. Imports by the Federal Republic from non-oil developing countries increased by 7% per annum in 1960-70 and by 20% per annum in 1970-77, totalling about US$15 billion in 1977. The value of developing countries' manufactured exports to the Federal Republic increased at about 34% per annum between 1968 and 1976, and their share of Germany's total manufactured imports increased - 2- from 5.4% in 1968 to 11.5% in 1976. FRG Imports from FRG Exports to 1970 x change p.a. 1970 % change p.a. (US$m)_ 1960-70 1970-77 (US$m) 1960-70 1970-77 Non-oil Exporting LDCs 3,980 7.0 20.1 5,114 8.5 18.1 Oil-export- ing LDCs 1,836 11.5 27.4 945 8.6 41.3 4. The Federal Republic had a nine-fold increase in the number of foreign workers between 1960 and 1973 and a five-fold increase in workers' remittances. Since that time, however, there has been an almost complete stoppage of immigration of foreign workers. And, a number of major developing;,countries--including Turkey and Yugoslavia--have witnessed substantial declines in workers' remittances which were a major source of foreign exchange. On the other hand, between 1974 and 1978 there was a doubling in tourism and travel payments by German citizens, 20% of which was accounted for by developing countries, mostly in Southern Europe. 1970 1973 1975 1977 Foreign workers (thousand) 1,807 2,498 2,061 1,872 %-total employment ,6.8% 9.4% 8.1% 7.5% Net outflow-of-remittancesL9m) 1i,626 3,716 3,456 3,178 5. While Germany's ODA flows have declined as a percentage of GNP between 1975 and 1977, total capital flows from Germany have increased substantially and are above the DAC average. This increase is accounted for principally by expansions in commercial bank lending and in portfolio -3- investment. 1970 1975 1976 -1977 ODA - $m 599 1,689 1,384 1,386 -% GNP 0.32 0.40 0.31 0.27 Total Flows - $m 1,487 4,962 5,314 5,754 -%ZQiqP 0.79 1.19 1.19 1.12 6. These aspects of the Federal Republic of Germany's economic relations with developing countries are dealt with in greater detail in the remainder of this note. The next section reviews the economic performance of Germany in comparison with other industrialized countries. Section III discusses Germany's trade relations with developing countries in the context of the European integration of the 1960s and recent trends in protectionism. Section IV provides a short summary of recent trends in workers' remittances and tourism outflows from the Federal Republic to developing countries, while Section V deals with financial flows. Annex tables, illustrating the structure of German trade and direct investment are attached. II. The'Cdmpdtative Perfotmance of the'German Economy, 1961-76 7. The German "Wirtschaftswunder"--the post-war reconstruction boom was one of the more highly publicized economic phenomena of the 1950s. The Federal Republic entered the 1960s as the strongest economy in Western Europe. Its per capita GDP and private consumption, although lower than in the U.S., were already above the average levels prevailing in the European Community (EC). Its investment ratio was well above that of the major indus- trial nations, with the exception of Japan, and a high ratio of domestic savings to GDP was reflected in a substantial surplus on the current account of its balance of payments. Furthermore, the German economy had reached a near-full employment situation in 1960 when a 1.2% rate of unemployment was matehed by a twice-as-high rate of vacancies. Finally, although the major impact of European economic integration and trade liberalization under GATT was still to come, the Federal Republic of Germany was already a relatively open economy, with high ratios of imports and exports to GDP for a country- of that size,(Table 1). 8. During the 1960s6- German economic performance came pretty much into line with the rest of the EC. The overall growth of output dropped from an 8% annual rate in the 1950s to about 4.5% during the 1960s; investment in machinery and equipment slowed down from a 10.6% to a 7.2% annual rate of growth in real terms. Per capita GDP increased at the same rate as on average in the EC, and so did the volume of exports. Per capita consumption, however, increased slightly more rapidly, which was reflected in a,relativelv high growth rate in the volume of imports. 9. Germany during this period had a virtually stagnant labor force, with a declining domestic supply of labor, and a spectacular increase in the -5- Table 1: INDICATORS OF COMPARATIVE ECONOMIC PERFORMNACE, 1961-1976 GDP Private Consumption Per Capita 1976 1961-76 1976 1961-76 (at 1970 prices) (US$) (1961=100) % Growth p.a. (USS) (1961=100) % Growth p.a. Federal Republic of Germany 3,511 160 3.2 1,958 167 3.5 European Community 2,855 161 3.2 1,709 163 3.3 United States 5,413 145 2.5 3,541 153 2.9 Japan 2,420 280 7.1 1,284 261 6.6 OECD Total 3,362 161 3.2 2,088 164 3.4 Domestic Savings Gross Fixed Capital Imports of Goods Exports of Goods In X of GDP (at current prices)/a Formation and Services and Services In % of GD?(at curren prices)/a (at current prices) (at 1970 prices) (at 1970 prices) 1961 1976 1961 1976 1961 1976 1961 1976 Federal Republic of Germany 29.3 24.2 25.2 20.7 12.8 23.6 15.5 26.7 European Community 24.1 22.3 21.6 21.0 15.8 26.0 17.1 28.2 United States 18.4 16.7 17.3 16.2 3.7 5.7 4.6 6.9 Japan 38.9 32.3 33.2 29.6 7.9 11.0 7.2 16.1 OECD Total 21.8 21.4 20.1 20.6 9.4 15.0 10.1 16.3 GDP Imports of Goods Exports of Goods X Growth p.a. and Services and Services (at 1970 prices) 1961- 1971- 1961- 1971- 1961- 1971- 1971 1976 1971 1976 1971 1976 Federal Republic of Germany 4.5 2.4 9.3 5.7 8.0 6.8 European Community 4.5 2.9 8.3 5.8 8.0 6.4 United States 3.9 2.9 8.4 2.9 6.1 6.9 Japan 10.1 5.1 12.2 8.2 16.1 11.1 OECD Total 4.7 3.3 8.5 5.6 8.2 6.5 /a GDP minus private and public final consumption expenditure. Source: OECD, National Accounts 1976, Vol. 1. number of foreign workers (20.5% per annum). By 1973, the number of foreign workers in the Federal Republic of Germany had reached 2.5 million, or 9.4% of the total labor force, and the accompanying net outflow of migrants' remittances was about US$3.7 billion. 10. Despite the excess demand situation in the labor market, the rate of increase of wages and prices in Germany compared very favorably to that in the other industrialized countries (Table 2). The reasons for this were tough anti-inflationary demand management; the large increases in the number of foreign workers which enhanced the effectiveness of demand management; and the relatively moderate attitude of trade unions. However, tight demand management policies dampened the rate of productivity growth, and the squeeze on non-wage incomes, reduced the rate of return on investment. These phenomena are thought to be contributing to the current depression in invest- ment activity and reducing the growth potential of the German economy. 11. The development of strongly competitive export industries in Germany was aided by the undervaluation of the currency through most of the 1950s and 1960s. Labor-shortages also contributed indirectly to a re-orientation of investment activity towards capital-intensive technology and capital intensive economic sectors (intermediate products, agricultural and industrial machinery, electrical equipment and motor vehicles). 12. Successiveiappreciations of the DM in the 1970's, reflecting the continuous preoccupation of the German authorities with inflation, do not seem to have seriously damaged the relative competitiveness of expotts. Although the real growth rdte of exports slowed down from 8% in 1961-70 to 6.8% in 1971-76, it was still significantly above the average OECD performance - 7 - Table 2: LABOR COSTS AND PRICES: COMPARATIVE PERFORMANCE 1960-1973 (X increase p.a.) Memorandum Items Compensa- Labor Unit/a GDP tion per produc- labor deflator Indicator Price of goods and employee tivity cost of gross services exports profit (in margins/b domescic (in US$) currency) Federal Republic of Germany 9.2 4.4 4.6 4.2/d -0.4 2.2 5.7 France 9.9 4.8 4.9 4.9 0 3.0 3.8 United Kingdom 8.2 2.8 5.3 5.2 -0.1 4.3 3.1 Italy 11.6 5.6 5.7 5.4 -0.3 3.3 3.9 United States 5.6 2.0 3.5 3.4 -0.1 3.3 3.3 Canada 5.8 2.5 3.2 3.8 0.6 3.1 3.3 Japan 14.0 8.9 4.7 5.5 0.8 2.0 4.4. /a Column 1 i column 2. /b Column 4 + column 3; a minus sign indicates a decline in the share of non-labor income in total income. c 1961-1973. 7-i 1961-1973. Source: OECD Working Party No. 2, CPE/WP2(78)4. OECD National Accounts 1976, Vol. 1. EPD-IT 2/8/79 - 8 - in the same period. Since the early '70's the growth of GDP has shown a more pronounced deceleration than that of exports, and there has been a concomitant slowing down in the demand for imports. As a result, Germany's balance of payments situation has been highly favorable in recent years. III. Trade Relations with'the Developing Countries Germany's trade relations with developing countries have to be examined in the context of the economic relations of the European Community with these countries. Trade relations of the European Community with the developing world, although increasing rapidly, are far less intensive than those of the United States and Japan. In 1970, that is, prior to the boom in commodity and energy prices, the share of developing countries (including the oil exporters) in total imports of Germany and the rest of EC amounted to 19.4 and 22.0% respectively, while for the United States and Japan the corresponding proportions were 27.8 and 39.7% (Table 3). On the exports side the EC and German percentages were even lower and the difference with the United States and Japan larger. As can be seen in Table 3, even more striking are the differences in the distribution -dr the increase in imports and exports of those countries over the period_1960-70: the developing countries had a relatively minor share in the rapid foreign trade expansion of the EC during the 1960s. In terms of the developing countries' overall export performance, the EC market has certainly not been an expansionary factor. In 1963, the EC absorbed 56% of all developing countries exports to the industrialized world; by 1977 the EC share was down to 44% while during the same period the share of all industrialized countries in total exports of the developing countries remained almost constant (at about 68% in 1963 and 1977). The decline in the relative significance of the EC as a market for the. developing countries is even sharper:when the Southern European developig countries are excluded; the latter's trade with the EC has, of course, increased, - 10 - TSbI 3: CERMANY S COMAItATIVIE TKA8 PERFW0DWLC8 1960-1977 IMports fror. Ipott tor Non-oil Exporting Ol Exporting European Non-oil Exporting Oil Exporting European LDC LDC Community Other Total LDC LDC Cemunity Other Total S. Federal Republit of Germany 1970, million US$ 3.980 1,836 14,852 9.288 29.936 5,114 945 15.868 12.306 34.233 1970, are In total ( 13.3 6.1 49.6 31.0 100.0 14.9 2.8 6.4 35.9 100.0 European Comnunity (eccl. CGeonmy) 1970, millIon US$ 11,617 7,452 42.0235 25.480 86,574 12,849 2,972 40,543 22,023 78,389 1970, share in total (Z) 13.4 8.6 48.6 29.4 100.0 16.4 3.8 51.7 28.1 100.0 United States 1970, nillion US$ 10,154 1,657 9.800 20,841 424532 12,615 1,918 11,300 17,398 43,231 1970, sbhar in total (C) 23.9 3.9 23.1 49.1 100.0 29.2 4.4 26.1 40.3 100.0 Japan 1970, million US$ 4.668 2.835 1,553 9,825 18,881 6,674 971 1,862 9.811 19,318 1970, hare tn total (Z) 24.7 15.0 8.2 52.1 100.0 34.6 5.0 9.6 30.8 100.0 II. federal Republic of Germany 1960-70 2 grouth p.a. 7.0 11.5 14.7 9.5 11.4 8.3 8.6 13.9 10.7 11.6 1960-70 incremental share in total (l) 9.9 6.2 56.0 27.9 100.0 12.5 2.3 50.7 34.5 100.0 Europeen Comeunity (e.cl. GernMy) 1960-70 2 grouth p.a. 5.1 8.7 13.1 7.7 9.6 6.5 2.5 13.0 8.8 9.9 1960-70 incrcmental share in total (U) 8.8 8.2 57.3 25.7 100.0 12.6 1.3 59.9 26.2 100.0 united States 1960-70 2 grouth p.a. 7.8 1.3 11.2 14.4 10.9 7.5 7.1 8.4 7.5 7.7 1960-70 incremental share in totlI (U) 19.6 0.7 23.4 56.3 100.0 28.7 4.2 27.6 39.5 100.0 Japsn 1960-70 2 grouth p.a. 13.5 19.4 17.4 15.2 13.4 14.1 11.2 19.4 19.7 16.9 1960-70 incremental share in total (1) 23.3 16.4 8.6 51.7 100.0 32.0 4.2 10.1 53.7 100.0 ISI. Pederal Republic of Germany 1970-77 2 grouth p.s. 20.1 27.4 18.6 16.9 19.0 18.1 41.3 19.0 17.2 19.3 1970-77 incr,oentel share in total (l) 14.5 11.4 48.4 25.7 100.0 13.5 11.5 45.0 30.0 100.0 European Community (*.el. Germany) 1970-77 2 groth p.a. 17.2 26.1 19.1 16.0 18.7 17.4 33.8 19.3 16.0 18.9 1970-77 inoremontal sbare in total (%) 11.7 13.1 50.1 23.1 100.0 14.4 10.7 53.2 21.7 100.0 United States 1970-77 2 groth p.&. 21.3 54.6 13.4 16.0 20.5 13.0 32.1 12.9 15.1 15.7 1970-77 incremental ahare in total (l) 25.4 29.2 12.0 33.4 100.0 27.3 15.0 19.7 38.0 100.0 Japan 1970-77 2 grot,th pa. 18.6 36.6 15.4 15.3 20.9 20.8 43.0 24.9 20.1 22.8 1970-77 increoenta share in total (7 20.4 42.6 3.1 31.9 100.0 29.8 17.6 11.2 41.4 100.0 Sourc: 271P7 Direction of Trade 1958-62, 1970-76,1971-77. 14. The relatively low share of developing countries in the foreign trade expansion of the EC countries until the early 70's is not at all surprising. European economic integration, set in motion by the Treaty of Rome in 1957 and the creation of customs unions among the original six EC partners and other European countries (EFTA), had its major impact during the 1960s. The imposition of common external tariffs, and the rapid dis- mantling of all internal import duties and other restrictions, resulted in a rapid expansion of trade within the region. Although most studies agree that the trade diverting impact of the EC customs union has been small, if any, the fact remains that it has led to a much more rapid increase in intra- EC trade and consequently to a relatively lower intensity of trade relations with the rest of the world and the developing countries in particular. Table 3 shows that intra-EC trade contributed more than 55% to the Community's overall trade expansion (exports + imports) in the period 1960-70. The deve- loping countries' share (including the oil exporting countries) was limited to about 15%, far less than their share in the trade expansion of the US and Japan. Part of the explanation for this, of course, lies in the Community's high degree of self-sufficiency in food production, fostered by the discri- minatory common agricultural policy. The Community's external tariff barrier has been considerably reduced since its creation, particularly in manufactures, and is now the lowest among the industrialized countries (Table 4).tl 15. In the case of Germany,-the EC-integration argument is even stronger. At the start of the customs union, the Federal Repubiic had by far the highest tariff protection on imports of all the original EC partners. Within the short time frame established for the abolition of internal tariffs, the German rate of liberalization on imports from EC partners was therefore /1 The discussion of protectionism is on page 17. - 13 - also the highest. For that reason mainly, the impact of European integration on Germany's imports from EC partners has been relatively stronger than on its exports to the Community. Although the changes in Germany's external trade regime also provided major opportunities for non-EC countries, prevailing institutional and supply conditions initially strongly favored the original EC partners. 16. Germany's overall trade balance evolved steadily from a DM3 billion deficit in 1950 to a DM38.4 billion surplus in 1977; the regional distribution of the balance, as well as the changes therein between the 1950s and sub- sequent periods, show some interesting patterns (Table 5). The contribution of the original five EEC partners in the increasing German surplus is minor, and relatively smaller after 1960 than before; this is consistent with the specific integration impacts described&above. While Germany's deficit with the United States was increasing through the 1950s, the trend was reversed after 1960; the same holds true, but in the opposite direction, with regard to Japan which moved into a modest surplus position towards the end of the 1960s. The bulk of the increase in the German trade surplus was at the expense of the group "Other OECD"'.1I 17. The non-oil developing countries' contribution was marginal, but had an interesting evolution. In 1950, virtually all of Germany's deficit was accounted for by non-oil developing countries and the United States, reflecting a rapidly increasing demand for raw materials in the direct after- war period, when the reconstruction of the domestic economy was absorbing all productive capacity. During the 1950s, the gradual emergence of strong and competitive exports industries in Germany contributed to the elimination 1/ See Table 5, note b. - 14 - Table 5: GERMANY'S BALANCE OF TRADE BY REGIONS (Customs basis; exports f.o.b. minus imports c.i.f.; millions DM) Trade Balance Changes in Trade Balance /a 1950 1977 1950-60 1960-70 1970-77 Trade balance with: European Community -161 9,378 2,374 1,438 5,727 of which Original EEC (100) (2,873) (1,347) (375) (1,051) United States -1,305 1,174 -946 1,622 1,803 Japan -5 -3,480 222 -312 -3,385 Other OECD'/b 243 23,642 5,065 9,209 9,125 Non-oil Developing Countries -2,364 874 2,912 -15 341 OPEC 571 1,463 -1,640 -2,244 4,776 Centrally Planned Economies/c 9 5,366 248 749 4,360 WORLD -3,012 38,417 8,235 10,447 22,747 /a Absolute changes in trade balances between the indicated benchmark years; initial 1950 balances, plus the cumulative sum of the changes in these balances in the respective sub-periods equals the 1977 trade balances. /b Including the Southern European OECD members: Greece, Portugal, Spain and Turkey. /c Excludes transactions with the German Democratic Republic. Source: OECD Economic Surveys: Germany, June 1978, Annex Table F. - 15 - of trade deficits, and in particular the deficit with developing countries. In the 1960s, with the EC partners absorbing the major part of Germany's increasing export capacity, the country's trade with the non-oil developing countries remained approximately in balance, and stayed that way through 1977. 18. With regard to the OPEC countries the pattern was totally different: the Federal Republic moved from an initial surplus into a steadily increasing deficit in the 1950s and 1960s. The underlying cause, however, was different for the two periods. During the former period Germany's energy consumption underwent a rapid conversion from coal, as the main source of supply, to oil; consequently, imports from OPEC increased at an annual rate of almost 30%, that is, at twice the rate of growth of total imports. During the 1960s imports from OPEC slowed down to 9.0% growth on average per year, that is, in line with the overall growth of imports. Exports to OPEC, however, slowed down significantly, due to the high rate of absorption of German exports within the Community. Beyond 1970 the Federal Republic, in spite of a four- fold increase in oil prices and substantial appreciation of its currency, was the only major industrialized country to actually build up a trade surplus with OPEC. This is due to a combination of factors. In the first place, Germany's trade balance with OPEC seriously understates the actual impact of rising energy prices on its overall balance, as a relatively high pro- portion of its energy imports enter the country through EC partners (mainly the Netherlands), in the form of refined petroleum and natural gas. The direct share of developing countries of Germany's total energy imports is one of the lowest among the industrialized countries. Secondly, the appreciation of the DM against the US dollar by 57.3% between 1970 and 1977, considerably reduced the terms of trade loss resulting from the rise in oil prices. Lastly, Germany had great success in expanding exports to the OPEC countries in that period (Table 3). Germany's export industries evidently remained competitive despite the DM appreciation. 19. The commodity composition of German imports and exports is provided in Annex Table 4, both for total trade and for trade with the developing countries; the origin and destination of German trade with developing countries by commodity, in 1976, is further detailed in Annex Tables 1 and 2. 20. Manufactures account for almost 90% of Germany's total exports and for 95% of its exports to developing countries. Southern Europe and the Middle East absorbed more than 50% of manufactured exports to all developing countries, and all developing countries accounted for almost one quarter of total German exports in that category. 21. During the period 1968 to 1976 the value of German exports to the developing world increased at a higher rate than its total exports (22.1 and 19.3%, respectively), this was true for all major primary and manufactured components of exports, with the exception of "chemical elements and compounds" and "iron and steel". The strongest relative export per- formance to the developing markets was in all major components of machinery and transport equipment. Some very spectacular developments appear at a more disaggregated level; for example, German exports to developing (mostly OPEC) countries of building materials which were almost non-existent in 1968, - 17 - increased by more than 40% per annum through 1977 and in the latter year these countries accounted for 43% of total exports of building materials. This is a typical example of "export creation", most certainly connected with the upsurge in construction projects contracted to German firms by the oil-rich countries. 22. Imports from developing countries in 1968-76, moved in line with the overall growth of German imports. The developing countries were able to compensate for the decline in their share in primary markets (including fuels) by a rather strong penetration of German markets in manufactures. The value of developing countries' manufactured exports to the Federal Republic(in almost equal proportions from Asia and Southern Europe) in- creased at a rate close to 34% per annum, pushing their share in Germany's total imports from 5.4% in 1968 to 11.5% in 1976. In that year, for example, 48% of German imports of clothing and 23% of textiles, originated in develop- ing countries. Although textiles and clothing are the most highly publicized cases of market penetration by developing countries, in terms of the rate of penetration of the German market, machinery is an even more spectacular case. From an almost zero level in 1968 developing countries managed to export machinery worth more than US$800 million to Germany, almost 8% of the country's total imports in that category. Furthermore, machinery exports which accounted for less than 5% of the developing countries' manufactured exports to the Federal Republic in 1968, had grown to a 14.5% share in 1976, and had the same relative importance as textiles. 23. In the field of manufactures, the drastic improvement in the deve- loping countries' trade position vis-a-vis the Federal Republic is illustrated by the fact that while in 1968, German exports of manufactures to developing - 18 - countries were eight times the value of its imports of manufactures from these countries, in 1976 they were only three times as much. (The comparable ratio for German manufactures trade with the world as a whole is two.) 24. The Federal Republic has been remarkably successful in recent years in holding the line against protectionist pressure groups. It has been one of the most liberal of the industrialized countries, with a strong commitment to trade which has proved highly beneficial for the economy. 25. There are few examples of German protective measures. Most EC safeguard measures taken against manufactured imports from third countries in 1973-78, have been imposed at the behest of the United Kingdom, France, Ireland or Italy, and Germany has resisted Drotectionist actions by the Community. Export subsidies in the Federal Republic are relatively low, and certainly so in comparison to the EC partners. The German steel industry did not favor the "Davignon" plan (calling for various measures to rationalize and reduce supply within the Community, among others through voluntary export restraints and the application of minimum domestic prices), and evidently went along only in the name of EC solidarity. - 19 - TV. Workers' Remittances and Tourism 26. In 1975, there were about 6.3 million foreign workers in Western and Northern Europe. The Federal Republic of Germany had the largest volume of immigrants, followed by France, Switzerland, Belgium, Netherlands, Sweden, Austria and Luxembourg. 27. The number of foreign workers in the Federal Republic, and their share in total employment, has increased about nine-fold over the period 1960-73. In the 1973, the peak year, there were 2.5 million foreign workers in Germany, representing 9.4% of total employment. The 1974/75 recession triggered a freeze on new immigration to Germany, a steady decline in the number of foreign workers, as well as in their share of total employment. Since Germany's policies on foreign workers have not changed, despite the recent recovery in economic activity, in 1977 the nutmber of foreign workers in the Federal Republic was down to 1.9 million, still representing 7.5% of total employment. Table 6: EMPLOYMENT IN GERMANY, 1960-1977 (Thousands) 1960 1970 1973 1974 1975 1976 1977 Total Employment 26,247 26,668 26,712 26,215 25,323 25,088 24,972 Foreigners 279 1,807 2,498 2,381 2,061 1,925 1,872 % of-total employment 1.1 6.8 9.4 9.1 8.1 7.7 7.5 Source: OECD Economic Survey: Germany, June 1978. - 20 - 28. The bulk of immiRrant labor consists of semi-skilled or sKilled production workers. They have been employed mainly in the manutac- turing, construction and services sectors. In 1975, 60% of foreigners were employed in the manufacturing sector, 13% in services, 11% -in cons- truction, 6% in commerce, 1% in agriculture and 9% in other sectors. 29. The net outflow of workers' remittances over the period 1960-77 moved parallel with the number of workers, reaching a peak of $3.7 billion in 1973, and declining thereafter to $3.2 billion in 1977. Table 7: NET OUTFLOW OF WORKERS' REMITTANCES FROM GERMANY (millions of US$) 1970 1973 1974 1975 1976 1977 Receipts 322 670 791 968 1,312 1,597 Payments 1,948 4,386 4,416 4,424 4,319 4,775 Net Outflow 1,626 3,716 3,625 3,456 3,007 3,178 Source: IMF. 30. The destination of workers' remittances has remained pretty much unchanged. In the 1970s,over 80% of the net outflow went to developing countries, mainly in Southern Europe. Turkey and Yugoslavia have been the major individual recipients, increasing their shares in the total net out- flow from 53% in 1971 to 63% in 1977. - 21 - Table 8: NET OUTFLOW OF WORKERS' REMITTANCES FROM GERMANY BY COUNTRY OF DESTINATION, 1971-1977 (In percent of total) Southern European Developing Countries Spain Greece Turkey Yugoslavia Portugal Italy Others Total 1971 10.1 11.6 27.9 24.8 3.1 17.8 4.7 100.0 1977 7.0 10.2 33.6 28.9 3.1 12.5 4.7 100.0 Source: Deutsche Bundesbank, January 1979 3jLj The net outflow of tourism and travel payments from the Federal Republic, fueled by successive DM appreciations against the currency of host countries, almost doubled between 1974 and 1978, reaching approximately $9 billion in 1978. About 20% of this outflow benefits developing countries, almost entirely in Southern Europe, mainly Spain which absorbs about half of it. Table 9: TRAVEL: DISTRIBUTION OF NET PAYMENTS FROM THE FEDERAL REPUBLIC OF GERMANY BY DESTINATION, 1974-1978 1974 1975 1976 1977 1978e (In percent of total) Developing countries 20.1 19.8 19.3 18.8 20.2 of which: Southern Europe 17.6 17.9 17.6 17.4 18.2 (Spain) (9.3) (10.2) (9.8) (10.0) (10.3) Others 2.6 1.9 1.7 1.4 2.0 TOTAL World (%) 100.0 100.0 100.0 100.0 100.0 (in US$M) 4,719 5,660 5,644 7,007 9,059 eEstimate. Source: Deutsche Bundesbank, January 1979. - 22 - V. Germany's Financial Flows to Developing Countries 32. While Germany's ODA flows have declined as a percentage of GNP and are below the DAC average, total capital flows from Germany are rising and are above the DAC average. This results principally from a rise (30% in the-period 1975-77) in private flows, in particular in bank loans and in portfolio investments. 33., The especially low ODA performance in 1977 resulted from delays in project implementation and the fact that IDA and regional bank promissory notes had not been encashed. ODA comimxitments were 0.5% of GNP in 1976 and 1977; but the ODA/GNP ratio on a net disbursements basis may still not exceed 0.3% in 1978. MultilateralEcontributions comprise about 25% of ODA net flows, with somewhat more than one-half of the remainder being grants. In 1978 Germany decided to provide future assistance to the least developed countries in the form of grants, and to convert past loans to these countries into grants, on a case-by-case basis on the debtor's request. 34. International lending by commercial banks in Germany nearly doubled in the period 1975-77, as shown in Table 10. These statistics, moreover, exclude the loans by foreign branches and subsidiaries of German banks, notably those in Luxembourg, through which a large portion of German bank Eurocurrency lending is carried out.-/ Bond issues on the German capital market by developing countries and by multilateral development institutions have increased even more rapidly (from $0.43 billion in 1975 to $1.49bbillion in 1977); multilateral issues still account for the bulk of these funds. 1/ Detailed statistics on the operations of banks in Luxembourg are not avail- able. The BIS reports that total Eurocurrency assets of Luxembourg banks in June 1978 were $71.5 billion or four times the Eurocurrency claims of banks in Germany. The absence of detailed statistics about Luxembourg activities of German banks has been a matter of concern to German authori- ties, who are understood to have taken the matter up with German banks. - 23 - Table 1_L_j NET FLOW OF FINANCIAL RESOURCES FROM FEDERAL REPUBLIC OF GERMANY TO DEVELOPING COUNTRIES (US$ million) 1970 1975 1976 1977 I. ODA 599.0 1,688.8 1,384.0 1,386.0 Grants and grant-like flows 246.6 556.0 511.8 593.6 Development lending 219.5 604.9 532.3 434.5 Contributions to multilateral institutions 132.9 527.9 339.9 357.9 II. OOF 132.1 9.1 43.0 61.0 III. Private Flows 756.0 3,263.4 3,886.8 4,306.6 Direct investment 317.5 815.9 765.4 846.0 Bank loans /a 57.0 821.6 925.9 1,573..6 Bilateral portfolio and other 53.4 62.5 211.9 588.2 Multilateral portfolio 63.1 353.2 930.4 901.4 Guaranteed export credits 187.2 1,005.6 848.6 173.0 Private grants 77.8 205.1 204.6 225.0 TOTAL 1,487.1 4,961.7 5,313.8 5,753.6 Memo: ODA as % of GNP: Germany 0.32 0.40 0.31 0.27 Total DAC 0.34 0.35 0.33 0.31 Total flows as % of GNP: Germany 0.79 1.19 1.19 1.12 Total DAC 0.78 1.05 0.98 1.05 /a Claims of banks resident in Germany; excludes foreign branches and sub- sidiaries of German banks. Sources: DAC, Development Cooperation, 1978 Review; DAC/AR/781101, Memo- randum of Germany on 1978/79 Aid Review. - 24 - 3_5 German direct investment in developing countries grew at 10-11% in the 1960s, and accelerated to 23% per annum from 1971 to 1976.1/ German investment rose from about 5-6% of total DAC private direct investment in developing countries in the early sixties to 10% in 1976-77. Investment in developing countries accounted for,30% of total German direct foreign invest- ment in 1972-76. 36. Most'of Germany's investment in developing countries has gone into manufacturing, although an Increasing share in recent years has gone into services such as hotels'and finance. Latin America and Southern Europe received over 70% of investment in 1972-76, with Brazil alone accounting for about 25%. German direct investments, particularly in Brazil, have probably substituted in part for German exports by transferring production to the market country. (Table 11). 37.2 A picture of the structure of German residents' assets and liabi- lities vis-a-vis non-oil developing countries is provided by Table 12. It is noteworthy that German long-term claims (excluding direct investment and real estate) on non-oil developing countries are equal to about 11% of the total medium and long-term debt of these countries, or roughly the same as the German share in these:countries' foreign trade. Almost all of the financial and trade credit, which includes about half of short-term claims, is officially guaranteed or insured. 1/ Annex Table 5. Table 11 FEDERAL REPUBLIC OF GERMANY DIRECT INVESTMENT FLOWS TO DEVELOPING COUNTRIES BY SECTOR AND DESTINATION /a kuaz? millionj Amounts Percent of Total 1972-76 1952-76 1972-76 1952-76 By Sector: Mining 171 399 6.0 7.1 Manufacturing 1,497 3,505 52.5 62.1 of which: Chemicals 407 968 14.3 17.2 Automobiles 121 460 4.3 8.2 Electrical engineering 289 571 10.1 10.1 Other 680 1.585 23.8 28.1 Other 1,183 1,739 41.5 30.8 TOTAL 2,851 5,643 100.0 100.0 By Destination: Southern Europe 915 1,528 32.1 27.1 Africa 381 897 13.3 15.9 Latin America 1,145 2,562' 40.1 45.4 Middle East 287 379 10.1 6.7 Asia and Oceania 123 276 4.3 4.9 TOTAL 2.851 5,643 100.0 100.0 /a Data shown in this table do not include reinvested earnings, which are not available in sufficient detail, and thus differ from OECD data shown in Table 10. Source: Bundesminister der Justiz, Bundesanzeiger, various issues, - 26 - Table 12:- IFEDERAL REPUBLIC OF GERMANY CLAIMS ON AND LIABILITIES TO DEVELOPING COUNTRIES (EXCLUDING OPEC COUNTRIES), END - 1977 /a (US$ billion) Assets Liabilities Balance Official /b 10.1 1.4 8.7 Private 28.4 13.1 15.3 Short-term 7.6 9.0 -1.4 Long.term 20.8 4.1 16.7 of which: Banks 5.2 1.9 3.3 Financial and trade credit 6.6 1.0 5.6 Portfolio investment 1.0 0.8 0.2 Direct investment 7.3 0.2 7.1 Real estate 0.8 - 0.7 TOTAL 38.5 14.5 24.0 '/a Only directly assignable claims and liabilities, i.e. excludes'items arising from financial operations via third countries. /b Includes position of the Bundesbank. Source:''Monthly Report'of'the'Deutsche Bundesbank, July 1978. ANNEX TABLES Table 1: Germany's Imports (c.i.f.) by Commodities and Regions: 1976 Table 2: Germany's Exports (f.o.b.) by Commodities and Regions: 1976 Table 3: Germany's Trade With Developing Countries by Region (Selected Countries): 1960-1977 (Selected Years) Table 4: Federal Republic of Germany Trade with Developing Countries and With World By Commodities: 1968 and 1976. Table 5: German Direct Investment Flow by Areas (Net): 1962-1976 Table 6: German Direct Investment Flow to Developing Countries by Selected Recipient Countties (Net): 1965-76, ANN aX Table 1: GERMANY'S IIdPORTS (c.i.f.) BY COHMMDITIES AND REOIONS: 1976 (Millions of US dollars) of Developed of Developing Countries Countries Developed Developing Latin America Middle Asia & (SITC Code) World Total Countries Countries CPE'LA E.E.C. Africa and Caribbean East Pacific Europe (OPEC) 1. Food and Beverages (0+1+22+4) 13,711 9,110 3,904 540 6,875 700 1,695 95 654 760 229 2. Non-food Agriculture (2 -22 -27 -28) 4,356 2,785 1,033 397 1,260 292 198 78 336 129 109 3. Fuel and Energy (3) 15,828 5,060 9,403 1,329 4,541 4,218 289 4,806 25 65 9,018 4. Non-fuel Minerals and Metals (27+28+68) 5,575 1,684 1,469 379 615 404 638 14 269 144 113 5. Manufactures (5 to 9 -68) 48,313 42,641 5,577 1,680 29,237 215 462 354 2,313 2,233 247 6. TOTAL (O to 9) 87,783 61,280 21,386 4,325 42,528 5,829 3,282 5,347 3,597 3,331 9,716 /a Centrally Planned Economies. NOTE: Definitions of LDC regional classifications are consistent with those in the WDR, but differ froa those used by IMP end OECD. Source: OECD, Trade by Comsmodities, Series C, 1976. 2/6/79 ANNEX Table 2: GERMANY'S EXPORTS (f.o.b.) BY COMWDITIES AND REGIONS: 1976 (Millions of US dollars) of Developed of Developing Countries Countries __________________________________ Developed Developing Latin America Middle Asia & (SITC Code) World Total Countries Countries CPE' a-. E.E.C. Africa and Caribbean East pacific Europe (OPEC) 1. Food and Beverages (0+1+22+4) 4,529 3,810 552 162 3,111 233 45 107 65 102 191 2. Non-food Agriculture (2 -22 -27 -28) 1,483 1,141 270 65 836 20 28 37 13 171 40 3. Fuel and Energy (3) 2,933 2,474 125 50 1,799 32 21 17 10 44 27 4. Non-Fuel Minerals and Metals (27+28+68) 2,687 2,280 281 116 1,669 37 51 63 38 94 79 5. Manufactures (5 to 9 -68) 90,400 61,194 21,422 6,533 39,234 4,037 3,345 5,893 2,429 5,718 7,927 6. TOTAL (O to 9) 102,032 70,899 22,650 6,926 46,649 4,359 3,490 6,117 2,555 6,129 8,264 /a Centrally Planned Economies. NOTE: Definitions of LDC regional classifications are consastent vith those in the WDR, but differ from those used by IMP and OECD. Source: OECD, Trade by Coo=odities. Series C, 1976. EPDIT 2 /67/79 ANNEX Table 3: GERMANY'S TRADE WITH DEVELOPING COUNTRIES BY REGION (SELECTED COUNTRIES): 1960-1977 (SELECTED YEARS) (Millions of US dollars) Average Growth Percentage Share Rate (7.) 1960 1965 1970 1975 1976 1977 1960 1977 1960-1977 Exports (f.o.b.) to: 1. Southern Europe 628 1,078 2.204 6,334 6.489 7.312 23.5 27.1 15.5 2. Africa 438 527 948 3,634 4.359 5,665 16.3 21.0 16.3 Algeria 14 16 99 -6 11 741 1,079 0.5 4.0 29i Libya 20 42 46 536 523 650 0.7 2.4 22.7 Nigeria 40 77 102 652 867 1,293 1.5 4.8 22.7 Egypt 113 102 122 423 583 589 4.2 2.2 10.2 3. Latin America and Caribbean 774 827 1.392 3,644 3,490 4.109 28.9 15.2 10.3 Brazil 129 90 310 1,207 1,089 969 4.8 3.6 12.6 Venezuela 91 106 146 371 540 985 3.4 3.6 15.0 Argentina 150 115 211 325 347 433 5.6 1.6 6.4 Mexico 75 125 184 457 435 330 2.8 1.2 9.1 4. Middle East 271 364 583 4.783 5,757 6-841 10.1 25.3 20.9 Iran 118 158 322 2,107 2,295 2,741 4.4 10.1 20.3 Saudi Arabia 16 36 65 566 1,192 1,713 0.6 6.3 31.6 Iraq 33 40 19 1,051 898 780 1.2 2.9 20.5 5. Asia 568 739 935 2.260 2,532 3.076 21.2 11.4 10.5 India *213 262 156 354 369 493 7.9 1.8 5.1 Indonesia 65 56 92 394 478 476 2.4 1.8 12.4 6. Oceania 2 5 19 19 23 17 0.0 0.0 13.4 7. LDC Total (1 to 6) 2,681 3.540 6,081 20,674 22,650 27.020 100.0 100.0 14.6 8. Total Exports 14 17.911 34t,1H 9001; 102,032 117,932 Tr.7 (Percent of LDC Total, 7 t 8) (23.5) (19.8) (17.8) (23.0) (22.2) (22.9) Memo: OPEC 431 575 959 6,563 7,934 10,262 20.5 Centrally Planned Economies 536 672 1,475 7,083 6,929 7,224 16.5 Imports (c.i.f.) from: 1. Southern Europe 417 635 1.062 3 000 3.553 4.017 15.8 16.6 14.3 2. Africa 501 1.133 1.827 4.913 5.829 6.587 19.0 27.3 _6__ Algeria 26 60 150 1,025 1,146 1,176 1.0 4.9 25.1 Libya 1 371 664 1,391 2,099 2,162 0.0 8.9 57.1 Nigeria 68 105 155 962 976 1,104 2.8 4.6 17.8 3. Latin America and Caribbean 884 1.185 1.460 2.712 3,282 4 216 33.5 17.4 9.7 Brazil 120 204 309 899 961 IT 4.6 4.8 14.2 Argentina 131 176 173 256 355 562 5.0 2.3 8.9 Chile 120 152 252 214 299 298 4.6 1.2 5.5 Colombia 69 89 111 228 335 508 2.6 2.1 12.5 4. Middle East 418 469 717 4,367 5,125 5 278 15.9 21.8 16.1 Iran 142 155 239 1,469 .8ii8 i,868 5.4 7.7 1f6.4 Saudi Arabia 126 132 200 1,592 1,798 160 4.8 0.7 1.4 Bahrain 25 0 6 740 1,987 1,866 0.9 7.7 28.9 5. Asia 412 491 732 2.582 3.428 4.063 15.6 16.8 14.4 Taiwan 5 30 77 372 436 533 0.2 2.2 31.6 Hong Kong 23 83 189 685 907 900 0.9 3.7 24.1 South Korea 1 4 20 301 405 518 0.0 2.1 44.4 Malaysia n.a. n.a. 85 225 310 377 n.a. 1.6 n.a. India 47 61 71 196 297 337 1.8 1.4 12.3 Philippines 53 66 43 188 242 313 2.0 1.3 11.0 6. Oceania 4 8 11 25 169 30 0.2 0.1 12.6 7. LDC Total (1 to 6) 2,636 3,921 5.809 17,599 21386 24.191 100.0 100.0 13.9 8. Total Imports 10,175 17.611 29.814 74.208 87,783 100.700 14.4 (Percent of LDC Total, 7 + 8) (25.9) (22.3) (19.5) (23.7) (24.4) (24.0) Memo: OPEC 646 1,177 1,757 7,230 8,830 9,043 16.8 Centrally Planned Economies 474 730 1,200 3,492 4,326 4,793 14.6 Note: Definitions of LDC regional classifications are consistent with those in the WDR, but differ from those used by IMF and OECD. n.a. - not available Source: IMW, Direction of Trade, 1958-62, 1964-68; OECD, Statistics of Foreign Trade, Series A, 1973, 1976, 1978. EPDIT 02/0/79 Table 4: 1ELUAL 8DUUL1C Of CUEWII 38.5D WUIT DEVEL.OflNC COUNTRtES AND WLIW WORLD 81 co?881nzs: 1968 MND 1976 (tn current mdilLon UIS dollars) Trade vith, DeveInlopt Countries Trade with World Sbares of Dewelopfo Coditieo (BrIc cod"a) Ajswol Growth Annual Growth Counteries in tRG Fercestage Shares Rotes (7.) percentage Shore. Ratte. (2 Trod. reich World 1968 1976 1968 1976 1968.76 1968 1916 1966 1916 1968-76 1968 1976 ER0RTS (f.o.b.) 1. food and Beweceges (0+1+2244) 84 552 1.8 2.4 26.5 144 4.529 3.0 .425.3 11.3 12.2 2. Non-Food Agriculture (2-22-27-28) - T7-0 ~ T- T2 9___ -37 1.8 1.8 1.3 16.5 14.6 18.2 3. Fuel and Energy (3) )T- lT-2 F-Y 16.~T6 926 2.933 TJ Y_9 1.2 3.9 4.3 4. Noo-Fuel VIleral. and Metals (27+28448) 82- lIT yT T7Y 16T _861 2.~687 3.3 2.6 195.3- 9.3 10.5 of which: Non-lertous metal. (68) 73 228 1.6 1.0 15.3 640 1,902 2.6 1.9 16.6 11.4 12.0 S. Manufacture. (S to 9-68) 4.323 2142 94.3 94.6 22.1 21.975 90.400 88.5 88.6 19.3 19.7 23.7 of which: Cbeoi.*t el1mots and conpound (31) 213 85s 4.6 3.8 19.0 965 4,223 3.9 4.1 20.3 22.1 20.2 Fl-otic naterials (38) 126 663 2.7 2.9 23.1 648 3,227 2.6 3.2 22.2 19.4 20.3 Textile yarn fabrica, etc. (65) 176 676 3.8 3.0 18.3 1,001 3,849 4.0 3.8 18.3 17.6 17.7 Ironi and steel (67) 281 978 6.1 4.3 16.9 1,829 6,655 7.4 6.3 17.5 19.4 14.7 Nanufac tres of metals, lNES (69) 174 791 3.8 3.5 20.8 882 3,412 3.6 3.3 18.4 19.7 23.2 Finished structural partsan &Astrutures, Ifl (691) 19 293 0.4 1.3 40.8 93 646 0.4 O;G 27.4 20.4 43.4. Machinery other than electric (71) 1,268 6,903 27.6 30.3 23.6 5,498 22.280 22.1 21.8 19.1 23.1 31.0 Electrical nahinery and appliance (72) 441 2,591 9.6 11.4 24.8 1.947 9,410 7.8 9.2 21.8 22.7 27.5 Tran-port equipments (73) 689 4,146 15.0 18.3 25.1 3.908 16,837 15.7 16.5 20.0 17.6 24.6 Scientific and control 8.traUmta, photo goods. clock. (86) 129 327 2.8 1.3 19.2 752 2,731 3.0 2.? 17.5 17.2 19.3 6. Total Esarta. (0 to 9) 4.585 22.650 200.0 100.0 22.1 10284232 100.0 100.0 19.3 18.5 22.2 SWORTS (c.i.f.) Shares in ShOars in Uon-Energy trnorta Nan-Energy I-ports 1. Food and Sewerage. (0+142244) 1.334 3.904 42.6 32.6 14.4 4.151 13.711 22.9 19.1 16.1 32.1 28.5 of shich: Truita and vegetabl.s (05) 433 1.029 14.3 8.6 10.7 1,188 3,526 6.6 4.9 14.6 38.3 29.2 Coffee, tea, cocoa, oPLCea (07) 388 1,313 12.4 11.0 . 16.5 460 1,340 2.5 2.1 16.3 84.3 853. Feeding stuff f.r armEns excluding um.11led cereals (08) 130 382 4.8 3.2 12.4 288 826 1.6 1.1 14.1 52.1 46.2 LOil seeds, onts and kernels (22) 73 373 2.3 3.1 22.6 174 1,103 1.3 1.3 19.0 26.6 33.8 2. 8om-Food Agriculture (2-22.27-28) 49 1.3 15.8 8.6 9.7 1.561 4.356 8.6 6.1 13.7 31.6 23.7 of .Ahlch: Wood, lo-ber and cork (24) 116 289 3.7 2.4 12.1 319 841 1.8 1.2 13.0 36.4 34.1 Textile fibers, nut anufactured,and omate (26) 216 329 6.9 2.7 5.4 463 992 2.6 1.4 9.9 46.3 33.2 3. NAn-Fu.l 34ien.rls and Metal. (27+28e68) 766 1.469 24.7 12.3 8.3 2.453 5.575 13.6 7.7 10.8 31.2 26.3 of s.hlch: )etIiaflerous ores and acrap (28) 304 834 9.7 1.0 13.4 876 2,256 4.8 5.1 12.6 34.7 37.0 Non-ferrous meta.I (68) 419 554 13.4 4.6 3.6 1,320 2,660 7.3 3.7 9.2 31.7 20.8 4. Manufac,ture. (3 to 9-68) 339 5.177 17.2 46.3 33.9 9.928 48.313 34.9 67.1 21.9 3.4 11.3 of which: Textile yarn fabrics., etc. (63) 123 802 4.0 6.7 26,2 1,090 35,49 6.0 4.9 15.9 11.1 22.6 Machinery other than electric (71) 13 323 0.4 2.7 49.5 1,334 5,888 7.4 8.2 20.4 - 1.0 3.9 Electrical nahisery snd appliances (72) 13 482 0.4 4.0 57.1 699 4,426 3.9 6.2 25.9 1.9 10.9 Clothing (84) 1t0 1,973 3.8 16.3 61.9 539 4,161 3.0 3.8 29.1 22.3 41.5 Yiecellameous maufactoree (89) 27 259 0.9 2.2 32.7 592 2,090 1.8 2.9 23.3 8.2 12.4 3. Total Isporca escluding Pual. and newrgy (0 to 9-3) 3.133 11.983 100.0 100.0 18.3 18.093 71.933 100.0 100.0 18.8 17.3 16.7 6. Fuels and Energy (3) 1.402 9.403 30. 44.0 26.9 2.057 13.82a 10.2 18.0 29.1 68.2 38.4 of skids: Petrolesm, crude and partly refined (331) 1,350 9,Oos 29.8 42.1 26.8 1,401 9,487 7.0 10.8 21.0 96.4 83.0 7. Total I-parts including Fuel. and Energy (0 to 9) 4.535 21.386 100.0 100.0 21.4 20L150 87.783 100.0 100.0 20.1 11.5 14.6 ~:Definition,~ of Lac regioaml claasificstlon arer consatitat wigh thoase in the NM, but differ from those used by IlM and OECD. Source: OEC.D, Trade by Coaxwdltlesa Sari.. C (Narket Sumlaae SaPorts and Market Binmriaa,0 I"rte), jIaamg y-Dac er1968 aM Jammmy-Decemsr 1976. Table 5: GERMAN DIRECT INVESTMENT FLOW BY AREAS (NET): 1962-1976 All Countries All Countries Developed Developing Developing East Bloc Tax Haven1 Percentage Share (excl.tax haven Countries Countries Countries Countries Countries Developed Developing East Bl0c countries) (excl.tax haven Countries Countries Countries countries) (C/A) - -- --------- In millions of US dollars/- ---------- --------% 1962 278 278 176 102 102 - neg. 63.3 36.7 - 1963 280 280 212 68 68 - neg. 75.7 24-3 - 1964 285 285 239 46 46 - neg. 83.9 16.1 - 1965 278 276 215 63 61 - 2 77.9 22.1 - 1966 420 bO4 314 106 90 - 16 77.7 22.3 - 1967 517 516 408 109 108 - 1 79.1 20.9 - 1968 574 540 394 180 146 - 34 73.0 27.0 - 1969 833 697 529 304 168 neg. 136 75.9 24.1 - 1970 958 928 731 227 197 neg. 30 78.8 21.2 - 1971 766 912 632 134 280 neg. -146 69.3 30.7 - 1972 883 836 507 376 329 neg, 47 60.6 39.4 1973 2,110 2,096 1,446 663 649 1 14 69.0 31.0 - 1974 1,748 1,704 1,303 444 400 1 44 76.5 23.5 - 1975 2,124 2,089 1,522 602 567 neg, 35 72.9 27.1 - 1976 2,008 1,903 1,232 766 661 10 105 64.7 34.7 o.6 End 19762/ .8,685 .8,265 13,029 5,644 5,224 12 420 71.3 28.6 0.1 1962-1970 4,423 4,204 3,218 1,205 986 neg. 219 76.5 23.5 1971-1976 9 659 9,540 6,642 2,985 ?,886 12 99 69.6 30.3 0.1 1962-1976 .4,062 13,744 9,860 4,190 5,872 12 318 71.7 28.2 O.i 1962-1970 Average 491 b67 357 134 110 neg. 24 1971-1976 Average 1,607 1,590 1,107 498 481 2 17 1962-1976 Average 937 916 657 279 258 1 21 1963-1970 Average Annual Growth Rate (%) 16.7 16.3 19.5 10.5 8.6 1971-1976 Average Annual Growth Rate (%) 13.1 12.7 9.1 22.5 22.3 1963-1976 Average Annal Growth Rate (%) 15.1 14.7 14.9 15.5 14.3 a/ Bahamas, Bermuda, the Netherland Antilles and Cayman Islands (from 1973). b/ Calculated by using German Mark-US dollar exchange rates (IMF, "af" rates). c/ Accumulated total net flow of 1952 to June 1976, calculated tentatively~ by using an average rate of German MSark-US dollar exchange rate for 1976 (IMF. "af" rate). Note: neg. - negligible Source: Bundesministerium der Justiz, Bundesanzeiger, various issues. EPDIE 6/9T78 ANNE% 1960 1966 1967 1968 1966 19 70 1970 0972 1973 19 74 197Ff1 976 2C.,., 96900 297l- 1965.. 1915- 191 16. f n. 70-1 2 l.I,. 970 976 1976 1970 196 17 (.1...Hn Co rl) .-.-..-....---..-.....-.....(In 01116... of 606106.2Y...........-..... 1952.76 06.6.5. A..~~~~~~~~.;o-£.oA-g *&- 9.61-70 1071-71 19161.76 1192-76 i22S,,1,0, 23. S JLf 27.46 1 - 1 26. 99 6. 6. 16. 502.9 17. 11. 1500 M'j37*1 2VI.A 995.4 1205*34.2 165.9 107.0 6 3. . 22 .... 2.9 . 3.0 3.6 2.7 2.9 7.8 5.9 10.0 12.5 17.6 10. * 2.6 10._9 7. 06 32 1. . . . . . S7.1n 2~~~~~~6.4 22.7 20.3 20.1 66.5 61.6 63.9 155.3 576.6 113.0 09.6 26.0 115111 160.0 715.8 040*2. 1. 73. 16 2. 62 2. 7606.7 ~~~~ ~~3.0 2.1 6.1 2.1 .0.3 3.6 4.2 1.2 2.9 0.1 2.0 3.1 52 $.7 16.1 12. 30.1 3.0 2.0 2.7 2.3 0.6 0.6 1.6 Afolo. 7~~~~~~1.6 27.7 26.1 33.9 55.9 57.9 60.7 7. $11.65 17.7 $09.0 64. 6 97.3 $71.9 667.0 619.0 2S2.9 7.1- 01.9 * 7.2 19.9 16.9 17.2 69776 0 .~~~~~~~~~0.03 0.1 0. 0.05 0.02 0.0 0.00 0.1 3.2 1. 39 7. 0.3 6;2.3 60.63 0&.1 7.1 3-.6 0.-04 2.5 1. 1r.0 Al 6 21 91 0 .3 0 0.2 .. 1. 6.1 6.2 46. 6.4 26 26 6. 9.6 0.4 7.9 6.2 * 0.3 1.6 1.6 1.2 Liby. 1.9 7.9. 2.0 67.4 23.2 , 11I 09.2 .9 1. .3, .0 16 61I 2 11. 00.9 .62.3 .69.6 16.6 .6.9 6.1 13.1 .1.6 1.3 2.0 C-n.;y 6.lo,do 15.6.4 0.9 0 0.1 0.0 7.6 23.6 50.6 09.0 90.1 70.3 13.4 i.7 322.9 26. 268.3 276.6 6.6 61.4 22.9 7.6 6.6 '2. 6.3 K..,. -~~0.6 0.7 0.7 0.4 0.6 2.4 0.0 2.6 6.1 2.6 2. 3.9 27.9 0. 16.1 21. O . 2.7 1.0 * 07 06 0.6 0.0 Llb:0,1. 0.6 12. 0. 05 ..3 .9 0. . .16 2. . .6 55. 17.9 .69 13.0' 2.0o 0.a 1.1 Z .3 .0.2 0.4 1.1 KI;.62.6 03 06 01 0. 1. .0.2 31I.1 I120 1'6.9 10. . 70.2S I.7 56.0 62.2 0.6 9.3 7.1 O6.6 1.9 17 . 2.~~~~~,. ~~~0.4 9. .1 0.03 0.6 0 0. 6.7 10'.7 1.6 0.4 3.0 03 . 22.6 26.1 0.2 3.6 2.0 .2 0. 0. 0. 0. Co 1. 26.7 79. 67.6 112.9 237.2 103.6 .66.9 6.6 5177.3 253.9 307.9 794. 2562.4 551.6 1099.2 1650.0 92.0 167.0 137.5 43.2) (3.6 (764.6 (61.01 (16.0) (777) (67.0 679.02 9 19.) 1 75.11 (996 19.6) 1122.92 (206.62 (267.02 (294.7)3 2123)- (332.92 1990.0 (0.21.2 (55.12 (166.61 (111.91 6..160 ~~~~ ~~2.6 6.6 10.:6 6.1 26.6 7.2 00.0:, .67 79.0 10.0 7.7) 09.7 *23. 125 75 150 06 2.9 06 : 66 2.2 3.5 3.9 7..,... 0~~~~~.61 0.0 0.1 1.5 13.7 16.6 6.1 .05.6 3. 6.6 20.0 1.6 6. 027 19. 52.6 * 5.0 7. .4 * .3 0.2 1.6 1.6 Tond. b.S.6. 0 0 0 0 0 0 00 4.6 0.2, 0.2 19.2 12.7 36.99 0 396.1 76.1 . 6.0 3.0 * 1.2 1.0 0.7 A70o~~~61o. 2.3 6.7 6.6 6.5 30~~~~~~~.5 T30 .6 6. 03.3 9.3 726 .4.7 2230.3 65.6 62.2 66.5 2 7.2 7.2 7.2 2 5.6 2.5 2.6 6k.6 a,!:", S. 0.9 10.3 7. 39.7 35.6 01.3 69~.6 70.6 16.6 063. 2?1.0O 1370.7 160.9 769.9 966 2. 126. 76. 2. 260 25.0 26.7 0,12. ~~~~ ~~0.7 3.0 5.0 :1. 6.3 2. 0.9 .24 .0.4 30 I1. 2.1 416.1 19.0 2.6 21.6 3 .7 0. 1.& . . . . ColooSi. 4.6 .5 31 15 ..6 .. . . .0.6 1. 2. 1.6l I 66. 5. 9.0 16.61 1 .0 1. I. 0.6 6. 0.4 0. P.~~~~~~o ~~0.2 0.6 1.6 0.3 1.1 02 0 0.03 66 6.0 11. 2. 61 3. 26. 76.7 0.6 6.2 2. * 00 0.9 0.6l 0. Voo.o..1. 0~~~~..1 0.6 1.1 0.0 1.0 0.7 0.0 1.9 6.1 6.9 1.5 2.1 32.7 3.6 05.0 16.6 0.6 2.5 16 * . 0. 07 06 E26 . ., 2.5 7.7 2.0 0.1 3.4 9.0 51.0 45.7 61.5 20.6 "6.O I6.5 2379.6 26.9 297.9 722.3 6.1 69.6 20.9 3.2 20.3 9.9 7.3 17., 1.6 11 ~~~~~~~~~I 0.6 2.7 TI *11 6~~~~~~~~~~~.7 54 __d3 26.9 65.6 * 134. 16.5 _917.2 1 11.7 Y8 15.9 9.0 2TI -3 TI6 1. O_;~~0. 3.1 0.1 0.1 0.3 L.2 9.6 39. 76 97 69 57 123 691.00 029.9 2 .6 Z29.2 15. 2 0.6 6.1 6.9 3.9 C 6dfob61. 0 0 0 0 0 0 S. .9: 7.9 . 12.6 0: 127: 12.5. 0 .1 1.O 0 0. 0. 0.Z Asia S Ono.o6. 6.6 4.31 6.1 0.6 5.7 6.7 26.0 17.6 23.2 77.6 33. 7n.9 276.0 36.7 166.9 165.6 6.5 24.5 15.3 * .6 3.1 0.0 9.3 Oon76o.5 0~~~~~ ~ 6.5 0.3 ..03 0 0-.3 2.2 0.7 0.6 5.2 9. 0l 11 29 266* .2 .3 .2 T0. 06 2641. 5.7 ~~~~ ~~~~2.5 6.6 1.6 1.91 0.6 7.2 .0.3 .3.6 1.64 1.7 6.2 20.9 16.1 2.6 10.9 2.6 0.6 1.6 2.1 0.6 0.0 1.4 0 0 0.1 0.3 ~~~~ ~~~~1.0 2. I1. 2.9 5.6 6. 6.7 0.7 31.3 7.6 23.1 26.7 0.6 3.9 7.2 0 .7 0.6 0.7 0.,6 6.1.o.1. ~~~~~0.2 0. 9.1 0.6 0. 0.1I 1.1 0.7, 1.0 56 . 3 .1 6.7 1.5 10 1 16.6 2 0.5 2.0 1. 0.7 0 5 0., 0.6 P.61.600 ~~~~~1.2 1.0 1.4 . . . . 00 . 0.1S6.9.67I* 73. 0. 6 3 II:6 0.9 1. 1. . . . S 0 0 0 0.1 0.5 0.6 6.3 6.3 16.6 .1.0 0.0 23. 5.6S 1.4 714 56 6* 0. 6. 4.3 0.2 160 1.0 1.1 70.1. (17 62.6 176.6 109.7 790.0 703.9 227.5 137.6 375.9 663.3 463.9 602.0 767.8 5663.3 969.2 2906 7 3973.9 066.9 670 31 TIM-6,1.. (0)A' 2.2 15.6 0.6 33.9 136.0 30.6 .166.2 46.6 16.6 65.3 30.0 106.6 4 20.0 216.7 99.9 316.6 36.5 16.7 26.6 t.. M3) 6.1 7.3 23.4 66.9 16.7 31.3 16.2 13.6 72.0 6.4. 123.6 "a. 2 41.2 .131.6 261.3 392.9 *22.9 63.6 32.7 6..6 (62 19.3 79.6, 23.4 24.2 49.5 47.9 61.3 196. 371.0 125. 116.3 79.6 1476.0 192.1 90.06 1172.9 32.0 163.2 97. (1) .(2) 60.6 90.4 $19.6 066.1 067.9 196.9 290.0 379.1 6"0.9 396.6 067.0 660.2 5 223.3 770.S 26954 3659573 120.6 600.6 30.6 6*100.0 109. 1 000.0 100.0 .11 *.9oo2.o*. ~ ~ I-dd -. I. fd. 11F 196 1.o..11 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ A-1 - -7) (10.120-77d.16 3.6d 57. 65.6 77.0 $00. 119.6d109.7 106. 5 tS 766.6O 27.0 32.0 9. -* 7705.3 666l.6 12. 2090 7. 23. 16. 310.ln..o b- .6.-6d. J6 00. L66.. b-o....- -6 0.6, 0 I.60. 6170 17.660.6970690 kt 9166.. 166.606.0 l.o..6. 666 .66066.7.4 6y 991760 626.3 6,01 6.oo.66o~ ()~. '0' 606.). g .6.... 0.ro6. .6461n* 666.61640 60611..