Werner Abelshauser

The corporate history of BASF spans an era of German and international economic history that began with the rise of the 'new industries' as of the late nineteenth century and continues today in their confrontation with the new economy. This book examines BASF's corporate governance, financial system, industrial relations, system of qualification and relation to other companies. A corporate history of BASF promises more than an insight into the functioning of an industrial organisation. It also reveals the reasons for the extraordinary economic dynamics of the German empire and the enormous expansion of the world economy before World War I. BASF's history stands at the centre of Germany's wartime economy during two world wars and highlights both its strengths and weaknesses. Just as the IG Farben trust helped support Germany's course of politicoeconomic autarky after 1933, so it was that BASF helped facilitate West Germany's startlingly quick return to the world market. BASF has since been among the transnational companies whose efforts at the leading edge of economic and technological progress are paradigmatic for Germany's entry into the new economy of the twenty-first century.

Over the past decade, the "German Model" of industrial organization has been the subject of vigorous debate among social scientists and historians, especially in comparison to the American one. Is a "Rhenish capitalism" still viable at the beginning of the 21st century and does it offer a road to the New Economy different from the one, in which the standards are set by the U.S.? The author, one of Germany's leading economic historians, analyzes the special features of the German path to the New Economy as it faces the American challenge. He paints a fascinating picture of Germany Inc. and looks at the durability of some of its structures and the mentalities that undergird it. He sees a "culture clash" and argues against an underestimation of the dynamics of the German industrial system. A provocative book for all interested in comparative economics and those who have been inclined to dismiss the German Model as outmoded and weak.

Corporate history of BASF, which also explores the reasons for Germany's extraordinary economic development.