Germany

To what extent would you regard Germany and Sweden as coordinated market economies? 1. Introduction In an era where internationalism is contemporary, it has become crucial for countries to liberalize markets and renovate traditional structures. This is particularly important for countries whose social values and economic relationships are based on public coordination. This essay is going to explore the degree to which we consider Germany and Sweden as modern coordinated market economies, and the changes brought about in recent decades.

To assess the changes we shall look at trends in trade union and employers’ association participations, collective bargaining reforms, training systems amendments, renewals in corporate governance and fluctuations of wage inequality; first by uncovering the basics in each element and then evaluating their stability in relation to globalization. 1. 1 What is a coordinated market economy (CME)?

Being one of the wings of capitalism in which industrial relations and economic conditions are measured, as Bamber, Lansbury and Wailes (2011) state, CMEs can be used as “an approach for comparing…different countries, [with this comparison, it allows us] the understanding of convergence and/or divergence” between different economies. And in each of the key elements we mentioned, companies in CMEs resolve problems through relational, non-market based strategies and the outcome will be strongly dependent upon co-operation with supporting institutions. . 1 Past dominance of trade unions and employers’ associations A key feature of a CME is the dominance of employers’ association and trade unions within the country’s industrial relations; both Germany and Sweden have had a high degree of centralization during the 1980s. Trade unions were a powerful, acting as representative for labour in large corporations and also intermediaries of employment between labour and employers.

A common characteristic is that the labour unions in the two countries manage institutions for all labour participation; Hancke (1996) states that in Germany, three quarters “of the members of works councils are union members and they coordinate actions with the labour union sections (Vertrauensleute). In Sweden, local “shopfloor clubs” (Verkstadsklubben) not only negotiate company agreements with the firm…[but also] recruit every newly arrived worker”.

On the other hand, employers’ associations were also well-managed in both countries for a long post-war period; German industry federations are able to authorize private firms that are even no longer part of central arrangements on cases involved in collective bargaining, employee training and other social policies. In Sweden, Kurzer (1993) finds, “large companies in the export sector are part of financial conglomerates holding, which allows for high coordination capacities amongst large firms”. 2. 2 Recent trends in memberships

However, both countries have become less concentrated in the recent decades as both have experienced less union and association densities for the massive individualization of enterprises and the falling popularity of collective agreements – now with the society seeing less value of group negotiations, which makes the industrial relations less compact compared to before. In Germany, both employers’ associations and trade unions have been experiencing a slump in the number of members since late 1990s.

This is particularly evident in industries from Eastern Germany, where many organisations have resigned or become reluctant to join associations and took preference in company level negotiations. Shroeder and Silvia (2007) use the Metals Industry Employers’ Association to exemplify that employment density in Eastern Germany has fallen more severely than Western Germany. We can notice from the diagram below that since 1992, the percentage of Eastern association density has decreased dramatically from over 65%, down to less than 25% in a decade.

After the German unification, union members have clearly declined, Eurofound (2009) shows that “from 1991 to 1998, German Trade Unions lost almost 3. 5 million members”. The majority of these resignations were found to be eastern German labour, Eurofound states, “leaving the unions because of unemployment and disillusion with the western-type unionism”. Data from the Organisation for Economic Co-operation and Development (OECD, 2013) further shows the downward sloping of German Trade Unionists density since 1999; from 25. 3% it has dismounted to 18. 8% in 2009.

The main cause for this trend is due to the loss of traditional dominant union memberships in manufacturing industries and public sectors, worsened by issues in persuading younger generation in the expanding service industries within private sector. Hence, the value of collective agreements has been called into question as it is becoming extremely difficult to positively coordinate the relations between employers’ associations and trade unions. This is predominant in “a growing number of private services industries”, Eurofound informs, where “concluding collective agreements at all has shown to be increasingly difficult or not realizable”.

Unlike Germany, Sweden on the other hand has dealt with much higher historical density in trade union members which suffered recent decline but continuously concentrated employers’ associations; the decrease in trade unionists is spread evenly between white-collar and blue-collar workers, men and women, and more problematic amongst the younger working generation who have less regard for unions – a drop in the private sector from 78% in 1993 to 65% in 2009 as shown in the table above; “the decrease in membership is mainly due to the government’s amendments of the fees to the unemployment benefits in January 2007”, presented by Kjellberg (2007); the main objective to significantly amending the funds was to “to persuade unions with high fund fees to be more moderate in wage negotiations”. As for employers’ associations, unlike trade unions, its density has been rather stable over the years, with only 2% drop from 1995, private sector labour in 2009 has still got over 75% density in employers’ associations.

Therefore, when compared to Germany, Sweden has a higher degree of coordination in balancing the density of the two sides of its industrial relations over the years, and has remained rather stable; if not long-term then this rather forecasts the near future of these two economies – the summary being Germany becoming more market-oriented with less collective participation of its social partners, whereas the Swedish economy is more likely to maintain a coordinated market in this sense. 2. 3 Decentralization of collective bargaining In this section we will discover that the industrial relations within both countries are becoming more decentralized in the second half of 21st century as the level of collective bargaining decreases, and therefore moving further away from a coordinated market system;

The initiation of Germany’s decentralization has actually long been observed by researchers since early post-war periods. Many have argued that the main outcome of this renewal was to avoid the rise of another “centralized super-state”, says Johnson (1973). In hope this will bring separated powers of legislation, politics and administration between the government, the federated states and the local authorities, to produce the ideal, ‘good government’. Following such perception, the German economy has been made key amendments in its industrial relations policies – extending its collective bargaining with opening clauses into agreements within sectoral level, making terms more flexible and less controversial.

This has been seen as an improvement to prevent organisations from completely abandoning the usage of collective conditions. Such clauses were put into four categories listed by Schnabel (1998): 1) Hardship Clauses; enabling companies to be exempted from certain industry-level bargaining when facing bankruptcy and show signs of making viable strategies for future. 2) Clauses with Veto Rights; these give social partners such as managers and works council to negotiate particular agreements related to individual firms. 3) Clauses without Veto Rights; unlike the previous category, these clauses empower plant-level social partners to terminate collective terms that show signs of irrelevance with industry-level agreements. ) Small Enterprise Clauses; giving special treatment to small companies facing economic downturn by allowing them to set wages below the minimum level which was collectively agreed upon. In terms of the distribution of such opening clauses, the IAB Institute for Employment Research (2005) shows that more than “13% of the companies surveyed in both eastern and western Germany that are covered by collective bargaining confirmed that opening clauses exist in their collective agreements. Of these establishments, 52% made use of opening clauses in 2005”. However, even with such adjustments in the system, the use of opening clauses will rely heavily on the economic situation of the specific organisation. When the figures are favorable, then such clauses will be implemented less often.

Compared to its neighbouring countries, Sweden has showed early signs of decentralization beginning late 1980s with government sharing more responsibilities with local administration; the most symbolic being the release of ‘free communes’, as mentioned by De Vries (2000), a system “in which a limited number of communes and counties were allowed to apply for dispensation of state laws, rules and regulations”. Together with the downsized central government, closer attention was then paid to market forces and began the establishment of “hollow states”. One of the nationwide movements was the erosion of collective bargaining within the past two decades, as social partners have become more willing to pass on the negotiation on wages and working hours to local level. For instance, certain terms on wages are left intentionally ambiguous to let the local level authority take charge and decide on the specific figures on final rates and figures.

However, there still remains a high degree of controversy as employers harshly pursue a improvements in the bargaining system while attempting to take payment agreements to local levels – making to extremes in manual industries such as negotiating wages individually; the state is facing difficulties to respond to these demands, because from the perspective of economists, it is most ideal to be either highly centralized or as it was before, greatly decentralized, not somewhere in between. When making decisions, as debated by Eurofound (2009), parties at national level will consider the economy as a whole and correspond with a collective responsibility, whereas with enterprise leveled agreements, only individual firms’ stakes are considered – but when placed in the middle, parties often lose the acuteness in authority.

The national coverage of collective terms remains a high figure in recent period; reported by Eurofound (2009), as much as 92% in 2001 and 91% in 2007 – however, such coverage figures is extremely misleading in this case with the decreasing rate of unionists and employers associations in Swenden – that is, although remaining high above EU average and constantly used as an indicator to measure the strength of bargaining powers and the extent of benefits received by social partners, less of them are actually being bounded by collective agreements in recent years, making the coverage less effective. 2. 4 Transforming education and training One of the most noticeable features of a CME is its highly proficient education and training system; the purpose is to have an extremely skilled labour force with skills specific to the industry or enterprise in which they are employed in. Culpepper (2001) states that in order for companies to coordinate employee capabilities and for workers to receive beneficial employment, there are various ways how a CME manages its training systems;

In Germany, the responsibility of training and education is shared amongst firms and public authorities, “organized on a co-operative, tripartite basis”, referred by Hoffmann (2004); the German “Dual-system”, is acknowledged as world’s leading model for high-quality training, business practices and theoretical learning. The foundation of the dual-system is built by altering training in vocational schools and private firms, “while in-firm training is regulated nationally, the vocational school instruction programs are the responsibility of the Lander (states)”, Trembaly and Le Bot (2003) mention. However, the durability of this system has been at the centre of debate ever since the elimination of the nation’s Training and Apprenticeship Law back in 1969.

The model faces numerous challenges in meeting demand from rapid changes brought about by modern production systems; it is essential to keep a large working population to sustain its framework, but becoming problematic as currently Germany is having an ageing population, thus harder to recruit as many apprentices as forty years ago. As the occupational structure is dependent on collective agreement, when lacking skillful labour, Masden (1990) worries that if in such “ difficult labour market situation, some firms [do not comply to regulations by] increasing wages to attract apprentices or, alternatively, poaching apprentices trained in other firms, then the whole system may progressively be brought into question”.

The focus of this system also faces a huge dilemma between the increasing demand for theoretical learning amongst younger workers and the higher standard of skills wanted within productive systems, Gehin and Mehaut (1994) discuss it is potentially challenging the logics of the whole system while creating stocks of unskilled workers out of the job market. Additionally, issue is raised for the outpaced training speed against technical changes in the modern production system, especially for key requirements in multi-tasked occupations and practical de-compartmentalization. Kern and Schumann (1989) suggest that this trend of demand for “theoretical, general and vocational training are increasing and will continue to do so”. Therefore, if the dual-system were to be sustained, serious adjustments would have to be made to comply with modern requirements.

Since the 1940s, new forms of vocational training have taken shape in Swedish organizations, where the majority was still conducted by public institutes. This has started to shift, however, in the final quarter of the century, where responsibility began to move to local authorities from the central government. Following this trend of decentralization, the manufacturing industry in particular, has taken chance to put large investments into different training programmes to enhance productivity. But serious questions has been raised as trainees in the manufacturing sector face challenges “with the increased amount of theoretical education…as firms’ demand for workers with better theoretical knowledge” began to soar at the same time, Lundahl and Sander (1998) mention.

With this given circumstance in Sweden, four models of education and training are used to demonstrate the degree to which coordination is deteriorating and decentralization has taken place; firstly, we have to acknowledge that the demand for labour competence has changed vastly with the increasing demand of formal education amongst new workforce and the general rise of demand for new products and practices in organisations. Within the industrial programme, the most controversial of all models, as Lundalh and Sander (1998) describe, a system in which inhibits a distinctive characteristic of “education in workshops” (arbetsforlagd utbildning); although very intensive and effective, it requires a large amount of time in workshops and includes theory as well as practical exercises. Many firms are reluctant to take initiatives as they argue that not enough human capital or time can be allocated to give proper training to each group of trainees.

Continuously debated by researchers, such as Olofsson (1997), is the relevant application of the apprenticeship system onto modern organisations as its value has been rethought alongside secondary education, now deserted in most large cities, remaining exclusive to areas such as Svedala. The third model, Firm’s Schooling, is a highly demanding system that require 50% more time input and only submits students with outstanding performance, applied only in large enterprises such as Volvo or Scania where intensive training is seen as obligatory to match international competition. Lastly, Technical Programmes is widely accepted by municipalities with provisions of extra vocational studies, and also organizations can be more involved in supervision. It is a co-operation between groups of firms in terms of common facilities and cost-sharing, and has become more popular after producing impressive recruitment effects.

According to Trembaly and Le Bot (2003), several amendments were proposed to reform the German system following the listed principles; “1) modernization of regulation, 2) inclusion of new occupational fields, 3) mutual recognition of the various parts of the system and 4) differentiation of training”. Hence, in order to adapt to evolving market demands, the German training system still is, and needs to be coordinated by public authority to a great extent to aid the private sector in improving employability, incorporating occupations and general training. As for Sweden, the transition of training responsibility onto individual organizations from local authority is due to its failure to provide emerging labour with desired competence.

At the present, different methods are implemented by firms that deliver contrasting quality levels in training programmes; this is hugely differentiated from traditional forms of Swedish vocational training. The four models all demonstrate a degree of success but act more as a forecast of future vocational practices in Sweden – the extinction of conventional industrial programmes, further proving the liberation of Swedish economy from central coordination. 2. 5 New models for Corporate Governance In terms of corporate governance, a CME is established through the solid relationships between its financial institutions and private organizations. In this section we shall look specifically at the role of public financial institutions and other external stakeholders on the corporate operations of organizations

In Germany, there was definitely a strong coordination of economic exchanges between industrial companies and institutions by means of cross-shareholding, supported by many scholars and again proves Hall’s relational view of CMEs; such “close relationships and interlocking between board members of different companies” and financial institutions such as banks and insurance companies, Hopt and Prigge (1998) also support, which composite the country’s main characteristics of corporate governance, together with heavy reliance on personal connections. It is essential to discover the features of the German model before discussing the reforms in recent years; there is a universal banking system that permits banks to possess equity shares in industrial organisations – allowing banks to alter company’s decisions. Porter (1992) refers this as the “shareholder direction” situation since more the equity share, the larger the influence. This relationship between banks and firms is long-term and fairly stable because as well as equity, the banks also provide a large share of debt and carries operational management in the firms’ finance, this strongly protects companies from being taken over.

To get further involved with company decisions banks are able to release proxy votes, as clarified by Onetti and Pisoni (2009), “this is done in relation to votes related to direct equity shares, [for instance by exercising] the voting rights for the shares that retail customers deposit with them”. Consequently, this gives more authority to banks in public firms. Since the German model is heavily influenced by banks, the stock market has therefore a small role to bear in corporate governance, proved by the IMF World Economic Outlook (2007) the fact that during 1990 to 2005, the capitalization as a percentage of GDP in Germany was only 38%, compared to 132% in UK, a much more liberal market economy.

Since the shareholding in Germany is usually long-term with companies, there is a reciprocal of equity connections between firms themselves and firms and banks, creating a system of cross-sharing. Despite its robust features mentioned, the Germany corporate governance system is bending due to socio-economic changes brought about internally and externally; the globalization of Germany markets, enabling the listing of top companies on international stock exchanges, such as Daimler being traded on the New York Stock Exchange. There is a substantial increase in the amount of foreign investment in domestic industries, referred to by Jurgens et al. (2000) as the “turning point in the transformation of the German system of corporate governance.

Due to recent economic recessions that caused a wave of bankruptcies in German markets, banks have started to reduce the amount of their corporate equity in shareholding as more value is discovered in freer financial markets, stated by Jurgens and Rupp (2002), and began to focus more on economic performance; this in turn gave more freedom to the financial market legalizing numerous new financial choices for companies. On the other side, Swedish corporate governance consists of a great division of ownership from control by means of “pyramids, dual class shares, and cross-holding [that] increases the potential for private benefits of control”, cited by Holmen and Knopf (2004).

The basic structures are formed by two types of partnerships; first, it is between entrepreneurs and rich families, then there is the alliance between engineers and technology innovators. Sometimes Sweden is described as an extreme version of “Rhineland model”, as Habbard (2008) stresses, it contains corporations that are owned by big industrial groups, “privileging organic growth” and features of a typical CME. Taking a closer look at the Swedish model of ownership we notice that the power is usually held by one to two owners, who are most of the time wealthy families. Henrekson and Jakobsson (2003) conclude that “regarding controlling ownership, the Swedish ownership model thus resembles the predominant corporate governance model on the European continent”.

The rigidity and concentration of this structure has been based on a few important Swedish families and banks, Habbarb (2008) continues; Wallenberg, Lundberg, Stenbeck, Klingspor, Von Horn families and Svenska Handelsbanken SHB, Skandinaviska Enskilda Banken SEB banks. There are two main fundamental differences when Sweden is compared to other European corporate models; the whole ownership of shares on the stock exchange is controlled by just a few holders. Secondly, the capital base that this ownership is constructed on, is usually much smaller compared to other EU countries. Nevertheless, even the most stable models have their weaknesses. During the last two decades, there had been some drastic transformations in the corporate models within Swedish organizations.

The most challenging is the rise of foreign investment and ownership in domestic firms. This has been more dramatic than any other industrialized countries in Europe, shifting the power of control and operation from foreign owners. Hence, as Henrekson and Jakobsson (2003) propose, new models are likely to form under the inadequacy of the traditional one; first and the least likely it is the complete ownership by foreign investors – where domestic firms transform into subsidiaries to companies such as multinationals. “Dispersed ownership”, as in shared ownership between foreign investors and Swedish owners where no one supersede the other in terms of control.

Having an external institution such as the state pension or corporatist as owners; more probable as currently joined with the central government they are already biggest shareholders of stock exchange. Lastly and most likely to surface is the ownership by entrepreneurs supported by public authorities; especially during crisis where governments put more faith in worthy investors to The observed changes in the financial exchanges within German economy forecasts a certain extent of convergence towards a market-oriented financial model. However, due to the deep roots of German customs in its bank-firm relation, certain aspects of its corporate governance will remain nchanged in the near future due to the emphasis placed on “Mitbestimmung, or co-decision and co-responsibility” culture quoted by Hacketal et al. (2003) and other scholars in defense of the German persistency in relational structure. On the other side, the predictions for corporate governance amendments are various in shape and none will be take over completely in the future. Some conceive of more coordination from the government and other less so. But it is for certain that the old model will lose its dominance over time and the Swedish overall corporate structure will become more market-oriented for economic wellbeing. 2. 6 Wage distribution and inequality

A CME should not only have a highly skilled workforce but when compared to liberal market economies, it should also high wage levels with low dispersion across different deciles of its population. It is essential to look at our two countries starting from the 1990s to have a deeper insight of the impact of the great recession upon its income distributions over the following years, and to verify whether the advancement in modern socio-economic models have weakened their coordination powers. From the study conducted by Bach, Corneo and Steiner (2007), there proved to be a general rise in the dispersion of German market incomes between 1992 and 2003.

Using the Gini coefficient, as a “standard summary indicator” to measure the equality of income levels we can observe that dispersion of market income from the average earners has increased substantially since the 1990s; from 0. 6155 it has gone up to 0. 6522 in 2003. As detailed by the following table, the median income has dropped by more than 30%, being €12. 496 per individual in 1992, compared to €8,173 in 2003. An obvious trend is the accumulation of market income on the top percentile of income earners. Back in 2003, around 41% of total market income was composited within the higher percentile earners. Bach, Corneo and Steiner further point out that “this group was formed by about 640 individuals, with an average income of 16 million euro, excluding capital gains”.

The sources of rising inequality in German income levels are as follow; the unemployed numbers have steeply gone up in the past two decades, Biewen and Juhasz (2010) note that in 2005, there were an estimated peak of five million people registered out of work, with “more unemployment growth concentrated in the lower part of the income distribution”. This creates a larger income inequality as a huge segment of the low-income population is unemployed, losing their potential income. The different changes in taxation schemes; although it was reduced overall, it has favored top income earners than the rest, distorting the original distribution of income levels.

Moreover, the transition in domestic structure such as more single parents and smaller family sizes that have drastically differed from past family average income patterns, as studies by Peichl et al. (2010). Lastly, with the ageing population; Germany now has a much narrower age segment of young adults, and a greater demand for qualification in addition to other factors in demographics that contribute to the wider dispersion of income levels. Although at a very low level, Sweden has also experienced an increasing inequality of income distribution in its income market. The trend has began since the early 1990s, caused if not worsened by the economic crisis, noted by Palme et al. 2003), as the Gross Domestic Product had been consecutively negative for three years 1990-1993, together with the declining employment rate that is more than 10 percent during the period. Then there was an increased number of workers involved in labour market policies, Palme (2006) mentions that” triggered a crisis for the public finances which was then responded by a combination of tax increases and benefits cut”. This had further burdened households’ income levels. We can see from the table that there was a decrease in annual average disposable income from 1992 (1991 as the base year) with €138,000 to €126,000 in 1995, that only managed to pick up again in 1997.

However, the figures provided by Fritzell (2001) showed an upward trend of average disposable income levels after the crisis; first, it was due to the rapid rise in capital gains hat helped the top income percentile with higher earnings, secondly, the wage per hour was increased in all registered occupations. , this was however, slowed down by the growing unemployment in the same period. To measure the inequality of income dispersion, we will again use the Gini coefficient and the poverty rate. The inequality has risen since the beginning of 1990s, Palme (2006) proves, from 0. 219 it has increased to its peak – 0. 279 in 2000. The reason is the adjustments in the taxation systems that strongly affected households in making serious financial decisions. Despite the economic slump during the 1990s, poverty rate in Sweden has not changed largely which is phenomenal considering the extent of the recession all European countries faced.

It is not until 1999 where poverty started to pick up but is again astonishing as Swedish employment figures were still healthy even when compared internationally. Conclusively, German central coordination is losing its battle to market powers, becoming less effective in moderating wage equality in recent decade, as the intention of keeping a low dispersion of income levels has began to give way modern socio-economic developments. Sweden, however, when compared to the rest of European countries, is doubtless a strongly CME in terms of moderating its equality of market income levels and keeping its poverty rate to the lowest and most stable within the union. 3. Conclusion

Changing demographics, socio-economic and technological patterns have created mass distortion in traditional market structures in both Germany and Sweden. After looking at them in five different aspects, we learn that there is decreasing participation of social partners in collective terms in both countries but much less in Sweden, thus a decreasing value for collective bargaining; wage inequality is more dispersed in Germany than in Sweden; while corporate structure in both countries have become more market-oriented in time but still retains usage of old models; and German still contains a mixture of public training whereas Sweden is moving quicker towards privatized programmes.

Conclusively, although both countries have become less coordinated than few decades ago, Germany has got a greater degree of decentralization compared to Sweden, taking higher level of reforms in its economic structures while Sweden tends to cling more onto traditional coordination values. It is proper to claim that both economies are still considered as CMEs to a fair extent, however, moving towards a more market-oriented style since the late 1980s, becoming societies prioritizing economic benefits rather than traditional structures and personal relationships at very dissimilar speeds. Word Count: 4,813 Bibliography Bach, S. , & Corneo, G. and Steiner, V. (2007).

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Peace Treaties Peace Treaties Versailles Aim: punish Germany, prevent war and allow self-determination Territorial Aim: to weaken Germany by taking away territories, to get compensation for cost of war by gaining land, and to allow for self-determination -Germany lost 13. 5% of land, 12. 5% of population, 15% of farm production, 48% iron production and 16% coal production Alsace-Lorraine| France| Eupen, Moresnet, Malmedy| Belgium|

North Schleswig| Denmark (through plebiscite) self-determination| West Prussia, Posen, Upper Silesia| Poland (make Poland stronger by having access to Baltic Sea increase trade ^economic growth| Danzig| Free City under LoN| Estonia, Latvia, Lithuania| Independent states self-determination| Memel | Lithuania| Saar| Under LoN for 15yrs, then plebiscite; France allowed use of coalmines| Rhineland| Demilitarised under allied control for 15 years| Anschluss| Forbidden| Colonies -Germany had to renounce all rights to her colonies -became mandates under LoN supposedly administered by advanced nations who would help them develop into modern states -ended up being used for Allies’ own purposes; equivalent to annexation German East Africa, parts of Togoland, Cameroon| Britain| Togoland, Cameroon| France| German Southwest Africa| South Africa| -Germany also had to give up trade concessions in China and Morocco -The Rhine, Elbe, Oder and upper Danube were placed under International Control Outcome: Germans were upset by the loss of land as it meant reduction in production of agriculture, iron and coal which would weaken Germany Military

Aim: To keep Germany’s military strength weak so that it could not threaten its neighbours again -army was limited to 100 000 volunteers enlisted for 12 years and there were to be no tanks, armoured cars, heavy artillery or military aircraft -navy was restricted to 6 battleships of limited tonnage, 6 cruisers, 12 destroyers, a handful of smaller vessels and no submarines -left bank of the Rhine and 50km strip on the right bank were to be demilitarized as a further concession to France -Allied Army of Occupation was to be stationed on German side of Cologne, Coblenz and Trier to ensure the terms were kept, consisted mainly of French troops, to be kept there for 15 years -to prevent German aggression and invasion of France; Britain and US also promised to help if attacked Economic Aim: to seek compensation to victorious powers for loss of lives and damage due to war -Germany had to pay ? 6. 6b over 42 years, with ? 1b paid immediately -bulk of payment went to France; Germany complained reparations were a burden -when Germany defaulted, France invaded Ruhr and seized ? 40m; resulted in economic collapse -Allies felt more gradual scheme was needed Dawes and Young Plan -Dawes: 2 year moratorium, US gave loan of 40m -Young: cut reparations to ? b over 59 years, aborted due to Depression Political -war criminals to be tried; Kaiser fled to Holland -LoN was set up to preserve world peace St Germain Territorial Aim: to weaken Austria by taking away territories, to get compensation for cost of war by gaining land, and to allow for self-determination Bohemia, Moravia(which were wealthy industrial provinces)| Czechoslovakia| Dalmatia, Bosnia, Herzegovina| Yugoslavia| Bukovina| Romania| Galicia| Poland| South Tyrol, Trentino, Istria, Trieste| Italy| Military Aim: To keep Austria’s military strength weak so that it could not threaten its neighbours again -army restricted to 30,000 -only 1 armament factory much of its navy went to Allies and it was now restricted to 4 patrol boats Outcome: Austria would not be able to start another war and even had problems defending itself Economic/Reparations Aim: To get reparations from Austria as compensation for Allied expenses in the war; War Guilt Clause to justify -had to pay reparations but could not pay in cash as republic was too poor -suffered severe economic problems as much of its industry went to Czechoslovakia -Economic units were broken up in different countries Outcome: -loss of industrial and agricultural land was insufficient to support urban population -lost role as centre of trade -appeal for union with Germany was rejected Political -Austria to become a member subject to good behaviour Trianon Territorial Slovakia, Ruthenia| Czechoslovakia|

Croatia, Slovenia| Yugoslavia| Transylvania, Banat of Temesvar | Romania| Military -army was restricted to 35000 and could only be employed for maintaining internal order and patrolling frontiers Economic -unspecified amount to be paid -unable to pay reparations as economy was too weak -loss of population and raw materials caused its industry to suffer Political -Magyars believed Trianon to be unjust and demanded it to be revised -Hungary was hostile to countries who gained part of its land Sevres Territorial Adrianople, Most of Thrace, Smyrna| Greece| Armenia| Asia Minor| Rhodes, Dodecanese| Italy| Port of Cilicia| France| Constantinople, Straits area and adj. slands including Lemnos| International Zone of Straits under LoN| Kurdistan| Self-governing| Syria, Lebanon| French Mandate| Iraq, Palestine, Jordan| British Mandate| Arabia| Became independent under a native dynasty| Regained under Treaty of Lausanne: 1. Adrianople 2. Eastern Thrace 3. Smyrna 4. Anatolia 5. Straits 6. Constantinople 7. Aegean Islands 8. Kurdistan 9. Armenia (Turks commanded to produce a safe national home) Neuilly Territorial Strumnitza| Yugoslavia| West Thrace, Aegean Islands| Greece| MilitaryEconomic/Reparations -Army limited to 20,000-90 million pounds to be paid over 38 years but was reduced League of Nations League of Nations Aim: to prevent war/preserve peace and promote international cooperation through collective security (=all members act together to punish any aggressive nation through diplomatic, economic and military sanctions) -to promote disarmament and end secret diplomacy -to improve the quality of life of people around the world -to ensure economic and social justice Assembly -met annually -contained representatives of all the member states, each of which had one vote -function was to decide general policy; decisions had to be unanimous -it was the debating chamber for the nations and decided on the admission of new members and also the League’s budget Council a smaller body, which met more often, at least 3 times a year -Contained 4 permanent members – Britain, France, Italy, Japan -4 elected members chosen by Assembly for 3 years (increased to 9 by 1926) -function was to deal with specific political disputes as they arose; decisions had to be unanimous Secretariat -looked after all the paperwork so that the decisions of the League could be carried out -provided statistical and information services and translation facilities -the first Secretary-General of the League, Sir Eric Drummond, had a largely successful aim of building up a reliable body of civil servants who owed their main loyalty not nationally, but internationally Permanent Court of International Justice based at Hague in Holland; consisted of 15 judges of different nationalities -dealt with legal disputes instead of political ones -covered all matters referred to it, especially those relating to the interpretation of international treaties and conventions -submission of disputes to the Court was voluntary Specialised Agencies International Labour Organisation -Objective: to secure economic and social justice -aimed to fix maximum working days and weeks, recommend appropriate wages for workers, lay down minimum entitlements for sickness, injury and old-age benefit and freedom for trade unions -all members of the League were members, and other willing states, like USA, could join Colonies and Mandates Commission Covenant established the Mandate system for former Turkish and German colonies; Allies saw themselves bound by the 5th of Wilson’s 14 points -resulted in a series of trusteeships whereby the territories were not annexed, but were held in trust by the victors under the supervision of LoN -each mandatory had to submit annually to the Commission an account of its stewardship -3 different types of mandates * Type A: lands that appeared most ready for future independence, e. g. Iraq * Type B: lands that were more backward, reckoned that 50 years would be needed before the mandate could be ended * Type C: lands that were backward or isolated with no real prospect of independence Refugees Committee originally the High Commission of Refugees to deal with Russian and Armenian refugees displaced by the war -became the Nansen Office in 1930 under the direction of Fridtjof Nansen -solved the problems of thousands of POWs marooned in Russia at the end of the war; half a million were returned home -after 1933, help was given to thousands fleeing Nazi persecution in Germany Disarmament Commission -made no progress in the near impossible task of persuading members states to reduce armaments, though they had all promised to do so when they agreed to the Covenant Work of the League in 1920s Aaland Islands (1920) Parties Involved: Finland and Sweden Details: -Aaland Islanders wanted to be part of Sweden because of their cultural ties Action taken by LoN: -set up commission to investigate -recommend that Aaland remain part of Finland -proposed that Swedish culture be safeguarded Evaluation: -successful as a lasting solution due to acceptance from both parties Vilna (1920-1923) Parties Involved: Poland and Lithuania Details: both countries claimed the town of Vilna, the capital of Lithuania which had a majority Polish population Action taken by LoN: -negotiated an armistice but was broken by Polish Army which seized Vilna -commission was set up to recommend new border but was rejected -Conference of Ambassadors stepped in and proposed that Vilna be given to Poland Evaluation: -League played significant role, but was overshadowed by CoA, and its weakness when faced with Polish seizure of Vilna by force had been obvious Upper Silesia (1921) Parties Involved: Germany and Poland Details: each claimed Upper Silesia Action taken by LoN: -set up commission to investigate -plebiscite held majority wanted to return to Germany -LoN awarded most of the area to Germany, but left an important industrial district in Poland Evaluation: -successful in upholding self-determination; did not result in further dispute Corfu (1923) Parties Involved: Albania, Greece and Italy Details: -frontier between Albania and Greece undecided by CA -Italian ambassador, General Tellini was murdered in northern Greece -Mussolini sent an ultimatum to Greece demanding an apology, punishment of culprits and compensation of 50m lira -Greek rejection led to Italian bombardment and occupation of Corfu -Italy thus broke the League Covenant Action taken by LoN: came up with a reasonable scheme; Greeks were to place 50m lire in a Swiss bank pending an enquiry into the murders, and Greeks accepted -however, LoN was overruled by CoA; Italians claimed that League had no right to consider the question at all, as it was the agents of the CoA that had been murdered -after Italy threatened to leave LoN, League Council passed the responsibility to CoA -plan was rapidly altered, and Greek money was transferred to Italy Evaluation: -League had allowed the decision to be taken from its hands; its plan was perverted by CoA, where Italian influence was strong -Italian attack, despite many individual condemnations, had not been officially branded as aggression -although war was averted, a Great Power had bullied a small nation -members of the League did not want to risk war however, Mussolini was shaken by the fierceness of the universal attacks on his actions in the Assembly, and was less threatening Greek-Bulgarian Border Dispute (1925) Parties Involved: Greece, Bulgaria Details: -fighting in October 1925 between Bulgarians and Greeks on their border -Bulgaria appealed for help as it had been severely limited by Treaty of Neuilly; it managed to take a few metres of Greek territory, while the Greeks advanced over 5km on a wide front Action taken by LoN: -Council was summoned to a special meeting in Paris; sent neutral officers for negotiations -League threatened economic boycott backed up by a naval ‘demonstration’; Greeks gave way Evaluation: prevention of a Greek-Bulgarian war, which could have spread, was a triumph for the League, which was firm and decisive during this crisis -however, it was noted that this was due to the states involved being minor powers, no Great Power was involved on either side, and the British and French governments had been willing to back the Council’s attitude Northern Chaco Dispute (1928-1936) Parties Involved: Bolivia, Paraguay Details: -Both Bolivia and Paraguay claimed northern Chaco, a huge circle of territory, 400km across between them -minor skirmishes broke out frequently; in 1928 and again in 1932 these turned into full-scale war Action taken by LoN: -commission was sent to investigate; produced blueprint for disentanglement and solution -Paraguay refused to accept, as they were winning at the time -imposed arms embargo on both countries, resulted in Paraguay withdrawing from LoN -war eventually petered out with both states exhausted; signed a peace treaty based on League’s plan Evaluation: League could have taken action to impose peace on the countries had its members threatened to use force -situation was clouded by other parties, like other South American countries and US -dispute made many reflect how much more effective LoN would be if US was a member Work of the League in the 1930s Manchuria (1931) Parties Involved: Japan, China Details: -Japan invaded Manchuria and China appealed to the League Action taken by LoN: -commission under Lord Lytton concluded that both sides were at fault and Machuria should be governed by the League -Japan rejected this and withdrew from the League in March 1933 -economic and military sanctions were not applied as Britain and France were economically weak and did not want to risk war with Japan, which they were ill-equipped to win Evaluation: Japan successfully defied the League whose prestige was damaged but not fatally -League was seen to be weak as it was unable to stick to its main ideals of collective security against aggressive powers such as Japan -well-being of various League members was seen to be more important than world peace Leticia (1932-1934) Parties Involved: Peru, Colombia Details: -Peruvian soldiers seized Leticia in 1932 -it was important to Colombia as it was her only direct outlet to the Amazon River -Colombia tried to retake Leticia but the Peruvians extended their invasion using aircraft -Colombia then appealed to the League Action taken by LoN: -the League decided in favour of Colombia and persuaded the Peruvians to withdraw -Leticia was under the League for a year and in 1934, was peacefully returned to Colombia Evaluation: although it was seen to be a success as collective security was enforced, the League was not truly tested as both countries were minor powers and could not hold their own against bigger members of the world order World Disarmament Conference (1932-1934) Parties Involved: Member states of the League Details: -was a grave disappointment -Germany asked for equality of disarmament with France, but France demanded it to be postponed for 8 years -Hitler used France’s attitude to withdraw Germany from the conference and later from the League in 1933 -In that year, France completed the building of the Maginot Line which fortified her eastern frontier showed that France was rearming instead of disarming Evaluation: Disarmament failed as the powers wanted security over equality of armaments -Britain and France were also militarily weak and were afraid of the USSR and Italy Abyssinia (1935) Parties Involved: Italy, Abyssinia Details: -Italy invaded Abyssinia Action taken by LoN: -the League condemned Italy and introduced economic sanctions, but they were not applied to coal, steel and oil -the sanctions were half-hearted and were soon abandoned as they did not want to antagonize Mussolini to keep him from allying with Hitler Evaluation: -was a complete failure of the League as they were seen to be weak since they backed down from aggressors -Mussolini was annoyed by the sanctions anyway and drew closer to Hitler -small states lost all faith in the LoN -Hitler was encouraged by incompetence of LoN to break ToV LoN was never taken seriously again after 1935 Mussolini Mussolini Fascism = a system of government with centralised authority under a dictator -usually involves terror, censorship, nationalism Rise of Mussolini Cumulative (Long term) Disappointment at ToV -Italy was originally a member of the Central Powers -Allies promised Italy Trentino, South Tyrol, Istria, Trieste, part of Dalmatia, Adalia, some Aegean islands and a protectorate over Albania -Italy given first 4, however, others were allocated to other states, mainly Yugoslavia, with Albania becoming independent -led to Italians feeling cheated as they had fought during WWI and lost close to 700,000 men Fiume Incident whilst not promised Fiume, Italians had failed to capture it during WWI -d’Annunzio and his supporters seized Fiume and held it against the Yugoslavs for 15 months -PM Giovanni Giolitti decided that the Government’s authority should be restored and sent the Army to remove d’Annunzio and his supporters -angered the people as d’Annunzio was regarded a national hero Post-war Economic problems -effects of war on Italy were disastrous -Italy was heavily in debt as it had borrowed heavily from USA -cost of living increased by 5 times due to fall in value of the lira (5 lira to 1 USD in 1914 to 28 lira to 1 USD in 1921) -massive unemployment * Post-war cut backs * Returning servicemen Dissatisfaction at the parliamentary system -votes for all men and proportional representation were introduced for 1919 elections -problems of proportional representation: Large number of political points * 9 parties from across the political spectrum * No clean majority – coalition governments and 5 cabinets with shaky majorities * No consistent policies * System seemed to prevent decisive government Contributory (Short term) Strikes of 1919-1920 -industrialisation of Italy led to development of a strong socialist party and trade unions -organised a wave of strikes to protest at Italy’s problems Popularity of Fascists -provided the illusion of strength when Italians were disillusioned with democracy -initially anti-monarchy, anti-church and anti-big-business -poor results in 1919 elections led to changes -Pro-big-business: Mussolini came out as the defender of private enterprise and party * Led to financial support from the big businesses * Formation of communist party in Jan 1921 led to more support -Supported the church: * Made concillatory speech about Roman Catholic Church * Church saw Mussolini as a good anti-communist weapon -dropped republicanism (election of head of state) * King looked favourably upon Mussolini thereafter Ineffective Opposition to Fascists -anti-fascist groups failed to cooperate -communists refused to cooperate with the socialists and vice versa; both groups were also opposed to the nationalists -PM Giolitti wanted the support of the Fascists after the 1921 elections 1921 elections – Fascists only won 35 seats versus 123 won by socialist -socialists refused to cooperate with nationalists -thus allow Fascists to get into power Critical (triggers) Attempted General Strike -socialists called for general strike in 1922 -Fascists claimed that if the government was unable to control the strike, it would do so; undermined authority of government -socialist strike ended by itself due to lack of support -Mussolini claimed credit and made it look as if fascists stopped it March on Rome -Fascists felt confident enough to stage March on Rome -about 50 000 black shirts converged on the capital while others occupied important towns in the North government wanted to resist, but were overruled by the King -chaos created by governmental crisis, fascist threat and the King’s move created confusion; Italians saw this as further evidence of the government’s inability to rule Actions of the King -King Victor Emmanuel II refused to declare a state of emergency -he instead invited Mussolini to form a new government -Fascists benefitted from the fear and confusion; fostered the myth that they had seized power in a heroic struggle, by seizing many key communication facilities -resulted in widespread overestimation of the fascists’ ability to seize power -King’s role was crucial as he had decided not to use the army to stop the blackshirts the march was a bluff but it succeeded * Feared for a long civil war if the Army failed to crush Fascists quickly * Feared he would be forced to step down by nationalists * Generals led him to believe that government forces were not strong enough to put down the revolt; appraisal of the situation was not well-informed The Fascist State Political Accerbo Law (Nov 1923) -changed the rules of the general elections -party which got the most votes in the election would be given two-thirds of the seats in parliament -Apr 1924 elections – Fascists and supporters gained 404 seats as opposed to 107 seats for their opponents -destroyed democracy in Italy

Use of Violence and Intimidation -1923—Fascist Blackshirts were legalized to become the National State Voluntary Militia (MSVN) -1924—use of violence and intimidation to develop Italian government on fascist lines Only Fascist Party was allowed -Opponents of the regime were exiled or murdered -1927—OVRA, secret police Mussolini used to hunt down political enemies, placed them in concentration camps on islands off Italian coast -however, when Mussolini felt more secure, the violence was reduced Matteoti Crisis -Mussolini was paralysed by indecision -lost support among fascists and there was widespread parliamentary boycott -eroded Mussolini’s position in Jan 1925 Mussolini announced he was assuming dictatorial powers -only his supporters in Parliament; King presented no threat -signaled the demise of any pretense to democratic rule, ushering end of free speech, free press and toleration of opposition -fascist militia was mobilized political parties were closed down and outlawed, newspapers came under fascist control -desertion of fascists during Crisis led to Mussolini purging the fascist party, to wipe out any independence among them; had to swear oaths of allegiance Constitutional Changes -1925—Prime Minister (Mussolini) was responsible only to the King and not to the parliament -1926—PM could rule by decree which meant that new laws passed did not need to be discussed by Parliament -1926—electorate reduced from 10 million to 3 million -all decisions taken by Fascist Grand Council which did as Mussolini told -Mussolini was Il Duce and now had dictatorial powers -Changes in local government: * Elected town councils and mayors were abolished * Towns were run by officials appointed from Rome Economic Employment policies promoted cooperation between employers to end class warfare in a “Corporate State” -only fascist-controlled unions had the right to negotiate for workers and both unions and employers’ associations were organized into corporations and were expected to work together to settle disputes -strikes were banned -1934—22 separate corporations dealing with separate industries -Mussolini hoped to control workers to direct production and the economy -compensation and benefits – free Sundays, annual holidays with pay, social security, sports and theatre facilities and cheap tours and holidays Industrial and Agricultural Policies -drive for autarky (self-sufficiency) industry was encouraged with government subsidies – led to doubling of steel production by 1930(was still low compared to other countries), 1937 production of hydro-electric power doubled -Battle for Wheat (1925): Get more farmers to grow wheat so that Italy would not have to spend money importing it; increased wheat production led to wheat import reduced by 75% extra land used led to output of other crops going down -Battle for Land (1926): Removal of wasteland, included draining marshes and swamps, ploughing bare hillsides, clearing woodlands and improving irrigation to increase agricultural production; greatest effort put into draining the Pontine Marshes, a huge mosquito-infested swamp near Rome -Public Works Programme: To reduce unemployment through building of motorways, bridges, blocks of flats, railway stations etc. Battle for Lira (1926): Mussolini revalued the lira far too high, at 90 to the sterling pound instead of 150 in an attempt to show Italy had a strong currency, led to reduced orders as Italian exports were more expensive on the world market workers suffered wage reductions Social Censorship -strict press censorship was enforced -anti-fascist newspapers and magazines were banned -editors were replaced by fascist supporters -radio, films and theatre controlled the same way Education supervised -all education was closely supervised -teachers had to wear uniforms and new textbooks were written to glorify the fascist system -children and teenagers forced to join government youth organisations -indoctrination to obey Il Duce and war was glorified -Total obedience to authority “Believe, obey, fight! ” Understanding with the Pope -papacy had been hostile to the Italian state -initially sympathetic to Mussolini in 1922 Pope Pius XI growingly disapproved of totalitarianism of the Fascists -Mussolini played on fear of Communism by Vatican and signed the Lateran Treaty of 1929 which recognized the Vatican City as a sovereign state and paid the Pope a large sum of money as compensation for all his losses -payment in the form of state bonds Church had vested economic interest in the regime needed to ensure stability and support -Treaty also recognized Catholicism as the official state religion and made religious instruction compulsory in all schools -Vatican recognized the kingdom of Italy Hitler Hitler Weimar Republic/Rise of Hitler Constitution of Weimar Republic 4 August 1919 The constitution established: * A federal government of upper and lower houses * A German republic under a president * The principle that political power ‘derives from the people’ The President: * Was directly elected by the people for a seven-year term * Had the power to appoint/dismiss the chancellor and ministers * Was commander-in-chief of the armed forces * Was given emergency powers under article 48 of the constitution to suspend parliament and rule by decree The Parliament: consisted of two houses * Reichsrat: Upper House which had 66 seats representing the states in the German federation * Reichstag: Lower House; the chancellor formed the government in the Reichstag, with 421 deputies, each party was allocated seats in the Reichstag according to their proportion of the total vote -weakness of proportional representation -no one party gained an absolute majority -allowed ‘splinter’ parties, some with extremist policies to gain at least some seats -led to instability in the parliament for a coalition made up of a number of parties was necessary to form a government Events of Weimar Republic Treaty of Versailles (1919)

Aim: to signify surrender of Germany and acceptance of war guilt * was humiliating and unpopular, and led Germans to see the Weimar government as working with the enemy * arms limitations, reparations and war guilt clause in ToV being accept by the Weimar government led to it being associated with defeat and dishonor Outcome: Weimar started on a weak footing, with little respect for politicians, as Germany was rooted in militaristic tradition with strong leaders like Bismarck Spartacist Rising (1919) Aim: to take over the government inspired by communist revolution in Russia * was a sign of weakness of the Weimar government as it had to depend on private forces, in this case the Freikorps, which it did not itself control to defeat the communists Kapp Putsch (1920) * Right-wing groups tried to seize power * Revealed the chaotic situation * Rebels were also not punished duly * Revealed weakness of Weimar and led to disillusionment with democracy Ruhr Invasion (1923) * Due to German inability to pay reparations Paralysis of Ruhr industry and government’s determination to maintain strike pay and other benefits in retaliation to the French led to hyperinflation * Suffering by the people, poor economic management and inability to deter the French led them to think that Weimar was weak * Public opinion swung in favour of right wing extremists like the Nazis Munich Putsch (1923) Aim: to overthrow the government and seize power Outcome: Evidence of groups wanting to overthrow government showed lack of support from people and even authorities (e. g. judges during Hitler’s trial) as they had little faith in democracy Golden Years (1924-1929) * Relatively stable period led by Gustav Streseman who: * Introduced new currency (retenmark) and called off strikes in Ruhr, as he thought it had caused a severe strain on German economy and led to great political instability * Signed Dawes and Young Plan Locarno Treaties and Kellogg Briand Pact (world’s major nations renounced war as an instrument of national policy) * Restored diplomatic status of Germany by signing above pacts as they gained the goodwill of Western Powers allowed Germany to be admitted into LoN with a permanent seat in the Council Outcome: Relatively stable period due to good leadership, financial help from the US and reparations being decreased, however, Germany’s prosperity was reliant on US loans to sustain itself Great Depression * World economic crisis due to Wall Street Crash * US seized all the loans and called in short term loans * Plunged German economy into recession again * Unemployment hit 6million Outcome: Government came under great criticism for lack of decisive action Working class sour about unemployment and cutting back of benefits Government on verge of collapse as people gravitated to alternative political groups Nazi Party 1914-1918| WWI—Hitler was a corporal, war developed political ideas later popularized by Nazis e. g. iktat/ repudiate ToV/ ‘ stab in the back’ theory| 1919| Hitler joined German Workers Party in Munich where he was employed by the army to turn soldiers against pacifist democratic ideas; initially small and ineffective, later merged with another and renamed Nazi Party| 1920| Under Hitler’s leadership, party became more effective:-oratory skills-charisma-fund-raising ability-Rohm instructed to reorganize SA; by 1923, had an organized, private armyWithout Hitler, the Nazis would have been one of dozens of small, disintegrating political parties| 1923| Munich Putsch lessons learned-seize power legally in future-Hitler now a figure of national renown, Nazi ideas publicized| 1924-1929| With economic stability under Stresemanm Nazis’ growth was stunted| 1930| Reichstag elections, Chancellor Bruning headed unstable coalition-invited Hitler to join; declined as uninterested in sharing power| Mar 1932| -elections for President Hitler stood as candidate huge national exposure and publicity for Nazi ideas; polled credibly| Jul 1932| Chancellor von Papen replaced Bruning in May, but coalition became increasingly unstable so elections were called – Nazis were single largest party but Hitler refused invitation to join coalition government| Nov 1932| 196 seats showed decreasing Nazi popularity as depression eased; coalition government became increasingly unworkable so Hindenburg appointed Schleicher as Chancellor in December; unable to get Reichstag to work with him so Hitler was appointed as Chancellor due to political intrigue by mainly Papen and Schleicher| Nazi beliefs Hitler knew that the Germans were looking for someone to blame for their troubles so he gave them plenty of enemies * For example, the ‘stab in the back’ theory claimed that the German army had never been defeated but had been let down by Jews and communists at home; those who signed the truce were the ‘November Criminals’ * However, this was untrue as it was General Ludendorff who had told the civilians that they must sign a peace treaty as the army could no longer defend Germany * Hitler also blamed ToV for most of Germany’s troubles * He claimed it was an unfair dictated peace which had taken much land from Germany * Hitler’s promise to ignore the Versailles settlement if he came to power impressed young officers and iron and steel manufacturers, who had much to gain from a rearmed Germany * Demand for Anschluss was supported by many Germans * Denuciated democracy as weak and ineffective pleased many as well * His promise of a few socialist measures gained him many working-class votes * Most importantly, he offered Germans a simple solution; everything would be all right if the Jews were deprived of all money and power, or the communists crushed, or the ‘November criminals’ hanged, or that Germany just had to break ToV to become great again Rapid Growth of Nazis * From 1920-1923, the Nazi party saw rapid growth The party adopted its distinctive characteristics like the emblem and salute, and had a newspaper where Hitler denounced the ToV * Htler also organized the SA to protect the Nazi meetings and disrupt the meetings of other parties Munich Putsch * The French occupation of Ruhr allowed the Nazis to gain new and increased strength by denouncing the ToV * On 8 November 1923, after only 4 years in politics, Hitler attempted a revolution, inspired by the fascists’ March on Rome the year before * However, Hitler had not made sure of the active support of the army, and he had forgotten that he was unknown outside of Bavaria, whereas Mussolini had been a national figure * Hitler was arrested and his party banned * However, many government officials had been in sympathy with him *

His exploits at the trials received much publicity, helping him to become well-known outside Germany * He was sentenced the 5 years in prison and allowed parole * During this time, he laid down Nazi ideas in the book Mein Kampf * He also decided that the Nazis needed to gain power through legal means Golden Years under Streseman * Gustav Streseman intended to make Germany great again through peaceful means * Through the Dawes plan, and issuing of a new currency, Germany enjoyed a period of prosperity * The number of Nazis in the Reichstag dropped from 32 in May 1924 to 14 in December 1924 * Despite poor election results, the Nazi Party showed a sturdy growth during these years * Party membership increased from 27000 to 178000 It also began to have financial support from wealthy industrialists who saw that Nazis were anti-socialist and anti-communist * Hitler also strengthened his control of the party by forming his own bodyguard, the SS Great Depression, Nazi mass support * Weimar government failed to solve any grave economic problems of the day: mass unemployment, inflation and industrial slump * Faced with economic hardship, Germans lost any faith they had in the democratic government * Middle class and working class were the most discontented as they had been ruined by 2 economic collapses within 6 years * Turned to 2 extreme parties for remedies, Nazis and Communists * July 1932 – Nazis won 230 seats, becoming largest party in Reichstag Hitler becomes Chancellor November 1932 – Nazi votes dip, while Communist votes rise alarms influential businessmen and landlords; conservative Nationalists decided that their cause could be served by supporting Hitler * von Paper made a bargain with Hitler, where Hitler would be chancellor and von Papen be made vice-chancellor; Hindenburg agreed as despite his contempt for Hitler, the Nazis seemed to be the only well-supported right-wing party which could protect Germany from communism Reasons for Nazi Success 1. Lack of democratic tradition Weimar Republic was not trusted or respected by the people 2. Weimar failed in both domestic and foreign affairs: a. ToV b. failure of Streseman to remove burden of reparations c. failure to recover lost territories d. little political stability due to coups from extreme right and left e. constitution encouraged formation of too many political parties which led to weak and unstable government 3. Onset of GD led to unemployment; as workers turned to communists, landowners, industrialists, middle class and conservative right-wing politicians turned to support Nazis 4.

Hitler was an able leader, who convinced Germans he was a man of action and ideals; Nazi programme promised everything to everybody 5. Like the Italian government, the German government lacked confidence to rule the country in times of crisis Consolidation of Hitler’s dictatorship Reichstag Fire -on 27 February 1933, the Reichstag building was burned down and the communists were falsely accused of using the fire as a signal for communist insurrection -under the guise of defending the country from a communist revolution, Hitler asked for emergency powers -suspended civil liberties; Hitler used this to arrest 5000 communists -Hitler banned communist and socialist newspapers and made use of radio stations to broadcast Nazi propaganda Enabling Act despite Nazi influence on the votes, they did not fare well in the elections and only barely obtained a majority with the aid of the Nationalists -Hitler wanted to transfer all legislative power of the Reichstag to himself, but any change in constitution required a two-thirds majority in the Reichstag -Hitler arrested or excluded 81 communist deputies, and bribed the nationalists and centrists -thus, the Nazis outvoted the social democrats by 444 to 94 which gave Hitler unlimited power -Hitler could draft and pass any laws without the Reichstag -the German constitution was destroyed Elimination of Internal Rivals (Night of the Long Knives) -dealt with political rivals in the party -Ernst Rohm differed from Hitler on 3 important issues: 1. Rohm thought that the SA helped bring the Nazis to power, so Hitler should reward them with government jobs. 2. Rohm wanted the SA and army to be merged 3.

Rohm was interested in the socialist aspect of the party’s programme and wanted Hitler to confiscate the property of wealthy people in Germany -Rohm commanded 2m SA troopers, and thus constituted a great threat to Hitler’s political position -On June 30 1934, many SA leaders as well as other political opponents were killed such as Strasser and Scleicher -Hitler achieve party solidarity Hitler becoming President -Hindenburg died in Aug 1934 -Hitler announced that he would combine in himself the offices of President and Chancellor -Thus, his personal dictatorship was now complete and the Third Reich was officially proclaimed Nazi Germany Political Policies| Social Policies| Economic Policies| Banned all political parties * Created a police state; prevented any opposition to the regime by sending political opponents to concentration camps * Trade unions were abolished, as they were a likely source of resistance, replaced by the German Labour Front; employees were also forbidden to strike| * Education system was closely controlled so that children could be indoctrinated with Nazi ideals; textbooks were rewritten to support Nazi opinions * Was supplemented by youth organisations which aimed to destroy traditional bonds such as loyalty to the family and obey the Fuhrer instead * Dr Joseph Goebbels controlled the media; ensured that opinions fit the Nazi system and thus moulded public opinion and ensured mass support * Wanted to bring the Catholic and Protestant churches under Nazi control * signed concordat with Pope in which Church recognized the regime and renounced all activity aside from purely religious acts in Germany, while Hitler guaranteed the Church of its historic rights, but the promise was soon broken; the Catholics offered serious resistance to Nazi persecution from 1937 * Protestant churches were united under a Reich church which preached Nazi ideals; Protestants which did not follow the new eachings were sent to concentration camps * Nazis encouraged racially pure couples to have more children as birth rate was declining, gained support of mothers who felt that they were contributing; those considered undesirable were discouraged from having children, and some were forcibly sterilized, marriages between Aryans and Jews were also banned| Aims: 1) To reduce unemployment 2) Build Germany’s weapons industry 3) Achieve economic self-sufficiencyEmployment-public works programmes-larger bureaucracy-purge of Jews and anti-Nazis -rearmament Industrial/Economic production-German army was expanded; conscription introduced; gave profitable deals to businessmen, who in turn supported Nazis Autarky-encouraged farmers to increase agricultural yields-telling industrialists what to produce depending on needs However, despite numbers showing that unemployment had been solved, these figures hid certain facts; women and Jews were ousted out of jobs to create vacancies and they were not counted as unemployedrearmament was also again ToV| 1930| Road to War Road to War

Great Depression continues (1929-approximately mid 1930s)War Aggressive Foreign Policy Rise of Militarism Rise of extremist parties and regimes| | London Naval Conference – reduction in naval build-up (role of League)| 1931| Mukden Incident, Invasion of Manchuria * Japan had vested economic interest in Manchuria; stationed the Kwantung army in Manchuria to protect its assets gained by wars with China * However, its control of Manchuria was threatened when Chiang Kai-shek took over and set up the National Government * They were worried that the Manchurian warlord, Zhang Zuolin would gang up with Chiang to oppose their domination of Manchuria * Mukden Incident: assassinated Zhang by dynamiting his train * Showed increasing Japanse militarism and weakening Japanese democracy * Strengthened Chinese nationalism as Zhang Xueling wanted vengeance * Great Depression prompted them to take more serious action; foreign conquest would guarantee more trade, more raw materials and more jobs start in Manchuria, since Kwantung Army was in place * 18 September 1931: Kwantung Army occupied town of Shenyang, claiming that Chinese soldiers had tried to blow up the South Manchurian railway * Despite protests by LoN, Japanese soldiers went on to occupy the rest of Manchuria| 1932| Manchukuo established * Japan declared Manchuria independent and put Emperor Puyi on the throne, but he was a figurehead, and the real rulers were officers of the Kwantung Army * Lytton report condemned Japanese invasion and suggested possibility of separate state in Manchuria| | World Disarmament Conference| 933| Japan leave League * League voted on Lytton report; Japanese delegation left the Assembly and later leaves League * League was seen to be powerless when faced with opposition of a great power * Nothing could be done to prevent Japan’s withdrawal or to force the Japanese to accept the Report * Japan had set an example which Hitler and Mussolini were to follow| | Hitler becomes Chancellor * Hitler’s foreign policy was aggressive * Preached German world domination, overthrowing of ToV and conquering living space which ultimately involved the use of force and war| | Germany leaves League and WDC * Hitler openly rejected disarmament clause * No longer bound by LoN and was free to pursue rearmament * Increase possibility of Germany and Japan using force as a foreign policy tool * Countries also started rearming heightening chances of war| 1934| Poland and Germany sign non-aggression pact * Settled previous disputes over Danzig and territorial boundaries, and was seen by Britain and France as Hitler’s first step to building diplomatic relations * Hitler’s bluff worked – Britain and France got a false sense of security and pursued appeasement policy * Polish neutrality was also assured if Germany annexed Austria and Czechoslovakia| | Geneva Conference collapses| Attempted Anschluss * ToV forbade Austria’s union with Germany * In 1934, Austrian Nazis assassinated the Chancellor and asked for German help * The new chancellor appealed to Mussolini, who did not want a strong Austria-Germany on his frontier * Italian troops were rushed to Brenner Pass and Hitler called of his plans * Peace was maintained only by threat of force and Mussolini’s dislike of Hitler * Hitler’s aggressive foreign policy was revealed * Revealed need to work with Italy| 1935| Saar plebiscite – voted to return to Germany * Rich in coalfields and other industries helped German rearmament * Boosted Hitler’s confidence in xpanding the Third Reich announced conscription and rearmament| | German rearmament – Hitler announces conscription * Was not seen as an aggressive move but rather an economic policy to rebuild Germany’s shattered economy * 1st successful breach of ToV * Vital step towards preparation for war and world domination| | Stresa Front * Joint effort by Britain, France and Italy to resist attempt to revise ToV and issued strong protests at Hitler’s actions to breach ToV * Fact that these powers came together showed that the League was ineffective * Did not last due to Anglo-German naval agreement showing British condoning German rearmament and Italian aggression through Abyssinia invasion| | Anglo-German Naval Agreement * Made sure that Germany did not become stronger than Britain * Ensure a strong Germany to keep communism at bay; Hitler was firmly anti-communist * Treaty was a breach of ToV; showed hollowness of the Front * Diplomatic triumph for Hitler as Britain recognized German right to rearm| | Italian invasion of Abyssinia * Showed weakness of LoN; no longer an effective peacekeeping organization * Stresa Front was weakened as Italy drew closer to Germany * Hitler was more confident of using force to achieve his foreign policy aims as Britain and France could be seen to be unwilling to resist aggression| 1936| Hitler reoccupies the Rhineland * Hitler took a gamble as German forces were outnumbered by better-armed French troops * Successful reoccupation and remilitarization due to lack of British and French action; the region was described as only his own backyard and neither country were prepared for war * Britain and France were occupied with Abyssinia * Hitler’s confidence to use force was boosted| | Spanish Civil War begins * Valuable practice for troops and air crew e. g.

German Luftwaffe air raids in Madrid and Guernica * Britain was horrified with the destructive power of the air force and was determined not to intervene as Spain was remote * Due to appeasement policy, Hitler was convinced that Britain and France would not act against aggression * Strengthened German-Italian alliance, fostered closer ties| | Rome-Berlin Axis * Formalized political and military relations form Abyssinia invasion which had German support and Spanish civil war| | Anti-Comintern Pact * United front to stand up against and destroy communism between Italy, Germany and Japan * Closer relations between aggressive nations who were no longer in LoN * Led to growing confidence| 1937| Second Sino-Japanese War begins * Beginning of Japanese expansion into Asia through aggression * War in China * Will later expand to SEA * Purely instigated by Japanese military in China and was condemned by democratic government * Showed that military held the most power * LoN failure to act gave Japan the impression that US would also do nothing; however, trade embargo was impose| | Italy joins Anti-Comintern Pact| 938| Anschluss * Seyss-Inquart led an Austrian Nazi attempt to seize power, which was prevented by Chancellor Schuschnigg * Hitler threatened war unless Schuschnigg was made Minister of the Interior * Plebiscite was proposed to see if Austrians wanted Anschluss * Fearing negative results, Hitler rushed troops to the border, threatening an invasion and forcing Schuschnigg to resign, resulting in Seyss-Inquart becoming Chancellor * Hitler was invited to occupy Austria and ward off communist threat, and Austria became a province of Germany on 14 March * While a plebiscite showed that 99% of Austrians favoured the union, the remaining opposition was crushed * Hitler’s act of expansion/aggression went unchecked * Appeasement policy by Britain and France increased the likelihood of further aggression| | Czechoslovakia: Munich Conference and Czechoslovakian Crisis * Another case where expansionism was achieved without bloodshed * Czechoslovakia lost 70% of her heavy industry and all her military fortifications * Provided Germany with mineral deposits and heavy industry boosted rearmament efforts * Hitler would be emboldened to retrieve all lost territory under ToV and even take on more land as part of his scheme to achieve world domination| 1939| Memel reclaimed by Germany * Hitler was determined to restore all lost territory under ToV| | Germany makes demands on Poland| | Britain and France guarantee Poland’s safety| | Italy invades Albania * Revealed Italy’s ambition for empire and power * Increasingly felt like he paled in comparison to Hitler * Thus, he was pressured to keep up – later declared war on Britain and France in 1940s to gain spoils of war| | Pact of Steel * Formalized military cooperation and alliance * Pledged to assist each other if one became involved in a military conflict * Mussolini’s close alignment is reflective of his esire not to lose out in territorial gains * An attest to Hitler’s plans to invade Europe * Doom for Italy that could not match Germany’s military might as Hitler could not keep his end of bargain (to wait 3 years as Italy prepared for war)| | Nazi-Soviet Pact * Germany would not have to fight on 2 fronts as in WWI * Germany would conquer all of Western Europe and then strike Eastern Europe when lest expected * Bought time for USSR to build up its military * Without this pact, Germany would not have invaded Poland * Allowed Britain and France to see that Hitler was a trickster| | Poland invaded; beginning of war in Europe| I. The Russian Revolutions: Fall of the monarchy & the provisional government The Russian Revolutions: Fall of the monarchy & the provisional government February 1917 Revolution i. Causes of the Revolution Numerous defeats in World War I and crucial losses in important battles * Caused troops & police to mutiny – left no one to defend the autocracy * War revealed the incompetent & corrupt organisation and the shortage of equipment * Tsar had also appointed himself Supreme Commander of the Russian Army, but made tactical blunders and, on the whole, was unable to inspire the troops * Army morale dwindled due to consecutive defeats in important areas * People could now blame the Tsar for Russia’s decline * Thus, the Tsar’s incompetent leadership of the war resulted in numerous defeats, loss of lands, and a horrendous death toll, leading the army to rise up against the government to overthrow it to end the war * Famine and poverty due to the state of the Russian economy, which had been ravaged by war * Wages could not keep up with the rise in prices of food due to inflation and the depreciation of the Russian rouble * Caused many people queuing for food to be turned away, creating dissatisfaction among the Russians, especially among the peasants * Tsar proved to be hopelessly inadequate at dealing with the economic problems the war created, and the suffering of the people eventually caused them to rise up against him in a bid for a better life * Poor governance and repressive, autocratic rule Tsar’s failure to keep promises such as land reforms * Duma kept changing – Russia had 4 Dumas between 1905 to 1917 alone, which resulted in the situation whereby new-and-improved policies were unable to be implemented * All these hence led to greater hostility against the Tsar * Workers & soldiers later set up the Petrograd Soviet, a council of workers & soldiers taking control of the city * Tsar was eventually persuaded and forced to abdicate by his generals * Fall of autocratic government ii. Outcome of the February Revolution * A provisional government was set up by the Duma, headed by Prince Lvov as Prime Minister * Petrograd Soviet & the workers’ councils rivaled the provisional government’s right to rule and insisted on its prerogative to run the government II. October 1917 Revolution iii. Problems & Failures of the Provisional Government (PG) * Continuation of WWI Kerensky’s June offensive was a disastrous failure * Lost the support of the Russian people, who thought the war was draining precious resources * Caused the collapse of army morale & discipline * Hundreds of thousands of troops deserted the army and abandoned the front lines * Dual power existed as the PG was challenged by the power held by the Petrograd Soviets, who tried to rule the city and commanded all the soldiers, leaving the PG without any military backup * The Petrograd Soviet was more popular amongst the people, and later the even the Army lent its support to them * PG also depended on the Petrograd Soviet for its legitimacy * Hence, when the Petrograd Soviet ordered all soldiers to obey only the Soviet, it meant that in the last resort, the PG could not rely on the support of the Army * PG delayed elections promised earlier, leading to loss of support * PG had assumed power, but had not been officially elected by the people of Russia * Claimed it would hold elections after the war as the troops would have returned and then be eligible to vote after fighting * However people did not elieve in it and felt that it was too long a duration to wait before the war ended as no one knew when the war would end * Promise of elections were hence not carried out, adding to unpopularity * Since they had not been voted in, the PG also had no legal power to give land away or start land reforms for the benefit of the peasants, who had earlier demanded land and sought the approval of the PG to provide land reforms * This thus angered the peasants, who began to seize land – another incident which highlighted the fact that the PG had no control of the people * Allowed Bolsheviks to use peasant discontent to win support * Return of Lenin * Lenin returned to Russia from exile in Switzerland with German aid * April Theses urged that the Bolsheviks should cease to support the PG, that all power should be taken by the Soviets, and that Russia should withdraw from the war * Promise of “Peace, Bread & Land” gave hope t and appealed to the masses against the increasing economic chaos * Posed a new challenge to the provisional government * July Days Massive demonstrations of workers, soldiers & sailors, to demand for the PG to give up their power to the Soviet * PG brought in troops to restore order; later condemned the Bolsheviks for trying to stage an uprising * Also made false claims that Lenin was a German spy * Led to a rapid decline in support for the Bolsheviks, eventually causing Lenin and other important leaders to flee for their safety into Finland * After this incident, Lenin decided it was too early to revolt as the Bolsheviks had to gain more support from the people and realize his mistakes * Better and more careful planning for the next attempt at Revolution was also required as Lenin now also realized that the PG was well aware of their rising power and would take efforts to bring it down and deter its attempts at Revolution * Prince Lvov, head of the Provisional Government at that time, finally resigned and was replaced by Kerensky over his failure to deal with the instability * Kornilov Affair Severely embarrassed the PG as it showed that they did not have control over their own soldiers * Kornilov, Commander-in-Chief of the Russian Army, had originally viewed the Bolsheviks as traitors and had decided to move against the Soviets , but his soldiers mutinied * Army discipline was on the verge of collapse, public opinion swung against the war and in favour of the Bolsheviks, who was the only party to talk openly about making a separate peace * Kerensky had initially ordered Kornilov’s arrest, but his army refused to cooperate, and Kerensky had to rely on the Petrograd Soviet for help against the uprising * PG was therefore seen as weak * By this time the Bolsheviks were seen favourably and were garnering increasing support iv.

In October Trotsky and the rest of the Bolshevik Red Guard launched a silent, bloodless attack against the PG in the middle of the night, seizing key power blocs and resulting in the birth of the first Communist Government * This attack was planned by Trotsky himself, highlighting his true brilliance as the plan was a success War Communism I. Popularity i. In a nutshell, war communism was a military success, but an economic failure ii. It was simply harsh economic measures and labour control to serve war needs iii. Nationalization of the segments & industries of the economy that effectively controlled & supported the others, such as oil, railroads, banking & steel – the Commanding Heights iv. Rationing of basic goods & services v.

However, the Bolshevik government eventually resorted to coercion when exhortation & persuasion failed II. Aims vi. To prevent the total collapse of the economy vii. Mobilize resources to defend communism from its enemies during the Civil War, eventually channeling sufficient resources for a Bolshevik victory over the Whites viii. Strict labour control ix. Putting the Marxist ideal of a state-controlled economy into practice III. Agriculture x. Grain requisitioning * Peasants were forced to give up their excess grain so that the workers in the factories & soldiers at the warfront could be fed Peasants vehemently objected to this * Uncooperative peasants were thus shot and killed A few peasants even destroyed their crops and harvest rather than have them seized, as many felt that it was unfair to them * As a result, a few peasants planted fewer crops the following season so that they would have less crops in excess * Significance was that food production decreased, causing the bulk of the population to be affected by starvation, and this remained a problem throughout the Civil War xi. Land Nationalisation * 1917 Decree * Broke up larger estates * Land, together with the tools & livestock, were to be distributed to the peasants * 1918 Decree * Declared that the land, originally taken away from the kulaks, now officially belonged to the state * Peasants had the right to cultivate it * The next step the Bolsheviks took was to collectivize the land, but this failed in the end IV. Industry xii. Commanding Heights nationalized Met with great resistance, causing supporters to revolt * Jun 1918: all large-scale industry was nationalized without compensation * End 1918: all enterprises employing more than 10 workers were nationalized * Local soviets later extended this to all enterprises in their area V. Labour/ Workers xiii. Rationing * Those not producing their own food were allotted rations according to their usefulness * Workers & soldiers got the most, since they contributed the most to the Russian society * Professionals got significantly lesser rations than the workers * Class enemies got nothing Incurred the wrath of many people, as many found it discriminating & unfair * Workers were made to work in return for their ration cards – no work, no rations * Strikes were made illegal, hence people could only suffer in silence and could not complain * Eventually, people bartered their possessions in the black market in a desperate bid to gain more food and essentials xiv. Labour Conscription (1920) * Many workers had fled/ returned to the countryside to look for food after being convinced that the city had nothing more to provide for them * Hence, the Bolsheviks needed to bring them back to work in the factories, since a lack of manpower meant a sharp decline in production, and this in turn entailed a turbulent period for the state * Thus, they resorted to conscription * All unions were state-controlled Ensured no strikes took place, since strikes meant production also stalled * Membership was compulsory as Russia needed to increase production * Workers had to volunteer an extra day of unpaid work for the sake of building Socialism xv. Wage incentives * Payments would gradually increase for every year that person worked VI. Trade xvi. No private trade was allowed * Black market thrived during the Civil War xvii. Bolsheviks made a rather beneficial move by abolishing the monetary system as they had known that during the war their currency would depreciate because of the uncertainty VII. Failures of Collectivization xviii.

Widespread resistance to collective & soviet farms * Significant as 80% of the population was still living in the countryside, generating more than 50% of the national income * Resistance thus served as a warning to the government that if they did not do anything to improve the situation soon, the Russian economy would almost certainly collapse * Peasants, seeing no point in working hard to produce food which was taken away from them without compensation, simply produced enough for their own needs xix. Depopulation of cities/ Food shortages * Workers were leaving in droves to the countryside to look for food and other prospects * Industry came to a standstill * Some attempted to buy and/or beg for food, but most failed to even make ends meet * Thus in Aug 1920, Moscow lost ? f its population, while Petrograd nearly 2/3 in the same period * Those who stayed in the cities had little, if any, food to survive on * As a result, in 1921 7 million in the cities starved to death * Significance: Bolsheviks lost their main source of supporters – the workers xx. Workers’ Strike * In January 1921 the already-meager bread rations to large population centres were once again cut by 1/3 * The workers of 64 large factories in Petrograd could withstand the suffering no longer, and went on strike * Demanded larger food rations * Wanted the restoration of the Workers’ Council & trade unions as their representatives * Soon became disillusioned with the Bolsheviks, and many thought the trade unions would be able to do a better job in looking after them xxi. Peasant Uprisings Russia was hit by plenty of natural disasters during the period of Civil War, such as droughts, dust, locusts, destroying much of the peasants’ crops and their main source of food * With the introduction of war communism, this took away everything from them, even grain seed * Culminated in large-scale peasant uprisings from 1920-1921 * E. g. In Feb 1921 there were 118 major peasant uprisings in various parts of the country xxii. Sailors’ Mutiny * Sailors at the Kronstadt naval base near Petrograd mutinied * Demanded an end to the Communist Party dictatorship * Wanted freedom of speech & fresh elections Suppressed only through prompt action by Trotsky, who sent troops across the ice on the frozen sea * They had been significant Bolshevik supporters, rooting for them from the very beginning * Thus their rebellion was a serious warning to the government * As a

Carrier Intelligence Report Deutsche Post DHL March 2013 Table of contents Key financial figures Key stakeholder figures Macro environment Market & consumers 3 4 5 6 Corporate & media Governance & strategy Quarterly performance Corporate performance Business units 7 8 9 10 11 “Thanks to our presence in the world’s growth markets, the DHL divisions performed particularly dynamically in financial year 2012 and played a key role in increasing our consolidated revenue” Dr.

Frank Appel, CEO Operations Human resources Corporate responsibility Acquisitions & divestments Product launches 12 13 14 15 16 Key press releases Outlook & targets 17 19 Key financial figures Express division boosts revenue by 9. 5% in 2012 Income Statement Total revenue EBIT margin Net profit margin Staff costs to revenue ratio Balance Sheet Total non-current assets Total current assets Total quity Total non-current liabilities Total current liabilities Current ratio Return on capital employed Gearing ratio Cash flow Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net increase/(decrease) in cash and cash equivalents Revenue by division Mail Parcels & Express Logistics & Freight EBIT by division Mail Parcels & Express Logistics & Freight 2010 53,605. 0 3. 4% 4. 9% 31. 0% 2011 54,879. 0 4. 4% 2. 3% 30. 5% 2012 57,680. 0 4. 6% 3. 1% 30. 8% Change 5. 1% 0. 2 0. 9 0. 3 LCU, m % % % LCU, m LCU, m LCU, m LCU, m LCU, m % % 24,493. 13,270. 0 10,696. 0 13,844. 0 13,223. 0 1. 00 7. 5% 56. 4% 21,225. 0 17,183. 0 11,199. 0 8,587. 0 18,622. 0 0. 92 12. 3% 43. 4% 21,832. 0 12,289. 0 12,164. 0 9,332. 0 12,625. 0 0. 97 12. 4% 43. 4% 2. 9% -28. 5% 8. 6% 8. 7% -32. 2% 0. 05 – LCU, m LCU, m LCU, m LCU, m 1,927. 0 8. 0 (1,651. 0) 284. 0 2,371. 0 (1,129. 0) (1,547. 0) (305. 0) (203. 0) (1,697. 0) 1,199. 0 (701. 0) – LCU, m LCU, m LCU, m 13,822. 0 10,788. 0 26,707. 0 13,877. 0 11,309. 0 27,578. 0 13,874. 0 12,378. 0 29,209. 0 0. 0% 9. 5% 5. 9% IPC Statistical Database LCU, m LCU, m LCU, m 148,066. 0 88,384. 0 614. 0 147,434. 0 85,496. 0 802. 146,923. 0 84,623. 0 928. 0 – Source: Deutsche Post DHL annual reports 2010-2012, IPC analysis Note: Change represents year-on-year development from 2011 3 IPC Carrier Intelligence Report – Deutsche Post DHL Key stakeholder figures Share price up by almost 40% over 2012 Shares Share price, year-end Earnings per share Human resources Average full-time equivalents Average part-time employees Women in management Absenteeism rate EOS response rate Total employee satisfaction Employee engagement Customer index Business customer satisfaction Consumer satisfaction Sustainability Total CO2 emissions LCU LCU 010 12. 09 2. 10 2011 11. 88 0. 96 2012 16. 6 1. 37 Change 39. 7% – % % % 421,274 63,126 17. 0% 7. 4% 79. 0% 73. 0 67. 0 423,348 65,322 17. 6% 7. 4% 80. 0% 76. 0 n/a 428,287 62,523 18. 5% 7. 6% 80. 0% 76. 0 n/a 1. 2% -4. 3% 0. 9 0. 2 0. 0 0. 0 n/a n/a n/a 95. 0 n/a 96. 0 1. 0 t 28,400,000 28,200,000 n/a Retail network Wholly-owned retail outlets Contracted retail outlets Delivery performance Domestic letter quality performance (D+1) Domestic letter quality USO requirement (D+1) Domestic parcel quality performance Domestic parcel expected business-day delivery Domestic letter and parcel rates

Standard letter, 0-20g Standard letter, 20-50g Economy parcel, 2-3kg 2 19,998 2 19,998 n/a n/a % % % % 95. 4% 80% n/a n/a 95. 4% 80% n/a n/a n/a 80% n/a n/a 0. 0 € € € 0. 55 0. 90 6. 90 0. 55 0. 90 6. 90 0. 55 0. 90 6. 90 0. 0% 0. 0% 0. 0% Source: Deutsche Post DHL annual reports 2010-2012, IPC analysis Note: Change represents year-on-year development from 2011 4 IPC Carrier Intelligence Report – Deutsche Post DHL Germany: macro environment Low unemployment and higher wages will lift economy in 2013 Economics • • • • • • • % 4% 2% 0% -2% -4% -6% 07 08 09 10 11 Inflation 12 13 14 15 16 17 Trade Exports: €1,034,140. 5m (? 8. 0%) 1. France 9. 6% 2. United States 6. 9% 3. Netherlands 6. 4% 4. China 6. 1% 5. United Kingdom 6. 0% Machinery & transport equipment, chemicals and food, drink & tobacco Demographics • • • • • • • • • 10% 8% 6% 4% 2% 0% 07 08 09 10 11 12 13 14 15 16 17 Unemployment rate GDP, constant prices: €2,436,330m GDP, current prices: €2,570,080m GDP per capita: €29,729. 4 (? 3%) GDP per capita (PPP-adjusted): €25,756. 3 (? 0. %) GDP related to agriculture: 1% GDP related to industry: 26% (? 4 percentage points) GDP related to service: 73% (? 4 percentage points) 348,672 km2 81,770,000 inhabitants (? 0. 2%) 234. 5 inhabitants per km2 Median age: 44. 9 years (2nd) Corruption perception: 8. 0 (? 0. 1) 39. 9m households Broadband subscribers: 31. 6% Urban population: 73. 8% Employed population: 50. 2% Imports: €880,951. 0m (? 9. 7%) 1. Netherlands 12. 9% 2. France 7. 6% 3. China 7. 1% 4. Belgium 6. 2% 5. Italy 5. 4% Machinery & transport equipment, chemicals and mineral fuels & lubricants Real GDP growth

Economic outlook The German economy is expected to recover from a weak end to 2012 with growth from the first quarter of 2013. With exports projected to recover and retail sales experiencing a welcome recovery, estimated GDP growth ranges from 0. 6 to 1. 3% in 2013 (2014: 1. 5 to 2. 4%). Unemployment is currently at its lowest for two decades, with business facing a shortage of skilled labour. Pay increases of up to 6. 5% awarded in 2012 should bolster consumer sentiment through to 2014. The healthy outlook is expected to generate improved public finances, turning the federal budget deficit to surplus in 2013.

Source: The economist – Pocket World in Figures 2012 Edition, IMF, Bloomberg, ITC Trade Map, CIA World Factbook, ITU, Transparency International, IPC analysis Note: Brackets represent year-on-year development from 2010 or world ranking 5 IPC Carrier Intelligence Report – Deutsche Post DHL Germany: market & consumers Increasing number of consumers purchasing online Logistics market (bn T-km) Inland waterways 550 500 450 400 350 300 250 200 150 100 50 0 Financial services market (€bn) Road 9,000 -8% 8,000 7,000 6,000 -9% 5,000 4,000 3,000 2,000 1,000 0 Assets, all banks +11% Commentary Rail 2007 2008 2009 2010 2007 2008 009 2010 2011 According to the latest available figures, while German road freight grew by only 1. 8% in 2010 to 313bn Tonnekilometres (T-km), rail and waterways each expanded by around 12% to 107 and 62bn T-km respectively. Bank-owned assets increased by 11% over the fiveyear period to €8. 46tn. Household consumption grew by 1. 5% in 2011 after correcting for inflation, fuelling a German retail market which has remained steady despite the crisis in the Eurozone. The proportion of surveyed consumers purchasing online grew by 6 percentage points (p. p. ) in 2011 to 54%, and average growth since 2002 has been above 4 p. . Broadband penetration seems to be reaching a plateau, with an increase of half a p. p. in 2011. Consumption expenditure Private final consumption expenditure, growth 2. 0% Online purchasing habits Last online purchase in the last 3 months Last online purchase more than a year ago / never ordered 100% Digitisation Internet users Broadband subscribers 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1. 5% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1. 0% 0. 5% 0. 0% -0. 5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Eurostat, ITU, OECD, IPC analysis Note: T-km=Tonne-kilometres, representing the transport of one tonne of goods (including packaging and weight of transport units) over a distance of one kilometre. p. p. = percentage points 6 IPC Carrier Intelligence Report – Deutsche Post DHL Germany: corporates & media Newspaper ad market continues to decline but remains largest medium Forbes Global 2000 Media spend (€m) -4% Top 10 advertisers 1. Procter & Gamble Media-Saturn-Holding Ferrero Aldi Unilever L’Oreal Axel Springer Lidl Edeka 2010 2011 2012 +5% +27% 0% 2. 3. 4. 5,943 5,839 5,715 3,885 3,954 4,071 4,160

Top 5 by revenue 17 Volkswagen Group (Auto & Truck Manufacturers) 409 E. ON (Electric Utilities) 37 Daimler (Auto & Truck Manufacturers) 50 Allianz (Diversified Insurance) 50 Siemens (Conglomerates) 3,465 5. 6. 7. 8. 9. 3,488 3,461 Top 5 by profits 17 Volkswagen Group (Auto & Truck Manufacturers) 50 Siemens (Conglomerates) 74 BASF (Diversified Chemicals) 37 Daimler (Auto & Truck Manufacturers) 61 BMW Group (Auto & Truck Manufacturers) Top 5 by market value 50 Siemens (Conglomerates) 227 SAP (Software & Programming) 74 BASF (Diversified Chemicals) 17 Volkswagen Group (Auto & Truck Manufacturers) 37 Daimler (Auto & Truck Manufacturers) 4% +10% 692 706 719 +8% 766 797 827 3,067 3,473 75 79 Cinema 82 10. Volkswagen Group Magazines Internet TV Newspapers Radio Outdoor Media review & outlook All digital media will gain share as they become more and more important for advertisers. The growth in the smartphone market and the implementation of full-video ads in websites will lead to increased budgets. Magazines and newspapers in particular will have a different position in the future as a lot of information and entertainment is provided by internet sites.

Along with digital media, cinema, outdoor and TV helped to drive German ad market in 2012. Source: www. forbes. com/global2000, ZenithOptimedia Western Europe Market & Mediafact 2011, ZenithOptimedia Advertising Expenditure Forecasts December 2011, IPC analysis Note: Forbes Global 2000; numbers under top 5 represent global ranking 7 IPC Carrier Intelligence Report – Deutsche Post DHL Governance & strategy “The provider, investment and employer of choice in its market” www. dp-dhl. com Chairman of the Board Prof. Dr.

Wulf von Schimmelmann Chairman 2009Born 1947 Other board positions: • Accenture • Thomson Reuters Chief Executive Officer Dr. Frank Appel CEO 2008Born 1961 Ownership 25. 5% state owned KfW Bank 74. 5% freely floating Organisation Previous positions: • Managing Director, DP • Partner, McKinsey Corporate Centre Deutsche Post DHL Vision & strategy Vision • To remain The Post for Germany as well as The Logistics Company for the world Chairman of the Board of Management Dr. Frank Appel Finance, Global Business Services Lawrence Rosen Personnel Angela Titzrath

Strategy • Strong divisional focus: strategic priorities are individually set for the Mail, Express, Global Forwarding / Freight and Supply Chain divisions • Group-wide initiatives: the new commercial organisation ‘Customer Solutions & Innovation’ provides customers seeking solutions from across DHL divisions with easier access to services • Unified corporate culture: corporate responsibility initiatives under the motto of ‘Living Responsibility’ focus on protecting the environment, disaster management and championing education Divisions Deutsche Post DHL Mail Jurgen Gerdes Express Ken Allen

Global Forwarding, Freight Roger Crook Supply Chain Bruce Edwards Source: www. dp-dhl. com, Deutsche Post DHL annual report 2012 8 IPC Carrier Intelligence Report – Deutsche Post DHL Quarterly performance Q4 2012: Group revenue up 3% from Q4 2011; 7% increase for P Revenue and profitability +3% 15,000 14% 12% 10,000 5. 2% 5,000 4. 2% 4. 0% 10% 8% 4. 4% 4. 2% 6% 4% 2% 0 Q4 2011 Q1 2012 Q2 2012 EBIT margin Q3 2012 Q4 2012 0% Segment performance (€m) +3% +7% 8. 000 7. 000 6. 000 5. 000 4. 000 3. 000 2. 000 1. 000 0 Q4 2011 Mail Q1 2012 Parcels & Express Q2 2012 Logistics & Freight Q3 2012 Q4 2012 0%

Total revenue, €m Volume Total international addressed mail Unaddressed admail 6,000 5,000 4,000 3,000 2,000 1,000 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Addressed admail Priority or standard mail -4% Parcels and Express volume Parcels and Express 300 250 200 150 100 50 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 +7% Commentary Consolidated revenue rose €451m (3. 2%) yearon-year to reach €14,577m in Q4 2012. EBIT margin remained steady compared to Q4 2011 but dipped slightly on the previous quarter. The Parcels & Express division saw robust revenue growth, up 7% year-on-year.

The strong performance was attributable to a significant rise in volumes (see left). Logistics revenues also increased year-on-year, while Mail division revenue stabilised. Mail volumes were down 4% year-on-year, accelerated by divestments in the international mail segment (-19. 2%). Source: Deutsche Post-DHL annual and interim reports 2011-12, IPC analysis 9 IPC Carrier Intelligence Report – Deutsche Post DHL Corporate performance Higher revenues with continued increase in EBIT margin in 2012 Revenue and profitability 60,000 50,000 40,000 30,000 20,000 10,000 0 2008 Total revenue 2009 EBIT margin 2010 Net profit margin 2011 2012 -1. % -2. 2% 0. 5% 4. 9% 3. 4% 0. 5% 2. 3% 4. 4% 3. 1% -16% +11% +2% +5% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Cash flow 203 4. 6% 1,697 1,199 3,123 Beginning of period Cash flow Operating activities Investing activities Financing activities Segment information 2012 (2008) 2% (2%) 23% (25%) Share price development 2012 (2008) 20. 0 Commentary Consolidated revenue increased by 5. 1% to €55,512m in financial year 2012, with positive currency effects accounting for around two-thirds of this increase. The proportion of consolidated revenue generated abroad grew to 69. 7%,. Changes in the portfolio reduced revenue by €216m.

At €2,665m, EBIT was 9. 4% up on the prior-year figure. Compared to 2008, Logistics and freight divisions have grown relative to other units and now generate 53% of consolidated revenue (Mail: 23%). In 2012 the Group’s share price outperformed the DAX for the second year running. 30% (31%) 15. 0 53% (50%) 22% (25%) 70% (69%) 10. 0 15,000 10,000 5,000 5. 0 Mail Parcels & express Logistics & freight Postal retail Domestic revenue International revenue 0. 0 1/1/01 1/1/03 1/3/05 1/2/07 1/2/09 1/3/11 0 1/1/13 Share price, € Traded volume Source: Deutsche Post DHL annual reports 2008-2012, IPC analysis 0 IPC Carrier Intelligence Report – Deutsche Post DHL Business units Improved profitability for P and Logistics & freight Mail “Deutsche Post DHL is Europe’s largest postal company. It offers all types of products and services to both private and business customers, physical, hybrid and electronic letters and merchandise to special services such as cash on delivery and registered mail” Mail division Revenue in 2012 was on par with 2011, reaching €13,972m despite three fewer working days, which however had a noticeably negative impact on transactional mail.

Strong results in the Parcel Germany unit (+9. 4%) balanced declines in transactional and addressed advertising mail. EBIT reached €1,051m, 5. 1 % below the prior-year figure, and was reduced by €151m as a result of an additional VAT payment demanded by the German tax authorities. Overall market share declined from 63. 7% to 62. 7%. Revenue, €m 15,000 EBIT margin -3% 20% 15% 10% 5,000 5% 0% 2008 2009 2010 2011 2012 Parcels & express “In the Express division, Deutsche Post DHL transport urgent documents and goods reliably and on time from door to door.

The network ps more than 220 countries and territories, in which some 100,000 employees provide services for more than 2. 6m customers” Express division Excluding currency effects and the impact of a certain divestments in 2011, revenue increased by 6. 8% to €12,378m in 2012, a result still below precrisis levels. EBIT for the Express division however rose to a new high, reaching €1,108m (a margin of 8. 7%). The result was driven by revenue growth in all regions as well as one-time effects connected to restructuring provisions in the United States.

Business trend was particularly dynamic in the Americas region, with revenue up by 20. 6% to €2,276m in 2012. Revenue, €m 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 2011 2012 EBIT margin -6% 20% 15% 10% 5% 0% -5% -10% -15% -20% Logistics & freight “With a wide range of coverage and comprehensive offering for transporting freight by air, sea or land, DHL is one of the leading global freight and logistics companies. The Supply Chain business provide contract logistics solutions along the entire supply chain” Global forwarding/freight division Revenue grew by 3. % including positive currency effects of €507m. EBIT in the division improved due to high gross profit margins and constantly increasing efficiency. Supply chain division Increased EBIT was driven by improved contract portfolio management and cost efficiencies, compensating for margin pressure and costs associated with new customers. DHL is the leader in a fragmented market with a share of 7. 8%. Revenue, €m 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 -5% 10% 5% 0% EBIT margin +8% 15% 10,000 0 Source: Deutsche Post DHL annual reports 2008-2012, IPC analysis 1 IPC Carrier Intelligence Report – Deutsche Post DHL Operations Year-on-year increase in P volume of almost 10% Mail volume International addressed mail Unaddressed admail 30. 000 25. 000 -12% 20. 000 15. 000 10. 000 5. 000 0 2008 2009 2010 2011 2012 -7% Addressed admail Transactional mail Parcels & express volume +24% Commentary Transactional mail volumes fell by 3. 0% year-on-year with private customer volumes declining much more than business customer volumes. In the Dialogue Marketing business unit, total sales volumes declined slightly over the course of the year.

Unaddressed advertising mail was up year-on-year, whilst addressed advertising mail declined. Divestment of a bulk mail business in the Netherlands and domestic business in the UK resulted in a large drop in international mail volumes. The flourishing e-commerce business is the primary reason for this consistently strong growth in parcel volumes, up 9. 8% in 2012. By year-end, 42,8129 FTEs were employed in more than 220 countries and territories, 1. 1 % more than in 2011. The retail network was fully contracted and stable in 2011. 1. 000 900 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 Employees

Average full-time equivalents -4% Employees per business unit 2012 (2008) 3% (3%) 0% +1% 34% (32%) 43% (40%) Retail network Wholly-owned retail outlets Contracted retail outlets +48% 20. 000 +1% 15. 000 0% 500. 000 400. 000 300. 000 -4% 10. 000 200. 000 100. 000 0 2008 2009 2010 2011 2012 Mail Parcels & Express 20% (25%) Logistics & Freight Corporate 5. 000 0 2008 2009 2010 2011 Source: Deutsche Post DHL annual reports 2008-2012, IPC analysis 12 IPC Carrier Intelligence Report – Deutsche Post DHL Human resources Significant increase in women in management since 2008 Part-time employees Average part-time employees

Gender 2011 (2008) 2012 (2008) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2008 2009 2010 2011 -13% 18,5% (13. 5%) 36,7% (37. 7%) 63,3% (62. 3%) 81,5% (86. 5%) 2012 Women in total workforce Men in total workforce Women in management Men in management Absenteeism & staff turnover Staff turnover 2008 Absenteeism rate Satisfaction & engagement Employee satisfaction Commentary While the number of part-time employees employed by Deutsche-Post DHL has fallen by 13% since 2008, the proportion of women in the Group’s workforce dropped slightly over 2008-11 (the most recent data available).

In terms of management, the company has seen an increase of five p. p. over the period, reaching 18. 5% in 2012. The company is committed to filling 25-30% of vacant management positions with women. Staff turnover fell significantly over 2009-11. Absenteeism continued to increase in 2012, reaching 7. 6%. Employee satisfaction has remained constant over the last three years. 2010 2009 2010 2011 2011 2012 2012 0% 2% 4% 6% 8% 10% 12% 14% 0 10 20 30 40 50 60 70 80 90 100 Source: Deutsche Post DHL annual reports 2008-2012, Deutsche Post DHL corporate social responsibility reports 2010-2011, IPC analysis 3 IPC Carrier Intelligence Report – Deutsche Post DHL Corporate responsibility Significant increase in the number of trainees hired Environmental responsibility “The primary focus of our environmental protection program GoGreen is to minimise our business operations’ greatest impact on the environment – CO2 emissions. We are also working to limit impacts where our business activities affect the environment in other ways” By the year 2020, the Group intends to improve the CO2 efficiency of own operations (Scope 1 & 2) and those of subcontractors (Scope 3) by 30% compared with 2007.

In 2012, Scope 1 & 2 CO2 emissions were approximately 5. 4m tonnes (previous year: 5. 3m). Direct CO2 emissions rose slightly mainly due to the increased demand for air transport. Scope 3 emissions data for 2012 will be available upon the release of the CSR report in April 2013. CO2 emissions (t) CO2 emissions, scope 1&2 6,000,000 +31% 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2010 2011 2012 +6% +2%

Financial responsibility “We aim to strike a balance between our economic goals and society’s requirements by putting our experience and global presence to good use to help people and the environment” Net asset base (operating assets-operating liabilities) increased by €1,122m to €15,478m in 2012 due, in part, to the Group’s investments in software and IT systems and the purchase of freight aircraft as well as replacement and expansion investments in warehouses, sorting systems and vehicle fleet. A 42. 2% increase in net working capital was mainly attributable to the decline in liabilities and other items. Revenue per employee grew by 4% YOY.

Employee value creation Revenue per employee +15% 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2008 2009 2010 2011 2012 -12% +2% +4% Social responsibility “Bundled under the motto “Living Responsibility”, our efforts focus on three areas: environmental protection (GoGreen), disaster management (GoHelp) and championing education (GoTeach)” Deutsche Post DHL aims to actively promote the diversity of its workforce and attract a wide range of applicants. Measures to improve work-life balance available to employees in Germany include support services such as back-up childcare facilities for last-minute and emergency childcare.

In 2011 more than 75% of trainees were offered continued employment. The number of trainees has increased by 31% since 2008. Trainee headcount Trainees 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Source: Deutsche Post DHL annual reports 2008-2012, Deutsche Post DHL corporate social responsibility reports 2010-2011, IPC analysis 14 IPC Carrier Intelligence Report – Deutsche Post DHL Acquisitions & divestments 2009- Acquisitions Year 2012 Company LuftfrachtsicherheitService GmbH Exel Saudia LLC All you need GmbH 2SFG Tag Belgium SA CC DE Sector Logistics Divestments

Year 2012 Company Deutsche Postbank Group (remaining shares) DHL Express Canada Exel Transportation Services Inc. Exel Transportation Services Inc. Innogistics LLC Exel Delamode Logistics SRL Fulfilment Plus GmbH 4C Associates Ltd. DHL Container Logistics UK Ltd. Global Mail Services SAS Deutsche Postbank Group CC DE Sector Regional Focus: Acquisitions 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Region 4 3 3 3 Bank Germany US Rest of world 2012 2012 2012 2012 SA DE UK BE Logistics 2011 Mail Logistics Logistics 2011 CA Logistics CA Parcels Europe Business focus: Acquisitions US Logistics 1 2 3 4 5 6 7 8 9 10 11 12 13 2011 2012 2011 2011 2011 intelliAd Media GmbH Adcloud GmbH Eurodifarm srl. Standard Forwarding llc Tag EquityCo Limited LifeConEx llc Post Logistics Australasia Polar Air Cargo Worldwide, Inc. DE DE IT US Information Information Logistics Logistics 2010 2010 US RO Logistics Logistics Area 1 10 2 Mail Information Financial services Other 2010 2009 2009 DE UK UK Warehouse Consulting Parcels & Express Logistics 2011 KY Logistics Effect on cash flow (€m) Shipping 100 2011 2011 US AU Logistics Logistics 2009 FR Mail 50 0 -50 -100 2010 Acquisitions 2011 Divestments 2012 009 US Logistics 2009 DE Bank Source: Deutsche Post DHL annual reports 2009-2012, IPC analysis Note: CC (country code) 15 IPC Carrier Intelligence Report – Deutsche Post DHL Product launches Innovations in parcels, freight forwarding and e-document management DHL Easy Return Product category Parcel return Description DHL Easy Return is a new parcel product introduced in September 2012 by DHL Global Mail, the DHL unit responsible for international mail and B2C parcels. Features includes software to create return labels via a web portal and Track & Trace functionalities.

Retailers can now manage return volumes from almost all EU countries via a standardized process. Target group Retailers Read more Door-to-more Product category Freight forwarding Description In June 2012, DHL Global Forwarding, Freight, the air and sea freight specialist within Deutsche Post DHL, launched an intercontinental door-to-door distribution service from Asia-Pacific to Europe. Door-ToMore combines DHL’s intercontinental air freight transportation capabilities with its European ground distribution network. Target group Suppliers Read more DHL Packstation mTAN

Product category Parcel collection / security Description DHL Paket Deutschland introduced the mobile Transaction Number (mTAN) In October 2012 at all of its 2,500 parcel machines across Germany. The mTAN will allow users to pick up their items using a temporary code sent directly to their mobile, replacing the existing PIN code. Target group Parcel customers Read more DocWallet Product category E-document management Description Tablets and smartphones have become a fixture of modern life, being used more and more by people in their jobs. But until now, integrating mobile devices into a company’s IT system has posed a security challenge.

The DocWallet app is Deutsche Post’s solution to this problem. Target group Business users Read more Source: www. dp-dhl. com Note: Where no English language webpage exists, hyperlinks above link to external translation. 16 IPC Carrier Intelligence Report – Deutsche Post DHL Key press releases 2012- 2013 Quarter 2 • Manages vending machines in Switzerland Quarter 1 • Improves flexibility for road freight services through mobile solution • GoGreen carbon neutral feature added to DHL Express Envelope shipping option • Improves carbon footprint with new multimodal service 012 Quarter 4 • Deutsche Post and ADAC reviewing possible entry into German long-distance bus market • DocWallet – The secure documents manager for the iPad • First mechanized delivery site now running • Issues three bonds worth a total of EUR 2. 0 billion • Current level of globalisation still lower than precrisis peak • Switches to Fitch Ratings • Simplified authorization and more security for DHL Packstation

Quarter 3 • Razorfish to develop digital strategy • Postal rates for 2013 approved • Opens Energy Center in Houston, Texas • Express unit announces annual general price increase for 2013 • Launches European return service for online retailers • Proposes rate increase for letters for 2013 • DHL now delivering parcels to customer’s outlet of choice in Germany • 400 million euros invested in letter mail network • DHL marks the start of a unique City Logistics project in China • Acquires online marketing specialist intelliAd • Launches MyDHL to enhance customer experience • DHL Vision Suite opened up at DHL Innovation Center • Completes Postbank transaction • Angela Titzrath to become Deutsche Post DHL’s Board Member for Personnel • State aid ruling of European Commission will not affect net profit Source: www. dp-dhl. com 17 IPC Carrier Intelligence Report – Deutsche Post DHL Key press releases 20112011 Quarter 4 • Pay online with giropay – now available at DHL Checkout • EU Commission praises SEPA migration in Germany • Appoints new COO for DHL Global Forwarding • Appoints new CEO for DHL Freight • International award for Sustainability Report • Cooperation with IBM on E-Postbrief • Appoints new CCO for DHL 012 Quarter 2 • Introduces new recall solution for the automotive industry • Introduces new multi-modal solution from Asia to Europe • German financial authorities decide on VAT payment • Federal government demand for repayment of state aid set at EUR298 million • European letter price survey for 2012: Standard letter in Germany still inexpensive compared to 29 other countries • Corporate Responsibility Report 2011: improves CO2 efficiency index by two index points Quarter 1 • DHL Vision Suite opened up at DHL Innovation Center • Completes Postbank transaction • Angela Titzrath to become Deutsche Post DHL’s Board Member for Personnel • State aid ruling of European Commission will not affect net profit Quarter 2 • DHL expands service for the pharmaceutical sector • European letter price survey for 2011 • Roger Crook follows Hermann Ude as Board Member for DHL Global Forwarding, Freight • DHL wins EUR 10. 6 million deal with KPMG and expands Singapore Aerospace Hub Quarter 1 • European Enterprise Award for Deutsche Post DHL • DHL Express with quality certification for all European and U. S. facilities • Dedication to global data protection is a success

Quarter 3 • DHL acquires 100 per cent ownership of LifeConEx • Extends board member mandate of CFO Rosen for another five years • E-Postbrief to become part of Europe’s largest corporate network • Williams Lea acquires the world’s largest independent marketing execution and production agency, Tag • DHL provides CO2-neutral transport for all private customer parcels throughout Germany Source: www. dp-dhl. com 18 IPC Carrier Intelligence Report – Deutsche Post DHL Outlook & targets 2012- Outlook Strategic targets Deutsche Post DHL expects consolidated EBIT to reach between €2. 72. 95bn in financial year 2013, assuming the world economy and trade grows by approximately 3% and the economy picks up momentum as the year progresses The mail division is expected to contribute between €1. 1-1. 2bn to consolidated EBIT. Compared with the previous year, an additional improvement in overall earnings to between €2-2. 15bn in the DHL divisions is forecast

Under the direction of new Board Member for Human Resources, Angela Titzrath, the Group will aim to develop a global HR management system under the “One HR” programme The Group aims to maintain and improve its presence and growth potential in the emerging Economies of Brazil, Russia, India, China and Mexico (BRIC + M). The Group’s Board of Management receives regular updates on business performance in these countries In 2013 the Group plans to invest a maximum of €1. 8bn. In the coming years, the figure is expected to fall back to a normal level. The focus will continue to be on IT, machinery, transport equipment and aircraft. Crossdivisional capital expenditure is expected to decrease slightly in 2013.

Investments will again be centred on our vehicle fleet and IT Finance: Group strategy calls for paying out 40 to 60% of net profits as dividends as a general rule. At the AGM on 29 May 2013, a €0. 70 dividend per share proposal for financial year 2012 will be put to shareholders On 6 September 2012, KfW sold 60 million Deutsche Post shares. This was the first placement since 2006 and it reduced KfW’s stake to 25. 5%; free float increased to 74. 5% The German Federal Network Agency approved Deutsche Post’s request for an adjustment in postage rates for 2013. The price for a standard domestic letter weighing up to 20g rose from €0. 55 to €0. 58 on 1 January 2013 Source: www. dp-dhl. com, Deutsche Post DHL annual report 2012 19 IPC Carrier Intelligence Report – Deutsche Post DHL

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Extreme Nationalism. Objective The objective of my essay is to let you know what were the main causes of World War 2, focusing in extreme nationalism and letting you know my opinion about it. Introduction The Second World War was a global conflict that resulted in more deaths than any other war. It started in 1939 and concluded in 1945. A lot of World Nations were involved including the Great Powers. There are several causes that led to the Second World War; here I mention the main ones: * A worldwide depression. derived from the Great Depression, the world was suffering of extreme inflation, high prices and very low wages. People suffered despair and had no hope for the future and unemployment was very high. * Problems left from The First World War. – The German people were very unhappy about the treaty and thought that it was too sever to them. Germany could not afford to pay the money and during the 1920s the people in Germany were very poor because there were not many jobs and the price of food and basic goods was high.

People were dissatisfied with the government and voted to power a man, Adolf Hitler, who promised to rip up the Treaty of Versailles. * The rise of Dictators. – Nations like Germany, Italy, and Japan came under the rule of dictators or military leaders. A dictator named Mussolini took power in Italy in 1922. Military leaders took control of Japan in the early 1930s. In Germany, Adolf Hitler, leader of the Nazi Party, gained power in 1933. These leaders promised to restore their countries. Hitler began to arm Germany for war. Japan invaded China.

Mussolini sent Italian troops to conquer Ethiopia, in Africa. And the League of Nations failed or did nothing to stop them. * Ideologies. – Some ideologies doctrines and philosophies like totalitariansm, fascism, imperialism, militarism, racism and extreme nationalism affected too. The one I’m focusing is: extreme nationalism. Extreme Nationalism. Many countries were left out of the Treaty of Versailles or didn’t receive a large enough piece of the Treaty pie. This led to self interest within countries to prove their power and ability to rules as top leaders.

One of the most common examples was The German Workers party, more commonly known as the Nazis. They grew and expanded from one single catalytic seed into a blooming party. Nationalism was in the minds of Germans after the end World War 1, budding and taking nutriment from the steely resentment that covered German opinions. It was from the common ground of extreme nationalism that the Nazis were able to build their empire. The party started out as the Free Committee for a German Workers’ Peace in 1918.

The party was built under opposition of the Treaty of Versailles, anti-Semitic, anti-Monarchist, anti-Marxist opinions and the solid belief that German nationalists were a superior race. It demanded that people should be absolutely loyal to the nation and support its foreign expansion. It emphasized national glory. It was from the basis of extreme nationalism that the Nazis were able to be a factor in the causes of WWII. Nationalism is defined as: 1. Devotion to the interests or culture of one’s nation. 2.

The belief that from acting independently rather than collectively, emphasizing national rather than international goals. 3. Aspirations for national independence in a country under foreign domination. Personal Opinion. About nationalism I think everywhere you look; you can find tiny hints of nationalism somewhere. Personally I think that nationalism is opinionated. And in my opinion I think that nationalism can create false enemies and starts riots in many areas of the world. A negative effect to me, are people who take nationalism to the extreme.

Some of these extremists protest against churches of different religions just because of their beliefs. For example, Hitler singled out every Jew just because they weren’t Christian. Some neo-Nazi groups today believe in “white power. ” They protest against all the time, and it disrupts the peace in some places and creates large disputes in many areas. Aide Thamara Mendoza 50L Another extreme effect of nationalism, are the people who literally kill just because of what they believe in. For example, Iraqi nationals yelled “ALLAH!!! right before they set off a suicide bomb on American soldier. Also, some even sneak onto planes with bombs and timers strapped to their chests knowing that they’re killing many people for their beliefs. I think that their theory is bizarre and unnecessary. These methods create large confrontation between countries, which is obviously bad. I mean, I find nothing wrong in having a slight nationalistic feeling that doesn’t hurt anyone just because your lack of tolerance doesn’t let you assimilate that they are different than you and there’s nothing wrong with it.

After World War One German had to confront serious jobs. such as the Treaty of Versailles. disfavor of the weak and unpopular Weimar Government. serious economic jobs of rising prices and unemployment in the early 1920s and once more after 1929 and the Great Depression. Furthermore. fright and concern about the rise of communism with work stoppages and rebellions. Hitler used powerful persuasion techniques such as propaganda and in other circumstance aggression and force to extinguish his oppositions. therefore helping him to go a totalitarian dictator. This essay will discus the Treaty of Versailles. disfavor of the authorities and economic jobs and besides fright of communism and the techniques Hitler used to derive power. Basically. why the Germans were so angry about the pact of Versailles. A pact is an understanding which sorts out penalties. land boundaries and could be designed to forestall future war. After the First World War. a pact had to be made to penalize Germany. This had to be done as Germany had lost the war and had signed the Armistice on 11th November 1918 by the new German authorities.

The Paris peace conference foremost met in January 1919. It was its occupation to compose the pact of Versailles. At this peace. conference there was a representative from America. France and Great Britain. Germany was non allowed to house a representative as the Allies knew that they were traveling to penalize Germany. so there was no point holding a representative merely so they can reason their instance. President Woodrow Wilson represented America and he wanted the Treaty of Versailles to be based on his fourteen-point program. This did non take to penalize Germany but aimed to forestall future war. He did non desire to penalize Germany as merely 116. 000 American soldiers died. This is as they merely entered the war in the last twelvemonth. Besides their land was non damaged as conflicts were fought in Europe. The war attempt besides did non be them much financially. This once more was because America had entered the war in the last twelvemonth. Their president Georges Clemenceau represented France and he wanted to penalize Germany as much of their land was damaged as many conflicts were fought at that place.

In add-on. 1. 500. 000 Gallic soldiers died. Great Britain were represented by their Prime curate Lloyd George. He wanted to penalize Germany as 1. 000. 000 British soldiers had died and the war attempt had cost Britain a batch financially. The pact of Versailles was signed on 28th June 1919. Germany had no pick but to subscribe. This was as if they did non subscribe it would ensue in war. which Germany could non afford to make. America did non give their formal consent to the pact and subsequently signed a separate pact with Germany ( pact of Berlin on July 2nd 1921 ) . The Germans were so angry about the pact of Versailles. because they thought that as the war was lost they would be punished and be in peace. This nevertheless did non go on. Germany was at peace with other states but it was a dictate ( determined peace ) . This meant that the Alliess were still in control of the state of affairs. This would oppress German pride. This is as it gives the feeling that they are under control by another state.

They might every bit good be portion of person else’s imperium. Again. the fact of authorities propaganda comes up. The populace likely thought that they could be ordering the peace alternatively of being under control. Another specific country. in which Germany was punished by the pact of Versailles. was their military loss. Germany was punished in footings of fring out militarily a batch. This essay will merely pick out two points to assist associate to the sum of penalty. First. the German ground forces was restricted to merely a 100 1000 soldiers. In add-on. Germany was non allowed to hold an air force. Both these points meant that Germany were really vulnerable to assail. This helped the Alliess. as they knew that Germany would non be able to establish a successful onslaught on a state. Besides they knew that they could easy assail Germany if they needed to. Another pieces of grounds proposing a dictate. Besides holding a little ground forces dented Germany’s pride. We know that Germany like to hold a large ground forces as one of the major long term causes of the first universe war was the weaponries race between Britain and Germany. There would besides be a batch more unemployment in Germany. This meant fewer taxpayers. which would non lend to the reparations that Germany had to pay.

The authorities may besides hold to raise the revenue enhancements doing the authorities less popular with the people. Another specific country in which Germany lost out is territorially. Germany lost many topographic points to other states due to the footings and conditions laid out by the pact of Versailles. Firstly. Germany lost 13 % of its overall land to other states. This would do a job and do the Germans unhappy. as they would be less powerful. In add-on. Germany lost a batch of their industry. This is every bit many of their most productive countries of excavation were taken off. for illustration the Saar coalfields. Wholly. Germany lost 16 % of their entire industry. One of the countries lost was Alsace – Lorraine that was home to many German people. Not all of this would assist Germany financially or in footings of the military. They would free out financially as they would free their income from the industrial parts lost. Besides they would lose the revenue enhancements that would hold been paid by citizen life in other states which belonged to Germany. They would free out in footings of the military. as they could non trust on citizens from other states to contend for them. Wholly. Germany lost 6 million people. Another facet of penalty that was laid out by the pact of Versailles was that Germany had to pay reparations.

The figure was set at around 100. 000. 000. 000 Markss. With all the losingss Germany had suffered people began to inquire the inquiry if Germany could afford. The people would be unhappy through high revenue enhancements. Germany had lost many of their industrial states and there was high unemployment. This did non assist Germany financially. There were no revenue enhancements from other states so Germany was worse off. The German would experience peculiarly humiliated and angry through this point as they felt that they alone were non responsible for all the costs of the war attempt. In add-on. they would be under changeless humiliation. as they would ever experience. as they owe something. They besides would non hold a opportunity for their economic system to turn. as they couldn’t invest. This would dent their pride as they would non be known as a powerful state. Germany was really severely affected by the depression and since 1929 ; unemployment had been on the rise. By January 1933 the unemployment figure in Germany had risen to 6. 100. 000. bing concerns were making really severely and homelessness and poorness had become really common amongst immature people. Taxs were raised and unemployment benefits were cut.

The government’s failure to cover with the depression left the Nazis with a really defeated state. particularly the business communities. workers. immature people and husbandmans ( who had been making severely since 1925. ) The economic crisis allowed Hitler and the Nazis to come in Germany’s political scene. which is what they had antecedently been seeking to make. If it hadn’t have been for this awful economic crisis so Germany would likely still have been making moderately good under Gustav Stresemann’s leading and the Germans would hold had no demand to re-consider re-electing Stresemann. The Depression helped the Nazis addition much needed support because it meant that Weimar authorities was making severely. The outlook of Germany were no longer being met by the authorities. which meant that the Germans had to re-consider who they were traveling to vote for at the following election. This means that the two grounds ( The Depression and Weimar ) are linked closely. because it was Weimar’s failure to cover with the depression that allowed the Nazis to prehend their chance and set their new. more peaceable and caring attack into action. In November 1917. the world’s first communist authorities set up in Russia USSR. Many socialist and Communist in German supported the thought of Communism distributing to German.

In November 1918. Germany was dislocated and discontent. In add-on. Communists sparticists began an extreme and violent effort to subvert the new Weimar authorities. Soldiers and crewmans were in rebellion. Finally. in January 1919. exsoldiers ( the free Corps ) violently put down the communism rebellion and the sparticist leaders were murdered. In March 1919. more public violences occurred and work stoppages by Communists in Berlin began. In early 1919. the socialist leader Kurt Eisher was shot by a right wing extremist in Bavaria and it seemed to German people that they were earnestly threatened by Communist violent. Communism became more utmost and set up a Soviet manner democracy. In maintaining with Communist philosophy. they took money and belongings from rich people and redistributed them to the workers. After the Red Communist Army was set up. the Weimar authorities sent in the free Corps military personnels to beleaguer Munich. Six hundred Communists and protagonists were killed. Communist workers started work stoppage and they set up a Communist ground forces of 50 50. 000 members. Again. the free Corps moved in and killed 2000 workers.

Therefore. there was tonss of grounds that shows that Communism was a violent and existent menace in German. Besides many people feared and resented Communism and wanted a strong party or leader to stand up to the Communist and extinguish Communism in German. Propaganda was an of import tool used by both Germany and Russia. Hitler appointed a adult male by the name of Joseph Goebbles to head the Ministry of Public Enlightenment in Germany. This adult male used newspapers. magazines. and wireless to distribute Nazism. Even if a adult male bathed in ideas of discontent at place. he was bombarded with propaganda in public. and at the workplace. Banners hung from edifice. postings on about every mark or lamppost.

Anyone with a leery expression on his or her face was foremost detained. and the sent to a prison cantonment. It was no longer merely desirable to be a Nazi sing the benefits like authorities contracts or being able to stand foremost in line. but necessary for employment. Russia employed much the same tactics with much more accent on fright. The signifier of propaganda that Hitler used. and was successful in utilizing. was his words. Hitler made many addresss. but the most celebrated address. was his concluding address at his test for lese majesty. In this address he gave his positions and sentiments on the events predating the test.

This is an extract from his address: “…I aimed from the first to… . go the destroyer of Marxism… . The ground forces that we are constructing grows more from twenty-four hours to twenty-four hours. from hr to hr. Gentlemen. non you who will be the 1s that deliver the finding of fact over us. but that finding of fact will be given by the ageless judgement of history. which will talk out against the accusal that has been made against us… . That tribunal will judge us… . as Germans ( who ) wanted merely the best for their people and their Fatherland. who fought and were willing to decease. You might merely every bit good happen us guilty a 1000 times. but the goddess of the ageless tribunal of history will smile and rupture up the gestures of the provinces lawyer and the judgement of this tribunal: for she finds us non guilty” .

After Hitler gave this address. the tribunal was sympathetic towards him. he was sentenced to merely five old ages in prison for his offense. After nine months of his sentence had been served. he received word. Bing able to derive Nazi party control and addition adequate protagonists. proves that he was an efficient user of propaganda. Hitler besides had his ain curate of propaganda when he became leader of the state. This proves that Hitler was a user of propaganda. In decision. due to the grounds shown. such as the great depression. disfavor of the weak Weimar authorities. economic jobs. fright and work stoppages of the communism and successful techniques that Hitler used to derive their people support. We can see that Hitler became a powerful totalitarian dictator Sue to his development of jobs faced by Germany and her people.

Compare/Contrast Essay Ever since the dawn of mankind there have been wars. WWI and WWI were two of the most lethal and devastating wars in our history. In both wars, the Allied Powers defeated Germany in hopes of terminating German expansion and dominance. Although somewhat similar, WWI and WWII were drastically different from each other. WWI was caused by an issue between countries for control of colonies, territories and resources. WWII began due to nationalistic tensions and unresolved issues from WWI.

The “Great War” or the First World War launched the transformation of the world, but not until after the Second World War was anything really accomplished. WWI and WWII were similar in that they both exceedingly devastated many countries of the world. In both wars, Europe was destroyed. People were left homeless; farmland and industry were eradicated. Germany was also broken up as a result of both wars. After WWI, Germany no longer had colonies, and they lost the Alsace-Lorraine territory that formed Poland.

After WWII, Germany was divided up into four zones run by the Allied Nations: Britain, The United States of America, France, and the U. S. S. R. They did this to make sure that the Nazi party would not gain control again. The total expenditure for all countries involved in both WWI and WWII was colossal. Countries like Germany, Britain, France and Russia suffered tough economic problems after both world wars. In most European countries prices increased greatly after the wars. International trade in Europe declined and therefore created an obstacle in their economic recovery.

Unlike Europe, the United States was strengthened by both wars. After both WWI and WWI, peacekeeping organizations were set up in hopes of guaranteeing political independence and territorial integrity for all countries, large and small. The League of Nations, established in 1919 under the Treaty of Versailles, promoted international corporation, peace and security. The League of Nations halted all activities after failing to prevent a second world war. The United Nations, an international organization set up in 1945, was aimed at international security, social progress, economic development, human rights and world peace.

Fortunately, the United Nations so far has prevented another world war, and still plays a vital role in international peace to this day. The Allied Powers won both wars and successfully hindered countries like Germany and Japan from causing anymore unnecessary devastation to the world. WWI and WWII differed in that they were initiated differently and WWII had a more profound effect on the world population, economy, and culture. WWI was caused mainly by imperialism. Increasing competition and desire for larger empires led to an increase in conflict that pushed the world into the “Great War”.

WWII was virtually an extension of WWI. It was caused by unresolved issues between countries as a result of the First World War. Although both world wars were devastating, WWII was the deadliest military conflict in history. By the end of WWI, it is estimated that nearly 10 million people died. At the conclusion of WWII, the death count exceeded 78 million. Forty to Fifty civilians were killed in WWI, and almost half of them were due to war-related disease and famine. The total military deaths in WWII were as many as 25 million. WWII was a global conflict, whereas WWI was fought over approximately one hundred miles of territory.

Up until WWII, Europe remained dominant politically and militarily. But after WWII, Europe was split and two new superpowers emerged: the United States and the Soviet Union. The financial cost of the two world wars differed drastically. $334 billion was spent during WWI and $4. 1 trillion spent during WWII. After WWI, few attempts were made to prevent economic distress. But after WWII the World Bank, International Trade Organization, International Monetary Fund, and the Marshall Plan were created in order to counteract economic decline.

While WWI and WWII have their similarities, there are so many more differences between the two. Both wars left Europe destroyed, caused widespread economic distress, and were won by the Allied Powers. On the other hand, WWII and WWII began for very different reasons, and WWII had a more substantial effect on our society in terms of peacekeeping measures, deaths, and financial cost. WWI was the beginning to the tragic Second World War which changed the course of the world in its entirety.

“During the period 1939-45 opponents within the army posed a greater threat to Hitler and the Nazi regime than any other opposition group. ” How far do you agree with this statement? The Nazi’s arguably faced a lot of opposition between the years 1939-45 and not only from the army; who had the power of keeping up the morale of the citizens due to their military strengths and integrating part of the Nazi regime. However Hitler and the Nazi’s also faced other oppositions, such as the church which again was a source of opposition based on morale.

The threats from the left and the right continued, as an on-going conflict of extremist behaviour. The youth of the country also posed a threat to Hitler and the Nazi’s due to boycotting and attacking the Hitler youth regimes. Firstly, the army was a major threat between the period 1935-49, due to the attempt of preventing war by several serving military officers, including Head of the General Staff, Franz Halder. Hitler and the Nazi’s are argued to have wanted as a means of showing Hitler’s power as a dictator, showing the significance of this threat to his regime.

At the start of the period 1939, Hitler achieved a victory at Blitzkreig, which was followed by his momentous victory in Europe a year later, both of which led to the portrayal of Hitler as a military genius. However despite this title he had embarked, there were at least 6 assassination attempts of Hitler during the period 1943-44, including the two major attempts; Operation Flash and Operation Valkyrie, all of which failed for several different reasons.

Operation Flash was an attempt to assassinate Hitler in March 1943, in which the bomb planted on his plane to Rastenburg failed to explode. There are several arguments explaining the failure of this attempt including the fact that the plane was too hot and the timed device therefore did not go off. Operation Valkyrie was another significant attempt on Hitler’s life, known as The Stauffenberg bomb plot. This was argued to as the last realistic attempt and also the closest attempt at that, due to several minor movements of the suitcase planted by Beck.

These assassination attempts increased the suspicion of the Gestapo against future army plots, and therefore Hitler’s protection was also increased. In terms of Hitler’s life protection the threat from the military was seen as a serious nationwide opposition in 1943, and therefore the fact that it was a nationwide opposition highlights the fact that it was the most significant opposition that Hitler faced between 1939 and 1945. The army did not only hold power over the assassination attempts but also held power over the morale of the public.

The involvement of the USA in the war in 1941, along with military failures including the defeat at Stalingrad in 1942 and also the failure to defeat Russia made it evident that Germany were losing. These failures in wartime not only meant that Germany were seen as the losing party in the war, but it also meant that people were beginning to see flaws in Hitler’s strategic leadership. Similarly it was not only the army which posed threat to Hitler and the Nazi’s regime, the church was another opposition which they faced.

Dietrich Bonhoeffer opposed Hitler and the Nazi’s and although the dictatorship meant that free speech had been abolished, he vocally fought against the Nazi’s. Such a brave decision meant that he did in fact stand alone, but it didn’t mean that others did not agree with his view that “what Germans have done to the Jews, they’ve also done to God’s people”. This was significant as it made him a role model for Christians and he regarded the Jews and Christians all as one.

It was due to the African-American situation that he has witnessed in America which encouraged Bonhoeffer to stand up and protest against the Nazi’s, as in hindsight he saw it as the same thing. This was not regarded as a major threat though as on July 20th 1944 Bonhoeffer was imprisoned in Gestapo prisons prior to being sent to a concentration camp. Bonhoeffer was hanged 3 weeks before Hitler’s suicide, which in itself is argued as emphasising that Hitler did not know how to handle the opposition, as his way of stopping it ultimately ended in the sacrifice of his own life.

Although Bavarian Catholics were successful in pursuing Wagner’s ban on crucifixes in schools, the Catholic Church failed to condemn systematic extermination of Jews in Public (as early as 1942). The banning of crucifixes in Bavarian schools highlighting that the church was seen as some sort of threat to Hitler’s regime and also highlights the use of religion in society. This caused some uproar and in August 1941 the Nazi’s had a policy which was part of the Aktion T4 programme, the killing of asylum patients.

However Bishop Von Galen was motivated by the attempt to maintain independence and integrity and led to an outspoken attack from the pulpit. This was regarded as a notable exception from the Nazi’s as Von Galen’s speech led to the “stepping down” of the programme. These exceptions from the Nazi’s and more so the acts of the religious people involved highlighted the importance of religion and also showed a devotion to Catholicism and not to the Nazi’s, therefore emphasising that the church cannot be seen as a real threat to Hitler and the Nazi’s.

Other Sections of the German society posed threats to the Nazi’s, particularly the youth. Organised attempts to actively oppose the regime were set up. The Edelweiss Pirates were the most organised, these attacked the Hitler Youth and also went against social expectations of the youth in Germany. There was a lot of delinquency, drinking, smoking and even promiscuity among the young people, who deliberately went against Hitler and the Nazi’s regime. In December 1942 over 700 members were arrested and later executed in public on behalf of their actions, as a means of threatening and even more so a warning to others.

These along with the ‘White Rose Group’ led by Sophie and Hans Scholl distributed anti-Nazi leaflets and graffiti, demonstrated through a march set up by University students through Munich. However the fact that Hans and Sophie Scholl were beheaded as a result of their protest demonstrates that the Nazi’s and Hitler were not allowing any form of anti-Nazi behaviour and showed publicly the limits that the Nazi’s were willing to go to in order to stop any opposition. Other groups were set up in 1941 including the ‘Kreisau Circle’ and the ‘Goerdeler Group’, both of which were seen as an opposition to the Nazi’s and Hitler.

Both groups consisted of upper-class people who detested the Nazi barbarism and the fact that Hitler was leading Germany into disaster. Von Moltke and Von Wartenburg made contact with the Goerdeler Group but they did not both share the same views on what they wanted out of Germany, just knew that they did not like Hitler’s leadership. The involvement of some members from both groups in the bomb plots meant that they were easily founded by the Gestapo in 1944; resulting in many members from both groups arrested and executed.

This threat from the conservatives links into the threat of the army, however it is seen that the threat from the conservatives alone was not a massive threat to Hitler and the Nazi’s regime, and the deaths and arrests of several members shows that the threat was not great due to the fact that the Nazi’s were able to stop any threats present from the conservatives before they got too serious. The Nazi’s also faced great opposition from the left, which is argued as the most obvious opposition they faced, due to the left’s political position; thus being the complete opposite end of the political scale and therefore all of their iews were in direct contrast to the Nazi’s. The left faced many weaknesses and arguably their main fundamental weakness was due to the fact that their opinions in politics meant that they were seen as an opposition to the Nazi’s from the beginning of 1939, resulting in their vulnerability to the Gestapo. In Berlin alone 89 communist cells were set up in 1941, and a year later the communist resistance was united under the leadership of Wilhelm Knochel.

Splinter groups were set up by ex-SPD members, such as the Socialist Front and also the Red Patrol. Splinter groups had a more assertive policy and even attempted to co-operate with other opposition groups. However despite this co-operation the left had little impact on Hitler and the Nazi regime. As well as active the active resistance, there was also passive resistance to Hitler and the Nazi’s, although it is hard to prove who acted as a means of passive resistance it is clear that such a thing was still present in Nazi Germany.

These range from merely listening to foreign radio stations to the refusal to the ‘Heil Hitler’ salute. Despite being hard to prove and not necessarily being the greatest, most significant opposition that Hitler faced it shows that there were other ways in which people could subtly oppose the Nazi Regime. Another example was telling anti-regime jokes; which resulted in the punishment of death, one can say a little extreme for a punishment however it shows the force and power that Hitler and the Nazi regime have over the citizens of Germany at the time.

It also shows that Hitler was highly against any opposition that he faced, and that he did not think twice about how he would eliminate this opposition. The passive opposition had little impact on the regime as a whole, as it was not a major threat, however it allowed people to subtly oppose Hitler and the Nazi Regime. In conclusion Hitler faced a lot of opposition, some greater than others; the army being an example. The army had a lot of power in Germany during the years 1939 and 1945, both for military purposes and also for the morale of the country.

The army was also the only real threat to Hitler in the sense that they were the only opposition which were close to killing Hitler. The left is seen as one of the most motivated opposition due to their political contrasts with the Nazi’s, they were not seen as any real threat though due to their decrease in power by 1939. Amongst the youth there were several resistant groups set up, but again their limitations meant they could not offer any true threat to the regime.

The greatest opposition is arguably that of the Church, this is due to the religious status of the country, and also the fact that the Nazis were unable to close down the churches, despite their attempts with the Bavarian Catholics. Although the church was a key opposition to the regime it was not necessarily a threat to the regime, due to no real attempts. Overall despite the plethora of oppositions that the regime faced the only real threat was the army. The army was the only opposition that attempted to assassinate Hitler, and fortunately for Hitler was not successful despite numerous attempts.