The German problem? It’s an analogue country in a digital world
Larry Elliott | The Guardian
Germany, renowned for its engineering prowess and rich cultural heritage, faces a curious conundrum in the digital age: it lags behind many of its European counterparts in digitisation.
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A Dated Approach?
Despite being Europe’s economic powerhouse, Germany’s digital infrastructure is somewhat lacking. While the nation excels in manufacturing and export, its digital transformation seems stuck in first gear. The concept of "Industrie 4.0" has long been heralded as the future of manufacturing. However, the reality on the ground is quite different.
According to the European Commission’s Digital Economy and Society Index (DESI), Germany ranks only 14th out of the 27 EU member states. One might wonder how this affects both businesses and everyday citizens.
Broadband Woes
Germany’s broadband connectivity is notorious for its sluggishness. In rural areas, internet speed is often a major complaint. The OECD has noted that roughly one-fifth of German households lack fast broadband access. This stands in stark contrast to smaller European nations like Denmark and the Netherlands, where internet speeds are much faster and more reliable.
Bureaucracy and Red Tape
Another significant issue is Germany’s complex and slow-moving bureaucracy. Many processes still rely heavily on paperwork rather than digital solutions. For instance, registering a new business or securing a building permit can take months. According to a report by the World Bank, the average time to start a business in Germany is 8 days, longer than in many other European countries.
Education and Cybersecurity
Education and cybersecurity are areas needing improvement. Germany has been slow to incorporate digital learning into its education system. During the COVID-19 pandemic, many German schools struggled to adapt to online teaching. Less than half of German students reported receiving any form of online education during school closures, according to the PISA 2018 Results.
Meanwhile, cybersecurity remains a pressing issue. The Federal Office for Information Security (BSI) has reported an increasing number of cyberattacks targeting both private and public sectors. Yet, investment in cybersecurity measures remains below the EU average.
Recent Efforts and Future Prospects
However, efforts are underway to bridge this digital divide. The German government has committed to investing 5 billion euros into digital infrastructure by 2025. The "DigitalPakt Schule," for example, aims to provide schools with modern hardware and fast internet. Moreover, public Wi-Fi availability has expanded significantly in recent years.
There’s also hope from the private sector. Various German startups are making strides in fields like fintech, which could push the broader economy towards a more digital-friendly future. Initiatives like these are crucial for ensuring that Germany doesn’t fall further behind in the digital world.
The Road Ahead
In conclusion, while Germany is a leader in many arenas, its digital journey is fraught with challenges. From sluggish internet speeds to bureaucratic hurdles, there’s much room for improvement. Nonetheless, with renewed investment and a forward-thinking approach, Germany has the potential to become a digital leader. Perhaps in the near future, we’ll see Germany bridging the gap between its illustrious past and a digitally-driven future.