Isn't it just about production and efficiency? Am I wrong that it's about industrial infrastructure and high technology?
I really don't know.
When I hear the word, I just assume that it means that some countries both outwork and outproduce others, but a sure way to be more productive is to have more tools to make your efforts more efficient.
Germany has pursued a policy of restraining wage rises and reducing social redistribution costs throughout this decade. Within a single currency system, this amounts to a kind of competitive devaluation. There's no doubt German industry is also competitive re production and efficiency, but it's not all the story.
