PATHS OF

DEVELOPMENT:
AUSTRIA
Lukas Blassnig, Stefanie Schiestl, Monika Sojer
Overview

Development after World War II

The European Union
Importance of Eastern Europe for the Austrian
Economy
Economic sectors
The six characteristics of the
Austrian economics
Development after WWII

1945: Reichsmark replaced by the Schilling

1946: Provisionally government formed
1948: Marshall Plan between Austria and the USA
Austria received grants, even for Soviet occupied territories
In return it has to stabilize the Schilling and state budget

Austria received the highest support after WWII

because of weak industrialisation
and pay of war reparations
The European Union

Austria is an small, strongly export-oriented country

1995, January 1st :Austria became a member of the EU
1999, January 1st : uro implemantation
2002, January 1st : uro coins were introduced
Importance of Eastern Europe for the Austrian Economy

Austria located at the very border of Western Europe

already the Austro Hungarian monarchy formed an economic
area
Due to the history, Vienna and Bratislava are the two closest
European capitals
Commercial sectors

There are three commercial sectors in Austria:

Primary sector Mining and farming

Secondary sector Industry

Third sector - Services

Primary sector Mining and farming

Resource extraction
1.9 % of GDP
Agriculture and silviculture
Mining
Metals and Semimetals
Non-metallic minerals
Coal
Secondary sector - Industry

Resource converting
31.1 % of GDP
Industrial concerns
Power economy
Third sector - services

Trading concerns, service companies and public administration

67 % of GDP
Banking
Trading
The six characteristics of the Austrian economics

Social market economy

Social partnership
Tarif and the competition
Nationalize firms
Small and medium-sized companies:
Foreign possession
Social market economy
Social market economy

Disadvantage: the costs of the social system

Since 1980 eco-social market economy has been imported for

forest dieback and the ozone hole

Nation should trail a carefully commerce with the environment

Social market economy

The balance of this triangle is important for eco-

social market economy
Social partnership

Employer and employee are standing vis--vis

This system try to find solution and consensus for example by

wages question

The success of this system is on the less strike rate in Austria

Tariff and the competition

The nation interferes in the pricing by laws, edicts and guide

lines

Pricing means standard price

There are a top price and a minimum price

Nationalize firms

Characteristic of the planned economy of communist states

The state-owned enterprises are controlling by the political

influence

IAG plays a decisive role for privatizations

IAG = sterreichische Industrieholding AG

Nationalize firms
Small and medium-sized companies

Definition of the EU-Commission: companies which less than

250 employ persons and an annual turnover of 50 Million euros

Advantage of this enterprises: great flexibility and new marks

conditions

Plays important role in new and innovative products

Foreign possession

Every fifth employee is working in an enterprise which is in a foreign

possession (Statistic Austria)
Head offices for foreign countries controlled enterprises in Austria:
Germany, Switzerland and the Netherlands

Advantage: Austria is integrated into the world market

Disadvantage: Profits can be traced back to the foreign mother group

THANKS FOR YOUR ATTENTION