The Devil's Advocate

21

Don’t dance where elephants play

For much of the last decade the prevailing model of Western capitalism has been the all-conquering, diversified conglomerate that uses its clout and connections to move from sector to sector. The model has been picked up by Indian titans like Tata, selling everything from Tetley tea bags to Jaguar cars.

But for the last 200 years, Germany’s mid-market companies have been quietly sailing on a different tack. The ‘Mittelstand’ is the engine of German economic prosperity; a backbone of medium-sized, family-run and conservative companies that stick very resolutely to their niches. It might be wheels for hospital beds, lead pencils like Faber-Castell or train braking systems. But from Beijing to Basingstoke, ...