germany capstone final paper_12 may 2016

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REFUGEES IN GERMANY: OBSTACLE OR OPPORTUNITY? ELLEN DAVIS ADAM LUKOSKIE LAURA PRATT TONY SEWELL KARTHICK SUNDARARAMAN DEBORAH TEPLEY TAE YOO GEORGETOWN UNIVERSITY EXECUTIVE MBA PROGRAM CAPSTONE PROJECT | MAY 2016

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Page 1: Germany Capstone Final Paper_12 May 2016

REFUGEES IN GERMANY:

OBSTACLE OR OPPORTUNITY?

ELLEN DAVIS ● ADAM LUKOSKIE ● LAURA PRATT ● TONY SEWELL ● KARTHICK SUNDARARAMAN ● DEBORAH TEPLEY ● TAE YOO

GEORGETOWN UNIVERSITY

EXECUTIVE MBA PROGRAM CAPSTONE PROJECT | MAY 2016

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TABLE OF CONTENTS

Introduction and Overview........................................................................................................................................... 3

Summary of Key Themes .......................................................................................................................................... 3

Our Approach ............................................................................................................................................................ 4

How It Came to This: An Overview of the Refugee Crisis ............................................................................................ 7

The Stakeholders .......................................................................................................................................................... 9

The Macroeconomic Perspective ............................................................................................................................... 14

Demographic Crisis and Implications ..................................................................................................................... 14

Macroeconomic Immediate Impact of Refugee Crisis ........................................................................................... 15

Macroeconomic Challenges and Opportunities of Refugee Crisis ........................................................................ 15

Key Themes and Insights ............................................................................................................................................ 17

Social and Cultural Integration ............................................................................................................................... 17

Historical Context ............................................................................................................................................... 17

Mass Migration Experiences .............................................................................................................................. 17

Kollektivschuld: Reverberations from the Past ................................................................................................. 18

Evolution of German Values ............................................................................................................................... 20

Observations: Key Cultural Factors Impacting Success ..................................................................................... 20

Recommendations .............................................................................................................................................. 23

Processing of Refugees ........................................................................................................................................... 25

Assessment of Refugee Processing .................................................................................................................... 25

The Legal Imperative: Impact of Immigration Laws and Integration Policy ..................................................... 27

Recommendations .............................................................................................................................................. 28

Education and Employment ................................................................................................................................... 32

Overview ............................................................................................................................................................. 32

Recommendations: Educating Up to 16 Year Olds ............................................................................................ 32

Recommendations: Educating 16 to 35 Year Olds ............................................................................................. 33

Corporate Strategy and Response .......................................................................................................................... 36

Overview ............................................................................................................................................................. 36

CSR as Corporate Philanthropy .......................................................................................................................... 36

CSR as Operational Management ...................................................................................................................... 38

CSR as Value Creation ......................................................................................................................................... 39

Recommendations .............................................................................................................................................. 41

Civil and Community Engagement ......................................................................................................................... 42

Perception is Paramount .................................................................................................................................... 42

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Non-Governmental Organizations (NGOs), Community Organizations and Volunteers ................................. 43

Recommendations .............................................................................................................................................. 44

National Security .................................................................................................................................................... 46

Current Situation ................................................................................................................................................ 46

Recommendations .............................................................................................................................................. 47

Conclusion: Final Observations and Recommendations............................................................................................ 52

Clarity ...................................................................................................................................................................... 52

Central Database .................................................................................................................................................... 52

Strategic CSR ........................................................................................................................................................... 53

Integration Requires an Integrated Effort.............................................................................................................. 53

Recognition and Acceptance of Historical Context ................................................................................................ 53

Acknowledgements .................................................................................................................................................... 54

Interviews and Events ................................................................................................................................................. 55

Team Bios and Contact Information........................................................................................................................... 56

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INTRODUCTION AND OVERVIEW

On a warm September day in Turkey, the lifeless body of three-year-old Alan Kurdi washed up on a beach at sunrise.

Kurdi, along with his brother and mother, drowned when the small inflatable boat he was in capsized after his family

fled the civil war raging in Syria. The image, which Time magazine called “the most heartbreaking photograph of

2015,” became a symbol of a catastrophe that has impacted millions of people and killed hundreds of thousands.

And in an instant, a crisis that had seemed many worlds away was on every homepage, every Facebook feed, and

every nightly news program around the world.

The photograph of a little boy in a red t-shirt and navy pants – with Velcro sneakers still on his feet – reminded us of

our nephews, our neighbors and, in some cases, our own children. As business school students at a prominent Jesuit

institution, we began asking ourselves: How did this happen and, more importantly, what can be done about it? Is

there hope for the people fleeing this crisis, and how can they find a better future elsewhere?

Just days before Alan Kurdi and his family set out on their treacherous journey, one world leader made a bold

proclamation: refugees were welcome in her country, and she would not set a limit on the number of people they

would accept. Angela Merkel, who had served as Chancellor for more than a decade, announced that Germany

would be waiving the so-called Dublin procedures, under which displaced people must claim asylum in the first EU

country that they arrive in.

How would Germany process, absorb, and integrate so many people? “Wir schaffen das,” Merkel said, which means,

“We will cope.” And just like that, as hundreds of thousands of refugees set their sights on Germany, we decided to

evaluate for our final capstone project at Georgetown University how Germany could be impacted by,

accommodate, and integrate the millions of refugees who were entering its country over the next several years.

SUMMARY OF KEY THEMES

As we returned from Germany in April to synthesize all we had read, learned, and seen, we coalesced our thoughts

around several defining themes and opportunities. The following pages are a summary of our most poignant findings

and insights which we hope are of value to the people who generously gave us their time to speak with us on this

important topic. What could we provide to the 100 or so people who offered their insights for our final project? The

American viewpoint, they said. Throughout this paper, we offer the following recommendations, based on our

perspective as Executive MBA students in the US, on how Germany can most successfully integrate asylum seekers

into their country for long-term success.

1) Identify opportunities to provide greater clarity to refugees during the asylum-seeking process, as well as

to the stakeholders involved – government, businesses, and civil society – for better-informed decision-

making.

2) Embrace a centralized, nationwide database to better understand the impact of the refugee migration on

its country and track refugees, both to assess the success of integration and also to ensure national security.

3) Realize that not all business responses can or should be the same; companies should make honest decisions

about how they can and would like to most significantly contribute to the integration success, and

consciously create their move-forward plan accordingly.

4) Recognize that success is achievable if all stakeholders are engaged and their competencies are maximized.

Understand the challenges that some key stakeholders may face, and consider providing resources and

support to groups like teachers and volunteers who may be under pressure.

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5) Understand how Germany’s psychological scars from WWII may be impacting its response to this crisis, and

make intentional decisions based on Germany’s current perspective and position to ensure that long-held

anxieties and concerns are not coloring the country’s current actions.

OUR APPROACH

Unlike many business school projects, which lend themselves to a fairly quantitative evaluation of fundamentals and

processes, this undertaking was different. We all believed strongly that this was not only a business problem, but a

humanitarian one – which created far more complexity and creativity than a standard project. The solution was

never going to be as simple as “Just send them back” – and, to their credit – no one we spoke with in Germany ever

suggested that outcome. And with a ripped-from-the-headlines assignment that was literally changing every day, we

were unsure how what we were studying in January would change by May, when we presented the project and

shared our findings.

After we selected this topic in the fall of 2015, we spent the winter and early spring getting up to speed on the

refugee crisis, poring over information and insights about the German economy and culture, and understanding both

political implications and the business impact of a civil war and migration that impacted millions of people. We

attended nearly a dozen conferences, events and webinars to begin to understand the issue, and also conducted

over 50 phone and in-person interviews with German business executives, trade association staff, refugee and aid

organizations, and nonprofits. We also extensively studied German and European history, government structure and

policy to understand the refugee crisis in the context of a government and society that we did not initially

understand.

As we studied this project, the stories – and public perception – seemed to shift. Several Germans told us that the

New Year’s Eve attacks by refugees on women in Cologne began to change the narrative and, perhaps, acceptance

of refugees in Germany. Businesses told us that store sales in highly-trafficked refugee areas were down because

“people didn’t want to go hang out there anymore.” And dramatic gains in its most recent election by Alternative

für Deutschland (AfD), a political party which has made anti-refugee sentiment its core position, seemed to

demonstrate that public perception may be shifting. Still, we were very aware that our perspective was being colored

by the international media, and until we visited Germany for ourselves, we could only learn so much.

In April 2016, the seven people on our team set out across Germany to understand how the refugee crisis was

impacting the German economy, business and its people. Specifically, we were looking to understand whether – and

how – Germany would be able to integrate refugees into its workforce. In the span of one week, we met with dozens

of policy leaders, business executives, volunteers, teachers, refugees, children, nonprofit groups and community

residents (Figure 1 below illustrates the breadth of organizations consulted throughout the project duration). To

understand the impact of the crisis in different cities, we cast a wide net: we started our trip in Munich and visited

Ulm, Böblingen, Cologne, Bonn, Hamburg, Nordstrand and Berlin (see Figure 2). We had incredible access to people,

companies, and stories. Some days ended with hope and an optimism (one moment in Nordstrand was described as

a “fairy tale”) while others left us overwhelmed and somewhat disenfranchised. This was complicated, exhausting,

and – perhaps not surprisingly – there was no single right answer.

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Figure 1: Organizations consulted throughout the research project

Figure 2: Trip itinerary included Munich, Ulm, Böblingen, Cologne, Bonn, Hamburg, Nordstrand and Berlin

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During our interviews, we encountered about every perspective possible. One executive said that the refugee crisis

was just the hot-button political issue at the moment and would be over in six months. Another called it one of

Germany’s defining moments as a country. Some felt a sense of urgency that Germany needed to be doing more to

integrate refugees into the workforce immediately. Another – a government official – said that our analysis was

occurring a year too early and that the country was simply trying to meet the safety and security needs of refugees;

the integration and workforce elements would need to wait.

But despite the differences of opinion, we heard many of the same themes time and again: the number of asylum-

seekers was higher than anyone had thought possible, which led to myriad problems; that it was imperative – though

hugely difficult – for refugees to integrate into German society; and that long-held regrets about Germans’ handling

of minority populations during WWII was coloring its response to this crisis.

Some may have questioned the relevance of this project on a business school audience. “What were the core

business principles to be evaluated?” one confused professor asked us. As we continued to learn what led to this

crisis and, perhaps, understand how it could be remedied, we were struck by the amount of relevance this had on

nearly every academic course we have taken over the last two years: macroeconomics (Germany’s current economic

environment), strategy (how businesses can and should respond to the crisis), global operations and global logistics

(processing of refugees), statistics (regression analysis and modeling to determine Germany’s future population),

organizational behavior (cultural integration and adaptation), and business and public policy – among others. We

were and remain of the fundamental belief that core business principles can and are applied in social situations every

single day.

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HOW IT CAME TO THIS: AN OVERVIEW OF THE REFUGEE CRISIS

While the entire European Union has been impacted by this crisis, Germany bore the brunt of the impact (see Figure

3). Merkel was anticipating that the EU would band together to welcome refugees, but Germany has been by and

large on its own in its response. As EU leaders quibbled over a shared stance on refugees, approximately 1.1 million

refugees fled to Germany in 2015 – far more than anyone anticipated. Not all refugees were coming from Syria (only

about half, according to most reports) and not all migrants were refugees, as some were in search of better economic

opportunities. Still, the majority of people entering Germany were seeking asylum, and they had abandoned their

homes, their language, their livelihood and, in many cases, their families, to seek a better life.

Figure 3: European Migrant Crisis 20151

1 https://en.wikipedia.org/wiki/European_migrant_crisis#/media/File:Map_of_the_European_Migrant_Crisis_2015.png

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And the stream of asylum-seekers didn’t end in 2015. At a German Marshall Fund event we attended in February,

Germany’s immigration department, the BAMF, wouldn’t even estimate the number of refugees they would receive

in 2016. (“We are prepared to deal with one million applications,” was all their representative would say.)

After Merkel’s confident stance last summer to embrace all asylum-seekers, the German people rallied around her.

This was a chance for them to prove to the world Willkommenskultur, the welcoming culture intended to

demonstrate to migrants (to fill its workforce gaps initially and, more recently, directed toward asylum-seekers) that

the German people would go out of their way to welcome refugees. And welcome they did. One Deutsche Post DHL

Group executive we spoke with shared a story about the arrival of the first big wave of refugees last summer, when

“ordinary people organized themselves, pulled what they could from the fridge, went to the train station and said,

‘How can we help?’” Starbucks’ executives told a similar story; when thousands of refugees began arriving at the

Munich train station, which we stayed across the street from, the situation was so critical that employees stood

outside of the coffee shop handing out every bottle of water they had. There’s no question the German people took

this to heart: one person we spoke with said that half of Germans had served as volunteers in some capacity during

the refugee crisis and, while we couldn’t independently validate that statistic, it did seem that a large percentage of

Germans had rolled up their sleeves to help acclimate these asylum seekers to their new life.

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THE STAKEHOLDERS

We began our project recognizing that there were two distinctive groups of people being impacted: refugees, and

German people. As our conversations continued, the more we realized that there were dozens of groups of people

who had a stake in the outcome of the refugee crisis. We often related this project to that of peeling an onion: the

more we understood one part, the more we realized there was more to learn at an even deeper level. As a part of

this work, we felt it important to conduct an analysis to identify key stakeholders, defined as people who are affected

by the refugee crisis, who have influence or power over it, or have an interest in its successful or unsuccessful

conclusion (see Figure 4 for a diagram of our stakeholder map).

Figure 4: Stakeholder Map

Refugees

When attempting to understand Germany’s refugee population, it’s imperative to note that very little data – and, in

many cases, conflicting data – exists about the number of people and their origin. Because Germany hasn’t had a

central database, most numbers about the makeup of the refugee population are speculative at best. Still, this is the

best information we could ascertain about the composition of refugees in Germany:

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Asylum Seekers: A total of 1.1 million people were registered as asylum-seekers in Germany in 2015, five

times more than in 2014.2 More than a third of these – nearly 430,000 people – were fleeing the Syrian civil

war. Another 25% – or 275,000 people – came from two other countries: Iraq and Afghanistan. The

problem? Since Germany offered to accept an unlimited amount of asylum-seekers, many people have

claimed to be one.

Economic Migrants: It’s important to note that not all people migrating to Germany are fleeing persecution.

Some immigrants, called “economic migrants,” are heading to Germany in search of a better life from places

like the Balkans and Morocco. While it’s true these migrants’ lives are not at risk in their home country,

many do have skills and education essential and valuable to the German workforce.

Unaccompanied Minors: One of the most pervasive and complicated narratives was that of unaccompanied

minors, which seem to be a polarizing topic among many Germans. According to UNICEF, Germany has

60,000 registered unaccompanied minors, defined as children under age 18 who are in the country alone,

without their families. The plight of unaccompanied minors has “a huge dark side,” according to Christian

Schneider, Executive Director of UNICEF Germany, who told us a story of four cousins – all boys under the

age of 10 – who traveled to Germany alone. Without a strong sense of community and a network, it is

feared that these children – most of them boys – could be recruited by terror cells or, at the very least,

exhibit typical teenager behavior without a strong family presence in their lives. While this is a common

fear among some Germans, others – like Schneider – believe that this issue has turned political and that

Germans are “letting fear play into the handling of these children.”

Children: As the media and businesses focus on integration of refugees into Germany’s workforce, there is

a perception that they don’t have anything to worry about when it comes to one group: children. While it’s

true that children integrate more quickly than their parents, in many cases, it’s not all smooth

sailing. According to UNICEF, real challenges exist in ensuring the safety of child refugees, especially at

arrival centers and refugee camps, which are often filled with dark spaces and lack indoor bathrooms. And

even children who seem “fine” may suffer serious psychological effects which could inhibit learning and

education without proper support and counseling. Many have not been in a formal school setting for years,

which impacts both their education and socialization. Then there are the children no one knows about:

according to Europol, 10,000 children have completely disappeared3 – many may have left the system to

find relatives, but others have likely been trafficked into the sex trade.

Civil Society

Volunteers: From teaching German classes to fostering children to donating clothing, the German people

are responsible for much of the success of this effort so far. Like so many aspects of this crisis, we searched

but did not find data totaling the number of volunteers supporting refugees in Germany, but any reasonable

estimation is in the hundreds of thousands. Volunteers we met with tell of the frustration around lack of

information, the exhaustion, and the joys - success stories, tremendous bonds, and the gift of giving. We

were told by nearly every leader and citizen we met with that without the volunteers, this care and

integration effort would not be possible. They also shared their grave concern for the volunteers’ well-

being, and the sustainability of the effort which is so critical to the country. After nine months, it’s

understandable that fatigue is beginning to set in among many who are core to this effort. “Angela Merkel

can take a lot of credit for this, but if the volunteers quit tomorrow, this would all come crashing down,”

said one woman we spoke with.

2 http://www.ibtimes.com/europes-refugee-crisis-germany-registered-over-1-million-asylum-seekers-2015-2251590 3 http://www.nytimes.com/2016/02/10/opinion/10000-child-refugees-are-missing.html

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Teachers: With an additional 300,000 students entering classrooms in 2015, educators are being asked to

teach more students with less resources. And these students are not traditional students, they are from

many different countries, with many different languages and extremely varied backgrounds, and bring with

them trauma and different learning needs. The teaching force has risen to the challenge and is embracing

these students, going to extremes to educate them and help them feel welcomed. Given the tremendous

impact that teachers have on educating the 300,000 refugee children in Germany, it is imperative that

teachers have the resources - both material and, in some cases, psychological - to work with these children.

Residents: The impact to German citizens ranges considerably. We visited several places where people

insisted their daily life has not changed, and noted that we could not discern an obvious presence of

refugees in most places - particularly notable because we were deliberately looking for them. In other areas,

the stress on the community was palpable, and their elected leaders shared stories that inform their deep

concern for the rising tension.

Nonprofits/NGOs: Because the German social system is responsible for the welfare of its citizens, these

organizations are new to Germany. We met with the founder of a small NGO, the German Director of a

large, volunteer-funded organization, and the CEO of an education foundation. From all three, we learned

that one challenge is earning trust and coordination from the government, as they don’t want to be seen

as failing to fulfill their role, especially since German tax rates are as high as 50% in some cases. We also

heard how important these organizations are to refugees, as some have trouble trusting the government

given the persecution they experienced at home.

Faith-Based Organizations (FBOs): While we didn’t directly interact with any faith-based groups or leaders,

several members of the Nordstrand volunteer community shared that churches are finding great purpose

in assisting their local refugees. For example, our research indicates that churches are mobilizing to provide

food and clothing, and offering their facilities for shelter. One of countless examples is an exhibition center

in Berlin that now houses 1,000 after having been converted to living spaces in October.4 It appears that,

like many businesses and faith-based organizations often partner with NGOs to provide support.

Media: The most significant feel we got about the media was that there are concerns, like everywhere in

the world on any subject, that sensationalism is shaping public perception, and that there is a history-based

distrust still very present in Germany of the Lugenpresse (“lying press”). Deutsche Welle reported in

October that in a recent German survey, 44% of respondents said they partially or wholly believe the media

regularly lies to the people.5

Businesses

Many of the businesses we spoke with were large corporations, employing thousands of people in Germany – so a

great deal of our perspective on the business climate is through their lens. These large businesses are an imperative

solution to the problem because they are most capable of contributing financially and in other ways (employee

volunteers, internship programs, etc.) to aid in the refugee effort. Based on our interviews, companies in the service

sector (hotels, restaurants and retail stores) are most likely to be able to hire refugees in the short-term, while

manufacturing companies and others were providing support but were not looking at the refugee population as a

suitable pool for hiring at scale. We did speak with several trade groups that represent small and medium-sized

businesses, and those groups seemed to imply that small and medium-sized business owners also had a positive

perspective of the refugees, but the concern is that lack of clarity on whether these asylum-seekers would be allowed

to stay (and for how long) would be a barrier to hiring.

4 http://www.mormonnewsroom.org/article/refugees-aid-europe-church-governments-humanitarian-partners 5 http://www.dw.com/en/lying-press-germanys-misleading-media/a-18816438

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Government

Federal: Germany is a democratic, federal parliamentary republic, and federal legislative power is vested in

the Bundestag (the parliament of Germany) and the Bundesrat (the representative body of the Länder,

Germany's regional states). Since 1949, the multi-party system has been dominated by the Christian

Democratic Union (CDU) and the Social Democratic Party of Germany (SPD). Angela Merkel has served as

Germany’s Chancellor since 2005 and leader of the CDU since 2000.

State: Germany consists of 16 states, which retain a measure of sovereignty. A quota system allocates a

specific percentage of asylum applications based on tax receipts and population numbers among each state.

While not as paralyzed as the cities, there seems to be incredible differences in how states are handling the

refugee crisis. Some states are models of efficiency, while others are burdened by bureaucracy and barely

keeping up.

City: Cities seem to be areas where many local politicians feel tremendous pressure given that they are on

the front lines of the refugee crisis. Since refugees are assigned by the federal government, some cities feel

handcuffed and somewhat constrained, being forced to get creative about housing and employment,

among other challenges. While Germans are, in large part, empathetic to the plight of refugees, local

policymakers find it hard to escape the emails which all start with “I have nothing against the refugees,

but…”

Political Parties: The most topical element here is the rise of AfD, which has seen a sizeable rise in notoriety

and popularity among some for its anti-refugee stance. As Americans, we heard a lot in Germany about the

similarities between the AfD and Donald Trump, given that the two have both used sensationalism, fear

and unconventional tactics to gain public opinion.

Federal Office for Migration and Refugees (BAMF): The BAMF is the department inside the Federal Ministry

of the Interior, responsible for processing refugees. While it is easy for some to complain about the slow

processing of refugees or bureaucracy, it’s also important to note how completely caught off-guard this

agency was by the number of refugees who arrived last year. And while it’s common to hear from

businesses, refugees, and others that the processing time is painfully slow, there is a balance between

processing people quickly so they can work and vetting them properly to address any potential security

concerns. And, of course, it isn’t even that easy, as staff members at the BAMF are responsible for looking

for economic migrants or others who may be posing as asylum-seekers for a better shot at approvals.

Interpreters have been vetted to determine “whether the Syrians are really from Syria” by recognizing

distinctive dialects and asking about important country landmarks. This is not an easy task, and the sense

of exasperation among leaders at the BAMF was evident. Since the crisis began, “the number of asylum

experts in the country has increased exponentially,” said their spokesperson, dryly, at an event we

attended.

Saboteurs

ISIS: Many asylum-seekers are fleeing the atrocities committed by ISIS, the Islamic State of Iraq and Syria,

which has control over vast landlocked territory in Iraq and Syria, with a population estimate ranging

between 2.8 to 8 million people. While many refugees are leaving their home countries to escape ISIS,

reports have surfaced of refugees finding militants in their new countries as well. Numerous reports and

speculation by world leaders have circulated that ISIS members have entered Germany among the other

refugees. "We have repeatedly seen that terrorists ... have slipped in camouflaged or disguised as refugees.

This is a fact that the security agencies are facing," said Hans-Georg Maassen, the head of Germany's BfV

(Germany’s domestic intelligence agency).

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Smugglers: There are few people benefiting more from the refugee crisis than smugglers, who are

capitalizing on the throngs of people heading for safety. According to Europol, up to 30,000 people may be

involved in the smuggling operation with boats that are intentionally flimsy (so that if they are seized they

don’t lose much of their investment) and services they advertise on Facebook. Smugglers are notorious for

over-demanding and under-delivering, often cramming their customers into small rafts, trucks, and other

transportation with a business that European officials estimate runs in the billions of dollars. And even when

refugees make it to safety, they can’t escape: we heard stories of people taking lower-paying jobs instead

of choosing vocational education because they needed money immediately to pay their debts to the

smugglers.

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THE MACROECONOMIC PERSPECTIVE

Germany has one of the strongest economies in the world, boasting the largest GDP in Europe and the fourth largest

globally.6 Germany’s economy is export-driven and the country has the largest trade (“current account”) surplus in

the world, with an accompanying large budget surplus. Germany has a social market economy, which holds in

balance a free market system with a welfare state. Germans are renowned for their productivity and rank as one of

the most productive countries in the world. This is in part due to incremental improvements in technology over time,

which has led to technology replacing low skilled labor in many fields, as well as Germany’s unique vocational training

system that ensures high quality, skilled labor.

While investments are low, domestic consumption has been higher in recent years, driven by a confidence in

Germany’s economic model. Germany projects GDP growth rates next year of 1.5%.7 Unemployment is at historic

lows, currently hovering around 4.7%, and Germany is actually the only country in the EU with full employment,

which means that its economy cannot grow without labor from outside the country.

DEMOGRAPHIC CRISIS AND IMPLICATIONS

While Germany is an economic powerhouse, it is concurrently facing a demographic crisis (see Figure 5). A low

birthrate, with deaths exceeding birth resulting in a natural population decrease, poses an economic challenge, as

Germany’s workforce is declining and not able to replace retiring workers. 8 The net loss per year of workers is

250,000 to 300,000, and by 2035 they project to have a shortage of 4 million workers.9 A shrinking workforce is

particularly concerning due to the very expensive promises (or “unfunded liabilities”) for social services that

Germany has made to older workers and the elderly that places a significant tax burden on young workers. This will

only grow unless the workforce also grows in tandem. The fact that Germany is at full employment only exacerbates

the problem; as a result, Germany’s economy cannot continue to grow without labor from outside the country.

Figure 5: Comparison of 2017 US and German population pyramids10

6 http://money.cnn.com/news/economy/world_economies_gdp/ 7 Haver Analytics, Economic and financial indicators, The Economist, 9 April 2016, p. 88 8 Germany, Europe’s second largest country with a population of 81 million, has just 746 births per 1,000 deaths and a total fertility rate of only 1.5. Source: Kenneth M. Johnson, Layton M. Field, and Dudley L. Poston, Jr., Population and Development Review, “More Deaths Than Births: Subnational Natural Decrease in Europe and the United States,” 15 December 2015 9 McDonald’s PowerPoint presentation, April 2016 10 http://trading-u.com/blog/2011/12/even-without-a-banking-crisis-the-u-s-has-a-steep-advantage-over-europe/

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But Germany’s needs for labor are unique: the labor market lacks skilled workers, ranging from doctors and lawyers

to trade workers. The greatest need, according to the Cologne Economic Institute, is in the “MINT,” or Mathematik,

Informatik, Naturwissenschaft und Technik, which is to say, math, information technology, science and technology

(“STEM” in the US). While the US has the ability to absorb low-skilled workers in the manufacturing and service

sectors, Germany’s technological improvements (made in part to mitigate its shrinking workforce) have caused an

evolution in its workforce that has removed the need for many low-skilled jobs. Many manufacturing jobs are

technologically sophisticated and require highly-skilled technical workers, and many low-skilled jobs have been

replaced by automation or outsourced. As a result, the government – which currently lacks a consistent, coherent

immigration law – has been trying to figure out how to attract skilled workers from abroad. It has not been as

successful as it needs to be, however. Websites like “Make It In Germany”11 – a site for qualified professional workers

– are not attracting the kind of talent that Germany is losing as its aging population retires in the numbers that it

needs. This is in part due to the language barrier. Most people outside of Germany do not learn German in school,

and the requirement to learn this difficult language keeps skilled workers from responding to Germany’s call.

MACROECONOMIC IMMEDIATE IMPACT OF REFUGEE CRISIS

An obvious question is how Germany will handle the financial burden of caring for an additional million refugees.

However, we repeatedly heard in our interviews that Germany has plenty of money, and that money is not the issue

(yet). Germany has a surplus of that it has committed for cover expenditures on the refugee crisis over the next two

years, and Germany has plenty of fiscal room to borrow and spend more. In 2015, the country spent 0.35% of GDP

to fund expenditures related to the refugee crisis, which is relatively insignificant in the larger context. However, it

is also clear that money alone will not solve the refugee crisis.

In the short term, the IMF says the refugee surge is likely to lead to a “modest” increase in GDP growth, due to both

the extra money spent by governments to support asylum seekers and the expansion of the labor supply, and it will

be concentrated in the main destination countries: Austria, Germany and Sweden.12 More government spending

means more economic activity. The money that is being spent on the refugee crisis is being spent creating jobs,

paying landlords for housing, and paying the refugees money that is being spent to buy food and other items. This

kind of government spending creates a domestic virtuous economic circle. However, this kind of GDP growth is not

sustainable in the long-term and cannot be a long-term strategy for growth.

MACROECONOMIC CHALLENGES AND OPPORTUNITIES OF REFUGEE CRISIS

In the immediate term, or “short run,” Germany’s outreach to refugees is really a humanitarian concern. The

refugees, who are largely low or no skilled, certainly cannot immediately make up the workforce gap that Germany

is currently facing and will not solve its demographic crisis, and the refugee crisis cannot take the place of a

successful, coherent immigration policy to attract skilled workers. The refugee crisis is highlighting the need for real

commitment to immigration policies to address the “cliff” that the economy has already gone over in terms of

demographics. However, in the mid to long term, or “long run,” the refugee crisis could be good news for Germany.

While there is tremendous political risk in the short term, and the crisis has immediate costs, there could be modest

economic benefits down the road. If the country chooses to invest in educating and training refugees, who are

predominantly under the age of 35, there could be an economic benefit in the long term. As Staatsrat Jan Pörksen,

Secretary of State for Authority for Labor and Social Affairs in Hamburg said, “They have time, these refugees still

11 http://www.make-it-in-germany.com/en 12 http://www.marketwatch.com/story/what-the-turkish-german-experience-says-about-the-economic-impact-from-refugees-2016-01-21

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have 32 years left before age 67 retirement. It is worth investing in five years of training.” Germany has a surplus big

enough to shoulder the immediate burden and can afford to spend what is needed to integrate refugees into the

social and economic fabric of the country.

While there are potential benefits, the refugee crisis also has the potential to cause harm to the economy if not

handled well. Political decisions and public opinion could have a huge effect on the economy, as could decisions

within the wider EU community regarding refugees. If borders in the EU do close because of the crisis, this will create

a crisis for free trade. This will be especially hard on Germany because of their export-oriented economy.

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KEY THEMES AND INSIGHTS

In this section we dive into five key themes and insights that we developed from our research. These include: social

and cultural integration, the processing of refugees, education and workforce, corporate strategy and response, and

national security. In each section, we attempt to provide background information and observations that are useful

for the reader, as well as recommendations.

SOCIAL AND CULTURAL INTEGRATION

HISTORICAL CONTEXT

Germany’s rise from the ashes of World War II and the oppression of the Iron Curtain to become a global economic

leader, and standard bearer for the EU, is something the German people are rightly proud of. But Germany’s

historical experience across a number of key events and milestones has fundamentally shaped the culture and

consciousness of the modern German society. These factors were clear to us in how the German people are reacting

to the current refugee crisis, and more general demographic challenges facing the economy.

MASS MIGRATION EXPERIENCES

Germany is no stranger to mass migration, having been the destination for some of the 20th century’s most

significant movement of refugees. In 1945, at the end of World War II, the expulsion of millions of people of German

ancestry from Eastern Europe represented the largest movement of populations in European history.13 Whether

attempting to flee the new communist rule, or being forcibly expelled, many faced significant hardship and brutal

treatment by the new ruling regimes. Significantly, most were returning to a Germany in ruins, with all European

countries struggling to deal with the hardship of their own citizens. On the other side, the policies of the Nazi regime

also created unprecedented number of refugees throughout Europe. In fact, the movement of refugees after the

war ultimately precipitated the Geneva Convention on Refugees in 1951, a framework still in place today and

impacting the current European refugee challenges. During World War II, countries throughout the world lacked

policies for dealing with refugees, or simply did not want to accommodate them, further exacerbating the problem,

and in many cases, returning them to Germany. This no doubt weighs on the German response to the current crisis.

The Wirtschaftswunder, also known as the Miracle on the Rhine,14 describes the rapid economic development and

reconstruction of the West German economy after World War II. In helping to drive this economic growth, from the

1960s West Germany established a labor recruitment agreement with Turkey to bring in Turkish guest workers

helping to build growth through contribution to production levels, tax revenues and social security contributions.15

While this was a temporary program, ultimately over three million Turkish people remain in Germany today as a

byproduct. In our interviews, the Turkish migration was referenced many times as a failure. By allowing migration

but not integrating Turks into German society, high numbers of unemployment, lack of education and low pay

continue to exist among these people and, in some cases, their ancestors.

Reunification of Germany in 1990 also saw a long and sustained movement of population from East to West, with

almost two million inhabitants of the former East Germany moving westward, initially in large numbers but

13 http://www.bbc.co.uk/history/worldwars/wwtwo/refugees_01.shtml 14 https://en.wikipedia.org/wiki/Wirtschaftswunder 15 http://www.spiegel.de/international/germany/turkish-immigration-to-germany-a-sorry-history-of-self-deception-and-wasted-opportunities-a-716067.html

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ultimately finally slowing to a minimum by 2013.16 East Germans moved at the prospect of better jobs and a brighter

future in light of a crippled economy under the former communist regime. The process of reunification of Germany

was a significant fiscal and economic challenge for the reunited country. Even today there is an obvious invisible

divide between the East and West, evident in cultural and political attitudes with the East being home to a growing

right wing opposition to refugees and Islam, through Alternative für Deutschland (AfD). Additionally, there is a clear

economic divide between both sides of the country, illustrated by high unemployment rates in the East.

Finally, the Balkan conflicts of the mid 1990’s saw significant movement of refugees initially fleeing the conflict itself,

but even today representing a significant proportion of annual asylum applications from countries like Kosovo.

Significantly, in 2014, 203,000 Kosovars applied for asylum in Germany, an increase of 60% from 2013. However,

most asylum claims are not upheld on the basis that such applications are based on economic circumstances.

Germany has recently declared Kosovo and the Balkans as “safe” states, allowing immediate rejection of asylum

claims. It is understood that there are also moves for other countries like Pakistan to be declared as such, to reduce

the pressure on claims for groups like Syrians.

KOLLEKTIVSCHULD : REVERBERATIONS FROM THE PAST

Figure 6: Sign at a Berlin metro station Figure 7: Adolf Hitler’s name in the Bundestag

Throughout our field research, there was significant surprise and underestimation of the continued influence of

the actions of the Nazis during World War II. Reminders were ever-present and deliberate in reinforcing the

16 http://www.telegraph.co.uk/news/worldnews/europe/germany/10466089/East-to-west-German-migration-trickles-to-a-halt-23-years-after-

reunification.html

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atrocities Germans perpetrated during the war, and the scar that it left on the German culture. Such examples

could be seen in public spaces, like a sign outside a Berlin metro station listing the most notorious concentration

camps (Figure 6). Interestingly, through the Bundestag (also known as Reichstag), reminders to politicians were

also seemingly everywhere, whether the deliberate masking of Adolf Hitler’s name on the wall commemorating all

current and former elected politicians (Figure 7), or the remnants of graffiti from liberating Soviet soldiers (Figure

8).

Figure 8: Soviet soldier graffiti in the Bundestag

For German lawmakers, the frequent and stark reminders of the Nazi legacy in their national parliament have a

continued influence on the nature of policy developed even today. As will be discussed later in this paper,

immigration policy continues to be a significant challenge for the German parliament, but is fundamental to the

future economic growth prospects for Germany. While many countries within the EU, and globally, have addressed

aging labor and demographic shifts through social policies to encourage higher fertility and birthrates, Germany has

not embraced such social policies. An explanation for this seemingly sensible approach could be a result of a desire

to avoid policies that could be linked to former Nazi Party initiatives, regardless of their disconnection from the more

extreme policies pursued in that era.

The flip side of these observations was the predominant and overwhelming level of generosity, welcome and

acceptance of refugees by most Germans encountered on this journey. This was evident in a number of areas. For

instance, the social security system provides generous payments to refugees once they register, and continue

indefinitely even if asylum status is rejected. This seems nonsensical from a US-centric point of view, and surely

requires consideration as the number of refugees continues to increase. Interactions with business leaders,

volunteers and politicians alike evidenced a strong sense of duty to do “what is right” in providing shelter and

protection to people fleeing violence and persecution. Clearly, however, this open door welcome is being tested, as

will be discussed in further sections. The limits of generosity of people and the political will of government is being

tested by the expected future influx, uncertainty and lack of clarification on the length of this crisis, stress on social

institutions and volunteers, the lack of universal commitment across the EU in terms of a shared response, and the

ever-present threat of a terrorist act that could derail the whole effort.

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EVOLUTION OF GERMAN VALUES

The tumult of the 20th Century clearly has had an impact on what it means to be “German,” and what defines the

German culture. One executive of a prominent multinational corporation we interviewed captured this clearly,

stating: people go to America because they want to be American; people go to Germany but do not necessarily want

to be German, or do not know what it means to be German. Historical experience has defined external perceptions

of what it means to be German, and in some respects there is clearly an apprehension on the part of German culture

to herald Germanic culture, as America would, to avoid any possible link to the shadows of its nationalistic past.

We were struck by the perspective of Christof Ehrhart, Executive Vice President, Corporate Communications and

Responsibility, Deutsche Post DHL Group, and Adjunct Professor at the University of Leipzig, who referenced in our

discussion with him that Germany is in the third phase of the recent evolution of German values and culture (see

Table 1).

Phase Description

Phase 1: World War II to Post Unification Years: 1945 to 2005

A significant period of economic growth and political transformation.

Phase 2: The Summer Fairytale Years: 2006 to 2014

Germany’s hosting of the 2006 World Cup provided the country the opportunity to showcase the “new” Germany to the world as a peaceful and hospitable place. This event also allowed Germans to feel more comfortable in their national pride, and to wave the flag proudly for the world to see.

Phase 3: Current Refugee Crisis Years: 2015+

Ehrhart posits that this current challenge, and the national and regional implications that it presents, will have a lasting impact on how German culture develops and how Germany is perceived internationally.

Table 1: Recent Evolution of German Values and Culture

For refugees, learning German values is a challenge and a barrier to effective integration, for example, valuing

respect for things like gender and sexuality, and more basic issues like the concept of punctuality – values that are

important to German society. As a result, being able to define what it means to be German clearly presents a

conundrum for the society.

OBSERVATIONS: KEY CULTURAL FACTORS IMPACTING SUCCESS

IMPORTANCE OF LANGUAGE

Throughout the period of field research, language was consistently cited as the biggest barrier to effective

integration of refugees (and migrants generally) into the Germany economy and society. However, as a complex and

regionally specific language, most non-European migrants have little knowledge or understanding of the language.

In particular, for migrants of Middle Eastern descent, the German language presents a significant challenge due to

fundamental differences in both the written and spoken forms.

The necessity to master the language is also driven by both the location where refugees settle, which is often beyond

their control, and the type of employment they are in. For instance, people working in service industries in tourist

areas like Munich may be able to find success despite a lower level of German initially, but must speak English

fluently in order to service mostly English speaking customers. For many refugees, however, knowledge of English is

also not a given.

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Language proficiency, particularly for younger age groups seeking a long term career in Germany (i.e., 35 years old

or less), is critical where entry to the vocational education system provides the best path to long term jobs paying

above minimum wage. However, language training systems provided by the government to build this proficiency

were observed to be out of step with vocational educational system needs. Ulf Matysiak, CEO of Teach First

Deutschland, advised that government assistance for language training currently only covers to level B1,17 requiring

investment in about 1000 hours of education. However, entry into the vocational education system requires a

minimum level of B2, only requiring only an additional 300-400 hours of schooling. This appears to be a low marginal

investment, for a significant benefit for refugees seeking a career. This would also possibly have important incentive

effects for prospective students.

GENDER STEREOTYPES AND INDIVIDUALISM

As a progressive society with a strong sense of equality in terms of sex, race, sexual orientation and religion, German

social norms clearly challenge some segments of the refugee population, presenting a barrier to effective

integration. This was observed through a number of examples in interacting particularly with refugees and

volunteers.

Some female volunteers interviewed, particularly those in educational or leadership roles, had experienced

situations where refugee males of Middle Eastern descent would refuse to participate in class or engage with female

volunteers. This was a clear source of frustration for such volunteers, however those interviewed were pragmatic in

their approach in that they would equally refuse to engage with those who would not cooperate. Another example

of a gender stereotype was a story of a man who didn’t want to participate in a classroom environment out of shame,

in that he wasn’t instead working and providing for his family. Additionally, many German companies have significant

number of females in management positions; for example, at McDonald’s Germany, 47% of management positions

are held by women. The company feels like they are able to address this shift in cultural differences through clear

rules and expectations of diversity in the workplace: “If you don’t accept the rules, you leave,” explained an

executive. Such examples represent significant challenges for refugees seeking to integrate into a highly foreign

environment that embraces diversity and tolerance. Researchers also observed many examples of refugee men and

women working with volunteers and respectful of German value for diversity and equality.

Figure 9 illustrates a comparison of cultural dimensions based on Hofstede’s theory. 18 Countries compared to

Germany include those where significant number of refugees originate from (Ethiopia is provided as a proxy for

Eritrea given the absence of data for this region). Interestingly, Germany scores very high for individualism, a

fascinating paradox given the observed social inclusion and response to the refugee crisis. However this also possibly

supports the observed importance of diversity and tolerance of the German people. The disparity with refugee

groups does demonstrate one aspect of the cultural divide that refugees must adapt to.

17 https://en.wikipedia.org/wiki/Common_European_Framework_of_Reference_for_Languages 18 https://geert-hofstede.com/

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Figure 9: Hofstede Cultural Dimensions

LONG TERM ORIENTATION

Figure 9 also uncovered a more critical cultural difference that is having a potentially material impact on the

integration effectiveness, and long term opportunities for refugees. For two of the largest refugee groups, Syria and

Iraq, long term orientation is much less than half that of Germans. This was observed to manifest itself in a critical

tradeoff that particularly younger refugees, between the ages of 16-25, face regarding a decision to enter the

vocational education system.

According to one senior German economist interviewed, young refugees with no (or minimal) qualifications are

faced with two general choices for employment - vocational education or a minimum wage job. Vocational education

in Germany is a dual educational and on-the-job training scheme to build certified skills in certain job areas, from

retail through to trades, like electricians and plumbers. Vocational training takes some years to complete, and offers

a below minimum wage job, but is seen as a joint investment between the individual, the state, and the employer

to develop skills, and ultimately provide for higher pay and living standards in the future – the long term. By contrast,

such refugees are also faced with a choice to enter an initially higher paying minimum wage job that will have much

lower potential future prospects.

The tradeoff is being driven by a number of potential factors, including the need or “duty” to provide for the family,

the necessity to contribute to funds to assist bringing other family members to Germany or paying debts to human

traffickers, or the desire to maintain face amongst the social group by avoiding further education. The vocational

training systems of Germany and Austria are unique across developed economies, and are recognized as critical

elements of their industrial success. The characteristic of German people to value the long-term benefit drives young

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Germans to enter these programs with the promise of greater prosperity and retirement security. This presents

somewhat of a paradox for refugees, coming from a culture generally not placing high value on the long term, instead

living for the now. This is exacerbated by the other pressures placed on them as previously discussed.

While some elements of culture are more teachable and lead to clear recommendations, the difference in long-term

orientation is a fundamental behavioral characteristic formed over time based on a person’s history and experiences.

A refugee who fled his home in the middle of the night and made a precarious trek to Germany will have a very

different perspective on the future than a German whose profession was identified when he was 14 years old and

he began vocational training. In this case, a greater awareness of this difference in mentality is an important element

for Germans, and understanding the perception of refugees in contrast to the German people will be an important

element in creating programs – from language classes, to government policies, to workforce training.

RECOMMENDATIONS

REVIEW GOVERNMENT-FUNDED LANGUAGE MECHANISMS

As highlighted by the Cologne Institute for Economic Research, Germany’s labor shortages now and into the future

exist within the vocational education system; the traditional basis for German economic strength. However, clearly,

government-funded language training systems are failing to prepare willing refugees sufficiently, by stopping funded

language training at level B1. The marginal investment in supporting training to level B2, a requirement for entry

into the vocational education system, appears to be low-hanging fruit to supporting the needs of refugees and the

German economy. In our Education and Employment section, we provide other recommendations to address

flexibility around vocational training systems to foster greater refugee participation and success.

FOSTER INFORMED DECISIONS FOR REFUGEES

The long-term orientation differences between the German people and some of the major refugee groups is not an

easy cultural disparity to address. However, mechanisms need to be in place to ensure that refugees fully understand

the ramifications of trade-off decisions they are forced to make in the short term that could have a significant impact

on their long-term prosperity. This must be addressed through deliberate and structured communication and

integration training offerings to help educate refugees on a range of issues, including the educational system,

navigating the government and educational system, and other critical topics that are not common knowledge for

non-Germans.

Additionally, while outside of the scope of our analysis, it is recommended that policy makers consider the costs and

benefits of reviewing pay rates for vocational training, in order to help shape better decisions on behalf of refugees,

and the general German populace.

TEACH GERMAN VALUES

Germany is at a critical point in its social consciousness regarding what it means to be German. This provides a

challenge for migrants in developing an understanding of these cultural values and norms. Currently, migrants

seeking to become German are not officially assessed on certain cultural aspects until very late in their citizenship

process, only just prior to receipt of a passport. This could take many years. It was clear in discussions with various

volunteers, that structured and documented material to teach German values was just as critical as knowledge of

language, in helping to break down various cultural barriers and stereotypes. Indoctrination into the German culture

should start occurring very early in the process. German society needs to take a position from the start to assume

that refugees will stay and begin to help them understand the German culture so that they can better adapt and

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integrate to this new way of life. Whether they do stay long term or not is irrelevant, for those that do stay will be

given a better opportunity to integrate from the start of the process.

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PROCESSING OF REFUGEES

ASSESSMENT OF REFUGEE PROCESSING

When asylum seekers enter Germany, they must visit a “reception center” in order to request asylum, which is the

first step in a chain of events. The full process is designed to be completed within 18 months. One of the most

fundamental challenges we heard repeatedly was the issue of the time it takes to process refugees. Because

Germany received far more refugees than it intended in 2015, it is certainly understandable how an influx of people

created a backlog in the system. However, we identified several elements for re-evaluation or addition to the

process.

Figure 10 maps the official process for migrants, including refugees, according to the BAMF website.19 We also

overlay the major impediments to and gaps in the process due to the volume of refugees overwhelming it.

Figure 10: Refugee Process Flow

19 www.bamf.de/SharedDocs/Anlagen/EN/Publikationen/Flyer/flyer-erstorientierung-asylsuchende.html?nn=1451242

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1. ARRIVAL AT A GERMAN ENTRY POINT

Vetting: In 2015, an estimated 80% of refugees were not thoroughly vetted prior to entry, including validation of

identities and input into the Eurodac regional database. Germany is now shoring up those checks through the asylum

application and interview process. Thorough vetting in Turkey as a result of the EU-Turkey deal will mitigate this in

the future. Where fraudulent applications are found, persons are given three month suspended sentences and

ordered to leave the country within a month. Germany must increase manpower and Eurodac machines, and begin

tracking where the refugees return to. The Washington Post reported in April 201620 that after their expulsion in

Greece, two of four Paris attackers successfully entered France and detonated themselves. The other two were

captured en route.

Special Populations: An estimated 95,000 unaccompanied minors arrived in the EU last year, with 50,000 to 60,000

of those registering in Germany alone, approximately 10,000 of whom were reported missing.21 Fears are increasing

that traffickers and criminals are preying on this most vulnerable population. Children who do register are usually

sent to a group accommodation with one adult per eight children, but are not always getting the support they need.

Many volunteers are willing to foster and provide legal guardianship, if only they could be connected with children.

One person we interviewed told us that lawyers in particular are encouraged to foster, as they have the legal

background to help refugees navigate the system. These children, in addition to families and those with illnesses and

other special needs, must be identified in a central database for further support.

2. RECEPTION PHASE

Application Process: During the height of the flow last summer and fall, thousands waited in line for weeks to apply

for asylum. The process was unclear and haphazard out of necessity, resulting in further frustration and delays.

Reception centers should create and hand out step-by-step instructions with multiple languages and pictures for

ease of communication, and allocate resources to completing paperwork, reviewing applications, and interviews.

This should include follow-on information such as job centers, integration courses, and schools and medical facilities

available. Since nearly all refugees are reported to have smartphones and heavily depend on them, developing social

media avenues would also be tremendously helpful. This would also help refugees connect with a network, a

necessity according to refugees we spoke with.

Freedom of Movement: While refugees are told to remain in the state, they can come and go from the reception

centers, a humane way to allow them some autonomy to shop and attend classes and community events. However,

in many cases they are not required to sign in and out, resulting in many who have disappeared. As Germany

improves electronic registration, it must be disciplined in maintaining visibility of refugees.

Emergency Shelters: Where reception centers were overcrowded, many states stood up temporary shelters in

school gymnasiums and hurried to make unused facilities available. These facilities are causing additional strain on

communities and sequestering refugees further from direct access to neighbors, which further delays integration.

As the backlog begins to clear, Germany must prioritize moving refugees into integrative housing in cities and towns

across their municipalities.

20 https://www.washingtonpost.com/world/national-security/how-europes-migrant-crisis-became-an-opportunity-for-isis/2016/04/21/ec8a7231-062d-4185-bb27-cc7295d35415_story.html 21 http://www.theguardian.com/world/2016/apr/12/almost-6000-refugee-children-missing-last-year-germany?mkt_tok=eyJpIjoiTkRObVltRTJOVFl4WVRnMSIsInQiOiJOK25sdGlxWnFNNFU2R2JaNHN2bjlYdTE2Rm5QZUUxeDZHeWQrN1EzK1BtRll2WWFPNzh4UHBCZlBLemRhV2xZempzXC9IU2lJYUF2WCtCZnpXeVlYK3NCaHVGT2pvVko3SnFBZWYwNHVJN3c9In0%3D

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3. MOVEMENT TO MUNICIPALITIES

Access to Effective Housing: While many cities and towns are dispersing refugees into group hostels and apartments

in proximity to neighbors, shops, courses and future employment, many are housed in communal shelters on the

fringes of communities, without access to transportation and interaction with citizens, further delaying development

of refugees into German society. For integration to be successful, a thoughtful approach must be utilized, to allow

people to more quickly find housing in communities where they may find success.

Integration Courses: The course is a full-time requirement of all adult (over age 16) asylum seekers, and includes

600 hours of language followed by 60 hours of orientation training over a period of 2 years.22 Orientation could be

included earlier so refugees are immediately learning the culture, laws, and values of German society to assist them

in their early interactions in communities.

Access to Employment Opportunities: While restriction from work has been decreased from nine to three months

upon receipt of a temporary residence permit, refugees still must have a concrete job offer with a specific job

description and list of responsibilities in order to receive a work permit.23 This includes access to vocational training.

Job Centers and the BAMF, who are responsible for linking jobs with job-seekers, should consider assessing prior

skills, interests and aptitude of refugees during their integration courses to help shape their future work

opportunities during these intervening months. See our Education and Employment section for further

recommendations.

THE LEGAL IMPERATIVE: IMPACT OF IMMIGRATION LAWS AND INTEGRATION POLICY

IMMIGRATION LAWS

The rules provide the foundation for how and why Germany is responding

as it has. German Immigration Policy was just catching up to itself at the

start of the crisis, solidifying an immigration policy for the first time in the

intervening years since implementation of Article 16 of its Basic Law to

atone for the crimes of the Third Reich, which offers liberal asylum rights to

those suffering political persecution and reflects Germany’s current policy

to fulfill its historical and humanitarian obligation to admit refugees. As Ralf

Heßmann, District Superintendent of Nordsee-Treene stated: “According to

German Law, we will take care of you when you are threatened with

death.” Other relevant regional policy includes the Geneva Refugee Convention, which gives clear right to asylum

for those fleeing political persecution and civil war, and the Dublin Regulation, that stipulates asylum seekers must

make their claim in the EU country they first step foot in. The Dublin Regulation, however, is hardly imposed as other

countries have knowingly pushed migrants through to other countries so they are not the “country of registration,”

or closed their borders altogether, part of the reason for the EU-Turkey deal to impose a more structured approach

to processing refugees and dispersing them into Europe.

22 http://www.asylumineurope.org/reports/country/Germany 23 Ibid.

“According to German Law, we

will take care of you when you are

threatened with death.”

- Ralf Heßmann, Nordsee-Treene

District Superintendent

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A significant new immigration law aimed at dissuading further

migration is called "Asylum Package II."24 Passed by Germany’s

Parliament in February, it suspends refugees’ right to bring

family members for two years. While is specifies application to

refugees “who are not being personally, urgently persecuted,”

it is difficult to say how it will be implemented. This would

affect families who are separated for various reasons, and the

unaccompanied minors in Germany.25

NATIONAL INTEGRATION POLICY (NIP)

Beyond completing implementation of its first immigration

policy, Germany also has federal policy on integration. Based

on the European Common Basic Principles (CBPs) on immigrant

integration, Germany’s 2007 National Integration Plan (NIP)

clearly stipulates the dual role of the country and the

immigrant in integration. Its two guiding principles require the

refugee to fully embrace the language, laws, culture, and

society to show tolerance, and point out that the government

cannot fulfill integration, but the entire society must

participate to ensure a climate for lasting integration. Its 11

principles include guaranteed practice of diverse religions, the

criticality of education, and the imperative of mainstreaming

government policies, along with emphasis on the dynamic two-

way process including frequent interaction between refugees

and citizens.26

RECOMMENDATIONS

PROVIDE CLARITY

As the dust settles, the resounding message for how to help the refugees was to provide clarity: where to go, who’s

responsible, and what the rules, requirements and opportunities are (see text box “Provide Clarity”). Communication

is paramount, and pictures speak a thousand words. We found and were referred to various flyers and handouts to

aid in this area, and there are surely countless others created at all levels. Comprehensive information at the federal

level, formatted for easy use by refugees, is critical – especially as the processes evolve. Clarity is equally imperative

for all stakeholders, as business, government agency, and volunteer efforts are also hindered by the ambiguity.

Germany must also fully implement a database as we recommend throughout our report. Deutsche Welle reports

that there are five different government agencies that handle registration, but their data is not compatible: they

24 http://www.npr.org/2016/03/13/470314380/new-german-law-delays-refugee-families-reuniting 25 http://www.theguardian.com/world/2016/apr/12/almost-6000-refugee-children-missing-last-year-germany?mkt_tok=eyJpIjoiTkRObVltRTJOVFl4WVRnMSIsInQiOiJOK25sdGlxWnFNNFU2R2JaNHN2bjlYdTE2Rm5QZUUxeDZHeWQrN1EzK1BtRll2WWFPNzh4UHBCZlBLemRhV2xZempzXC9IU2lJYUF2WCtCZnpXeVlYK3NCaHVGT2pvVko3SnFBZWYwNHVJN3c9In0%3D 26 http://www.coe.int/t/dg4/youth/Source/Resources/Forum21/Issue_No10/N10_National_integration_plan_en.pdf

Provide Clarity

At dinner in Kreuzberg, 3 men

who escaped Aleppo

(“millennials,” in American

parlance) told us that after

arriving just a month apart, 2

received their paperwork within

30 days while the third was still

waiting 7 months later. They all

came to Berlin because friends or

family told them where to go and

who to see. They were also able

to connect to people and

resources through social media.

They can’t imagine

understanding how to progress

without these connections, and

worry about those without them,

believing “They will stare at four

walls and not feel belonging.”

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don't always use the same software, and they're not networked.27 So along with the unregistered refugees, there

are also people who have been registered more than once. Communication of relevant information is the clear path

to capturing demographic specifics for leaders’ decision making, resource requirements, and visibility of special

populations, such as unaccompanied minors. This is particularly crucial in making unaccompanied minors visible and

connecting them with those who want to foster or commit to legal guardianships.

RECONSIDER THE REFUGEE PLACEMENT APPROACH

People need connection and purpose to function well, particularly those who have lost all they identify with. Where

people are un- or underemployed, they are prone to restlessness, unease, and exploitation, and their neighborhoods

neglect, crime and fear. Where people without purpose gather, ghettos emerge. In addition, integration works best

when refugees can be settled in real communities. As Richard Arnold, Mayor of Schwäbisch Gmünd, said,

“Integration does not work if refugees live five to a room in a hostel, they have to get into private homes.”

The Königsteiner Schlüssel calculates refugee destinations based on a formula

which evaluates population levels and tax revenues. There are several challenges

to this approach; the three most significant in our view are housing, employment,

and safety. In some cases, areas already faced with lack of employment or housing

opportunities for existing underprivileged Germans grapple with finding

additional opportunities for refugees now entering their cities in droves. In others,

conservative, old-fashioned (or in the extreme, isolationist) communities are

struggling to embrace the Willkommenskultur (welcoming culture) required for

migrant success. We recommend allocation considerations include employment

prospects (by industry), housing availability, and safety. Albeit debatably, whether

within or beyond a community’s ability to influence, each of these could be

viewed as a proxy for welcoming. Published in April 2016, Figure 11 is the The Economist’s weighted index based on

these factors, yielding the “ideal” places for refugees to settle. We were fascinated to find after half of us went one

way and half another, that we we’d had such completely different experiences. As we reviewed this new data at a

rehearsal one night, Ellen had an epiphany: literally, we could have mapped this – while tremendously committed,

tension and concern were palpable in Cologne, meanwhile Adam described part of our time in Nordstrand as “like a

fairy tale.”

27 http://www.dw.com/en/bundestag-debates-new-refugee-law/a-18974746

“Integration does not work

if refugees live five to a

room in a hostel, they have

to get into private homes.”

Richard Arnold, Schwäbisch Gmünd Mayor

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Figure 11: The Economist – Refugee Relocation Index28

28 http://www.economist.com/blogs/graphicdetail/2016/04/daily-chart-8

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REQUIRE ACCOUNTABILITY FOR IMPLEMENTATION OF THE NIP

Germany must consider ways to hold local leaders accountable

to implement the NIP. When German policy, government

agencies, support organizations, citizens and the refugees

themselves all anchor to the NIP Principles, the natural outcome

is an emphasis on language, culture, education, employment,

and belonging – all critical to successful integration. The NIP

articulates the imperative that “Cities, counties and

municipalities [must be] aware of their crucial responsibility for

integration.”

We also recommend Germany implement nationwide

information campaigns, like those outlined in the NIP. The BAMF

commissioner gave this as an example: “commercial

broadcasters will consider migration and integration issues

more intensively in all their programming and broadcasting

formats, they will provide a credible view of the everyday life of

people with a migration background while avoiding clichés and

without denying the problems.”29 We wondered if inclusion of

this specific guidance reflects a tacit acknowledgement of

German Lugenpresse perception of German media.

Mayor Richard Arnold of Schwäbisch Gmünd, located in the

German state of Baden Württemberg where the anti-refugee

party Alternative für Deutschland (AfD) gained votes in the

March Bundesland (state) elections, leads his city with a five-

point plan: language, education, introduction to the job market,

decentralized accommodation and volunteer work.30 Efforts like

this are prevalent in communities where integration is more

productive. He admits his community is at its limit, but this

culture has allowed his community to relatively harmoniously

navigate the past twelve months with value created for his

residents and refugees. These kinds of communities can take

care of families like those found in the text box, “The Needs of

the Whole Person.”

29 http://www.coe.int/t/dg4/youth/Source/Resources/Forum21/Issue_No10/N10_National_integration_plan_en.pdf 30 http://www.huffingtonpost.com/entry/germany-refugee-integration_us_56f044b5e4b03a640a6b456e

The Needs of the Whole Person

Taking into consideration the

unique situation of each refugee

is imperative, as many,

particularly families and

unaccompanied minors, have

special needs. An Iraqi couple,

both 25, finally left Mosul seven

months ago with their two-year-

old son because they had no

reliable prenatal care for the

baby they are expecting. Both

professionals in Iraq, they spent

13 days in line in sweltering heat

to file their asylum applications

until a volunteer benefactor

swept them up and guided them

through. Another volunteer,

whom they met attending her

German language class, helped

them find a local obstetrician

they could communicate with,

and celebrated the successful

kindergarten enrollment for their

son 7 months later. Entry into

the workforce is their next big

hurdle.

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EDUCATION AND EMPLOYMENT

OVERVIEW

Education and employment are key to successful integration for both the migrant and the home country’s economy

and social structure. With such a large influx of refugees, modifications are necessary to the existing systems to

handle this influx successfully. The German economy and labor market is built on vocational training and

certifications. German employees in nearly every sector go through a formal training and certification process. One

common theme we heard from business and government leaders was that they were “waiting” to act until they

knew whether or not a refugee would be legally able to stay in Germany (in the immediate term and in the long-

term). Furthermore, those same officials questioned whether or not the refugees would choose to stay (and be

allowed to stay) when circumstances become peaceful in their home countries.

German business and government leaders should not be paralyzed into inaction by these questions. Actions need to

be swift, strategic and coordinated. There is an anecdote about a CEO talking to a CFO. The CFO says, “What happens

if we train them and they leave?” to which the CEO responds, “What happens if we don’t train them, and they stay?”

Given the ambiguity and uncertainty about the long-term future of refugees in Germany, we believe from our

observations of the current situation and past migration crises that the costs of integrating the refugees, even if they

do choose to leave, are lower than the costs of choosing not to educate and train refugees that do decide to stay for

the long-term. As mentioned above, Germany is well positioned to train these refugees as they have a robust training

system and its current economic conditions allow for additional investment. Ulf Matysaik, the CEO of Teach First

Deutschland, said that when looking to make changes to both the primary education system and the vocational

system, standards should not be reduced, but rather the process to access and participate needs to be easier and

more flexible.

RECOMMENDATIONS: EDUCATING UP TO 16 YEAR OLDS

Thirty percent of refugees in 2015 were 16 years or younger. These refugee children are being placed into existing

German schools around the country with varying degrees of success. Several education officials mentioned that this

group of refugees is at an advantage compared to older refugees because there is a robust education system already

in place that can immediately begin providing educational services. We heard from those same education officials,

in addition to other leaders and citizens, that the current system is under stress and needs several modifications to

maximize the education of refugees and to minimize the impact on current teachers and German students.

Addressing the concerns below is crucial for the long-term prospects of these refugee children and will allow them

to integrate and contribute back to the German economy and society. These refugee children are part of the next

generation of German workers.

School authorities need to receive earlier notification from the Federal or State level governments of

refugee children being enrolled in their school when possible. The current state has tens of refugee children

showing up the day of with no notice to school administrators, constantly forcing administrators to

scramble and disrupting the learning of current students.

A school’s capacity needs to be factored into the placement of refugees. Teachers, classrooms and supplies

are in shortage at some schools which disrupts existing students’ learning and reduces the learning

outcomes of refugee students. In some schools, gymnasium and cafeterias have been used to house

refugees, creating various problems in access to those facilities for students as well as growing public

concern. We recommend that authorities use school facilities as a last resort for housing refugees.

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The current teaching population needs additional training on how to best educate refugee children.

Refugee children come from different cultures with different learning techniques than traditional German

students and German teachers need to adapt some of their teaching methods. For example, Middle Eastern

education systems are based more heavily on lectures than Germany’s system, and teachers should receive

additional guidance on how to best transition refugee students to a more active approach in the classroom.

Schools need to have either additional resources or additional training to handle students with significant

trauma. Some refugee students are coming to school having experienced war, abuse and loss of family

members and need to work with experts. Current German teachers do not have the time nor the experience

to effectively handle this on the scale necessary.

Schools need to provide “German Language Learner” teachers as there are not currently any state school

teachers trained to teach German as a foreign language. In the immediate term, schools should select

current teachers that teach other foreign languages (i.e. English, Spanish, etc.) before looking at teachers

that teach German literature, etc. The process of learning a foreign language is complex and is different

from learning a native language. Additionally, more German Language Learner teachers need to be trained.

In the United States, we have a robust English as a

Second Language (ESL) program where teachers earn

qualifications to teach students where English is not

their primary language; this has proven

overwhelmingly effective in our primary schools.

A medium-term (5-10 years) analysis on the teacher

supply needs to be conducted to determine if there are

enough teachers for the influx of the approximately

300,000 students. In this assessment it should be

determined if the current teacher pipeline is sufficient

and if modifications need to be made to the

recruitment or certification model of teachers. Creative

and flexible programs are beginning to appear

throughout Germany to address localized teacher

shortages while helping refugees find employment (see

text box “Syrian Teachers in Potsdam”).

RECOMMENDATIONS: EDUCATING 16 TO 35 YEAR OLDS

This group of refugees makes up 50% of the current refugee population and has the largest potential for impacting

the labor market in the medium term (5-10 years). This group can be divided into two groups: no/low/moderate

skilled and moderate/high skilled (see Figure 12). 31 This group also has the highest risk profile for crime or joining

gangs and/or terror groups; reports already exist of gangs and terror groups attempting to recruit refugees. Every

refugee of working age we spoke with was eager to work, to make a living to support himself and his family; they

just need access to the labor market.

31 Cologne Institute PowerPoint presentation, April 2016

Syrian Teachers in Potsdam

The University of Potsdam

developed a program to train

Syrian educated teachers in the

German language and German

teaching methods. The program

will provide certifications outside

of the traditional route to 75

refugees after ensuring they

meet the high bar.

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Figure 12: Educational Background of Refugees, 18+

Moderate/High Skilled: These refugees should be treated as traditional German vocational students with an

increased and intensive focus on German language proficiency. The current vocational system will need several

modifications to successfully incorporate these refugees.

Develop tests that can easily assess current education levels and skills to quickly place in an appropriate

vocational training program. For refugees that have a previous certification, provide an efficient process to

recognize that certification. The sooner the refugee is placed the sooner he/she can begin training and will

be ready for a job. W.I.R., Hamburg is currently testing this on a limited level and seeing early signs of

success (see text box “W.I.R and Network IQ – Work and Integration for Refugees”).

Consider raising the age limit or eliminating the age limit for vocational training programs in order to

effectively train older refugee populations that have exhibited an adequate level of skills in a given vocation.

From our perspective, investing the money now to train a young person in his 20s would be wise because

it would enable that person to see higher wages (and pay more in government taxes in the future), and also

would be less likely that this person would be drawing significant government welfare payments due to lack

of education or training as he aged.

Provide intensive German language on the job and not strictly in the classroom. Apprentice programs

should look for ways to allow refugees to start training while still mastering the language. Allow refugees

to start vocational training once they have mastered a moderate level of German (i.e. A2) knowing that the

refugee will continue language lessons in the classroom and at the apprenticeship. Clearly, it is important

to maintain language standards, but there could be opportunities to relax the strict B2 threshold where it

makes sense. For instance, certain vocational training programs could be restructured to allow for language

milestones to be assessed while participants undergo the program, to ensure proficiency development over

time to meet competency milestones. This might result in extending program duration, additional hours,

etc.

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Provide support in navigating the job market

(how/where to get a job, CV creation, interview

techniques, German workplace norms, etc.).

No/Low/Moderate Skilled: We heard from several groups that

there is a major gap in the German system as there is no program

or system to educate this group. We heard from a government

official in Hamburg that stated investing in two to seven years of

intensive training and support is worthwhile because that

refugee will have another thirty years of work and productivity

after his/her training.

Develop basic tests that assess current education and

skills.

Develop remedial courses in math, science, and

technology that are flexible (i.e. not every refugee

needs to start at level one) and structured for adult

learners.

Provide intensive German language on the job and not

strictly in the classroom.

Identify low-skilled industries that face job shortages

and develop/allow “fast-track” certification processes

with employers (i.e. fast-food industry).

Provide support in navigating the job market

(how/where to get a job, CV creation, interview

techniques, German job place norms, etc.

W.I.R and Network IQ –

Work and Integration

for Refugees

W.I.R. in Hamburg is a cutting-

edge government program that

promotes collaboration between

government agencies, labor

groups and businesses to better

find, train and employ refugees.

W.I.R. is partnering with these

groups to evaluate current

employment needs and identify

creative ways to fill those needs

with refugees. W.I.R. has

partnered with Network IQ,

which recently identified a trade

with a strong need for workers

that does not require significant

training or language skills:

welding. Network IQ and W.I.R.

are working to attract potential

candidates to this trade.

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CORPORATE STRATEGY AND RESPONSE

OVERVIEW

Based on our research, we characterized German companies’ corporate response to the migration crisis by three

successful strategies, based on how closely they align their Corporate Social Responsibility (CSR) activities with their

organization’s core business model (see Figure 13). The strategies can be classified as:

1) CSR as Corporate Philanthropy: Companies offer funding and training programs to achieve vocational

orientation for refugees.

2) CSR as Operational Management: Companies (in addition to corporate philanthropy activities) focus on

fast-cycle training and recruitment of unskilled labor among refugees.

3) CSR as Value Creation: Companies align, empower, motivate, and support their employees to integrate

refugees into the community and labor force in the long run.

These three strategies create a comprehensive approach that balances both the short term and the long-term needs

for integrating refugees into the German workforce and community.

Figure 13: Three Successful Strategies of Corporate Response32

CSR AS CORPORATE PHILANTHROPY

Companies that apply this strategy focus on achieving vocational orientation, and cultural and language integration

for refugees. The main objective is to create programs to provide refugees with baseline technical training, German

language courses, and knowledge on German work culture. Businesses either partner with local non-profit

organizations and provide them with funding, or use internal resources to create programs to educate and train

refugees (see text box “GE’s Response to the Migration Crisis”).

32 Adapted from: https://www.regjeringen.no/en/dokumenter/report-no.-10-to-the-storting-2008-2009/id542966/?ch=3

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For example, BMW funds “KICKFAIR,” 33 a non-profit

organization that uses football as a means to build social

integration between disadvantaged German and migrant kids.

Almost all the organizations we studied indicated that providing

cultural orientation was an important first component toward

integration given the significant difference in the religious,

social, and cultural backgrounds between refugees’ home

countries and Germany.

Since multiple organizations are following this tactic at a

grassroots level, there is little to no coordination of efforts to

achieve scale or standardization of training. For example,

BMW’s Work Here program aims to train about 500 refugees on

technology and language skills (see text box “BMW’s ‘Work

Here’ Program”). Most organizations, like BMW, work in a stove-

pipe manner and promote employee social engagement and

partner with volunteers and local community organizations to

create integration programs. The biggest drawback of this approach is that other non-profit organizations may be

better suited, more experienced, and/or well-equipped to create and execute certain parts of these programs.

For organizations to maximize the impact of this strategy, they will need to:

1) Conduct thorough research to understand the

landscape of activities to be performed, analyze key players,

and partner with an organization that does it best. This will

not only avoid duplication of effort but also help

organizations focus on the best channel to provide support

(i.e., via funding, resources, etc.).

2) Work with other firms and with the government to

create common platforms and improve data collection and

storage. All agencies, programs, and businesses will need to

provide and access information on the refugees.

Information on refugees’ educational background, skills,

experiences, and training will help organizations design

appropriate internships and apprenticeships and identify

refugees with the required skills.

3) Measure the effectiveness of participants who have

successfully completed internal integration programs and

create partnerships with other organizations to help

permanently place participants after training and

internships.

33 http://www.kickfair.org/

BMW’s “Work Here” Program

BMW’s “Work Here” Program

aims to enhance intercultural

and social integration among

refugees. The program leverages

the BMW training academy to

provide training and internships

to refugees for six to nine weeks,

focusing on German language

and technology skills, including

basic computer software skills.

GE’s Response to the Migration Crisis

General Electric (GE), a global

multinational corporation, calls

established partners they trust

when an event occurs. When the

refugee crisis began, they

donated $1 million to the

International Rescue Committee

(IRC) to support efforts in the

region, which align with the

strategic goals of the GE

Foundation.

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CSR AS OPERATIONAL MANAGEMENT

Companies that apply this strategy focus on fast-cycle training and recruitment of unskilled labor among refugees.

This strategy is common among service sector companies, such as McDonald’s and Starbucks, where the need for

hiring new employees is above average due to higher turnover than other industries. Based on our interviews, we

found that service sector companies can more quickly and easily hire refugees since the barriers for employment

are relatively low, and that these jobs do not always require employees to undergo specific work-related training or

even speak fluent German, especially in urban areas with tourists where an understanding of English is often more

critical. They only look for motivated people who have a passion for what they do. In addition, most companies value

diversity in the workplace and believe that integration into the corporate culture and community will be easier with

a diverse team.

During our research we learned that, despite low unemployment in Germany, companies such as McDonald’s are

constantly looking to replace employees in stores where the attrition rate is high. This presents an opportunity to

place low-skilled migrant workers in the German labor force. But unfortunately, companies are restrained by

government bureaucracy and slowness in processing paperwork. We heard in some cases the wait to get paperwork

processed could take anywhere from a few months to over a year. These firms need the government and the BAMF

to process refugee paperwork faster and provide refugees with work permits so companies can hire them quickly.

Though this strategy seems like a good way to get refugees into the German labor force quickly, one significant

challenge, according to the companies we interviewed, is the widely-held perception that there these are “dead

end” jobs. As a result, most refugees do not want to work in service jobs, believing that the pay isn’t good as in other

industries and there is no long-term career path for them in these jobs.

For organizations to maximize the impact of this strategy, they will need to:

1) Work with other similar organizations and the government to accelerate timelines for processing work

permits. Some organizations, such as McDonald’s, are already a part of Wir Zusammen34, a community of

German organizations that work together to help refugees integrate in the German workplace and society.

2) Collaborate with the government to create systems with more information about refugees’ background and

skills to help organizations with the hiring process. In addition, they will also need to create a transparent

process to provide information to refugees, educating them about the employment process and requirements

in Germany. To the extent possible, these companies can also share training and educational materials they

have already created with the government, reducing duplication of work and investment, and ensuring

maximum efficiency.

3) Be prepared with well-equipped schools and training programs to train and educate refugees once they are

hired. This will not only help them integrate faster but also provide them with the necessary skills to progress in

their jobs.

4) Create and define clear career paths to help refugees think through more long-term opportunities for

themselves with a specific company. This will reduce the anxiety and concerns among refugees who perceive

service sector jobs as low-paying with no future.

34 https://www.wir-zusammen.de/home

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CSR AS VALUE CREATION

Companies that apply this strategy focus on integrating refugees into the community and labor force to make them

productive members of the German society in the long term. Companies, such as Deutsche Post DHL Group,

Deutsche Telekom, and SAP, were emblematic of this strategy, and use a multi-pronged approach, working with

employees, social organizations, and the government to tackle the issue. These companies do not only fund and

partner with nonprofit organizations, they also empower their own employees to actively participate in fixing the

crisis. This multi-pronged approach includes offering trainings and internships for refugees, providing real-estate for

housing, supporting the government with additional manpower, and collaborating with other nonprofit institutions

to provide funding for integration activities.

It is no surprise that we noticed companies with a corporate culture of strong social consciousness, such as Deutsche

Post DHL Group (see Figure 14)35 and Deutsche Telekom (perhaps due to their origins as state-held enterprises), are

leaders of this strategy and operate with a long term time horizon. They align their CSR activities with their corporate

goals and mission, and use CSR as a strategic tool to drive value for both the company as well as the community.

Some successful policies include:

Analyze and apply their

core competencies to

provide solutions for

the migration crisis.

Examples include

Deutsche Telekom

providing wireless

hotspots at welcome

centers (see text box

“Deutsche Telekom’s

Multi-Faceted Efforts”)

and SAP creating

technology solutions to

help the government

register refugees at the

border (see text box

“SAP’s Multi-Pronged Approach”). For areas outside their core competency, they partner with organizations

to provide effective solutions. For example, Deutsche Post DHL Group partners with Teach First Deutschland

to support training and educational projects and also leverages their partner organizations to help prepare

and train their volunteer force before they reach the field, to ensure they are adequately prepared for the

tasks they will face, and to mitigate risk against negative consequences.

Prioritize efforts to achieve maximum scale and impact, rather than focus only on grassroots activities.

Organizations should not try to do everything but instead look at the spectrum of activities to be performed,

35 Deutsche Post DHL Group’s PowerPoint presentation, April 2016

Figure 14: Deutsche Post DHL’s Approach to Tackling the Refugee Crisis

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analyze their core competencies and strengths, and prioritize resources, funding, and effort on tasks that

can achieve maximum impact.

Involve employees who had been refugees or refugees themselves who could help inform the problems

and provide solutions based on their own personal experiences.

The biggest challenge of creating and executing such a strategy is that it is not only time and resource intensive but

also needs the complete attention, sponsorship, and support of executive leadership. This can only be achieved if

the tone is set at the top and cascaded down to all employees appropriately.

For organizations to maximize the impact of this strategy, they will need to:

1) Create an overall strategy and use the different tactics to drive towards that strategy. It is imperative that

the CSR strategy is aligned with the organization’s strategy and mission.

Deutsche Telekom’s Multi-Faceted Efforts

Wireless Hotspots: Allow refugees with

smartphones to access the internet in

reception/welcome areas

Real Estate Lending: Offer underutilized

Deutsche Telekom real estate for refugee

camps

Refugee Web Portal: Provide job postings and

employment-related information for refugees

BAMF Support: Mobilize over 500 civil

servants who are Deutsche Telekom

employees to work for BAMF

Internships and Technical University

Education: Offer over 100 internships to

refugees and HfTL scholarships for refugees

Employee Volunteering: Encourage

employees to support refugees with various

activities

Wir Zusammen: Coordinate activities and best

practices with other companies and

organizations

SAP’s Multi-Pronged Approach

Philanthropy: Donated €900,000 (including

employee contributions) towards the refugee

crisis

Technology Solutions: Developed solutions for

government and refugees, including:

• Technology solutions to help register

refugees

• Mobile app to help refugees arriving

in Germany to navigate bureaucracy

and assist officials in registering the

new arrivals

Training and Employment: Designed

employment and training program, including:

• Offered ten apprenticeships to

individuals who attend university

while concurrently working at SAP

• Opened 100 internship positions for

refugees

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2) Leverage the organization’s core competencies and employee know-how and collaborate with experienced

partners to create and execute relief programs.

3) Communicate with all parties (employees, management, stakeholders, partners, etc.) and clarify objectives

of their program from the onset.

4) Collaborate with other organizations from the beginning to learn from each other, avoid reinventing the

wheel, and apply best practices.

RECOMMENDATIONS

Germany will need to build the ship as it sails. Germany will need the short-term tactics, to provide employment,

training, and education as well as the long-term strategies to effectively integrate refugees into the German

community, society, and workforce. Specifically, companies will need to:

Coordinate efforts on all fronts, enabling employees, funding aid organizations, partnering with other

companies, supporting non-profit organizations, and collaborating with government entities to create an

integrated strategy to address the refugee migration challenge sustainably.

Partner formally, establishing channels such as Wir Zusammen to:

o Create long-term prospects and opportunities for refugees

o Share knowledge with each other and coordinate efforts for more impact

o Share best practices to be more effective and reduce duplication of efforts

o Create an integrated model to provide both short-term and long-term integration efforts

Collaborate with the government, advocating for a centralized database of all refugees with their

background, experience, educational qualification, training, etc. This database will not only help companies

understand the profile of the refugees and establish appropriate internships but also enable them to track

a migrant as he goes through the process of language orientation, vocational training, and employment.

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CIVIL AND COMMUNITY ENGAGEMENT

Germany’s integration policy makes clear that integration is the joint

responsibility of the country and the migrant. No part of society is more

foundational to this effort than the people in it. As Ulf Matysaik, Teach

First Deutschland CEO stated, “This is a societal thing; money isn’t going

to solve it.” The job of government is to facilitate; people integrate.

In his piece in the New York Times Magazine, James Angelos articulates,

“Whether the nation deals successfully with the migration challenge or

succumbs to fear and nationalism will largely be determined by how

communities directly charged with welcoming the migrants confront the challenges ahead.” Regarding today’s

reality, “The vital question the villagers and their asylum-seeking neighbors now face is whether together they will

be able to define a new [community].”36

Achieving integration is much easier said than done. In addition to fears of change, loss of identity, and fraying in

the fabric of their communities, Germans and refugees share real fears of unrest, crime, and worse – terrorism. And

the risk is real. The weight of this reality was present in every conversation we had. In one interview, an economist

offered his sense that, “The initial euphoria has been replaced by a feeling of, ‘I’m uncomfortable.’” “Uncomfortable”

seemed to be an understatement.

PERCEPTION IS PARAMOUNT

We found some communities are enriched, finding a mission and purpose helping refugees. We all smiled as a

woman in Husum and the young Afghan man she’s been mentoring showed us his progress learning the two-step in

her dining room. The authoritative retired teacher nominated to lead their volunteer network (that grew from 39

members to over 400 in a year) looked on, after giving us an amazing overview of their journey with the 50 refugees

in their town of 1500. Under these circumstances, we found many residents find that refugees are tough, motivated

and want to integrate. While not ignoring the challenges, they wonder how everyone doesn’t behave this way and

why the US and Europe do not do more.

Some communities are more conservative, closer to negative experiences, and in the extreme, feeling more deeply

the loss of their identity. They may have seen crime, bad behavior, or refusal to respect the German culture. In one

community, we witnessed a strong sense of duty and willingness to help those who want to be helped, but also

growing frustration with the time it was taking to effectively integrate and move migrants into more permanent

accommodation and jobs. Some are aggravated to see refugees placed in housing marginalized Germans have waited

ten years for. They feel their children’s education affected by hundreds of people in their gyms, prohibiting sports,

clubs, and assemblies. Where these experiences are more prevalent, people told stories of the palpable tension in

their neighborhoods. One government official told us she receives email after email that all begin with, “I have

nothing against the refugees, but…”

Pervasive throughout the country is the knowledge that if people perceive and experience more of the latter than

the former, the fragile stability in many parts of the country will fracture. Several interviewees believe the high

36 http://www.nytimes.com/2016/04/10/magazine/the-new-europeans.html?_r=0

“This is a societal thing;

money isn’t going to solve it.”

- Ulf Matysaik, Teach First

Deutschland CEO

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political energy and media sensationalism exaggerate reality in some areas. Even a well-educated, highly involved

senior political official admitted one opinion she shared was based on “What I’ve heard, and from what I’ve read.”

NON-GOVERNMENTAL ORGANIZATIONS (NGOS), COMMUNITY ORGANIZATIONS AND VOLUNTEERS

Many of our conversations referred to the stoic and inflexible German bureaucracy, which lacks the agility to adapt

to this challenge. Several wonder whether the refugee event will break up some of the inelasticity and help German

government and regulations evolve. And like any government, there are also limits to its reach, especially in the face

of a challenge on this scale.

NGOs and community organizations are instrumental in integration, most of which are facilitated by volunteers.

NGOs are new to Germany, because the government is responsible to ensure the welfare of the people in the

German social system. Government agencies wonder why NGOs are sprouting up, and welfare recipients wonder

why the government isn’t doing more. UNICEF, for instance, has transitioned from a fundraising role to an

‘operational’ role in Germany, for the first time in its history, recognizing the emergency that exists in supporting

the countless thousands of unaccompanied minors.

There is considerable variation across states and between individual municipalities in how NGOs and civil society

organizations are assisting resettled refugees. In many municipalities, grassroots campaigns to build support for, and

local involvement, in refugee resettlement are active in assisting refugees in a variety of different ways. In many

municipalities, national NGOs such as Diakonie and Caritas provide advice and support for resettled refugees.

Whether a formal organization or a weekly pickup game, the value of these organizations is belonging. This is also

the primary and most effective way migrants learn the language, culture, and values of the communities they want

to thrive in. Whether they are staying for now or forever, these efforts are found among thriving migrants and

communities. Refugee outreach efforts have resulted in groups ranging from

informal to internationally lauded. Some examples of governmental global,

and grassroots initiatives can be found are in Figure 15 below.

Volunteers help refugees look for apartments, jobs or medical treatment, and

prevent the support system from collapsing by compensating for what the

state cannot reach. They also provide what no state can: friendliness,

attention, and friendship.37 As Gudula Merchert, the daughter of refugees who

were children and survived only by the generosity of the community said, “If it

weren’t for the volunteers, we wouldn’t have made it.”

37 http://www.spiegel.de/international/germany/refugees-encounter-willing-helpers-in-germany-a-1048536.html

“If it weren’t for the

volunteers, we wouldn’t

have made it.”

- Gudula Merchert, child

of refugees

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Figure 15: Examples of Volunteer and Community Organizations

RECOMMENDATIONS

ENABLE COMMUNITIES TO ENHANCE GOVERNMENT AGENCIES

In our conversation with Nordsee-Treene District Superintendent Ralf Heßmann, we learned how an elected leader

can also be a volunteer, and how through his engagement with his community’s volunteer structure, Netzwerk

Nordstrand, he is able to align the resources and efforts of both. His perspective is profound: “We can train the state.

The farmer knows the workings of the animals.”

Later that day, we met the leader and several members of Netzwerk Nordstrand, and enjoyed lunch with eight of

the refugees it supports. They told us that Heßmann’s involvement created a foundation from which all efforts could

operate. To a person, they all agree that the problems and challenges are significant, but within their sphere of

influence, surmountable.

Global

SINGA Deutschland (Connect

Germany) http://singa-

deutschland.com/en/

Purpose: Connect people

recently arriving to Germany

as refugees with locals living

and working in Berlin

through social events, a

language exchange program,

and professional mentoring

Programs: Weekly language

café, music and jam sessions,

literature circles, and

professional mentorship

program

Governmental

Federal Voluntary Service

http://www.bundesfreiwillig

endienst.de/

Purpose: The Federal

Volunteer Service is a social

engagement project: It aims

to create a new culture of

voluntary involvement in

Germany and to enable as

many people as possible to

commit themselves to the

common good.

One Oportunity: Refugees

can serve as teachers in

classrooms for €300 per

month

Grassroots

Über den Tellerrand Kochen

(Cooking Beyond the Plate's

Edge)

https://ueberdentellerrandk

ochen.de

Mission: Create a new

togetherness among

refugees and locals and

achieving long-lasting

integration, inspiring cross-

cultural exchange and

encounters to support an

open and tolerant society

Events: Communal cooking

nights with refugees and

locals, cooking classes, canoe

trips

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In Böblingen we heard that the ability of volunteer leaders to develop

strong relationships with local government agencies and leaders was

really helpful in assisting with speeding up processes normally

managed at the state and federal levels. As Christa Formeseyn, the

Coordinator of Netzerk Nordstrand said, “We cannot fix it all, but need

to focus on what we can do.” We believe that wherever decision-

making and empowerment can be pushed to the local level, better and

faster decisions could be possible.

Community leaders should connect with and enable these grassroots organizations to extend the reach of

government by combining resources and efforts. Funding to municipalities should be disbursed to the people and

organizations fulfilling these crucial roles.

PROVIDE TRAINING AND SUPPORT TO VOLUNTEERS

The volunteers are vital to the integration of refugees and must be supported. The government should create a

communication structure volunteers can use to connect with one another and make resources available, allowing

volunteers to efficiently find projects they can support and to be effective in providing it. This formal backbone will

allow volunteers to share the burden, creating a sustainable structure and relief for the exhausted. Volunteers

should receive training on available resources and processes, and education and support in dealing with people who

have experienced trauma. Deutsche Post DHL Group is very strategic in their selection of NGOs and action partners

to ensure volunteers have the right preparation and tools at their disposal. Prospective volunteers undergo a

screening process to ensure they are matched to the correct roles, and partners are leveraged to provide training

for all volunteers in how to execute their duties effectively and safely.

“We cannot fix it all, but need

to focus on what we can do.”

Christa Formeseyn, Coordinator

of Netzwerk Nordstrand

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NATIONAL SECURITY

At the end of nearly every interview, we asked the question, “What could go wrong?” And every single time, we got

the same response: terrorism. An attack on German soil that threatens the safety and life of any citizen could be a

game-changer and have disastrous implications for refugee support. The current environment is polarized with

officials and volunteers continuing to support the crisis while at the same time a growing number of anti-refugee

protests and violence is occurring. Perhaps Germany is reaching a tipping point and unless genuine considerations

are made for national security there could be serious consequences that endanger the safety of its people.

CURRENT SITUATION

The growth and popularity in which people support far-right political factions such as Alternative für Deutschland

(AfD) is one indication of how public sentiment may be swaying against supporting the refugees. Another indication

is the number of attacks on refugees, which were an unfortunate and recurring reality in 2015. German police

recorded an estimated 1,600 crimes against refugees or their living quarters between January and the end of

November 2015. More than half of these recorded crimes were committed by Germans sympathetic to the country’s

rising far-right political faction.38

Polarization may also be fueled by criticisms of the Lugenpresse, meaning “lying press,” where speculation is that

the media is covering up violence or attacks on either refugees or citizens to limit political fallout on both sides or to

limit negative perception of Germans globally. We heard anecdotally from one government representative that the

media “went easy” on refugees: “There is a perception that the press was in this with the elites to support the

refugees,” he said. “No one analyzed this. No one in the press was critical of refugees; they got off the hook.” While

our analysis didn’t necessarily find this to be true, perception is reality in many cases, and if this perception is widely-

held among Germans, a segment of the population who feels like their voice is being stifled will lead to a toxic

environment in the future.

Two specific cases highlight Lugenpresse in action: the October 2015 assassination attempt on the Cologne mayor

and the New Year’s Eve attack in Cologne just a few months later. Despite nearly six months of research, we didn't

hear of a nearly fatal attack on the Cologne mayor by an anti-refugee until the night before we met with a city

councilwoman. While we did learn about the New Year’s Eve attack on women by migrants, it took days to be

reported by the media and make international news. These cases may not prove truth to the speculation that the

media is censoring news, but these are just a few examples of several incidents that further add fuel to the fire.

Continuation of Lugenpresse may exacerbate the growing anti-refugee sentiment and may turn more people to

perceive that it’s no longer a coincidence.

On the other hand, and to an even greater extent, the civil society and volunteers are an important aspect to

successfully integrating the refugees and migrants coming into Germany. Most volunteers are in favor of supporting

refugees and ensuring a successful social integration; however, after several years of dedication volunteers are

stressed – a tone heard and felt throughout the interviews conducted in Germany. Combine this with recent events

such as the terrorist attacks in Paris and Brussels, Cologne New Year’s Eve attack on women by migrants, Cologne

Mayor being nearly killed by a protester, or the potential threat and target of Cologne-Bonn airport suggest a

potential tipping point to which a threat to national security could become a reality.

38 http://www.huffingtonpost.com/entry/germany-refugee-integration_us_56f044b5e4b03a640a6b456e

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Another factor that indicates a potential tipping point is the growing population of young refugees and migrants,

especially those too old for school (ages 18-34) but who are waiting for asylum application decisions with no jobs or

anything to do. As one city official put it, “when you sit around and do nothing, you start to get ideas [bad ones].”

Statistically, about half of refugees fleeing to Germany are between 18-34 years old; if you add those who are under

18, about 80% of all asylum seekers are represented (see Figure 16). Many of them are unaccompanied minors who

are vulnerable to traffickers and in fact an estimated 10,000 unaccompanied minor refugees have disappeared.39

These young refugees are also vulnerable to becoming homegrown extremists as the propaganda of ISIS is planted

like seeds or criminals as local gangs look for recruits.

Figure 16: Number of Asylum Applications40

As many Germans implied, a major attack on German soil could seriously jeopardize the entire chain of support to

refugees. What can reduce the risks of a security threat to German society? Officials and policymakers can secure a

safer Germany by establishing a central database, investing in national defense, changing security laws, and

effectively integrating refugees.

RECOMMENDATIONS

LEVERAGE A CENTRAL REFUGEE DATABASE

With a recent batch of proposals to strengthen refugee data and fight terrorism, Germany is working on

implementing a fully integrated central database where complete information is recorded and available to all

39 http://www.theguardian.com/world/2016/jan/30/fears-for-missing-child-refugees 40 https://global.handelsblatt.com/edition/410/ressort/politics/article/coalition-creates-historic-refugee-integration-plan?ref=MTI5ODU1

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stakeholders. This would be instrumental to improving national security and the fight against terrorism, among other

benefits that it would provide (e.g., registration process as highlighted in the Processing of Refugees section or labor

market assessment as noted in the Corporate Strategy and Response section). One effort currently underway is the

government working to implement and issue refugee identification cards that capture biometric information such

as fingerprints, and other asylum related information such as country of origin, cell phone number, information

about vaccinations, X-rays and other health information, and details about their education and qualifications that

would be captured in a central database available to federal and state agencies.

While Germany works to implement this complex technological effort, its current absence creates substantial

obstacles to information-sharing among government agencies and law enforcement for proper vetting of registered

refugees. There have been cases where some asylum-seekers had been identified as having potential terrorism ties

but by the time they were flagged, the individuals had already left the area or country.41 Absence of a system also

leads to tremendous duplication of effort, as we heard from more than one person that refugees who are denied

asylum will commonly find another arrival center (with or without papers) and apply again; this presents not only a

security risk but also bogs down the system, which is already struggling with massive numbers of people to process.

Another obstacle that has prohibited a central database creation is Germany’s history and sensitivity to data privacy.

We’ve heard and believe this stems from the Nazi era when people were catalogued for expulsion. Another factor

is the decentralized authority model instituted post world war with the intent to limit power into a central body;

however this has allowed some refugees to fake their identity or register multiple times.42

As we recognize the importance of leveraging a central database for proper security screening, we recommend that

leaders have broader discussions on data privacy laws; our perspective is that this information is crucial for national

security, and that policies should be modified or implemented while allowing flexible and responsive action. One

such law that needs revisiting is the purging of private data after three years. This no doubt makes it difficult to have

a central database that can be leveraged; thus, Germany has a future obligation to deal with such a privacy law that

would hinder the effectiveness of a shared database.

Germany must also strengthen the ability of its intelligence agencies to exchange data with foreign counterparts.

More broadly, Germany must work with other European nations and overcome serious legal and bureaucratic

barriers to intelligence information sharing. This is critical as the absence of common European police and

intelligence services magnifies the challenges in locating and monitoring potential extremists. 43 In particular,

unaccompanied minors not in school or without jobs present a heightened risk for becoming radicalized and thus

would be imperative to know how many have entered the country, but more importantly who they are and their

background.

With exposure to significant national security risks, the importance of leveraging a central database, deciding on

privacy laws, and sharing information with the European intelligence community is more apparent now than ever.

This will ensure that agencies and authorities will be informed, but also able to access critical data that is essential

to national security.

41 https://homeland.house.gov/wp-content/uploads/2015/11/HomelandSecurityCommittee_Syrian_Refugee_Report.pdf 42 http://www.homelandsecuritynewswire.com/dr20160115-germany-creates-ids-for-refugees 43 https://homeland.house.gov/wp-content/uploads/2015/11/HomelandSecurityCommittee_Syrian_Refugee_Report.pdf

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INVEST IN DEFENSE, DIPLOMACY AND DEVELOPMENT

Germany can secure its borders and stem the flow of migrants coming into Germany by investing more in the North

Atlantic Treaty Organization (NATO) defense. This would support efforts to end conflicts in Syria, Afghanistan and

Iraq, many of the leading countries from which refugees hail. NATO also engages in non-military missions such as

patrolling the Aegean Sea to stop illegal smuggling of migrants into the European Union.

Germany has the financial ability to invest more with an historic budget surplus since the reunification of

approximately €19.4 billion in 2015.44 Of course, we recognize that Germany already spends a fair portion of GDP in

supporting the refugees and NATO, but given the ongoing conflicts in Syria, Afghanistan and Iraq, and continual flow

of refugees, they must judiciously invest more to have a meaningful impact. For example, Germany currently spends

1.2% of GDP in NATO defense while much smaller nations such as Greece and Poland spend above 2% of GDP, which

is the NATO alliance target (see Figure 17). While defense is an important element to help stem the flow of migrants,

equally critical and necessary are diplomatic and developmental solutions. Germany must consider investing in

opportunities that address key factors for why people are fleeing their homeland and migrating to Europe. One clear

factor is safety and security of the people. If Syria or Iraq or Afghanistan are made better with safer places away

from war zones, fewer people will feel the urgency to leave their country and migrant to Europe and Germany, which

is struggling to handle the people it’s already received, let alone who is on the way.

Figure 17: NATO Defense Spending as a Percentage of GDP45

44 http://www.dw.com/en/germany-secures-record-budget-surplus/a-19067085 45 http://www.defenseone.com/politics/2015/06/nato-members-defense-spending-two-charts/116008/

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A major challenge to further investing in defense is Germany’s war history, which has led to reluctance in establishing

a large military force overseas. In addition, Germany has a law to have a balanced budget, “Schuldenbremse,” and is

reluctant to overspend or incur debt to finance efforts. In light of the current situation, the existing threat to national

security, and the crisis that Europe faces, Germany must consider investing more to support its defensive, diplomatic

and developmental solutions. While it may not be realistic to expect Germany to make significant contributions all

at once, incremental investments can be made without jeopardizing Schuldenbremse. Such investments will be

necessary if it hopes to make a significant impact to stem the flow of migrants coming into Europe.

CHANGE SECURITY LAWS

Granting law enforcement the authority to perform identity

checks and hold people who are unregistered as asylum seekers

may help Germany uncover individuals who pose as security

threats. While it is widely reported that over one million

refugees entered Germany in 2015, the German Interior

Ministry also reports that an estimated 350,000 to 500,000

unregistered refugees live in Germany and among them could

be the one-percent of so called “jeopardizers” (i.e. potential

terrorists). 46 Furthermore, Germany needs to effectively and

immediately deport asylum seekers who are denied that status,

especially those who are from “safe countries” such as Morocco

that makes the process of deporting easier. Many people who

are denied still live in Germany for one reason being that the

government still provides welfare benefits. Germany needs to

reevaluate these benefit payments and expediently deport

denied seekers out of Germany to not only provide benefits to

those that truly qualify, but also to reduce the risk of a security

threat.

Finally, what appeared to be an airport security gap is our team’s first-hand experience traveling from Cologne to

Berlin (see text box “Airport Security”). Our identification was not checked throughout the entire journey. While this

was alarming from our US perspective, we recognize Europe’s Schengen free-movement principle and how that

impacts Germany’s passport and identification screening laws. However, at the risk of alienating refugees, serious

discussions must be had on proper identification checks at airports with ISIS’s threat of an attack on Cologne-Bonn

airport similar to Brussels,47 many unregistered refugees who may be roaming about the country, and the potential

for more to come.

EFFECTIVELY INTEGRATE REFUGEES SOCIALLY AND CULTURALLY

As despicable as the attacks in Paris and Brussels were, a key lesson learned as it applies to Germany’s current

situation should be to effectively integrate migrants and refugees into society. One of the reasons why this is critical

is to prevent large formations of migrant ghettos. Some suggest that ghettos could be breeding grounds for

homegrown violent extremist who may train with terrorist and return to the EU, or that terrorist groups are preying

on unaccompanied minors and others who seek a sense of belonging and community after leaving their homeland.

46 http://www.dw.com/en/fewer-refugees-in-germany-but-still-work-to-be-done/a-19175067 47 http://www.dailymail.co.uk/news/article-3517012/Islamic-State-urges-attacks-German-chancellery-Bonn-airport-SITE-group.html

Airport Security

Germany can also improve

national security by instituting

better identity check protocols at

airports. A case in point involves

our team traveling from Cologne

to Berlin. At the Cologne-Bonn

airport, our identities were never

verified during the process of

checking in, dropping off

checked bags, or going through

security screening, or at any

point during our journey. If this is

the standard, a terrorist could

readily bypass airport security.

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This threat is more acute in the EU than in the US. In many large cities like Berlin, ghetto formation may already be

happening and could pose problems with an uptick in crime. Germany’s policy of Königsteiner Schlüssel goes some

way to address this by ensuring populations of refugees are dispersed throughout the country; however, effective

cultural and social integration strategies are key to avoid issues experienced in countries like France, Belgium and

Great Britain.

Another lesson that Germany faces is the experience of guest workers from Turkey, primarily in the 1950s and 60s.

Many suggest that the Turkish migrants were never integrated into German culture and society, creating a minority

community that is the largest in Germany. This has led to the continual identity struggle of Turkish immigrants who

feel hampered by a lack of education and prospects for the future. Even Turkish migrants who have German

citizenship still regard themselves as being guest workers or Turks.48 Finally, with growing anti-refugee sentiment,

many Turks are being profiled as Muslims as representative of the current influx of refugees. In summary, the threat

of ghetto formation and minority communities is real and may already be happening in large cities like Berlin. It is

imperative then that Germany learns from its past and dedicates significant efforts to prudently integrate migrants

into their culture at the same time understanding other cultures also.

48 http://www.breitbart.com/london/2015/09/07/immigrants-in-germany-not-always-a-happy-union/

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CONCLUSION: FINAL OBSERVATIONS AND RECOMMENDATIONS

Our primary intention is that the breadth and depth of our compilation of resources, events and interviews be useful

in having a positive impact on the refugee crisis in Germany. We deliberately applied our American perspective while

respectfully including our understanding of the views and experiences of the German people, their history and their

culture. We are also sensitive to how easy it can be to oversimplify the complexities of the crisis.

Recommendations for further study include deeper connection with the anti-refugee voice, as we believe candor is

critical and this perspective is relevant and shapes public perception in many ways. If there had been time, we also

would have liked to have interviewed more small- and medium-sized businesses, as they are "where the rubber

meets the road," as one of our panelists reminded us all. And, to the point one federal political leader we spoke with

made: a similar evaluation in a year, when Germany has had time to get beyond just feeding and sheltering the

masses, would be tremendously beneficial.

CLARITY

What became abundantly clear throughout our research as we spoke to and understood the positions of the various

stakeholders, was that the situation was lacking something it needed the most – clarity. For refugees, greater clarity

in terms of expectations of integration, labor and training structures, migration status, and duration of stay are

fundamental to them in making smart and informed decisions about their future. For instance, fully understanding

how vocational education works paired with knowledge of the likely duration of their stay (whether permanent or

temporary) could help them make critical tradeoff decisions about their long term prosperity. In the same breath,

this clarity could help the German economy realize opportunities to get future taxpayers integrated into the

economy for the long term. Equally, businesses lamented the impact that bureaucracy was having on their ability to

effectively assist and leverage labor opportunities, due to the lack of transparency in terms of migration status, as

well as expected permanency of migration.

Finally, the effort is clearly hindered by the decentralized nature of various levels of government, and the historical

lack of effective information and data sharing systems. While the federal government is taking unprecedented steps

to connect databases nationally, the presence of central data systems to provide greater clarity to local and state

authorities is critical in helping decision makers at various levels make smart decisions when integrating refugees

(with potentially millions more expected), as well as recognizing the importance of such data sharing at a national

level to manage national security and having data for the future to apply lessons learned from this crisis to future

integration attempts.

CENTRAL DATABASE

Decisions made without complete and accurate information are not wise. Up to this point, a central database at the

Federal level has not been established, further challenging Germany’s ability to manage and share critical

information to stakeholders dealing with the refugees. While Germany's sensitivity to data privacy since WWII is

recognized, the difficulties faced without a central database has been clearly highlighted, and perhaps exacerbated,

with the current refugee crisis. With many stakeholders involved who need access to information to make informed

decisions – refugees for clarity, businesses for jobs, agencies for asylum decisions and labor entry approvals, national

security and intelligence sharing, and so on - it has never been more crucial to invest in a complete solution. While

it is uncertain how many more refugees may come to Europe and into Germany after the deal with Turkey, what is

certain is that conflicts have not ended and refugees will continue to seek shelter and safety away from their home

countries. Climate change also represents a significant issue on the horizon as whole countries become threatened

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by rising sea levels, which could increase migration globally. Eventually more will arrive and Germany will be in a

better position with a central database that will inform key stakeholders of the necessary information to make

effective and swift decisions. This not only helps governments and agencies to be more efficient, but more

importantly, for refugees to have clarity and make appropriate decisions best for them.

STRATEGIC CSR

German companies are actively responding to the crises with a spectrum of activities. Some companies are aligning

their CSR activities to tackle the crisis with a short-term view such as providing German language classes and cultural

and vocational orientation programs. Their goal is to make refugees productive members of the German labor force

as quickly as possible. Other companies are addressing the issue with the goal to integrate refugees to the

community, culture, and labor force in the long run. These companies address the crisis from multiple fronts such as

providing education, offering training and internships, supporting governments with housing and technology needs,

etc. We recognize that companies will need to balance both the short term and the long-term needs to successfully

integrate refugees into the German workforce and community. But, more importantly, companies will need to work

together with each other and with other organizations such as the government and aid organizations, to create an

integrated and non-redundant strategy to manage the refugee migration challenge sustainably.

INTEGRATION REQUIRES AN INTEGRATED EFFORT

At the end of our interview with Ralf Heßmann, Nordsee-Treene District Superintendent, he enthusiastically

quipped, “Teamwork makes the dream work!” quoting Stevie Wonder from James Corden’s “Carpool Karaoke.” We

found that this was a recurring theme throughout our time in Germany – it is only when all stakeholders are working

together, communicating openly and frequently, that the integration of refugees is successful. We saw this most

poignantly in the city of Hamburg and the small town of Nordstrand, which are examples of “best practices” of truly

integrated efforts, where refugees are being embraced by entire communities, building relationships, getting an

education, finding jobs, and finding a home. Government, business, NGOs and communities must forsake their silos

and collaborate, each offering what they have in order to make integration a success.

RECOGNITION AND ACCEPTANCE OF HISTORICAL CONTEXT

Throughout our time in Germany – and even beforehand – we were struck by Germans’ recognition and

acknowledgment of the Nazis’ transgressions during WWII. While largely unspoken, we believe this is impacting

elements of the response to the existing crisis that could have negative repercussions to success. Lessons from WWII

seem to impact everything from Germans not wanting to “mandate” culture classes to fearing deportation of people

who were denied asylum, or being skittish of a national database which would provide crucial numbers and analysis

on this crisis. We also suspect that the “We Will Cope” mentality – where all Germans are expected to just “deal

with” the refugee crisis – is stifling an important national conversation about how many refugees are too many, how

people are being impacted, and in what ways the government can help alleviate the challenges. (Without these

conversations, both in the press and elsewhere, we are concerned about a pressure cooker environment, where

eventually the lid bursts with disastrous consequences.) While we commend the German people for understanding

and learning from the impact of WWII on its national consciousness, we also cannot overstate the importance of

recognizing that the world currently has tremendous respect for Germany in its response to this crisis, and encourage

German government, businesses and society to take a closer look at their current reactions and policies to this crisis

to ensure that decisions are being made in the best interest of both today’s citizens and the asylum-seekers who are

entering the country.

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ACKNOWLEDGEMENTS

We are deeply grateful for the direction and support that we received from our Faculty Advisor, Eric Langenbacher.

Dr. Langenbacher is an Associate Teaching Professor and Director of the Senior Honors Program in the Department

of Government at Georgetown University. Eric – we couldn’t have done this without you!

We also wanted to express our gratitude to key people who went above and beyond to help us as we conducted our

research. Special thanks goes to:

Peter Chase, former Vice President of Europe for the U.S. Chamber of Commerce, who provided not only

incredible perspective and context at the beginning of this project, but who also reached deep into his

rolodex and connected us with several people in Washington, DC and Germany. Peter, your insights and

connections were crucial to the success of this project. More than once in Germany we raised a stein, “To

Peter Chase!”

Brent Goff, Chief News Anchor, Deutsche Welle, who recognized our research efforts and highlighted our

findings for the world on The Day with Brent Goff. You can watch our interview with Brent here:

https://vimeo.com/162068383 (minute 20:33)

Keike Lenz, B&B Owner and Volunteer, who hosted us in Nordstrand and connected us with local

government officials, a tour of a reception center, and a remarkable lunch with refugees and Netzwerk

Nordstrand volunteers. Keike, we could not be more grateful for your hospitality and your commitment to

sharing Nordstrand’s refugee story with us.

Thekla Merchert, Volunteer Teacher in Berlin, who spent weeks providing us resources and links, organized

three meals so we could connect with refugees and other volunteers, and served as our tour guide and

translator for one of our days in Berlin. Thekla, thank you for your generosity, candor, and time.

Claudia von Cossel, Speaker for CDU/CSU Bundestag, who not only arranged an interview at her office at

the Bundestag while she was on vacation, but also took our team on a two-hour personal tour of the

Bundestag.

Finally, we would like to express appreciation for our presentation panelists:

Jeffrey Anderson, Director of BMW Center for German and European Studies, Walsh School of Foreign

Service, Georgetown University

Paul Danahar, BBC Americas Bureaux, Editor

Susan Fratzke, Policy Analyst & Program Coordinator, International Program, Migration Policy Institute

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INTERVIEWS AND EVENTS

In total, we conducted interviews with more than 100 leaders from business, trade and industry associations,

government, public policy, research institutions and think tanks, and NGOs and non-profits in Washington, DC and

in Germany. We are not citing personal names in all cases, as many requested to speak “off the record.” We would

like to honor this request, and are deeply grateful for the time and energy that so many people spent to give us their

unique perspective on the refugee crisis and help us understand the impact and opportunities for Germany.

We were fortunate enough to attend the following events in DC while we were conducting our research:

Divided Europe? Straining the Limits of Unity, Georgetown University

Scaling Up Resettlement (Webinar), Migration Policy Institute

What Can Germany and the US Learn From Each Other?, German Marshall Fund

Improving the Labor Market Integration of Refugees and other Migrants, American Institute for

Contemporary German Studies

Migration: from Humanitarian Crises to New Opportunities, Georgetown University

Germany and the Refugee Influx: How to turn risks into potential, Representative of German Industry and

Trade (RGIT)

Farewell to the Welcoming Culture? Angela Merkel and the European Refugee Crisis, Georgetown

University

From Homs to Hamburg: Refugee movements from Syria to Europe and beyond, Brookings Institution

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TEAM BIOS AND CONTACT INFORMATION

ELLEN DAVIS

Senior VP, Research and Strategic Initiatives, National Retail Federation and Executive Director, NRF Foundation

Ellen Davis is a well-respected retail thought leader with over 15 years of experience in strategic communications,

consumer and industry research, talent acquisition and development, and organizational change management. She

is passionate about building programs to maximize stakeholder value and helping people at all levels advance.

Contact: 703-474-3446 or [email protected]

ADAM LUKOSKIE

Senior Managing Director, Procurement, Teach For America

Adam Lukoskie has reshaped how Teach for America utilizes its resources. His team directly manages a $20M

portfolio; indirectly $100M annually. Through negotiations, commodity consolidation, and influencing staff spending

behaviors his team realizes approximately 7.5% cost savings annually. He has advised the Chief Finance and

Administration Officer on overhauling the organization’s procurement policies, processes and staffing structure to

deliver best-in-class procurement systems. He has over a decade of experience specializing in change management

in mission-driven organizations.

Contact: 651-428-1658 or [email protected]

LAURA PRATT

Program Manager, United States Navy, GE Aviation

Laura Pratt is a relationship-focused leader, team builder and technical expert who served as a company commander

in Iraq and an infantry brigade senior logistics officer Afghanistan. As the architect and facilitator of countless training

exercises and real world missions in complex and dynamic situations, she knows the value each member brings to

any team. A multi-functional logistics officer by trade, she is fascinated by the intersection of people and processes

to create value.

Contact: 765-517-0843 or [email protected]

TONY SEWELL

Partner Manager (User Terminals), Inmarsat

Tony Sewell has built a 15-year career in project management, operations and product development within the IT

and telecommunications industry. He currently works for Inmarsat, a London-based satellite communications

company, managing a telecommunications product portfolio and relationships with manufacturing partners in the

UK, Germany, France, Denmark, USA and Singapore.

Contact: 813-712-0539 or [email protected]

KARTHICK SUNDARARAMAN

Director, Digital Products and Innovation, CEB

Karthick Sundararaman has over 15 years of experience in digital substitution, transformation, product

management, business development, and strategic planning. He is highly regarded as a thought leader who excels

at providing big-picture analyses and creating strategic product roadmaps to promote innovation and growth. He

currently works at CEB, a best practice research firm, overseeing multiple enterprise-level digital products.

Contact: 609-865-2221 or [email protected]

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DEBORAH TEPLEY

Operations Manager, USAID Account, Engility Corporation

Deborah Tepley is an Operations Manager with over a decade of experience leading diverse teams and complex

international projects in more than 40 countries in the public and nonprofit sectors. She currently works for Engility

Corporation and was handpicked to work with senior management to improve and institutionalize project

management support systems across the USAID account.

Contact: 202-256-8245 or [email protected]

TAE YOO

Manager, Internal Audit & Advisory Services, The AES Corporation

Tae Yoo is an audit leader in the Internal Audit & Advisory Services group at the AES Corporation. An accomplished

executor of projects, Yoo has over 13 years of experience designing, leading, and executing a broad range of

corporate assurance and advisory initiatives, including enterprise risk management, financial reporting compliance,

operational efficiency, and internal control evaluations. Yoo is an experienced world traveler having visited and

worked in 13 countries who brings international business and cultural acumen.

Contact: 703-867-4766 or [email protected]