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EAST GERMANY.   Term Paper ID:28300 Click to get this paper

Essay Subject: Economic & political & social problems following re-unification. Difficulties encountered in transition to a unifed Germany.... More...

5 Pages / 1125 Words 4 sources, 13 Citations, TURABIAN Format $20.00 Return to List of Papers

Paper Abstract: Economic & political & social problems following re-unification. Difficulties encountered in transition to a unifed Germany. Paper Introduction: EAST GERMANY: WAKING TO A WESTERN WORLD More than ten years after the reunification of Germany, the jolts and jostles of economic and political merger continue to plague the nation. The two Germanies have yet to blend into a one confluent economic entity, and a decade of Western aid and Eastern dependence has cultivated resentment on both sides. Stereotypes classifying the “Wessies” of the West as arrogant moneygrubbers, and the “Ossies” of the East as shiftless freeloaders have persisted through the 90s, intensifying frustrations. Some economists wonder if the East will manage to catch up with the West within the next twenty-five years. In the final analysis, though the old Communist regime did afford the East German citizens perks like job security and cheap housing, the new East Germany is in fact a better place ten years after the Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. 1-7.Jackson, James O. Readying the physical and psychological components of asociety for immersion in the global environment can take decades, as theGerman people are discovering firsthand. Capitalist ideology and application can be difficult toswallow for a people mired in socialism for forty-plus years. In theyears to come, Germany will continue to play an integral part in thedeveloping European Union, and East Germany will continue to reap therewards. And of course, sustained andhefty Western aid is continually wearing on the optimism of both halves ofthe divide.[1 ] West German subsidies have totaled as much as DM14 billion per year,and all Germans are required to pay an extra 5.5% of income tax annually asa "solidarity surcharge" to help pay for the East's reconstruction. A shortage of raw materials and intermediate goods adverselyeffected the chains of production. In the final analysis, though the oldCommunist regime did afford the East German citizens perks like jobsecurity and cheap housing, the new East Germany is in fact a better placeten years after the fall of the Berlin Wall. And so the post-communism prognosis is favorable. As Time magazine reported in 1991, "For the firsttime in more than a half-century, easterners can choose -- and criticize --their leaders, and make their own economic decisions: quit a job, sell ahouse, start a business, buy a car."[5] And as is noted in the May 27, 2 issue of The Economist, theseliberties have paid off: "Lively new firms led by young entrepreneurs arespringing up. Today, commerce in East Germany is improved, citieshave been restored, the air is cleaner, and opportunities to be competitivein the global market are beckoning.[12] Ultimately, "opportunity" is the key. As a consequence, unemployment is a problem- in 1998, 18.1% ofthe labor force was unemployed, contrasted with 11.4% in 1991.[9] Many East Germans are nostalgic for the security of the old system.Housing before unification, though scarce, was also cheap, and mortgageswere not an issue. "Unity's Shadows," Time, July 8, 1991 v138 n1 p. Products manufactured were of too poora quality to be exported to the developed economies of the world.Collectivization of the means of production led to an inefficientorganization of that production.[3] Household incomes were exceedinglylow, and major cities were run down, drab and soiled with pollutants fromthe surrounding factories that were poorly managed and technologicallybehind the times.[4] Today, though Germany remains a nation comprised of two unequalparts, the outlook is positive. Though the overall per capita GDP growth in EastGermany has slackened its pace to only around 2% in recent years, this isforgiven considering the hefty gains made in the years immediatelyfollowing unification. Ultimately, DM1.2 trillion has been injected into EastGermany over the last decade, with nearly 5% of the West's total GDP valuegoing to the East every year.[11] In spite of these setbacks, East Germany is better off today than itwas ten years ago. Thesecret police, wiretaps, and censorship all flourished under a system oftight political regimentation.[2] Industrial plants were outmoded and run-down. 28(5)."Why East is Still East, and West is Still West," Business Week, Nov 8, 1999 i3654 p. But first steps are bound to betentative and shaky. Household incomes have tripled sinceunification, and exports have risen to roughly 18% of output. The modern trend of economicunion and globalization is a potent one, ushering in a new era of freemarket competition. Thegovernment forecasts that the Eastern infrastructure will require at leastanother DM3 billion in the next four years if it is to become competitivewith the West. Fortunately for East Germany, the aid and guidance of the West- thoughsometimes grudgingly extended- does come in abundance. A 1999 pollby the Emnid Institute found that only 16% of East Germans feel a sense ofsolidarity with their Western counterparts. For this alone, EastGermany is well off for having integrated with its Western partner. Per capitaincome has nearly doubled in the last 1 years, and even East Germanscollecting unemployment make more than workers did in the former GermanDemocratic Republic. Stereotypes classifying the "Wessies" of theWest as arrogant moneygrubbers, and the "Ossies" of the East as shiftlessfreeloaders have persisted through the 9 s, intensifying frustrations.Some economists wonder if the East will manage to catch up with the Westwithin the next twenty-five years. A surveytaken by the Berlin Institute in early 1998 revealed that German IndustrialCompanies continued to feel that the production base and marketingtechniques of East Germany were still obsolete, capital equipment was stillnot adapted to requirements, and the cost of labor in the region was stilltoo high. East Germans are entitled to read, watch, and hearwhatever they please. As the BNP Economic Newsletter remarks,"eastern Germany, of all the countries of the former communist bloc, is theone that has best handled this economic transition"[13], and in the era ofglobalization, the ability to handle economic transitions will decide whichnations are competitive, and eventually, prosperous. EAST GERMANY: WAKING TO A WESTERN WORLD More than ten years after the reunification of Germany, the jolts andjostles of economic and political merger continue to plague the nation.The two Germanies have yet to blend into a one confluent economic entity,and a decade of Western aid and Eastern dependence has cultivatedresentment on both sides. It may not be longbefore Germany has the inside track after all. 28.-----------------------[1] "Why East is Still East, and West is Still West," Business Week (1999):28-3 .[2] James O. Communism, widely regarded as a failed venture, haslost it's foothold in much of the developed world. 51."Germany: Is the Sun Rising in the East?" BNP Economic Newsletter, Dec 31, 1999, Dow Jones Publications Library; © 1999 Quest Economics: Janet Matthews Information Services, p. New motorways, gleaming shopping malls and factoriesequipped with the latest technology pepper the once desolate landscape."[6] Since 1989, the Federal Government has renovated half of East Germany'shousing, and built more than half a million new homes; also,manufacturing(which provides the most permanent work) is growing at a rateof 9.8%, nearly double that of the West.[7] All in all, between 1991 and1998, the annual rate of productivity for East Germany averaged more than2 %, compared to less than 5% in the West.[8] Unfortunately, many problems in East Germany do remain. The weakness of the euro has prompted East Germanexports to rise, and unemployment is currently falling again. The transition from communism to capitalism is a naturallydelicate process. Bibliography"Eastern Germany's Slow Revival," The Economist, May 27, 2 v355 i8172 p. The road to a truly unifiedGermany, though longer and bumpier than was initially foreseen, remains aroad that is -- and has been -- worth taking.[1] Near the end of the 198 s, East Germany was suffering many ills. In the earlyyears following the merger, the East's economy grew twice, even three timesas fast as the West's. Jackson, "Unity's Shadows," Time (1991): 28.[3] "Germany: Is the Sun Rising in the East?," Dow Jones PublicationsLibrary, BNP Economic Newsletter (1999): 1.[4] Jackson, 29-3 .[5] Jackson, 28.[6] "Eastern Germany's Slow Revival," The Economist (2 ): 51.[7] "Why the East is Still East...," 3 .[8] "Germany: Is the Sun...?," 5.[9] Ibid., 3-5.[1 ] "Why the East is Still East...," 28-9.[11] "Eastern Germany's Slow Revival," 51.[12] "Why the East is Still East...," 28-3 .[13] "Germany: is the Sun...?," 7. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.