East german economy after reunification

SUEDEKUM: We also had these losers of globalization here in Germany, people who had problems because of trade. But [the] big difference is, in Germany, these people receive more support from the government. There’s a safety net. There is trade-adjustment assistance. There’s active labor market policy trying to bring these people back to other jobs elsewhere and subsidies, trying to keep the communities alive. We do a relatively better job in cushioning the losers.  I’m not saying we’re perfect in that, but I think we’re doing a better job than the United States.

In the wake of that resolution of accession, the "German reunification treaty", [11] [12] [13] commonly known in German as " Einigungsvertrag " (Unification Treaty) or " Wiedervereinigungsvertrag " (Reunification Treaty), that had been negotiated between the two German states since 2 July 1990, was signed by representatives of the two Governments on 31 August 1990. This Treaty, officially titled Vertrag zwischen der Bundesrepublik Deutschland und der Deutschen Demokratischen Republik über die Herstellung der Einheit Deutschlands (Treaty between the Federal Republic of Germany and the German Democratic Republic on the Establishment of German Unity), was approved by large majorities in the legislative chambers of both countries on 20 September 1990 [14] (442–47 in the West German Bundestag and 299–80 in the East German Volkskammer). The Treaty passed the West German Bundesrat on the following day, 21 September 1990. The amendments to the Federal Republic's Basic Law that were foreseen in the Unification Treaty or necessary for its implementation were adopted by the Federal Statute of 23 September 1990, that enacted the incorporation of the Treaty as part of the Law of the Federal Republic of Germany. The said Federal Statute, containing the whole text of the Treaty and its Protocols as an annex, was published in the Bundesgesetzblatt (the official journal for the publication of the laws of the Federal Republic) on 28 September 1990. [15] In the German Democratic Republic, the constitutional law ( Verfassungsgesetz ) giving effect to the Treaty was also published on 28 September 1990. [16] With the adoption of the Treaty as part of its Constitution, East Germany legislated its own abolition as a State.

Negative images of this era can be found. Extremists continued to disturb meetings of opposing political groups, coalition governments were often ‘minority’ governments – meaning that the coalition itself didn’t have a majority and there were frequent changes of allegiance and political leadership during this era (by fuller ). It can be argued that this is far from being a stable environment, indeed it can be seen to be a government still teetering on the brink of political extinction. Little appeared to change in terms of society – there was merely a return to the traditional elites managing the economy and dominating industry. Democracy therefore, appears to still be under threat: the election of Paul von Hindenburg as President indicates that there is still some way for the republic to go. He was no great fan of democratic principles and was a known sympathiser with the Right Wing.

Under the NES, the task of establishing future economic development was assigned to central planning. Decentralization involved the partial transfer of decision-making authority from the central State Planning Commission and National Economic Council to the Associations of People's Enterprises ( Vereinigungen Volkseigener Betriebe —VVB--), parent organizations intended to promote specialization within the same areas of production. The central planning authorities set overall production goals, but each VVB determined its own internal financing, utilization of technology, and allocation of manpower and resources. As intermediary bodies, the VVBs also functioned to synthesize information and recommendations from the VEBs. The NES stipulated that production decisions be made on the basis of profitability, that salaries reflect performance, and that prices respond to supply and demand.

Amazon had long impressed him, and while the online merchant had a small presence in the region, he was vexed at how hard it was to find books in Arabic online. Sketching out a simple business plan, Alsallal persuaded angel investors and mentors like Fadi Ghandour, founder of the express delivery company Aramex, to give him a few tens of thousands of dollars to begin. (Ghandour is also chairman of the investment firm Wamda Capital, which focuses on this region, and on whose board of advisors I serve.) Last year, Alsallal raised over $4 million more to expand Jamalon’s operations.

East german economy after reunification

east german economy after reunification

Under the NES, the task of establishing future economic development was assigned to central planning. Decentralization involved the partial transfer of decision-making authority from the central State Planning Commission and National Economic Council to the Associations of People's Enterprises ( Vereinigungen Volkseigener Betriebe —VVB--), parent organizations intended to promote specialization within the same areas of production. The central planning authorities set overall production goals, but each VVB determined its own internal financing, utilization of technology, and allocation of manpower and resources. As intermediary bodies, the VVBs also functioned to synthesize information and recommendations from the VEBs. The NES stipulated that production decisions be made on the basis of profitability, that salaries reflect performance, and that prices respond to supply and demand.

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