topic 9 - germany reunification (ho)

7/24/2019 Topic 9 - Germany Reunification (HO)

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Topic 9

Germany : Reunifcation

By Alison Chiu


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MAPOF

EUROPE


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Germany: General Statistics


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Germany: General Statistics


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Germanys History_Otto von Bismarc

Otto vonBismarc

!n the "ar o# $%&& he succee'e' in 'e#eatin( Austria!n $%)* Bismarc 'eli+erately provoe' the,ranco-.russian /aran' as a result "as a+le to o+tain

Alsace an' 0orraine#rom ,rance1Both "ars "ere (eare' to"ar's German unifcation1

This victory insti(ate' the in('oms o# Bavaria2/3rttem+er(2 Ba'en an' Hesse to 4oin the 5orth

German Alliance2 an alliance o# .russia an' $)

is consi'ere' the #oun'er o# the

German 6mpire1 ,or nearly three'eca'es he shape' the #ortunes o#Germany2 #rom $%&8 to $%) as primeminister o# .russia an' #rom $%)$ to

$%9* as Germanys frst Chancellor1
http://www.spartacus.schoolnet.co.uk/WARfranco.htmhttp://www.spartacus.schoolnet.co.uk/FWWlorraine.htmhttp://www.spartacus.schoolnet.co.uk/FWWinFrance.htmhttp://www.spartacus.schoolnet.co.uk/FWWinFrance.htmhttp://www.spartacus.schoolnet.co.uk/FWWlorraine.htmhttp://www.spartacus.schoolnet.co.uk/WARfranco.htm


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Germanys History_Otto von Bismarc

Otto vonBismarc

Bismarcs (reatest achievements2

ho"ever2 "ere the a'ministrativere#orms2 'evelopin( a common currency2a central +an2 an' a sin(le co'e o#commercial an' civil la" #or Germany1

Bismarc also +ecame the frststatesman in 6urope to 'evise acomprehensive scheme o# social securityto counter the Social ;emocrats2 os role in /orl' /ar ! "here


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Germanys History_//$

World War Ior the First World War2commonly a++reviate' as WWIan'#ormerly calle' the Great War2 "as a ma4or"ar centere' in 6urope that +e(an in the

summer o# $9$? an' laste' until 5ovem+er$9$%

The $9$9Treaty o# @ersaillesocially en'e'

the "ar!n si(nin( the treaty2 Germanyacno"le'(e' responsi+ility #or the "ar2a(reein( to pay enormous "ar reparations

an' a"ar' territory to the victors
http://en.wikipedia.org/wiki/Treaty_of_Versailleshttp://en.wikipedia.org/wiki/War_reparationshttp://en.wikipedia.org/wiki/War_reparationshttp://en.wikipedia.org/wiki/Treaty_of_Versailles


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Germanys History_A'ol# Hitler

A'ol# Hitler

The 'emocratic post-/orl' /ar ! /eimarRepu+lic "as mare' +y a "ea coalition(overnment an' political crisis2 in ans"erto "hich the 5ai party o


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Germanys History_A'ol# Hitler

,rom $989 on"ar's2 the "orl'"i'e economic

'epression provoe' hyperin=ation2 social unrest an'mass unemployment2 to "hich Hitler o


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Germanys History_ Starte' //8

Hitler +ecame more po"er#ul 1 ,rom late $99 to

early $9?$2 Hitler un'er Germany conuere' orsu+'ue' much o# continental 6urope an' >+ullie'other 6uropean nations into (ivin( into his 'eman'sin a series o# campai(ns an' treaties

Cham+erlain promise' British support to .olan' inthe case o# German a((ression1 A mis(ui'e' +elie# in>peace in our time "as replace' +y a reluctantacceptance o# the inevita+ility o# "ar1

On $ Septem+er $992 &8 German 'ivisionssupporte' +y $2** aircra#t +e(an the invasion o#.olan'1 At %pm on the same 'ay2 .olan' reueste'

military assistance #rom Britain an' ,rance1 T"o 'ays


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Germanys ;ivision_.ost //8

The "ar en'e' "ith the

total victory o# the Alliesover Germany an' apanin $9?1

A#ter //8 Germany "as'ivi'e' into siF onesT"o ones "ere anneFe'+y .olan' an' SovietInion

,our ones o# occupation"ith Soviet Inion D6astE2the Inite' States

DSouthE2 Britain D5orthE2

IJ Soviet .olan',rance IS


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Germanys ;ivision :,RG D/estE an' G;R D6astE

The onal 'ivision ultimately le' tothe #oun'in( o# t"o German states1

$E The Federal Republic of

Germany FRG!+ase' on'emocratic principles2 emer(e'#rom the three "estern ones inKay $9?91

8E German "emocratic RepublicG"R!# a communist2 centralie'state +ase' on the Soviet mo'elan' le' +y the Socialist Inity .arty

o# Germany DS6;E !n Octo+er $9?9assiste' + the Soviet Inion


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Germanys ;ivision :,RG D/estE an' G;R D6astE

Berlin2 "hich lay in the

Soviet DeasternE sector2 "asalso 'ivi'e' into #our sectors"ith the /estern sectorslater +ecomin( /est Berlin

an' the Soviet sector+ecomin( 6ast Berlin2 capitalo# 6ast Germany1

The Berlin /all "as erecte'in $9&$ +ecause more than81& million 6ast Germansescape' to /est Berlin or/est Germany #rom $9?9 to

$9&$ Dtotal population o#
http://en.wikipedia.org/wiki/Berlinhttp://en.wikipedia.org/wiki/West_Berlinhttp://en.wikipedia.org/wiki/East_Berlinhttp://en.wikipedia.org/wiki/East_Berlinhttp://en.wikipedia.org/wiki/West_Berlinhttp://en.wikipedia.org/wiki/Berlin


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Be#ore Reunifcation,e'eral Repu+lic GermanyD,RGE_/est

Germany A#ter //82 /est Germanys economy

eFperience' total collapse1 mainpro+lems in the economy :

$E ;estruction o# transportation o#communication

8E Capital investment "hich "ere 'iverte'to military pro'uction ha' no" cease'

E 6conomic paralysis #rom fFe' prices2rationin( an' monetary in=ation

) Receive' help #rom the IS un'er the


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Germany 0u'"i( 6rhar' DA'ministrative ;irectorE supporte'

#ree marets an' a social sa#ety net M social mareteconomy

6rhar's contri+ution to /est Germany

$E 6sta+lishe' a central +an M +asis #or Germanyscentral +an Bun'es+an to'ay

8E !ntro'uce ;eutschmar to replace Reichsmar at $:$ratio #or current "a(es an' prices +ut $:$* ratio #or

all 'e+ts M this "ipe' out monetary in=ationE Remove' price an' rationin( controls M thus

allo"in( enterprise

- This +e(an the German miracle or /irtscha#ts"un'er


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Germany ,RGs !n'ustrial Relations :- /or council has to +e #orme' in "orplaces

"ith more than employees1 /or councilsa'vise mana(ement on their operations

- /orers are electe' to the supervisory +oar'#or frms #or frms more than ** employees

,RGs

- .ro(rams un'er Bismarc "hich "as remove'+y Hitler "as restore'

- 5e" initiatives lie chil' allo"ance2 me'icalcovera(e

e ore eun ca on


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e ore eun ca onGermany ;emocratic Repu+lic DG;RE_6ast

Germany

.lun'ere' +y the Soviet Inion a#ter//8

Came un'er the KarFist re(ime

- G;R (ra'ually a'opte' thecomman' socialist system

- By $9&*s most frms "ere

nationalie'- !nte(rate' into the Soviet +loc

D6astern +locE un'er the /arsa" .act

e ore eun ca on


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Germany$1 Success#ul economy M repute' #or +ein( the

most

ecient2 pro'uctive an' hi(hest incomecomman' socialist economy amon( the 6astern

+loc/as no"n #or eFportin( relativelysophisticate' (oo's Doptical euipment2electronics2 automo+ileE to countries o# the

6astern +locHo"ever "hen compare' to /est GermanyD,RGE :

- livin( stan'ar's "ere +elieve' to +e $N? o#

,RG

e ore eun ca on


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Germany

81 .er#orme' "ell in +asic in'icators o# social"ell+ein(- e'ucational attainment2 li#eeFpectancy an' in#ant mortality

1 0ar(e scale frms an' structure. ,irms "ere lar(e DP8** "orersE

. Kombinate is the or(aniation o# frms into(roups "hich inte(rate' an' controlle' their

activities. Result M om+inate hel' lar(e monopoly

po"ers2 set hi(h prices an' pai' littleattention to eciency an' uality


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.olitical an' 6conomic Reunifcation Duly$2 $99*E

6ast Germany an' /est Germany A'option o# a $:$ eFchan(e rate +et"een the 6ast

Germanys Ostmar an' /est Germanys;eutschmar #or all "a(es2 prices an' pensions

Conversion o# most monetary assets at a rate o# 8:$

eFcept #or a uota o# personal savin(s "hich "as$:$

Creation o# a common le(al an' re(ulatoryenvironment +ase' on /est Germans la"

!ntro'uction o# social maret #eatures lie collective"a(e ne(otiation2 eFtensive social insurance an'active "orer involvement in company mana(ement

A#ter Reunifcation


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A#ter Reunifcation.ositives

$1 6sta+lishe' le(al structure2 accountin(system an' fnance #rom the /est

/est Germany alrea'y have an esta+lishe'system2 6ast Germany 'o not have to start#rom the +e(innin(1 They nee' to learn an'a'apt

81 Supply o# entrepreneurship #rom the /est

A(ain /est Germany coul' provi'e sille'personnel to fll in the (ap in the 6st

A#ter Reunifcation


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A#ter Reunifcation.ositives

1 Access to 6I maret6ast Germany ha' accesse' to 6I maretsto eFport its pro'ucts

?1 !n#rastructure an' social sa#ety net/est Germany "as "illin( to improve roa's2communications2 housin( "here it "aslacin( in 6ast Germany1

/est Germany "as "illin( to compensate allthose ma'e unemploye' 'ue to privatiation


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A#ter Reunifcation5e(atives

$1 ;isposition o# thousan's D%**E o# state o"ne'

enterprises throu(h the Treuhandonstalt2 an a(encycreate' a#ter the German reunifcation to

Also meant 'issolution o# the Kombinate an' their

monopoly po"er1 All o# G;Rs in'ustrial assets "ereplace' un'er the Treuhan'onstalt

81 +ecause o# +etter uality an'cheaper (oo's #rom the /est1 This "as mainly

cause' +y the a'option o# a $:$ eFchan(e rate+et"een the ostmar an' 'eutschmar

1 in 6ast Germany an' increase in

?1 0oss o# social sa#ety +enefts #or 6ast Germans lie

'aycare an' su+si'ie' vacation


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A#ter Reunifcation5e(atives

1

6Fpen'iture on unemployment compensation an'privatiation e


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0essons #rom theReunifcation

$1 Currency valuation

81 .rivatiation

1 Karet restructurin( vs planne'restructurin(

?1 Time #rame


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Germany an' 6uropean Inion

!n $99$ the Kaastricht Treaty "as si(ne' an' the

6uropean Inion "as #orme'1 Germany "as oneo# its mem+er states to(ether "ith ,rance2Bel(ium2 !taly2 0uFem+our( an' 5etherlan's

Germany 'i' not "ant to (ive up the ;K at thattime an' insiste' on a strict Kaastricht criteriare(ar'in( limits on +u'(et 'efcits an' #or the6uropean Central Ban to +e esta+lishe' in,ran#urt "here its central +an "as locate'

Because o# the re-unifcation2 Germany has a

relationship "ith 6astern 6urope an' has +eeninstrumental in "antin( to +rin( these countriesinto 6I

This cause' uneasiness amon( ,rance an' other

6I mem+ers at that time


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Germany A#ter Reunifcation.ost $99*s

Germany eFperience' chronic unemployment an' slo"(ro"th in the $99*s as it a'4uste' to the re-unifcation

Germanys economy un'erper#orme' compare' torisin( stars lie !relan'2 Spain an' IJ in the $99*s

G"PGro$thRate

%&&%

%&&'

%&&(

%&&)

%&&*

%&&+

%&&,

%&&-

%&&&

'...

Germany 5.1 1.9 -1.0 2.5 1.7 0.8 1.7 1.9 1.9 3.1

IJ-$1? *1$ 818 ?1 1$ 819 3.3 3.6 3.5 3.9

!relan' $19 1 81) 1% 91& %18 11.5 8.4 10.9 9.7,rance $1* $1 -*1) 818 81* $1$ 2.2 3.4 3.3 3.7

Source : /orl'+anan' O6C; ;ata


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Germany : 8*** an' +eyon' Germanys economy sa" improvement #rom mi'-

8***s !n the early 8***s2 Germanys economy

accounte' #or $* o# the G;.s (ro"th in the6uroone +ut in 8*$*2 Germanys economy

accounte' #or &* G;. (ro"th in the 6uroone !n this current 6uroone crisis 8*$*2 Germany as

6Is lar(est an' most in=uential economy is theone "ith the resources to eep the euro alive

G"PGro$thRate

'..%

'..'

'..(

'..)

'..*

'..+

'..,

'..-

'..&

'.%.

Germany 1.5 0.0 -0.4 1.2 0.7 3.7 3.3 1.1 -5.1 3.7

IJ 2.5 2.1 2.8 3 2.2 2.8 2.7 -0.1 -4.9 1.4

!relan' 5.7 6.5 4.4 4.6 6 5.3 5.6 -3.5 -7.6 -1

,rance 1.8 0.9 0.9 2.5 1.8 2.5 2.3 -0.1 -2.7 1.5

Source : O6C;;ata


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Germany : 8*** an' +eyon'

Ho" 'i' Germany improve its economic (ro"th

$E !nvestin( into R; to pro'uce machinery an'heavy euipment o# hi(h uality an' technolo(y1

8E !n early 8**2 the (overnment pushe' throu(han a(en'a to cut pu+lic spen'in( on "el#are M

unemployment +eneftsE Government also ne(otiate' "ith la+or unions to

cut "a(es in return #or 4o+ security #or "orers

?E !n the crisis2 the (overnment prevente' lar(e-

scale layo


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Germany : 6conomy2 .olitics Social

!n 8**2 An(ela Kerel+ecame the frst#emale Chancellor o# Germany in acoalition o# a #e" parties

6conomics : Germany #acin( a slo"(ro"th post 6uroone crisis 'ue to 6Isanctions on Russia an' sta(natin( 6I'eman's
http://en.wikipedia.org/wiki/Angela_Merkelhttp://en.wikipedia.org/wiki/Angela_Merkel


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Re#erences

Jennett2 ;1 D8**$E QA 5e" @ie" o# Comparative6conomic Systems D8e'E Harcourt .u+lishers

Rosser2 1B1 an' Rosser2 K1@1 D$99&E2Comparative 6conomics in a Trans#ormin( /orl'6conomy

Schuman et al D8*$$E QHo" Germany +ecamethe China o# 6urope Time2 @ol $))-9

Rattner2 S1 D8*$$E QThe Secrets o# GermanysSuccess ,orei(n A

topic 9 - germany reunification (ho)

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