East Germany Integration

East Germany Integration explores the enduring economic disparity between East and West Germany more than three decades after reunification. It investigates the complex process of integrating a centrally planned economy (the former GDR economy) into a market-driven system, highlighting persistent productivity gaps despite massive financial transfers. The book analyzes the initial shock of transition, the effectiveness of subsequent economic policies like labor market policies, and the long-term consequences, including deindustrialization and demographic shifts. A key insight is that structural issues hampered convergence, challenging simple success narratives.

The book begins by examining pre-reunification economic conditions within the Eastern Bloc’s COMECON framework. It then delves into the immediate aftermath, including the currency union and the role of the Treuhandanstalt in privatizing state-owned enterprises. Subsequent chapters analyze investment incentives and regional policies, concluding with the long-term societal consequences. By focusing on micro-level impacts on firms and workers, the book reveals the human dimension of economic transformation, offering a granular perspective beyond aggregate statistics.