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Economic differences between West (GDR) and East (FRG) Germany

East Germany (FRG)

West Germany (GDR)

The Communist economic system

Economic success of the West

West Germany

(Reunification)

  • The ecnomony: centrally planned economy (CPE)
  • Most Industrialized Comunist Country
  • East Banking system
  • The pressures of the plan
  • technological modernization
  • Good marketing techniques
  • Cheap labour cost from gues workers
  • European Coal and Steel Community

Post War

1950s- Economic Miracle

1960s- First signs if trouble

1970s- Loss of control

1980s- New policies

The Marshal Plan

  • knows as the "Ecnomic miracle"
  • 20-year economic explansion

GNP increasing

Tax laws favoring business owners

Heavy private investment

East and West UNITED

The deutsche mark

Communism Long-term Plans

  • the Seven-Year Plan (1959-65)
  • Berlin Wall (1961)
  • Economic success in Agrar Sector
  • Foreign trade

Union of the two economies

1 July 1990- the economy in Germany became one

Democracy

  • free-market oriented
  • foreign investment
  • the labor force ↑

Reunification

Reference list

Countriesquest. (2011). “Germany, Economy.” [online] [accessed: 10th of June 2014]. Available at: http://www.countriesquest.com/europe/germany/economy.htm

DAUDERSTÄDT M.(2012). “Germany’s Economy: Domestic Laggard and Export Miracle” [online][accessed: 10th of June 2014]. Available at: http://library.fes.de/pdf-files/id/ipa/09042-20120427.pdf

Henderson D. (2010). “The Concise Encyclopedia Of Economics: German Economic Miracle” [online][accessed: 9th of June 2014]. Available at: http://www.econlib.org/library/Enc/GermanEconomicMiracle.html

Alemazung J. "Developments in the two Germanies East and West Germany after the Division" [online] [accessed: 8h of June 2014]. Available at: https://www.aulis.hs-bremen.de/goto.php?target=file_314104_download&client_id=hsbremen

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