GERMANY - ECON, SOCIETY & REUNIFICATION 49-91' Flashcards
50, 60, 70, 80s summary
50s: Economic miracle
60s: Consolidation & first signs of trouble
70s: Oil shocks, generous social welfare programmes, rising deficits & finally a loss of control
80s: New policies at home and more
Stable environment abroad put W.Germany back on path to modest growth
CDU era, 49-69’ PT.1
Intention was to establish economic system that would provide equal opportunity for all
• Erhard’s 1st step = reform the currency, introducing rent embark
ECONOMIC MIRACLE:
•Growth rate of industrial production was 25% in 1950 & 18.1% in 51’.
•By 60’, industrial production incr 2.5x of level of 1950 - GDP incr 2/3 during 50s.
•No. of people employed incr from 13.8m (50’) to 19.8m in 60’ + unemployment decreased from 10.3% to 1.2% in same period
•Econ growth not as good during 60s –> due to supply of labour from E.GER cut off Berlin Wall + recession in 65’
CDU era, 49-69’
Participation in EEC/EU
Euro integration took big step with Treaty of Rome, main benefits:
•Cheaper products + easier access through common policies on agric transport
•Easier flow of skilled labour around EEC
•For Adenauer, econ integration had always been a step towards longer-term goals: monetary union - adoption of common euro currency, political union - creation of single Euro state
SPD era, 69’-82’
SPD/FDP coalition expanded the W.German social security system
•Schiller resigned in June 72’, unable to break inflationary spiral, caused by incr social spending
•Schmidt encountered problems. Inflationary pressures + spiralling import costs
OIL CRISIS: FRG unemployment reached 1m by 75’ & in same year GDP fell by 1.4%. By 76’, worst was over, Schmidt incr public spending + reduced taxation to create jobs
•FRG kept inflation 4.7% in 73-79’, compared to Euro avr of 11.7%
The economy under Kohl, 82-89’
Began to implement policies to reduce the gov role in the economy
New gov obj: •To reduce federal deficit by cutting expenditure + taxes
•To remove gov restrictions
•To reduce unemployment, which was still over 2m in 83’
POSITIVES: By late 80s, W.German economy grew more rapid
GDP growth rate incr to 3.7% in 83’ & 3.6% in 89
Social & Cultural developments - Standards of living + social tensions (50s-80s)
50s: By 52’, 450,000 new homes built, wages increased by over 80% (45-55’)
•Symbol of affluence was car industry
•Young people began to question Nazi past
60s: W.German society, self-satisfied, materialist way of life. Saw 1st genuine debates over German war crimes
•63’ = Frankfurt trials, brining Auschwitz perpetrators to justice
•By 66’ - FRG was in early-life crisis. Student protests, anti-Vietnam + NPD & Communist DKP movements
70s: Econ recession + terrorism dominated this era
•Incr unemployment to 2m - Wealth gap
•By end of 70s, close to 10,000 W.Germans were under police surveillance as terrorist sympathisers.
80s: W.German society was cosmopolitan - Americanised
•Social tensions, due to unemployment + immigration, structural unemployment was 10%
•82’ poll found 2/3 of Germans believed there were too many foreigners in the country. Kohl advised them to leave
•Immigrants = 1/4 of bottom 15% of society
Nazi restoration + greater openness
Nazis were still in high positions. Despite reparations treaty (52’) to Israel –> 3.5bn DM
HANS GLOBKE: A’s chief of staff, one of authors of Nuremberg Laws (35’)
LUBKE: German less 59-69’ - had built Nazi prison camps
KIESINGER: Chancellor of Grand Coalition - Was NSDAP 35-45’
Greater openness:
•New gen demanded more open confrontation with past
•Auschwitz trials in 63 & 68’
•(80s) Kohl’s meeting with Reagan at Bitburg, legacy of Nazism
•By 89’, society was at crossroads like in 49’ & 69’, caught between emerging green, progressive consensus & CDU/CSU era
Cultural developments
WOMEN: Basic Law - declared women as equal in 50s
•SPD era saw big gains for women
•Equal rights in 77’, abortion legalised in 76’
•Women in higher education incr 31-41% (70&89’)
YOUTH: Americanisation + consumption culture saw new opportunities
•Catholic groups in 20s=1.5m, by 60s= only 500,000
•Young people saw themselves as W.German - expectations of a united Germany had fallen off the radar.
DRIVE TO REUNIFICATION
Situation in E.Germany
•Knew their system was corrupt, former leader has luxury homes. W.Germans feared ‘peaceful revolution’ could turn into bloody retribution
E.German collapse: GDR could only wall in citizens to keep them.
•Collapse of communism in E.Europe + liberalising policies by Gorbachev in 85’
•Ostpolitik by West since 60s supported E.German protestors
•Opening of border between Hungary & Austria (May 89’) allowed E.German escape
Role of Kohl: in 89’, his chancellorship was going nowhere, political scandals + growing support for L+R/Wing
Factors for unification + opposition
FOR: Dire economy of GDD from 1989
•Bavaria based CDU put pressure on sister party, to harness re-unification movement.
•Action needed for refugee crisis in W.Germany, (Nov 89’) 133,000
•Kohl faced elections in 90’ w/ low oil standing
AGAINST: L/wing opposed to a Western, capitalist takeover of the East
•Gorbachev anxious to slow down process, insistent that any unification should only occur as part of wider Euro rapprochement
RUSH TO UNITY + 90’ elections & currency reform
Reunification possible through Brandenburg gate opening on 22nd Dec - E+W gave positive speeches
•Gorbachev coming to a view that Euro stability would be better served by reunification
18 MARCH ELECTIONS 90’:
•Kohl promoted prosperity through unification
•Said that currency would be 1:1
•Election produces overwhelming mandate for Kohl - alliance won 40.8%, nearly 2x of SPD in 2nd
CURRENCY UNION: 18th May 90’, W.Germans went to East for bargains - leading to shortages
•W.German investment in East x2 from 44-88bn in 90-92’
•Real income incr by 28% between 89-91’
OVERCOMING INTRNL BARRIERS
Unification wouldn’t have happened without Gorbachev
•Kohl agreed to domestic troop reductions, to provide financial + technical aid to SU, & to pay for removal of Soviet troops from GDR by 94’
PROBLEMS + STRENGTHS of reunification
PROBLEMS: Econ decline of East
•1:1 currency, economically damaging
•Kohl’s admin underestimated costs - depression
•Higher education institutions difficult to re-construct
•Many easterners felt a loss of identity
IN SEARCH OF IDENTITY: Basic Law defined citizenship in terms of ethnic descent & disallowed an immigration policy. Germany was magnet for refugees
STRENGTHS: •A return to German nationalism was unjustified
•Kohl’s CDU had more % in 90’ than Nazis had in 32’
•Political system in 91’ had robustness, fairness & openness for Germans to face the transition with confidence
