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The Decline and resurgence of the "German model": the Treuhandstalt and privatisation politics in East Germany

Author: Webber, Douglas INSEAD Area: Economics and Political ScienceIn: Journal of European Public Policy, vol. 1, no. 2, autumn 1994 Language: EnglishDescription: p.151-175.Type of document: INSEAD ArticleNote: Please ask the Library for this articleAbstract: At the time of German economic and monetary union in 1990, the Christian-liberal coalition in Bonn saw in the privatization agency, the Treuhanstalt (THA), an instrument which could be used to bring about a neo-liberal transformation of the hitherto state-owned and state-controlled East German economy. This article portrays how, owing to the failure of the government's policy, as manifested by the deep economic crisis in the region, the Bonn government and the THA were gradually forced to adjust their original strategy, especially by integrating the east German state governments and the trade unions more closely into the policy-making and implementation processes. Since German reunification the model of "corporatist crisis management", for which the old Federal Republic became famous in 1970s, has thus experienced a renaissance
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At the time of German economic and monetary union in 1990, the Christian-liberal coalition in Bonn saw in the privatization agency, the Treuhanstalt (THA), an instrument which could be used to bring about a neo-liberal transformation of the hitherto state-owned and state-controlled East German economy. This article portrays how, owing to the failure of the government's policy, as manifested by the deep economic crisis in the region, the Bonn government and the THA were gradually forced to adjust their original strategy, especially by integrating the east German state governments and the trade unions more closely into the policy-making and implementation processes. Since German reunification the model of "corporatist crisis management", for which the old Federal Republic became famous in 1970s, has thus experienced a renaissance

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