GERMANY: Building the Future...
Student Text Page No. 1: "As a Nation"

The teenagers who thronged Berlin’s streets on the night of October 3, 1990, are in their twenties now. Many have started families. Most are working; some, studying at a Universität; others, training for high-tech careers. But few will ever forget that moment in die Wende (turning point), when the dream of German reunification became reality....

In 1949, shortly after World War II, a defeated Germany was divided into two states: The German Democratic Republic (GDR) in the east was communist; the Federal Republic of Germany (FRG), democratic. To many, the split seemed permanent. But by the late 1980s, people in the GDR were staging freedom Demos. Then, in 1989, the GDR collapsed. And in 1990, east and west Germans were reunited under the FRG — with Berlin as their capital.

Past/present. During their separation, people in "both Germanys" had preserved a strong sense of cultural ties to one another. Yet, despite such bonds, the years following reunion were a shock for east Germans. West Germans were turning out the world’s third largest gross domestic product (GDP). But east Germans had never experienced free-enterprise competition. The FRG was a parliamentary democracy with several major political parties. But east Germans had not had political freedom under the GDR. Clearly, reunion between east and west Germans would involve some adjustment.

High marks. To ease this adjustment, the FRG began pouring billions of Deutsche Marks into eastern Germany. Targets for assistance included transportation and communication networks, as well as job growth in small businesses. Though east Germans still trail west Germans in output, wages, and employment, the investment is paying off. By the year 2000, manufactures in eastern Germany were growing at about 10 percent annually.
     In fact, despite the recent recession, all of Germany's economy keeps humming. In a space the size of Montana, 82 million Germans produce an annual GDP worth over $2 trillion! Germany today is one of the chief producers of chemicals, steel, machinery, vehicles, and electronics. It's a leader in global patents and is No. 2 in world trade, overall.

New agenda. Yet Germany has a 9.4-percent unemployment rate. And the causes have been hotly debated: Are Germans losing jobs to lower-paid workers in other nations? Germany has generous welfare policies: Do they drain funds that might otherwise flow to new business start-ups? Or is the "drain" more a result of the country's annual payments on its heavy debt — a debt that includes the cost of rebuilding eastern Germany?
     Since Chancellor Gerhard Schroeder first took office in 1998, he has tackled unemployment on many fronts: At his urging, labor leaders, employers, and the government formed an "Alliance" to create new jobs. He trimmed government spending — and pushed tax cuts to encourage business start-ups. And he's proposed reducing the government's role in funding unemployment benefits (an idea that is hotly debated).

Looking Ahead. What effect might such strategies have? How would they influence relations between east and west Germans? What other priorities should the government follow, as it helps to build Germany’s future? After his 2002 re-election, Chancellor Schroeder addressed that last question. Saying that today's generation has a "historic duty to achieve justice in the age of globalization," he urged Germans to support a "strategic investment in education," and a "structural reform of the labor market, pensions, and healthcare." Keep your eyes on Germany! And learn more about its reunification here:
     Microsoft® Encarta® Encyclopedia. CD-ROM. (Look for "Germany," then scroll to "Reunified Germany.")