Essay Title: 

The economy of Berlin

March 20, 2016 | Author: | Posted in history, holocaust studies

The economy of Berlin

Berlin has been the primary site of political , social , and cultural transformation in modern Germany . Unlike any other German city , Berlin known as the Athens on the Spree and City of Crisis ‘ has witnessed influenced , and mirrored the political metamorphosis of Germany during the entire twentieth century (Cohen 1983 . The years 1918 , 1933 , 1939 1945 , 1961 , 1989 , and 1990 represent special markers in economic upheaval in each the city of Berlin figured prominently as a locale and as a symbol : World War I and the 1918 November Revolution [banner_entry_middle]

led to the establishment of the Weimar Republic Hitler ‘s rise to power , with the burning of the Reichstag on February 27 and 28 , 1933 , was a visible sign and sinister omen the invasion of Poland on September 1 , 1939 , signaled the beginning of World War II , with the war eventually ending with the Red Army ‘s conquest of Berlin in April 1945 and the Wehrmacht ‘s unconditional surrender signed in Reims and in Berlin on May 7 and 8 of that year the division of Berlin and Germany was most painfully enacted and visibly demonstrated by the initiation of construction of the Berlin Wall on August 13 , 1961 , and unexpectedly breached on November 7 , 1989 and German unification , marking the end of the postwar era , took place on October 3 , 1990 . The Berlin Wall is no more economic planning has gone by the board managerial autonomy is de rigueur . In this work , we will consider management in transitional economies . We have approached the by looking at not only the macro-dimensions but also the micro-economic ones , as well as the management-level equivalents , of the changes both economies and enterprises have experienced across Berlin during the transformation process

From an economic point of view , the Berlin wall was undoubtedly used as an instrument to segment the German labor market . Substantial differences in living standards between East and West Berlin had resulted in large migratory flows from east to west during the 1950s The East Berlin regime found itself confronted with the options of either building the Wall or offering West Berlin wage levels . The re-opening of the Wall restored a unified labor market . The unification of the labor market in turn had an impact on trade union wage policy . A rational stance was to insist on the fairly rapid equalization of wage rates in the two parts of the newly unsegmented labor market

When western banks demanded a reduction in the DDR ‘s indebtedness in 1981 /82 , the pressure to increase exports and reduce imports was further increased . Consequently , nearly all the growth in output during the 1980s was devoted to improving the current account . The result was an almost complete lack of capital investment and technical change . Product obsolescence was another consequence , as was low labor productivity Industry was also overmanned . Outward migration to the west – the proximate cause of the construction of the Berlin Wall in 1961 – reached a peak after the re-opening of the Wall… [banner_entry_footer]

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