The politics and economics of German unification: From currency union to economic dichotomy

The political dynamics of unification brought about a rapid transition from a largely self‐contained socialist economy to a monetary union and at the same time initiated a painful adjustment process. The article analyses public debates and interpretations of economic events and prospects which contributed to the construction of the economic‐political dimensions of German unification.     

The impact of unification on German industrial relations

This paper analyses the stability of the German collective bargaining system by utilising a framework based on the concept of bargaining inclusiveness and exclusiveness. Examining collective bargaining developments in the metalworking industry, the adaptability of the west German bargaining system in the 1970s and 1980s is contrasted with the problems experienced in the new Lander, where institutional transfer and economic collapse, by substantially weakening IG Metall at establishment level and presenting employers with the opportunity to exit from the multi‐employer bargaining system, limited the prospects for organised decentralisation. The result has been the undermining of the inclusive German bargaining system in the east, as measured by collective bargaining coverage, which by creating labour market dualism, also threatens the stability of collective bargaining across Germany.     

Social,environmental and economic sustainability of Kazakhstan: a long-term perspective

This paper explores the evolution of Kazakhstan's development through an analysis of population trends, infant mortality, air emissions, water management, oil production, income, cost of living and average salary. The longitudinal data analysis demonstrates that the development of Kazakhstan during the Soviet period was far from sustainable in terms of uncontrolled environmental pollution. Time-series analysis illustrates that the 1990s transition to the market economy temporarily eased environmental degradation but also brought about initial socio-economic disarray and decline in living standards. Further support for rural areas and economic diversification is needed to move away from Kazakhstan's heavy reliance on mineral resource extraction to a more sustainable path of development.     

Between haiderisation and modernisation: The German free democrats since party unification

This article examines the development of the German Free Democrats (FDP) since party unification in 1990. Two‐fifths of the FDP's membership now come from the new Lander which adds considerably to the party's internal volatility while it is faced with a dual policy and functional crisis. The current internal debate indicates the extent of the resulting disorientation and illustrates the post‐unification search for a new identity. There now appear to be three principal options for the FDP's future development: firstly, the ‘West German option’, that is the retention of the internal status quo ante; secondly, a radical Haider‐style transformation or the ‘Austrian option'; and thirdly, the ‘modernisation option’, which sees party unification as an opportunity for positive change which could make the Liberals the first truly all‐German party.     

China and Africa: economic growth and a non-transformative political elite

Prevailing narratives in the discourse on China-Africa engagement are that China is developing Africa. This paper departs from those narratives because they disregard the agency of Africa's political elite. Basing its argument on the nature of the African political elite, the paper analyses their role in determining the impact of China's economic and trade engagement on economic development in their respective countries. To do that, it first discusses the nature and identity of African political elites, and examines how they control their states and scarce resources. Having done that, the paper then analyses their role in determining the nature and extent of development emanating from their countries’ economic engagement with China. It then concludes that it is not how much foreign states invest in African countries that determines Africa's rise, but rather political elites who influence the direction of their states’ development.     

East German political attitudes: Socialist legacies v. situational factors a false antithesis

This paper introduces the two main competing approaches that attempt to explain east German political attitudes in post‐unification Germany, the ‘situational thesis’ and the ‘socialisation thesis’. Furthermore, the paper suggests that these ‘either/or’ approaches are in fact inseparable and only make sense when taken together. Political attitudes in east Germany are influenced by the past, the recent past and the present. The result of both the socialisation process in the GDR and the traumatic transformation process following unification is weak civic participation and a lack of trust in formal institutions. Without trust and without a vibrant civil society, economic performance will remain low.     

A house divided: A view of German unification as it has affected organised labour

The role of labour unions in the integration of the new Bundesländer is a key one. For the unions themselves, this process presents a challenge second only to the reconstruction period following the demise of the Nazi regime in 1945. The article takes an extensive look at the union expansion process and the differing organisational and personnel strategies of the DGB and its member unions it generated. Against this background, it discusses the most important economic and social issues facing the German unions in the context of east‐west integration.     

Showtime for Southeast Asia: An economic and political crossroads

In the ASEAN region, booming exports and imports, and rapidly rising per capita incomes, have brought new challenges to trade policy. ASEAN is promoting its own “free trade area”; the United States backs the much wider and all-inclusive APEC format; and Malaysia urges a “caucus” restricted ethnically and racially to East Asians. The result is a genuine trade debate, along lines familiar in the already-industrialized nations. If ASEAN follows genuine openness there are considerable opportunities, but if it takes the timeworn paths of protectionism, restrictions on investment, and excessive sensitivity to fears of “foreign manipulation,” the future is liable to be less bright.     

The North Pacific triangle: Sources of economic and political transforation

This article explores the changing economic and security relationships among the United States, Japan, and South Korea, with particular attention to the implications of post-1985 exchange-rate shifts for political and economic stability in these three nations. The author argues that the stability and cohesion of this strategically important North Pacific triangle, the only point outside Europe where the economic and military superpowers all adjoin one American to the Japanese market as the locus of regional growth, due to disproportionate and destabilizing adjustment costs being imposed on South Korea. Expanded American, and especially Japanese support initiatives are the principal alternatives to intensified Korean reliance on continental Asia, the article maintains.     

German unification and the continuity of discontinuities: Cultural change and the far right in east and west

This paper contrasts the right‐wing potential in east and west Germany before and after unification in 1990 and relates it to patterns and changes in the east and west German political processes. The first is a restructuring of the political spectrum of the Bonn Republic prior to the fall of the Wall in which an electoral potential for new right‐wing parties has emerged. The second is the rapid and fundamental transformation process in the east and after the collapse of state socialism which takes place in the context of a modified subject culture with authoritarian and traditional patterns. Unification reinforces authoritarian and traditional patterns. Unification enforces those dynamics which had prepared the ground for the emergence of the New Right in the west while adding the insecurities and imponderabilities of the transformation process in the east.     

Labour,neo-liberalism and the conflict over economic and monetary union: a comparative analysis of British and German trade unions

Trade unions have generally been neglected in the discussion of Economic and Monetary Union (EMU) and the related neo-liberal restructuring of European social relations of production. This article helps to fill this gap through a comparison of British and German unions' position on EMU and European co-operation. It is demonstrated that there is a split between British transnational production sector unions, which support EMU and Europe-wide co-operation, and British national sector unions, which criticise the deflationary implications of EMU and focus on the national level in their policy-making efforts. In Germany, by contrast, EMU is generally accepted by unions with the exception of the construction workers' union. A division between internationally oriented and nationally oriented sector unions can only be identified in relation to the issue of Europe-wide co-operation, where the former are in favour and the latter reluctant. Importantly, however, unions in both countries strongly criticise neo-liberal economics, whether they support or oppose EMU. This may become the basis for a counter, neo-liberal strategy within the European Union.     

The political economy of economic regionalism in northeast asia: A unique and dynamic pattern

Since the mid-1980s there has been a gradual but steady rise of economic regionalism in Northeast Asia. However, the economic regionalism in Northeast Asia reveals its own dynamics and is presented in a form that is different from those in Western Europe and North America. Characterized by a “flying geese pattern” that has been developing in the region over time, the regionalism is soft and open; that is, it is uninstitutionalized and less discriminatory against other economies. This ongoing regionalism in Northeast Asia will inevitably bring profound political and economic implications for the region and beyond. Kevin G. Cai earned a Ph.D. in political science at Queen's University in Canada in 1996 Currently he is teaching at Kyonggi University in South Korea. His major research interests include the political economy of economic regionalism in the world economy, the regionalism in the Asia-Pacific area, APEC, China's integration into the regional and global economy, and various political, economic and security issues in the Asia-Pacific region. The author would like to thank Michael K. Hawes for his valuable comments on the early draft of this article.