East Germany as a unique case of societal transformation: Main characteristics and emergent misconceptions

This article examines the process of economic transformation in the new German Länder, addressing some of the misconceptions which surround it. First, it questions the concept of ‘shock therapy’. In contrast to other post‐communist countries, east Germans were cushioned from the full force of the transformation to a market economy by government policy which opted for gradualist rather than radical measures. Second, it is argued that the prejudicial effects of the ‘colonisation paradigm’ have been greatly exaggerated. Although key decision centres in political parties and organised interests were located in the west, the new Länder derived considerable benefit from the institutional transfer of a functioning system of interest representation. How then do we explain negative perceptions of economic change in the east? It is argued that these are the result of a failure to prepare the east German people for the difficulties ahead. By postponing problems and prolonging economic hardship, the gradualist road to transformation is inevitably accompanied by a deepening sense of dissatisfaction and resentment at the slow pace of economic take‐off.