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Research Paper | History | India | Volume 12 Issue 1, January 2023

Fall of the Berlin' Wall in 1989: Some Historical Introspections

Dr. Gururaj Prabhu K.

Abstract: The fall of the Berlin Wall in 1989 had a profound impact on not only the German economy as a whole, but the economies on neighboring countries and countries around the world too. In the lead up to the collapse of the wall, Hungary and Czechoslovakia opened their borders and allowed East Germans to take refuge in Austria. The influx of people meant the economies of neighboring countries took a hit-whether it be a positive or negative one, the impact was likely to have been felt by everyone. In the years following World War 2, Germany was divided into four zones-the Soviet Union occupied the east, while the rest of Germany was divided amongst the United States, Great Britain and France. With hundreds of thousands of American soldiers stationed in West Germany and spending their American currency, the area flourished. The Deutsche Mark was eventually introduced in 1948 which further added to the region's growth. In the 1950s and 1960s, West Germany experienced a period of industrial growth and low inflation-only continuing to contribute to their prosperity. After 28 years, the Berlin Wall fell and East Germany was able to enjoy some of the luxuries of the West. The equivalent of around ?1.6 trillion was provided by the Federal Government and private German firms to bring the East in line with the West. While a great deal was invested in the infrastructure of East Germany after the Berlin Wall fell, the reunification of the regions also allowed large companies in the West to buy up property and businesses in the East. While this meant money was being flooded into the region by hungry entrepreneurs, it also meant that the West was being given an even greater role in the growth of Germany. Uwe Blien, a department head at the Federal Employment Agency, told the New Yorker, "most innovations today are done in the west, not because East Germans are not clever enough, but due to the process of unification, which gave the West German firms a larger role."

Keywords: East Germany, West Germany, cold war, USSR, communism, capitalism, NATO, military zone, ideological barrier, western imperialism, Eastern Europe, industrial backwardness

Edition: Volume 12 Issue 1, January 2023,

Pages: 311 - 318