The Economic Growth Difference Between East and West Germany (Essay Sample)

The Economic Growth Difference Between East and West Germany
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East and West Germany took various restoration actions that were essential towards the economic growth and recovery of Germany after world war 1 and world war 2. The country was faced with various challenges that inhibited it from exploiting its potential ranging from rigid laws that need to be reformed, need for institutions change, need for education in East Germany to enhance entrepreneurial skills, and currency reforms. Both East and West Germany managed to make reforms towards the restoration of their economy. However, there were several differenced that was construed in the struggle for economic growth between West Germany and East Germany.
Germany faced an immense economic challenge after world war 2 that made it unproductive due to the effects of world war 2 that negatively impacted the economy. However, West Germany experienced rapid economic growth after world war 2, the economy grew drastically. West German GDP changed per man-hour to a tune of 75 percent of the British GDP in 1960. West Germany managed to raise the capital-labor ratio by making sure that they raise labor productivity. Absence of changes that were comparable changes in Britain that advocated in making pro-market reforms in U.S. aegis, cartels that were abolished, reduction of state interventions, and planning enabled the West German economy in a path that was channeled towards world market integration (Gerber,1994).