Monday, 26 October 2026

Is German reunification a failure?

The question is still in the minds of many Germans, majority of whom live in the former GDR or East Germany. The noted informal comparison Wessis vs Ossis still rings true even after 35 years of reunification. Here is my PEST analysis proving the divide:

Overall picture

Look at the Poverty Rate Indicator. All six former states of East Germany are above the threshold figure of 15.5% fixed as the poverty rate for the year 2025.

Sachsen-Anhalt: 21.3% – 21.5%

Berlin: 18.7% – 19.3%

Thuringia: 16.8% – 17.0%

Saxony (Sachsen): 16.6% – 17.2%

Mecklenburg-Vorpommern: 15.9% – 19.4%

Brandenburg: 14.5% – 15.2%

Political divide

Former East German citizens have no say in the federal administration. Only about 12% of the top level federal positions are filled from the East. Liberal democracy which is the battle cry in the West is faintly felt in the East with support for AfD rising almost double from 12 to 24% across the board.

Economic divide

Average wages in the East is less than 15 to 20% of the Fed standard. Soviet era industrial structure was deliberately dismantled and sold for a song which earlier supported the labour force at-least at subsistence level. Most if not all industrial property was swallowed by the corporates headquartered in the West. Due to the earlier communist system there was no property inheritance per se but common ownership. By reunification, even these were robbed by capitalists.

Social divide

Even after 35 years of reunification, only 44% of the former citizens of the GDR identify as “Germans” compared with more than 70% of citizens living in the Western side. Immigration out of the East to the West is more than the number of Asian immigrants knocking on the door of Federal Germany. Two distinctive societal features are evident. One, the aging population is steadily increasing thereby making most of them unemployable which bleeds the Federal welfare budget. Two, most young people of employable age are moving out to western part leaving denudation of sustainable level of citizenship in the East.

Technology divide

The economic convergence between the Wessis and Ossis is still below 75% resulting from the techno divide. Former GDR citizens need not have the techno skills as required in the West because the technical skills under the Soviet system was enough for them to carry on. Reunification rammed on their throats advanced technology for which they were not prepared and the Fed administrators never bothered to upscale it anyway.

Synthesis

While I admit that, a unifying nation, more than anything else must put everything on even keel when it comes to the expectations of performance in terms of task, duty and delivery, a broader allowance must have been given to the Ossis such that they progressively uplift their skill structure. This is where the Fed Admin failed and failed miserably.

Strategy advice

Fed admin must quickly embark upon a revised integration programme that ensures PEST is synchronised between Wessis and Ossis. This not only erases the disparity but bring about the common loyalty to Germany as an Aryan nation.

Navigating strategy amid geoeconomics therefore directs Fed Admin to implement a revised integration plan.

 

Cheers!

 

Muthu Ashraff

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser

 


 

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Is German reunification a failure?

The question is still in the minds of many Germans, majority of whom live in the former GDR or East Germany. The noted informal comparison...