Introduction

The Berlin Wall was a guarded concrete barrier that physically and ideologically divided
Berlin from 1961 to 1989. Constructed by the German Democratic Republic(GDR) starting on
August 13,1961, the wall completely cut off West Berlin from surrounding East Germany and
from East Berlin until government officials opened it November 1989. The Berlin Wall was
officially referred to Anti-Fascist Protection Rampart by GDR authorities, implying that the
NATO countries and West Germany considered equal to Fascist. The barrier included guard
towers placed along large concrete walls, which circumscribed a wide area that contained anti-
vehicle trenches, and other defenses. The Eastern Bloc claimed that the wall was erected to
protect its population from fascist elements conspiring to prevent the will of people in building
socialist state in East Germany. The wall served to prevent the massive emigration and defection
that had marked East Germany and the communist Eastern Bloc during the post-World War II
period. On November 9, 1989, as the Cold War began to thaw across Eastern Europe, the
spokesman for East Berlin’s Communist Party announced a change in his city’s relations with
the West. Starting at midnight that day, he said, citizens of GDR were free to cross the country’s
borders.

The effect of the world there was a complete reform of politics in East Germany. The
Communists ceased to be such an influential party in Germany after reunification. East Germans
could look forward to a better life. ”As the Wall came down, the Soviet power structure with its
closed borders, economic oppressions and mind control started to fall” (Halligan, Telegraph,
14.09.15). Things, often taken for granted on the West, where now luxuries in the post-Soviet
era. Individuals could now be self-employed, climb up the social ladder, travel and enjoy foreign
media. However the good life was not going to be immediate. Most employment in the East was
through state owned organizations and when, post reunification, they were privatized job losses
followed. Unemployment increased and the West Germans were growing bitter about having
their taxes increased to develop the former Eastern German economy. East Germans looked back
through “rose tainted” lenses and pondered if life was better pre Berlin Wall falling. The Cold
War provided a clear and present enemy, “the West’s enemy’s today are more numerous and far
harder to identify” (Halligan).
Eastern Europe change dramatically post wall falling. Counties like Poland, who have now
become an ally of the West, have established strong ties with the EU and NATO. In 2004 10
states joined the EU along with several former Soviet states; Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia and Cyprus. Also significantly, was the
foundations laid for a common European Currency.

In the short term, the fall of the Wall has not been a prosperous as hoped. The collapse of
Yugoslavia in 1991 sparked a series of wars which included acts of ethnic cleansing and
genocide. Across the region there are still simmering ethnic divisions. The newly constituted
Russian Federation got its first democratically elected President in Boris Yeltsin who embarked
upon swift market oriented reforms. In 1998, Russia defaulted on its debts and its economy
crashed. The collapse of the Wall ripped through the fabric of Russian society who in 1998 saw a
massive increase in corruption and organize crime ([Link]).

To the broader world it symbolized the fall of communism in Europe. It was relief for
America who had been taken to the brink of nuclear war during the Cuban Missile Crisis.
America would also have to reorganize as they would surely no longer need a military force of
that magnitude post-cold war. According to [Link], 2003, United States service personal
levels in Europe are less than a quarter compared to Cold War times. It left, at the time, America
as the only Super power and allowed the US a “free hand” to spread democracy around the
globe. Whether this was a positive or a negative will be debated long into the future.

In Africa it allowed the West to be more firm over Apartheid in South Africa as it was
previously hampered with the belief that the National African Congress was a communist
organization. Nelson Mandela was released shortly after the Berlin Wall was pulled down. Other
states in Africa, which had been supported by the Soviet Union and the West soon found that
support removed and descended into civil war. Quintessential of that was Zaire, known now as
Congo, who, under Mobutu Sese Seko, was supported by the West. Subsequent to reunification
support was less forthcoming and Seko was deposed. This left a power vacuum that descended
into conflict which killed many thousands of people.

There has been some other affects to reunification in Africa. For instance, those African
states who, economically, were closer to the Soviets ideals, found themselves having to make
closer economic ties with the West. This meant reform and benefited more the wealthier
Africans. Those who had previously relied on state welfare, however modest that was, found that
removed and thus became poorer.

Numerous exiles likewise looked for more political opportunity. In any case, they were
overwhelmingly taught, skilled youths, for whom constrained uniformity in East Germany added
up to a tremendous certain assessment. Found in this light, they looked for not simply political
freedom but rather flexibility from over the top understood tax collection. This doesn't imply that
disparity is an unfit ethicalness; it's conceivable to have excessively of it. However the Berlin
Wall commemoration helps us that the excellences to remember correspondence can be
exaggerated. Whatever the benefits of balance, it must not be endeavored through verifiable or
unequivocal tax assessment so extreme that it heads out ability and capital.

East Germany had uniformity, no unemployment, free training and wellbeing, and help
for the wiped out, incapacitated and matured. It was a populist welfare state with higher
expectations for everyday comforts than Germany had delighted in before World War II.
However, by 1961, an expected 3.5 million individuals had fled from libertarian East Germany
to in egalitarian West Germany, instigating the erection of the Wall.( Investor’s Business
Daily,2014). Whatever the merits of equality, it must not be attempted through implicit or
explicit taxation so severe that it drives away skill and capital. Nor can such people be retained
through fiscal or physical barriers.

To retain such people, a country must make itself attractive enough for them to stay. The
policy focus must be on creating more opportunity for the non-rich through superior education
and skill acquisition, not on draconian taxation.

Thesis Statement: Because of the fall of the Berlin Wall, the U.S. counteracts to help the East
Germany through economic aid to gained support to overthrow the Soviet Union and led to a
opened world of opportunity.

State of the Purpose: This paper intends to explore and discuss the world opportunity brought
about the fall of the Berlin Wall, and explore on how U.S gained support from Germany.

Title: The Fall of the Berlin Wall and its Economic Consequences
 Outline of the Body of the Paper

I. The fall of Berlin Wall and its economic affect.

A. The fall of Berlin brings economic decline in East and West Germany.
B. Life after the fall of Berlin Wall in Germany.

II. How did Germany rise from the fall?

A. The U.S contributes economic aid to [Link] order to catch up.

III. The U.S economic aid helps to East Germany in order to rise from the fall.
IV. The East and West Germany were unified and become one.

A. The country opened world opportunity.