Postwar Germany

The post war situation resulted in the division of Germany which came under the suzerainty of the Allied forces. The Cold War which followed in the aftermath of the World War II split the world into two camps - the eastern world dominated by communism under the Soviet Union and the western capitalist world led by the US. Germany was fragmented into 4 parts: the northwest under the British, the southwest part was captured by the French, the south was under the US and the Soviets established their control over eastern Germany. The country was a sea of millions of refugees from the east, dead or wounded citizens and cities reduced to a rubble.

The Late 1940s
The occupying forces thought of immediate measures to bring life back on track. The Potsdam Conference was held in 1945 between the ruling powers, to decide the future of Germany. The Soviets had a lot of say in the consequential developments. It was decided that Germany would compensate the Allied Nations for the losses they suffered in the war. Soviet Union had a lion's share in the deal with sizable control over East Germany and the adjoining territories. Poland, which was severely mauled by Nazi Germany, was compensated for its losses by the rights to administer a large part of South Germany. The reparations to be received by the occupying nations would be in the form of goods and equipment. A lot of industrial and agricultural produce of Germany was diverted to the Anglo-American and Soviet Union control. The capital city, Berlin, was divided into four administrative zones, each under the control of the occupying forces.

However, differences arose between the governing countries with regard to the share of the compensation. The US and Britain were keen on a democratic setup and the economic self-sufficiency of Germany. The Soviets wanted a large territory and were averse to the idea of German development. Similarly, the French too wanted a sizable land and vetoed the unification plan of the country's administration. The US and Britain merged their interests and set up a 'Bizone' for a unified economic policy in the German territory under them. The German Democratic Republic was set up in the east under the Soviet influence and the government in the west under the aegis of the US and Britain came to be known as the Federal Republic of Germany.

The German Dilemma
The area under the Soviet Union was economically backward and had severe restrictions imposed as compared to those on the West. The workers of East Germany mutinied against the pathetic work conditions and low salaries. The socialist government of the east announced the building of a wall that would prevent the western influence in its territory. Many people fled to the west before the construction began and many were killed in the process. The socialist government did not want the so-called fascist and imperialistic Anglo-American influence on its region. Therefore, there was a huge difference in the social and economic structure of the West and the East Germany. The Berlin Wall that signified the stand-off between the communist and the capitalist world was built in August, 1961. Although there was a huge drain of the German resources, intellectual capital and services to the occupying countries, the Soviets exercised more brutality on its part of the German land. The resulting conditions led to a severe negative impact on its development, although the industrious nature coupled with a skilled and efficient population were a huge gift in disguise for the German population.

Change on the Cards
The 70s and the 80s marked the rise of a tremendous economic activity in both East and the West Germany. They competed against each other in development activities. East Germany was a political scapegoat of a stubborn communist regime. The region with vast potential had to face many revolts and strikes due to unrest in the working class. There was rampant corruption and the political instability marred its growth prospects. Against this, the West had a stable and smoothly functioning government. The development efforts received a huge impetus on both the economic and the social front due to the free market policies of the government. There was a growing sense of the need to unify the East and the West. Finally, amidst the declining Soviet influence and a lot of pressure from the local population, the East and the West were combined in 1990. The event was marked by bringing down the Berlin Wall and a large scale migration of the people from the East to a more organized West Germany.

The 1990s and the beginning of the 21st century saw the rise of Germany, as the fourth-largest economic power in the world. Today, it is one of the most industrially advanced, stable and developed nations of the world.