Abstract
There is no doubt that the conditions for transformation of the former GDR's economy are unique in certain aspects and cannot be compared with the other countries of Eastern Europe. However, there are a number of common problems that must be resolved, both in the former GDR and in a number of other transformed economies. If we were to concentrate merely on these details, my report would basically summarize the experiences gained thus far in Eastern Europe. Therefore, I shall first characterize the specific features of the German situation. The main goal of the policy of most economies in a process of transition to a market economy-stabilization of the exchange ratewas instantly achieved in the GDR by the monetary union on July 1, 1990. I shall return to additional aspects in the introduction of the DEM in eastern Germany later. The financial aid, transfer of technical, legal, and analytical experience, and transfer of qualified work force, all of which was placed at the disposal of the former GDR, is quite extraordinary. It is estimated that 100 billion DEM will be transferred to eastern Germany in 1991. The adoption of an administrative and legal framework is certainly much facilitated by the common language and cultural heritage. The decision for East Germany to adopt the West Gernan economic model spared a lot of debate on partial issues, enabling a faster process of transformation. These circumstances, not all of which are favorable for a smooth and rapid transformation, have obviously influenced the course, sequence, and speed of the reform measures. But, as already mentioned, there is a whole group of tasks and problems common to all countries of the East Bloc that are in a transition to a market economy. If we keep in mind the peculiarities of the transition of East Germany, the process of transformation of the former GDR's economy can be used to derive certain general facts and rules that could be helpful in determining the economic policy of the other countries.
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