Fall of Berlin Wall; Rise of World Economy?

On 9th November 2014 (Tomorrow) Germany is going to celebrate the fall of Berlin Wall. As you remember, Berlin Wall was a barrier between West-Side of Berlin and East-Side of Berlin which constructed by East Germany. But it was more than a just a barrier and like all Germans, all Europeans have to celebrate it. In this article, I will focus on Why Fall of Berlin Wall is so important for World  Economy?

On the 9th November 1989,  after the announcement made by East German authorities that now on, they can pass freely to West Berlin, East Berliners rushed to the wall and cross to West Part. It was just a beginning of the domino. After 1 year East-Germany fall  and  it affects Europe greatly. After that, almost all Eastern European countries became more democratic and most of them is in EU nowadays.  How it happened?


Why Berlin Wall was a `Wall` against Economy?

I have to look into this question in two ways which is `Wall` against German Economy and World Economy. Berlin Wall built at 1961 which means after then Germany got separated. Until that time, Berliners who were living in East were going to West for work. This was basically because West Germany was paying higher wages than East Germany and have better conditions. But after the `Wall` constructed by East Germany, it was impossible to do it. So, East Germans got poorer and angry against the system which prepares to fall of the wall. After reunification, Berlin Economy developed and mostly east parts state-owned factories, companies became private and adapt to free-trade and now Germany has the most strong and developed economy in Europe.

Iron Curtain between West(blue) and East (Red)

Secondly, `Iron Curtain` was dividing the Europe into two parts; West and East like Berlin Wall. Actually, the only difference between Iron Curtain and Berlin Wall was one of them was physical other was mental. Anyway, Most of the Eastern European countries influenced by Soviet Union and adapt Communism in that time. So, there were no direct investment from West to there. This was a huge forbidden market for West and East desperately needed that investments to develop. Of course that doesn't mean that West was perfect. For West, East was a big chance to get supplies, resources, manufacturing etc.

What is more, Fall of Berlin Wall followed by Fall of Regimes in Hungary, Czechoslovakia and finally in Poland. Despite the fact that, Czechs and Slovaks separated and became independent different countries, Poland and Hungary is growing economically year by year in Europe. Specially Poland is the only Emerging Market in EU. (In Europe one of the three emerging markets with Turkey and Russia) Therefore, as I mentioned above, not only Germans have to celebrate for Fall of Berlin Wall, the all Europe has to celebrate it. With the help of it, European Union became very big and strong economic community.

What is the negative effects of Fall of Berlin Wall?

However, Fall of the wall can have a lot of benefits specially for the countries which were under Soviet influence. Yet, the iceberg has another side. After World War II, there was a big development on the West. Capitalism was bringing money, money was bringing development and development was causing happiness.(Maybe not?) Even though, West Germany was in bad condition and depend on the aids and services from West, still West Germany was in a better position than East one. So, after the reunification, West has to pay for the East which means more taxes, more payments, more resources will spend  for East Germany than West Germany.

Moreover, East have brought 16 million people with itself. That means in just one day, EU's population increased by 16 million. This brought unemployment problems, low salaries, brain drain etc. That was the easiest part of the problem. The main part was, How to make East to adapt New Economy? or How to Integrate East to Europe? And Europe spent huge amount of money to integrate East Europe to West Europe before and after fall of Soviet Union. Perhaps, that is because they don't want to see something like `Iron Curtain` again.


In Conclusion
All in all, Fall of Berlin Wall was a beginning of the End of the Communist Regime in Europe. It was just the beginning of the Domino stone. I strongly believe that, Fall of Berlin Wall has more positive aspects than negative ones. As a Person who live in Warsaw, I can say that East Europe is still big market for West Europe and adaptation is almost completed. West invested, became calm and last 10 years, West is collecting the harvest. The transformation process was painful but this wall was not a normal wall. Berlin wall separated people, city, economy, regime basically everything.Therefore, it was a big revolution and this kind of unique revolution can not happen without pain.