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West Germany’s Economic Relations with the East: Political Goals and Economic Possibilities

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East-West Trade and the Atlantic Alliance
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Abstract

From the West German perspective the political significance that has always been attributed to East-West economic relations beyond purely commercial considerations is undisputed. This is because economic ties have invariably been a significant part of the overall East-West relationship which, apart from its political and military dimension, also has economic components. Since East-West relations over the years can be viewed essentially as an alternating mix of conflict and cooperation, the question as to the significance of economic ties as an instrument in East-West relations has arisen time and again.

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Notes

  1. A comprehensive example for the assessment of the impact of economic sanctions is the basic study of Gary Clyde Hufbauer and Jeffrey J. Schott assisted by Kimberly Ann Elliott, Economic Sanctions Reconsidered: History and Current Policy (Washington, D.C.: Institute for International Economics, 1985) which has re-evaluated more than 100 cases on the basis of success criteria such as cost to target, cost as a percentage of GNP, cost per capita, trade linkage, GNP ratio: sender to target, type of sanction, cost to sender. Not surprisingly, the study comes to the conclusion that in nearly all cases the expectations have not met the actual results.

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  2. See also David A. Baldwin, Economic Statecraft (Princeton: Princeton University Press, 1985);

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  3. Friedemann Müller et al., Wirtschaftssanktionen im Ost–West-Verhältnis–Rahmenbedingungen und Modalitäten (Economic Sanctions in East–West Relations: Framework Conditions and Modalities), (Baden-Baden: Nomos Verlagsgesellschaft, 1983);

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  4. Philip Hanson, Western Economic Statecraft in East–West Relations: Embargoes, Sanctions, Linkage, Economic Warfare, and Détente (London: Routledge & Kegan Paul, 1988 );

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  5. Claude Lachaux, Denis Lacorne, Christian Lamoureux, avec le concours de Hélène Labbé, De l’arme économique ( Paris: Fondation pour les Études de Défense Nationale, 1987 ).

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  6. This distinction was first made by Robert O. Keohane and Joseph Nye, Power and Interdependence–World Politics in Transition ( Boston and Toronto: Little, Brown and Company, 1977 ) pp. 12–19.

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  7. See the contributions of Jochen Bethkenhagen (on trade), Klaus Schröder (on credit), Jürgen Nötzold (on technology transfer), Klaus Bolz (on industrial cooperation), and Friedemann Müller (on energy) in: Reinhard Rode and Hanns-D. Jacobsen (eds), Economic Warfare or Détente. An Assessment of East–West Economic Relations in the 1980s ( Boulder and London: Westview Press, 1985 ) pp. 17–98.

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  8. Cf. Angela Stent, From Embargo to Ostpolitik. The Political Economy of West German–Soviet Relations 1955–1980 (Cambridge: Cambridge University Press, 1981 );

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  9. German: Wandel durch Handel? Die politisch-wirtschaftlichen Beziehungen zwischen der Bundesrepublik Deutschland und der Sowjetunion ( Köln: Verlag Wissenschaft und Politik, 1983 ).

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  10. Cf. Hanns-D. Jacobsen, Die Ost–West-Wirtschaftsbeziehungen als deutsch–amerikanisches Problem (East–West Economic Relations as a German–American Problem) (Baden-Baden: Nomos Verlagsgesell-schaft, 1986 );

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  11. Claudia Wörmann, Osthandel als Problem der Atlantischen Allianz (Trade with the East as a Problem of the Atlantic Alliance) ( Bonn: Forschungsinstitut der Deutschen Gesellschaft für Aus-wärtige Politik, 1986 ).

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  12. See the contribution of Michael Mastanduno in this volume, Chapter 9. Cf. also Gary K. Bertsch (ed.), Controlling East–West Trade and Technology Transfer: Power, Politics, and Policies (Durham and London: Duke University Press, 1988 );

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  13. Reinhard Rode, Sanktion und Geschäft—Die Ostwirtschaftspolitik der USA unter Reagan (Sanction acid Business—The Foreign Economic Policies vis-à-vis the East under Reagan) ( Frankfurt/Main: Haag und Herchen, 1986 ).

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  14. Cf. Jurij B. Andrejew/Wladimir N. Schenajew, “Die neue sowjetische Außenwirtschaftspolitik” (“The New Soviet Foreign Economic Policies”), in Hanns-D. Jacobsen, Heinrich Machowski, Dirk Sager (eds), Perspektiven für Sicherheit und Zusammenarbeit in Europa (Perspectives for Cooperation and Security in Europe) (Bonn: Bundeszentrale für politische Bildung, 1988) pp. 334–40; Michal Dobroczynski and Ryszard Lawniczak, “RGW-Integration und internationale Wirtschaftsorganisationen” (“CMEA Integration and International Economic Organizations”), in ibid., pp. 354–65.

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  15. See Jürgen Nitz, “Wirtschaftsbeziehungen DDR—BRD: Bestimmungsfaktoren, Tendenzen, Probleme und Perspektiven” (“Economic Relations GDR—FRG: Determinants, Tendencies, Problems, and Perspectives”), in Aus Politik und Zeitgeschichte. Beilage zur Wochenzeitung Das Parlament B 10/89 of March 3, 1989, pp. 3–14; Horst Lam-brecht, “Die deutsch—deutschen Wirtschaftsbeziehungen zum Ende der achtziger Jahre” (“The German—German Economic Relations at the End of the Eighties”), in ibid., pp. 15–27.

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  16. This discussion has been picked up in Hanns-D. Jacobsen, Security Implications of Inner-German Economic Relations ( Washington, D.C.: The Woodrow Wilson International Center for Scholars/International Security Studies Program, 1986 ) pp. 7–15.

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© 1990 David A. Baldwin and Helen V. Milner

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Jacobsen, HD. (1990). West Germany’s Economic Relations with the East: Political Goals and Economic Possibilities. In: Baldwin, D.A., Milner, H.V. (eds) East-West Trade and the Atlantic Alliance. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21049-7_5

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