Catastroika Page #3

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enterprise of that period.

After the dissolution

of the Eastern Bloc,

Treuhand undertakes the sell-off

of East Germany's public assets.

A disastrous experiment...

...that results in millions

of unemployed workers...

...and a crushed industrial base

in the area.

Historically, it is a tragic event,

because the Treuhand idea derived

from various DDR movements.

When the people

of East Germany realised...

that reunification was in fact

an acquisition by West Germany,

Treuhand was already a state

within a state in Berlin.

In order for the bureaucratic

monster to function,

it used equipment and networks

of the east german armed forces.

Treuhand is transformed into

an economic occupation army.

It started working when East

Germany typically existed,

but it was basically influenced by

western politicians and managers...

...and economic sharks.

They had this popular slogan at the

Treuhand:
...

...which stands for

There is no Alternative...

...and Thatcher's portrait

was hanging in many offices.

Treuhand owns 8,000 companies,

...and 4 million sq. km. of arable

land and forests.

More importantly,

it holds the fortune of 4,5 million

workers in its hands.

And then, the plundering begins.

They privatised even on weekends,

up to 10-15 businesses.

This of course

was the real dilemma...

...which brought about

chaos and fraud.

People with no financial

background appeared...

...in order to buy businesses.

They didn't have any money,

but took part in auctions,

took the money from the companies,

paid their bills...

and dissolved the company.

There are innumerable examples.

A lot of companies went bankrupt.

Of the 4,5 million workers

there were 1,5 million jobs left.

The privatisation criteria were not

always financial.

Many decisions were taken

in political offices,

while several businesses closed...

...so as not to threaten their

competitors in West Germany.

Truehand's companies had value.

It is said they were problematic.

Some of them indeed were,

but others were competitive...

with the western companies

and exported goods to the West.

There were accusations that

political parties were bribed...

...in order to put pressure

for certain privatisations.

In Bischoferrode

there was a potash factory,

which is important

for industrial activities.

Such factories were found

both east and west.

But BASF's influence

was very big...

and as a monopole this company

didn't want any competition.

Thus, although there were investors

interested in the factories...

...they had to be destroyed.

The toll of Treuhand's action

is terrifying.

The GDP in areas of East

Germany shrinked by 30%,

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