2.3.3. Post-War Germany: Division, Unification & Economic Growth

• From 1947–1949 the unification of the German sections took place, under the occupation of the Americans, English, and French.
• The Federal Republic of Germany (FRG), democratic reforms, and the Marshall Plan contributed to the rapid development of the economy.
• From the 1950s to the 1960s, was a period known as the "economic miracle."
• The FRG became second in the global market, was admitted to Council of Europe and NATO and emerged from isolation.

Post-War Germany

• Germany's state immediately after the war was difficult, and securing housing and food were the main problems.
• Germany was divided into four sections and administered by the victorious powers: the USA, England, the Soviet Union and France.
• In January 1947, the sections under US and British control merged.
• The unification of these sections was marked in 1949 by the establishment of the Federal Republic of Germany (FRG).
• In the eastern part, under the occupation of Soviet troops, the German Democratic Republic (GDR) was formed.
• Germany was divided into two states (democratic and communist), with two capitals (Bonn and Berlin), two constitutions and two currencies.
• This situation lasted about 40 years.
• The new political forces in West Germany were disoriented and unorganized.
• Initially focused on consolidating democratic institutions and eliminating the consequences of Nazism.
• The main parties in Germany were Christian Democratic Union (CDU) and the Social Democratic Party.

Rapid Economic Growth in Germany

• The FRG formed a central government to create a plan for the economic development of the country.
• Remarkable labor discipline and dedication were committed to the elimination of difficulties.
• The USA, with the Marshall Plan, provided great financial support.
• Proper utilization of funding created the conditions for rapid development in Germany.
• Unemployment decreased and normal trade movements happened
• The decade of the 50s was characterized as the "economic miracle".
• The economic development of D. The FRG continued rapidly and during the decade of the 60's.
• In a short time, the FRG became the second in the global market. The creation of many jobs was prioritized in the development of the free market, while the intervention of the state was limited only to necessary cases.
• The rapid economic development of Germany contributed to domestic political stability.

Germany: a Free and Democratic State

• When Germany was governed by the victorious countries, it was not considered an independent country internationally.
• D. would offer an independent presence on the international scene after 1949, when it was included in the Marshall Plan.
• In 1951 it became a member of the Council of Europe and the Ministry of Foreign Affairs officially removed the state of war with the Western allies.
• The Government and the Federal Democratic Republic considered its representatives in third countries.
• In 1952 the occupying regime and military control of the allies were abolished.
• In 1955 the FRG became a member of NATO and thus turned back into one of the major European countries.

Germany faced immense challenges post-WWII, including housing and food shortages. The country was divided into four sections controlled by the USA, England, the Soviet Union, and France. The unification led to the establishment of the Federal Republic of Germany (FRG) and a period of rapid economic development known as the "economic miracle."