History

At the beginning 20. Century was already Berlin a European industrial metropolis of international rank. Locomotives of the mechanical engineering factory Borsig (based 1837) drove by completely Europe, in the electrical industry were Siemens & Halske (based 1847) and AEG (based 1883), already world well-known. In the chemical industry the 1864 created Schering AG made themselves a name. Enterprises, which have also one hundred years late still a soundful name. 1902 are created the Chamber of Commerce and industrie to Berlin.

The First World War brought not only emergency and misery over the population, but also over many medium-size and enterprises relating to crafts to the city. A part of the large-scale enterprises came out against it even strengthened from this time, which was primarily because of enormous war production. But the gross national product reached only 1927 again the conditions of 1913.

The galloping inflation at the beginning of the 1920er years drove the population to the despair. On 4 November 1923 only one bread cost 420 billion Marks. The expenditure of the pension Marks starting from 15 November 1923 for worthless the paper money become introduced the provisional end of the crisis. 1925 worked in the citizens of Berlin metallurgy in 15.000 enterprises approximately 400,000 humans.

The collapse of the stock market at the New Yorker stock exchange on 25 October 1929 released however a world economic crisis, which had bad consequences also for Europe. In Berlin the number of the unemployed persons rose on up to 600.000 in the year 1932. It is to be considered that the social security was at that time alike to zero with unemployment. 1932 had dropped back the industrielle production into Berlin to half of 1928. The rate of unemployment amounted to 30.8 per cent. Also this was the fertile soil for the national socialists, who received only 5.8 per cent of the voices however still with the elections for the town council from Berlin on 17 November 1929. In March 1933 were then already 38.5 per cent for the NSDAP, if also not the absolute majority expected by them.

After the seizure of power of Hitler the Jewish entrepreneurs were forced, expropriated, pursued to the sales and brought, as far as they could not leave Germany in time, into the extermination camps. The successors in Jewish enterprises enriched themselves mostly at them not being entitled fortunes of the pursued ones. The federations became coordinated.

In the Second World War Berlin with its electrical and machine industry became the weapon waffenschmiede of the third realm, in which also many forced laborers were used. Because of the Bombardements the companies shifted their research and development departments and later also the guidance departments into areas of the country, frequently after Bavaria. The bombardment and the fight for Berlin did not leave much from the production capacities in the city. The remainder was dezimiert after release from fascism by disassembly of whole manufacturing plants.

The reconstruction of Berlin in its populated areas, the infrastructure and the working places in many places literally began with zero. The political division of the city and the blockade of West Berlin made the new start more difficult in the first five years after end of war. A large and not assistance who can be underestimated was at that time the Mars resounding plan of the USA and the assistance that Federal Republic Germany for the west sectors of Berlin. Many years was dependent the citizens of Berlin economics on assistance and subsidies. In addition, above all the subsidies brought taking along effects with itself. The word of "„extended work bench of "“West German enterprises, which let only smallest parts of their production line make in Berlin, but however the full Berlin subsidy to coat could, made the round.

The next break came with the building of the wall on 13 August 1961. Humans in east Berlin and the GDR were now quasi locked up and West Berlin become the political and island economical. 50,000 commuters from east Berlin could not go to no more into West Berlin into their enterprises to the work. The industrial site Berlin was weakened in the subsequent years permanently by the way course of whole enterprises or the drastic reduction of the jobs (not only by rationalization). Berlin became a city of the public service, the research and teachings and the services.

East Berlin was further emphasis of the industriellen production for the GDR economy. However the inflexible, centralistic and likewise high-subsidized planned economy of the GDR could not achieve economic upswing. Outdated plants, raw material and foreign exchange shortage prevented that the GDR economy could hold the connection by the technological development in the international yardstick. After the turn 1989 the sales markets of these enterprises, which lay almost exclusively in the Eastern Bloc, broke down as it were with the political systems and the West German economy could and did not want also as customers of these products arise. Completely on the contrary East Germany was used as enormous new area of distribution for west products. It took years, until in the supermarkets of the then new Lands of the Federal Republic again products of domestic production emerged. Here thousands of enterprises and hundredthousands of jobs of one are "„Go west "“- to the victim please mentality (also the consumer).

With the reunification of Germany in October 1990 Berlin became now again an economical unit with a natural surrounding countryside (the country Brandenburg). This new role must only still fill out Berlin, exactly like that the capital of the Federal Republic of Germany. The industrial metropolis Berlin the past on, the service metropolis is belonged final only in developing and the innovation centers of the city despite large progress not the enormous losses of one's job within other ranges compensate could. The new Economy in such a way specified, on which also in Berlin so large hopes were set, could not fulfill probably frequently expectations covered also far so far.

But it remains nevertheless noting that straight in Berlin, which only Land of the Federal Republic, in which east and west were united with one another, since 1990 an enormous structure achievement were achieved. Into the reorganization of the Ost-Berliner infrastructure and the housing existence many millions at public funds flowed. With the result that the quality of life in the East part of Berlin improved lastingly and in the comparison to the western part of the city is comparably well, sometimes even better.

Berlin economy 2001

The economic development of Berlin was usually certain of negative trends in the year 2001. The gross domestic product sank in the comparison to the previous year around a half per cent, the number of the employed persons sank around 5000 persons employed, the unemployment ratio lay in October 2004 with 17 per cent. Berlin was thereby in the escort course of all northeastGerman Lands of the Federal Republic, which exhibited all an unemployment ratio between 14 per cent (Thuringia) and 18 per cent (Saxonia-Anhalt) and so that the far over Federal average of 9,2 per cent lay. Positive impulses proceeded alone from the service range, particularly the enterprisenear services.

In the processing trade registered the construction of vehicles, the chemical industry and electro-technology partially strengthen increases in sales. Retail trade and guest trades suffered from private demand lacking. In a heavy crisis the citizens of Berlin are building industry for years, which could not profit obviously from the boom of construction activity of the years after 1990 lastingly.

The reestablishment of enterprises positively developed in Berlin and the number of the registrations of a trade. The balance of trade on and notices of departure is positive for years, had 1990 a combination-conditioned highest level of over 26.000, and is after a low in the year 1999 up-to-date again about 4.000 to more registrations than notices of departure.

The terrorist attacks 11 September 2001 in the USA had immediately also negative effects in Berlin, particularly within the tourism ranges, which played a very large economical role in the Federal Capital. Thus the passenger arising of the three citizens of Berlin airports in the comparison decreased/went back to the year 2000 from 13.3 million to 12.6 million passengers.

Large expectations are set in Berlin in the innovation and technology centers. The largest European technology location on the area of the former Academy of Sciences of the GDR, admits positive development under the short form WISTA in eagle yard with the emphasis pollution-control technology, information and communication technology and optoelectronics as well as the biotechnology location Berlin book takes one expressed and is merged into international networks.

Berlin is decided to use and develop the location factor science and research. Decided supporting measures are however in consequence citizens of Berlin of the bank scandal and itself impossible from this the resulting in household emergencies.

Articles in category "Economics of Berlin"

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• FHW Berlin - Homepage
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• Master of International and Development Economics - FHTW-Berlin.
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• Research at the Berlin School of Economics (FHW Berlin )
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