Thu, 25 September 2014
1945 and 1991 are both important years in modern history. One date is famous for the collapse of Nazi Germany and the other for the collapse of the Soviet Union in Russia. Unarguably, the situation in Germany was worse in 1945, as it was devastated during the Second World War, leaving it a charred ruin, similar to much of Europe. However, despite the poverty, destruction, and damage from the war, Germany was able to create stronger democratic institutions and economic growth than Russia after 1991. A comparison of these two countries at their unique periods of regime change can shine a light on the attributes that helped facilitate democratic development and economic growth in Germany and caused democratic and economic stagnation in Russia. Germany is a good example of a success story for studying transitions, and finding the difference between it and Russia provides a useful comparison. This paper focuses on three major factors that helped create the differences in economic and political growth between Germany and Russia: monetary policy, international aid, and political and economic institutions.