THE TRANSFORMATION OF EAST-GERMAN ENTERPR ISES

The transformation of the East German Economy between 1989 and 1995 is analyzed in this paper. In the first part, the role of the Treuhand-A nstalt in the privatization process is investigated. Ca. 72% of East G erman firms belong to West (German) corporations. More than half of th e firms are classified as ''extended workshops''. They were deprived o f departments that are essential for economic autonomy (e.g. sales, R& D). The second part of the paper concentrates on mobility processes of managers between 1989 and 1995. Ca. 85% of East German managers held similar positions already before 1989. They were successful in keeping their jobs or in being promoted to senior management positions (repro duction of the economic elite). Ca. 44% of East German managers had be en members of the communist party before 1989.