Table Of ContentINTERNATIONAL POLITICAL ECONOMY SERIES 
General Editor: Timothy M. Shaw, Professor of Political Science and International 
Development Studies, Dalhousie University, Nova Scotia, Canada 
The global political economy is in a profound crisis at the levels of both production 
and policy. This series provides overviews and case-studies of states and sectors, 
classes and companies, in the new international division of labour. These embrace 
political economy as both focus and mode of analysis; they advance radical 
scholarship and scenarios. 
The series treats polity-economy dialectics at global, regional and national levels 
and examines novel contradictions and coalitions between and within each. There 
is a special emphasis on national bourgeoisies and capitalisms, on newly industrial 
or influential countries, and on uneven patterns of power and production, authority 
and distribution, hegemony and reaction. Attention will be paid to redefinitions of 
class and security, basic needs and self-reliance and the range ofc ritical analysis will 
include gender, population, resources, environment, militarization, food and 
finance. This series constitutes a timely and distinctive response to the continuing 
intellectual and existential world crisis. 
Recent titles: 
Robert Boardman 
PESTICIDES IN WORLD AGRICULTURE 
Inga Brandell (editor) 
WORKERS IN THIRD-WORLD INDUSTRIALIZATION 
Richard P. C. Brown 
PUBLIC DEBT AND PRIVATE WEALTH 
Bonnie K. Campbell (editor) 
POLITICAL DIMENSIONS OF THE INTERNATIONAL DEBT CRISIS 
Bonnie K. Campbell and John Loxley (editors) 
STRUCTURAL ADJUSTMENT IN AFRICA 
Jerker Carlsson and Timothy M. Shaw (editors) 
NEWLY INDUSTRIALIZING COUNTRIES AND THE POLITICAL 
ECONOMY OF SOUTH-SOUTH RELATIONS 
David P. Forsythe (editor) 
HUMAN RIGHTS AND DEVELOPMENT 
THE UNITED NATIONS IN THE WORLD POLITICAL ECONOMY
David Glover and Ken Kusterer 
SMALL FARMERS, BIG BUSINESS 
William D. Graf (editor) 
THE INTERNATIONALIZATION OF THE GERMAN POLITICAL 
ECONOMY 
Betty J. Harris 
THE POLITICAL ECONOMY OF THE SOUTHERN AFRICAN PERIPHERY 
Steven Kendall Holloway 
THE ALUMINIUM MULTINATIONALS AND THE BAUXITE CARTEL 
Matthew Martin 
THE CRUMBLING FA<;ADE OF AFRICAN DEBT NEGOTIATIONS 
James H. Mittelman 
OUT FROM UNDERDEVELOPMENT 
Paul Mosley (editor) 
DEVELOPMENT FINANCE AND POLICY REFORM 
Dennis C. Pirages and Christine Sylvester (editors) 
TRANSFORMATIONS IN THE GLOBAL POLITICAL ECONOMY 
GarryRodan 
THE POLITICAL ECONOMY OF SINGAPORE'S INDUSTRIALIZATION 
Jorge Rodriguez Beruff, J. Peter Figueroa and J. Edward Greene (editors) 
CONFLICT, PEACE AND DEVELOPMENT IN THE CARIBBEAN 
Patricia Ruffin 
CAPITALISM AND SOCIALISM IN CUBA 
Frederick Stapenhurst 
POLITICAL RISK ANALYSIS AROUND THE NORTH ATLANTIC 
Peter Utting 
ECONOMIC REFORM AND THIRD-WORLD SOCIALISM 
Fiona Wilson 
SWEATERS: GENDER, CLASS AND WORKSHOP-BASED 
INDUSTRY IN MEXICO 
David Wurfel and Bruce Burton (editors) 
THE POLITICAL ECONOMY OF FOREIGN POLICY IN SOUTHEAST ASIA
The Internationalization 
of the German Political 
Economy 
Evolution of a Hegemonic Project 
Edited by 
William D. Graf 
Professor and Chair 
Department of Political Studies 
University of Guelph, Ontario 
M 
St. Martin's Press
© William D. Graf 1992 
Softcover reprint of the hardcover 1st edition 1992 
All rights reserved. No reproduction, copy or transmission of 
this publication may be made without written permission. 
No paragraph of this publication may be reproduced, copied or 
transmitted save with written permission or in accordance with 
the provisions of the Copyright, Designs and Patents Act 1988, 
or under the terms of any licence permitting limited copying 
issued by the Copyright Licensing Agency, 90 Tottenham Court 
Road, London WI P 9HE. 
Any person who does any unauthorised act in relation to this 
publication may be liable to criminal prosecution and civil 
claims for damages. 
First published in Great Britain 1992 by 
THE MACMILLAN PRESS LTD 
Houndmills, Basingstoke, Hampshire RG21 2XS 
and London 
Companies and representatives 
throughout the world 
A catalogue record for this book is available 
from the British Library. 
ISBN 978-1-349-22229-2  ISBN 978-1-349-22227-8 (eBook) 
DOI 10.1007/978-1-349-22227-8 
First published in the United States of America 1992 by 
Scholarly and Reference Division, 
ST. MARTIN'S PRESS, INC., 
175 Fifth Avenue. 
New York, N.Y. 10010 
ISBN 978-0-312-08099-0 
Library of Congress Cataloging-in-Publication Data 
The Internationalization of the German Political Economy: evolution 
of a hegemonic project I edited by William D. Graf. 
p.  em.-(International political economy series) 
Includes index. 
ISBN 978-0-312-08099-0 
I. Germany (West}--Economic policy.  2. Germany (West}--Foreign 
economic relations.  3. International division of labor. 
4. Germany-European Economic Community.  5. Germany-History 
-Unification, 1990.  6. International economic relations.  I. Graf, 
William D.  II. Series. 
HC286.7.1575  1992 
338.943-<lc20  92-3189 
CIP
To the memory of 
Wolfgang Abendroth 
Scholar-Socialist-Anti-Nazi
Contents 
List of Tables  ix 
List of Foreign Abbre1•iations and Terms  xi 
Notes on the Contributors  XV 
Acknowledgements  XVJII 
Map of Germany  xix 
Introduction 
William D. Graf 
2  Internationalization and Exoneration: Social Functions 
of the Transnationalizing West German Political 
Economy in the Post-war Era  8 
William D. Graf 
3  Change and Internationalization in Industry: Towards a 
Sectoral Interpretation of West German Politics  25 
Christian Deubner 
4  The Federal Republic and the New International 
Division of Labour: Crucial Developments in the 1970s  64 
Georg Simonis 
5  Internationalization and the Reorganization of 
Production and Marketing in the Volkswagen 
Corporation  90 
Reinhard Doleschal 
6  The Integration of the West German Textile and 
Clothing Industry into the New International Division of 
Labour  110 
Sibylle Raasch and Philipp W ahnschaffe 
7  Franco-German Economic Relations Within the 
International Division of Labour: Interdependence, 
Divergence or Structural Dominance?  140 
Christian Deubner, Udo Rehfeld and Frieder Schlupp 
VII
viii  Contents 
8  Towards the New Germany: The Logic of Rapid 
Unification and the Social Experiment of Radical 
Marketization in the GDR  187 
Andreas Pickel 
9  The Transformation of the East German Economy: The 
Visions of the German Parties and Governments - and 
the Reality  204 
Jorg Roesler 
10  The 'New' Germany and the Third World: Aspects of a 
Changing Relationship  222 
Brigitte H.  Schulz 
II  International Aspects of an Alternative Economic Policy  261 
Karl-Georg Zinn 
12  Gross-Deutschland in Europe: Planned or Unplanned 
Effects of the German Anschlujl on Hegemonic 
Leadership in the European Community  285 
Thomas 0. Hueglin 
13  World-Market Strategy and World-Power Politics: 
German Europeanization and Globalization Projects in 
the 1990s  307 
Frieder Schlupp 
Index  347
List of Tables 
3.1  Sectoral composition of West German exports, 1947-54  28 
5.1  Domestic/foreign production and exports of VW 
domestic subsidiaries, 1970-88  95 
5.2  Major marketing areas of the Volkswagen Corporation  95 
5.3  Sales of West German VW and Audi production, 1970/ 
1975/1982  97 
5.4  CKD exports  97 
5.5  CKD and FBU exports, 1970-83  100 
5.6  Employment trends within the Volkswagen 
Corporation  106 
6.1  Development of foreign trade intensity in the textile 
and clothing sectors  113 
6.2  The ten largest suppliers of clothing to the FRG  119 
9.1  Daily work performance in industry and construction, 
September 1989-January 1990  212 
9.2  Growth rates of the GDR economy, 1980-1989  212 
10.1  Sectoral distribution of bilateral ODA, 1950-88  235 
10.2  Regional concentration of bilateral ODA, 1950-88  236 
10.3  Principle recipients of West German aid, 1950-88  239 
10.4  Principle recipients of West German aid, 1988  240 
10.5  Percentage share of jobs dependent on exports  241 
10.6  Main trading partners, 1985  242 
10.7  West German imports from developing countries, 
1980-88  245 
10.8  West Germany's main LDC trading partners-imports, 
1988  245 
10.9  West German exports to developing countries, 1980-88  246 
I 0.10  Main trading partners - exports, 1988  246 
10.11  West German direct foreign investments, 1975-88  250 
11.1  Per capita exports  268 
13.1  West Germany: core industries in the late 1980s  323 
13.2  West German direct investment abroad: country 
concentration, year end 1987  324 
13.3  The top 100 West German industrial corporations, 
1988  326 
ix
X  List of Tables 
13.4  The top 50 West German industrial multinationals, 
1988  330 
13.5  West German core industrial multinational 
corporations, 1988  332 
13.6  Comprehensive ranking of leading West German 
industrial corporations in terms of future potential, 
based on performance data in 1988  333 
13.7  The top I 0 capitalist corporations in 4 selected 
industries, 1988  334