This paper describes the former German Democratic Republic in transition after unification, focusing on the new urban communities (Neubaugebiete) with particular reference to the levels of participation by residents in local organisations. The immediate effects of unification include loss of subsidies, massive unemployment and special problems for groups such as women, single parents, foreigners and young adults in residential areas. Levels of participation in local organisation are low because of a sense of futility and lack of familiarity. In the case-study city of Rostock the new political parties are committed to preserving some of the older GDR values such as non-segregated housing. The transition period has revealed enormously high expectations for social and economic well-being which are constantly challenged by the reality of everyday life.
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