Abstract
The transition of East Germany from a socialist socioeconomic system to the western combination of capitalism, liberal democracy and the welfare state is examined in the perspective of potential lessons for other such transition processes in eastern Europe. The focus is on the way in which welfare state institutions as they have evolved in West Germany can be used to cope with the labour market problems which have emerged in East Germany. It is argued that the general nature of West German welfare state programmes is patterned by the insurance principle and that their corresponding normative foundation is not suitable to achieve the integration of East Germans into a German society formed by the institutions of former West Germany, even if enormous economic resources are used to cushion the transition process.
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