Physical and historical significance of the Berlin Wall comes to mind most any time you discuss it. But to maintain such a structure, it is also important to understand the financial part of it. In this article, I will look into the costs of building, maintaining and eventually tearing down the Berlin Wall.
The Construction Cost of the Berlin Wall
Political tensions between East and West Germany began to affect the construction of the Berlin Wall which was commenced on August 13, 1961. Originally the wall was intended to prevent East German population from running away to West Germany.
The Berlin Wall was constructed at what is now believed to be a cost of somewhere between 155 and 200 million East German marks (around 120 to 155 million US dollars—Economist). The construction costs were made up for, material, manpower and subsequent logistics. Nevertheless, it is important to realize that these are rough estimates.
Maintenance Expenditures
As soon as the Berlin Wall was built, the main chunk of East Germany’s resources were diverted to the maintenance of the wall. Continuous financial investments were made to prevent escapes and ensuring the wall’s integrity.
The ease of maintenance included regular checks, repairs and reinforcement of the wall. The regime also invested in the surveillance systems, guard patrols, and all other forms of security measures around the wall. Although the precise documentation of this ongoing maintenance would be sparse, this maintenance was obviously dependent on the passage of considerable sums of money.
The Economic Impact
The economic impact of the Berlin Wall was immense in that these were costs of construction and maintenance for East Germany. Such a structure had become a considerable drain on the East German economy already struggling to pay its bills.
First, such resources were diverted from infrastructure development and social welfare to keep the wall maintained and there was also less money available towards improving the living conditions of the East German population. As a result, East Germany remained economically backward and progress not only as compared to the West German economic growth but also with the East German economic growth.
Additionally, the Berlin Wall’s construction created a further isolation for East and West Germans economically. The separation hampered trade, had limited movement, and restricted cooperation, influencing both economies in a negative manner. There were lost opportunities and damaged relationships as the communities, families and businesses were disconnected from each other.
Costs of Dismantling the Berlin Wall
On November 9th, 1989, the Berlin Wall fell and unified that country in a historic moment. But the process of dismantling the wall was costly in itself too.
At first we had to get rid of the physicals barricades, demolish the border installations and clean shambles. The estimated cost within the first 12 months was about 10 million Deutsche marks (about 6 million dollars).
Costs of reunification and transformation of East Germany into a democratic society were much higher. Integrating the two regions obliged previously divided territories, stabilized the economy, and improved conditions created a mammoth burden on the country’s bottom line. West Germany is said to have funnelled as much as $600 billion to East Germany into rebuilding and revitalising it between 1990 and 1994.
Conclusion
Set up not only as a physical barrier, the Berlin Wall was also a drag on East Germany’s money. East Germany had a significant financial burden from the initial construction to maintenance costs as well as from disassemble and reunification of the completed block.
The Berlin Wall clearly played the role not only of a human, but also of an economic, barrier although the exact total expense of all of its repercussions is tough to determine due to a lack of documentation and the extent of its impact on economic growth and prosperity.
Table of Contents