Tiny Tigers

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Tiny Tigers

• A presentation by Nadine and Nadine

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Structure

• Baltic states accede to the European Union in
  2004
• Development of the Eastern Economy
• Advantages of the Eastern Economy
• Corruption
• Winners and Losers
• Our Opinion

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Baltic States accede to the EU in 2004

• The open market in Europe means for the eastern
  countries more opportunities to sell their goods
  ? severe competition for western countries
• Incentive to advance the technologies ? Eastern
  companies get more successful, they want to be at
  the top of global ranking
• Germany gains of under 1 percent this year - the
  countries to the east have been posting growth
  ranging from 4 to 7 percent for years
• Discrepance between old and new Europe
  German employees are replaced by cheaper
  employees from the east
• Western companies relocate to the east because of
  cheaper employers and lower maintenance costs

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Development

• During the 2nd World War Germany was the enemy of
  all the eastern countries
• The first step to conciliation was the German
  reunification in 1990 because an eastern state
  (GDR) acceded to the EU
• By the expansion of the EU with 10 further states
  from the east, these countries achieved
  profitable economic development
• Small carpenters shops increased to big
  companies packed with the latest production
  technology
• ? Germany has long ceased to be the adversary,
  now it has become a customer

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Advantages of the Eastern Economy

• Eastern employees do not demand high salaries
• Because of their still low prosperity the eastern
  government is very flexible for reforms
• ? simplified tax systems, investments in
  education, overhauling the infrastructure,
  unemployment benefits are accorded only to those
  who actively look for work
• Many countries like Slovenia have a great export
  industry
• ? These advantages lead to more wealth in the
  East but make many people in the West lose their
  jobs.

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Corruption

• The subsidies which are given to eastern
  countries by the west are not used for the
  forecasted investments
• The money is rather given to the most gainful
  companies than to small firms which are more
  dependent on it

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Winners and Losers

• The winners are the gainful companies which
  monopolize ? small factories have no realistic
  possibility to succeed
• Basically the employers benefit from the economic
  boom, the most employees work for starvation
  wages
• ? many of them look for work in the west
• ? in Germany for example the unemployment grows
• Because of the new wealth of the Baltic states
  new jobs are created there

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Our Opinion

• On the one hand the eastern countries are able to
  participate in globalization because of the
  accession to the EU PLUS
• But on the other hand capitalism, caused by
  globalization, leads to inequity
• ? The gulf between rich and poor widens
  dramatically