Directing Foreign Investments to Eastern Germany: Swiss Engagements after (and before) 1989

This contribution explains how a specific constellation of Swiss consulting experts, financial advisors, and diplomats became involved in the economic restructuring of eastern Germany after November 1989. Swiss engagements reveal that capital did not merely “flow” across unifying Germany's borders, as economists’ definitions of foreign direct investment suggest. Rather, facilitators within and especially beyond Germany actively promoted investments. Business involving foreigners was often grounded in socialist-era trade activities that united profit seekers from East and West Germany, Switzerland, and other nations. As foreign engagements in unifying Germany's economy illustrate, mediators mattered. Pasts persisted. Debt and investment were intertwined. The course of public divesture and state-sponsored private investment in post-Wall Germany suggests future scholars pay closer attention to individuals and entities engaged in exchanging market information, not so much within individual nations as between them.