Treuhand
From Wikipedia, the free encyclopedia
The Treuhand (Treuhandanstalt or Treuhand agency) was the agency that privatized the East German state owned enterprises. Created by the Volkskammer on June 17, 1990, it oversaw the restructuring and selling of about 8,500 firms with initially over 4 million employees.
Its operations drew heavy criticism for unnecessary closing off of profitable businesses, misuse and waste of funds and unnecessary layoffs. When its operations ended in 1994, it had amassed 260 to 270b DM in debt.
The former chairman of the Treuhand, Detlev Karsten Rohwedder was shot by an unknown assassin and succeeded by Birgit Breuel.
For an in-depth English-language account of the Treuhand, its unique structure and personnel practices, and how those structures shaped its performance, see Mark Cassell's book "How Governments Privatize: the Politics of Divestment in the United States and Germany" (Georgetown University Press, 2002).
