By: Darrell Guthrie
Introduction
The Russian aggression against Ukraine is now more than three years old. A new US administration is implementing a radical approach to securing a ceasefire and appears poised to limit direct military assistance to Ukraine. Consequently, Europe now recognizes that it must approach this war in a decidedly different manner than might have been presumed only a few months ago. The past may offer hints to a path forward for Ukraine to survive and ultimately prevail against Russia.
While the imminent threat of war hung over Europe during the Cold War, West Germany lived under the constant threat of Soviet aggression. Yet, through economic revival, strategic military growth and partnerships, and careful political maneuvering, West Germany not only outlasted its aggressor but laid the groundwork for long-term stability and prosperity.
West Germany's experience during the Cold War offers valuable insights for Ukraine in its pursuit of enduring stability and prosperity amid external threats. This blog explores some of the lessons that may be drawn from West Germany across economic and military themes.
Economic Revival
In the aftermath of WW2, Europe’s economy was devastated. While the likes of the UK and France made a slow but steady return to normality, West Germany’s economic recovery was more challenging. Bombing had destroyed swathes of urban infrastructure, food and industrial production was dramatically depleted, and millions of refugees from East Germany had sought sanctuary in the West.
Recovery efforts began in earnest in 1948, led by West Germany’s military government. Currency reform and the introduction of the Deutsche Mark encouraged production while price controls were lifted and taxes reduced, thus helping to restore economic stability and build a foundation for rapid industrial growth.
At the same time, the Marshall Plan (officially, the European Recovery Plan) was enacted in 1948: a U.S.-led initiative that provided economic aid to Western European nations to rebuild their economies and ultimately intended to counter the spread of communism. Providing over $13bn in grants and loans, 11% of which went to West Germany, the Plan played a key role in reviving Western economies and stabilizing political contexts. Although the Marshall Plan’s direct financial contribution to West Germany was relatively modest, its psychological impact was significant: it catalyzed domestic action to rebuild and revitalize. While future aid to Ukraine is more likely to come from its European allies than in the form of a US-led funding package, the Marshall Plan model provides a useful demonstration of the transformative potential of robust foreign aid.
A combination of foreign aid and robust economic reforms thus enabled West Germany to revive its shattered economy in a transformation that came to be known as the Wirtschaftswunder or economic miracle. This economic stability fostered social unity and political legitimacy, reducing internal vulnerabilities. The German example may offer valuable lessons for buttressing economic resilience as a tool for stabilization in the face of an aggressor.
Ukraine has already implemented wide economic reforms heavily driven by its EU integration process, for which the EU-Ukraine Association Agreement, and within that the Deep and Comprehensive Free Trade Area, sets the framework. Continued focus on the likes of currency stabilization and inflation reduction and further EU alignment can help to create a fertile environment for investment and domestic growth. International aid from European allies can be used beyond emergency relief, as a strategic tool for economic transformation, channeled into structural reforms and critical rebuilding and infrastructure projects. Such international support can also signal robust backing for Ukrainian growth, helping to boost organic domestic efforts to revitalize the Ukrainian economy. Ever-deeper integration with Europe and other international partners can further foster robust trade networks and help to enhance resilience against economic shocks.
Ultimately, while Russia’s aggression continues, it may be argued that a modern, resilient, interconnected, and prospering Ukrainian economy will make it much harder for Russia to leverage economic and trade disruption as a tool of aggression, or to play upon economic challenges domestically as a tool for sowing discontent. A resilient and thriving Ukrainian economy limits the ability of an aggressor to exploit economic manipulation for political leverage both domestically and internationally.
Strategic Military Partnerships
Further lessons for Ukraine may be learned from the West German experience of collective defense. West Germany joined NATO in 1955, leading to the establishment of the Bundeswehr, or the Federal Defense Force. Whilst not initially capable of deterring a Soviet attack on its own, the Bundeswehr quickly grew into one of NATO’s most modern and well-equipped forces, and its NATO integration meant that West Germany’s military strength was amplified through collective defense. The alliance provided a credible deterrent against Soviet aggression during the Cold War by pooling resources, intelligence, and strategic planning among member nations. This collective security arrangement provided a formidable deterrent against Soviet expansion and assured West Germany that any aggression would trigger a coordinated response from the entire alliance.
Although Ukraine’s NATO accession is, at present, unlikely, Ukraine is closely focused on deeper security relationships with strategic partners, and with good reason: collective defense arrangements can bring enhanced intelligence and military capabilities as well as crucial deterrence mechanisms to mitigate the likelihood or impact of external aggression.
West Germany was able to grow a defense industry that was compatible with Western standards and tapped into domestic ingenuity and innovative thinking. It further focused on state of the art and hardened defense infrastructure (such as ports, airfields, and maintenance facilities), improving the ability of West German and its partners to respond to Soviet aggression. Separate from the question of Ukraine’s NATO accession, more generally Ukraine could adopt Germany’s approach to strategic military partnerships, which could provide a robust security framework for Ukraine: one that enables targeted Ukrainian requests for military assistance while building both internal and external defense capabilities to better protect key population centers and critical infrastructure from Russian attacks.
Further, the economic revival that underpinned West Germany’s military modernization illustrates the deep interconnectivity between economic stability and military capability. A robust Ukrainian economy can provide the necessary resources for defense spending, technological innovation, and sustainable military growth. For Ukraine, reinforcing its economy through reforms and international support will bolster its capacity to invest in a modern, resilient military that can effectively deter or counter aggression in the long-term.
Conclusion
Ukraine can learn from West Germany's experience during the Cold War. The chief difference is that Ukraine is engaged in an active conflict that is consuming critical resources—especially the valiant effort of its people—and which requires vast amounts of aid. However, the blueprint for West Germany’s economic, political, and military organization, which enabled it to survive until the day that it unified with East Germany, may provide a framework for Ukraine’s own long-term and rightful sovereignty.