The Challenge And Development Of German Social Insurance System During Kohl's Period

German Social Insurance System, which was established in Bismarckian period,was been continuously perfected with the practice of the Soziale Marktwirtschaft after World War II.Therefore Germany can be ranked among the most perfect walfare states.German insurance is extended so far to every social aspect as to constitute a from -womb -to -tomb system .From the late 1970s on ,West German economic development was caught by the stagflation and the outbreak of the two petroleum crises .Henceforth a crisis crept on German insurance system .Inside the system there existed many problem ..especially the social insurance costs were so high as to aggravate the financial burden of the federal government;the social welfare was so perfect as for nobody to undertake Low-income work ,which gave rise to the increase of the unemployees and the inflation of the unemployment insurance expenditure ,etc.Confronted with that serious situation ,Helmut Kohl ,as soon as he come into power ,put forth a set of administrative designs that could cope with the emergences and overcome the crises .The stress was laid upon tapping the new sources and decreasing the expenditures ,lowering the state budget proportioning the practice of social insurance with its own capability ,and producing the employment chances .Besides Kohl's cabinet conducted a reform for the social insurance system ,which concerns such aspects as the reform of pensions and medical care .The efficient counterpolicy of Kohl's government reaped heavy fruits .German economy acquired a growth,the number of the unemployed went downward and a series of crises such as the financial burden generated by the high welfare expenditures was thus alleviated.After the reunification ,the economic and social system was wholly transplanted on the eastern part .From 1992 on,the two welfare systems was formally unified .In order to bridge the great gap between the West and East ,the West administered a great amount of financial transfuse to the East through the Unification of the funds and thetransposition pay of the Federation and lands,of which the social welfare transposition pay was great .Parallelled with the circumstances of the West ,the rate of unemployment in the East went upward because of the reshaping of the social economy and the transformation of the labor from the shortage of labor ,adequate employment to the marketized employment .According to the new difficulties ,Kohl's govermant conducted efficacious efforts to enliven the East .Great changes took place in the East economy and an obvious improvement appeared in the Social Welfare .In spite of that ,there existed a long way for Germany to go on the aspect of social insurance reform.