Das neue Geben: Die klügste Investition in Ostdeutschland ist eine Spende

A new semiconductor factory, a ten-billion-euro investment, is under construction in Dresden. This represents the largest private investment in east German history. To the west, in Saxony-Anhalt, the AfD party is on the brink of victory in the state elections, with 43 percent support.

This political climate has raised concerns among investors. A survey of economic development officials found that over 80 percent view the rise of the AfD as a risk to their locations. Not a single respondent saw any opportunity in this scenario. Labor market researchers from the IAB have measured the impact of anti-immigrant attitudes on the flow of workers, both from abroad and within the region.

Research on 51 populist governments since 1900 quantifies the cost they impose on their countries, amounting to about ten percent of economic output after fifteen years. The skepticism about private investments must disappear – risks are not damage. However, they should be managed. Building a dike in a floodplain is the right approach.

The dike is the local civil society: associations, advisory centers, youth work – all of which make regions attractive to professionals and unattractive to extremists.