LAUSR

The article traces the political economy and labour relations in East Thuringia, a ‘post-growth region’ in East Germany with a structurally weak periphery and a declining populace. We argue that the regional decline results from a process of peripheralization which has led to economic stagnation and a shrinking population, and also has fostered political discontent. By drawing on a regional survey, an intensive case study at a manufacturing site and qualitative interviews with policy makers, managers, works council members and employees, we analyse how peripheralization has impacted labour relations and politics in a shrinking region. We discuss our findings by referring to current political sociology debates on the rise of right-wing populism and the scientific discussion on post-growth, as well as recent approaches of critical geography and development sociology. We show how feelings of injustice such as anger about low wages and the democratic void at work interlink with pessimistic assessments concerning the region’s future and feelings of deprivation. We conclude that the economic model based on labour-intensive exports in the internal periphery of East German capitalism is eroding and is contributing to a crisis of hegemony and political instability.