When the public assets of the former GDR have been privatized it was an utterly corrupt process. Not as horrible as in Russia but still pretty bad. The corruption usually took the form of too small prices being payed for the property, i.e. buyers and the public agency (ironically called Treuhandanstalt, trust agency) conspired against the interests of the public (to get most money from privatization). Furthermore there were some decent companies who could have survived but their Western competition wanted to crush them and of course they had the usual influence upon the government. What should have happened? Simply a slower process. Install some protectionist measures in order to save those companies who can be saved, regulate capital markets to allow an inflow of capital but not an outflow and labour markets should of course be totally open as people wanted to unite with their relatives. The artificially imposed exchange rate of 1:1 was of course also totally nonsensical. China did not listen to the neoliberal nonsense of the West, slower transformed from socialism to capitalism and that's why the country is on a better path than Russia (of course I am not sanctioning authoritarianism or sweat shop labour).