I.

Introduction

Prostitution has been a part of our world’s culture since the beginning and

it is considered as the world’s oldest prostitution. Prostitution, as defined in

Britannica Concise Encyclopedia, is a practice of engaging in sexual activity,

usually with individuals other than a spouse or friend, in exchange for immediate

payment in money or other valuables. People who execute such activities are

called prostitutes. Prostitutes may be of either sex and may engage in either

heterosexual or homosexual activity, but historically most prostitution has been

by females with males as clients.

Prostitution is an act or practiced of engaging sexual acts for money. It is a

global phenomenon that pervades every country, city, and town. Persons

prostitute themselves when they grant sexual favors to others in exchange for

money, gifts or other payment and in doing so they use their bodies as

commodities.

The reasons people prostitute themselves vary widely. According to David

Kyle Foster as cited by Rock Ministry (2010), financial need drives most

prostitutes to do it. Sometimes people are violently forced into prostitution and

sometimes they are tricked into it and then fed drugs and are beaten to keep

them doing it. Some people are sold into prostitution by their parents or

guardians. And others are lured by pimps.

According to Sfetcu (2009), prostitution today occurs in various different

settings. In street prostitution, the prostitute solicits customers while waiting at

1
street corners or walking alongside a street. Prostitution occurs in some massage

parlors where sexual services may be offered for an additional tip. Prostitution

can also take place in the prostitute's apartment and in many countries this is the

only legal form of prostitution. A hybrid between brothel and apartment

prostitution exists in Germany, Belgium, Switzerland, China and the Netherlands:

female prostitutes rent tiny one-room apartments in red-light districts and solicit

customers from behind windows. Brothels are establishments specifically

dedicated to prostitution, often confined to special red-light districts in big cities.

In escort or out-call prostitution, the act takes place at the customer's place of

residence or more commonly at his or her hotel room. This form of prostitution

often shelters under the umbrella of escort agencies, who ostensibly supply

attractive escorts for social occasions.

Perceptions of prostitution are based on culturally determined values that

differ between societies. In a number of societies, prostitutes have been viewed

as members of a recognized profession; in others they have been ignored,

insulted, and punished with stoning, imprisonment, and death. Several countries

have legalized prostitution since the start of the new millennium. Germany is one

of these countries.

Hence, this paper aims to explain how prostitution is legalized in

Germany, and what are the impacts of the legalization of prostitution in Germany,

specifically in women’s rights, pimps and brothels, and in German economy.

2
II. The Legalization of Prostitution in Germany

Prostitution is all legal in Germany. Unlike many other countries, the red

light was not banned to some obscure streetwalking in remote areas. As

Taubitz (2004) puts that sex is a big business in Germany. The number of

women engaged in prostitution in Germany is estimated to be as many as

400,000 and an approximation of 1.2 million German men use prostitutes each

year, and the industry has an annual turnover of US$16.5 billion.

Prostitution has never been criminalized in Germany, various restrictions

were imposed; the level of enforcement varied from state to state within

Germany. These restrictions also affected women who chose to work in

prostitution. For example, women were forced to undergo tests for STDs, and the

police was entitled to detain them for this purpose (Gazit et al, 2007).

Gazit et al, 2007 pointed out that since prostitutes were not considered

workers, they could not receive the benefits enjoyed by other workers. They were

required to pay taxes, but due to the “immorality” of their profession they were

not permitted to offset work-related expenses, such as makeup and clothing.

They could not sue clients who failed to pay them since the contract between the

parties was considered immoral and therefore void. They could purchase private

health insurance, but due to their profession the insurance companies demanded

high premiums.

In 2002, a law came into effect recognizing prostitution as a form of work,

and seeking to ensure that various aspects of prostitution as it existed at the time

3
enjoyed full legal recognition. Prostitution was legalized in Germany in 2002. The

idea, according to Easton, was to remove the industry from criminal hands and

thus reduce the illegal trafficking of women, make working conditions safer and

reduce stigma. Prostitutes may work as regular employees with contract, though

the vast majority works independently.

According to Tavella (2007), the German government’s response has

been that the recognition of prostitution as a legitimate form of employment has

improved the lives of prostitutes. Sex workers, under German law, can make

legally binding contracts with clients and employment contracts with

management of brothels. This allows sex workers to file suit for nonpayment, but

it is not a two-way street as clients and employers do not have contractual

recourse if a sex worker fails her part of the agreement.

The law recognized the presence of other agents in the sex industry,

particularly brothel owners, its central focus were concern for the women

involved. The law granted these women access to the national insurance system,

to unemployment benefit, pensions, and health insurance, and sought to

eradicate criminal aspects of the profession and to enable those women who

wish to do so to leave the world of prostitution. The law allowed women to

choose whether to have the status of salaried employees or self-employed

workers (Gazit et al, 2007).

According to Poulin, hundreds of thousands of prostituted people who are

German have a status that of "independent or salaried workers with a work

4
contract" with the "bosses" of the eros centers. Prostitution is allowed and

regulated; it has to some extent become classified as a "profession like any

other". In addition, all businesses with 15 or more employees, including brothels,

are obligated to hire apprentices on pain of financial penalties if they fail to do so.

Poulin also adds that women who perceive unemployment insurance benefits

and who work in restoration or bars have to accept henceforth job propositions in

brothels; if they don’t accept they can lose their benefits.

Legislation defines specific areas of cities within which prostitution is

permitted, and in what format (brothels or private apartments); sometimes

specific hours are also established. In Berlin, street prostitution is allowed

everywhere, and Hamburg allows street prostitution near the Reeperbahn during

certain times of the day. In Munich and Leipzig, street prostitution is forbidden

almost everywhere, and Leipzig even has a local law that allows police to fine

customers who solicit prostitution in public. Stuttgart has prohibited prostitution,

with the exception of a single brothel; the police launch raids on street

prostitution and clients are also fined (Gazit et al, 2007).

III. Impact of the Legalization of Prostitution in Germany

The legalization of prostitution in Germany greatly affects the women’s

rights, pimps and brothel managers, and the economy of Germany.

5
A. The Impact of Legalization on Women’s Rights

According to Gazit et al (2007), women in Germany, are entitled to

engage in prostitution as self-employed workers or as salaried employees.

They need not register with the police, though they must declare their

work to the tax authorities. The legalization arrangement has not

significantly altered the situation of these women. As Dale (2010) puts that

the German government thought that legalization would lead to the

decrease in sex trafficking, safer conditions for prostitutes, and removal of

"some of the stigma from the industry." However in reality, legalization not

only increased sex trafficking of women and children but also fail to

change the stigma attached to prostitution for the past few years.

A study shows that the majority of prostitutes in Germany prefer to

"do the job secretly because they still experience discrimination." The

same study also shows that even the government agencies are not willing

to broker jobs or offer retraining as they do for employees in other

industries. Further, the health insurance company does not provide

special health provisions for prostitutes. In terms of their rights, many

prostitutes in Germany are still live in poor conditions and exploited by the

pimps and the landlords who take the majority of the prostitutes' earnings.

As German law, according to Dale (2010), recognizes prostitution

as a legitimate employment choice, some women are forced into

prostitution when they are unemployed. Under the German law, any

6
unemployed women under the age of 55 are required to take a job

available on the national listings if they have been out of job more than a

year. Otherwise, their unemployment benefit will be taken away from

them. An example of this, as stated by Dale (2010), is in 2005, a

government agency threatened a qualified information technologist to take

away her unemployment benefit if she refused to take a job as a prostitute

in a legalized brothel. Working at a legalized brothel and selling her bodies

therefore became another employment option that she has explore before

facing the suspension of her benefits. Another example is during the

recession in 2009, the German brothels began to offer a flat rate sex

promotion. As sex industry and prostitution are legalized, the brothel

owners are required to pay the prostitutes daily wages regardless of how

many customers they offer sexual services. The promotion is based on "all

you can eat buffet" principle. Yet, the law enforcement could not do

anything about such inhumane practice of mistreating women because

prostitution is legalized in Germany.

Sex trafficking in Germany has grown, according to Kloer (2010),

since prostitution and brothels were legalized. There are a number of

reasons human trafficking could be growing in Germany other than the

legalization of prostitution. The global economic crisis could be driving

more traffickers to operate in Germany as opposed to their less-wealthy

home countries. Demand for commercial sex in Germany could be

outstripping supply in a major way, with traffickers making up the

7
difference. All of these, as well as other reasons probably affect amount of

human trafficking in Germany.

Gazit et al (2007) pointed out that since the law came into effect,

most German women employed in prostitution have not reported any

improvement in their situation. The law was unclear and failed to address

the main problems faced by women: The lack of social recognition of their

rights; poor working conditions; psychological and physical pressure, and

so on. The law did not remove the stigma attached to prostitution;

moreover, many women are unaware of the law or do not understand its

significance. That why many of them continue to live double lives,

refraining from telling those around them of their occupation.

B. The Impact of Legalization on Pimps and Brothel Managers

The law attempted to create employer-employee relations in the

sex industry, providing exemption from criminalization for pimps and

brothel managers. However, some prosecution services in Germany still

consider these contracts to be a form of procurement and hence accuse

those involved. To date, the German authorities have refused to provide

brothel owners with lists of women seeking work, and prostitution is not

included in the list of potential occupations offered by employment

bureaus (Gazit et al, 2007). Brothels with officially registered prostitutes

have to pay a fee of about 15-25 Euros per prostitute per day to local

authorities.

8
C. The Impact of Legalization on German Economy

Sex industry was a very good indicator of the economy as a whole,

according Easton. As stated by Tavella (2007) sex workers have to pay

income taxes and even have to charge VAT for their services, to be paid

to the tax office. With the estimated 400,000 prostitutes work in Germany,

fewer than 600 taxpayers list their profession as prostitutes. Profit from

prostitution in Germany is believed to be extremely high. It estimates

range from the relatively modest figure of some six million euros a year to

an astonishing 14.5 billion euros.

The method and level of tax on prostitution various from region to

region. In Stuttgart, women pay a fixed tax of 20 euro a day; it has been

proposed that this figure be raised to 30 euro. Cologne is also one of the

only cities that have a specific sex tax. Each prostitute is required to pay

150 euro each month into the city's coffers. However, those who only work

part-time can opt to pay 6 euro per day worked instead. As a result, sex

workers voluntarily inform the tax office when they are ill or on vacation.

The law did not specify the date from which tax was due to be paid, and

the authorities have sometimes demanded retroactive payment for as

much as ten years. The result was that many women were reluctant to

register officially as engaged in prostitution, thus limiting their ability to

complain against pimps or violent clients (Gazit et al, 2007).

9
 The flat-rate tax is unusually regressive for Germany, which

generally taxes high-earners heavily, as it disproportionately affects low

earners. However, the highly transparent tax at least means sex workers

are less in need of the services of members of arguably the world's

second-oldest profession, namely accountants (Spiegel Online

International, 2006).

Conclusion

With the aid of the data that I’ve gathered, that prostitution and brothels

were legalized in Germany to reduce sex trafficking, provide safer conditions,

and remove some of the stigma from the industry. I can say that this policy

has perhaps failed on all counts. The law was vague and failed to deal with the

main problems faced by women: The lack of social acknowledgment of their

rights; poor working states; psychological and physical pressure, and many

others. The law did not get rid of the stigma affixed to prostitution; furthermore,

many women are ignorant of the law or do not understand its implication. Most of

them have a preference to remain unidentified. They do not think about

prostitution to be a respectable profession, and share the generally accepted

view that their occupation is less than respectable. And legalization prostitution in

Germany also helps to boost the economy of Germany and it is through taxes

that the prostitutes pay.

10
Bibliography

• Dale,Youngbee. (2010). Germany - Legalization of Prostitution brought

more Exploitation than Emancipation to Women – Report. Retrieved
October 2, 2010, from
<http://www.wunrn.com/news/2010/06_10/05_31_10/053110_germany.ht
m>

• Easton, Robert. (n.d). German Culture: The Sex Industry & Prostitution in
Germany. Retrieved October 2, 2010, from
<http://www.soccerphile.com/soccerphile/wc2006/culture/sex-in-
germany.html>

• Gazit et al. (2007). The Legalization of Prostitution: myth and reality A

Comparative Study of Four Countries. Retrieved October 4, 2010 from
<http://www.hotline.org.il/english/pdf/The_Legalization_Of_Prostitution_En
glish.pdf>

• Kloer, Amanda. (2010). 70% Rise in German Sex Trafficking Due to Legal
Prostitution?. Retrieved October 2, 2010,
from<http://humantrafficking.change.org/blog/view/70_rise_in_german_se
x_trafficking_due_to_legal_prostitution>

• Nicolae Sfetcu. (2009). Types of prostitution Retrieved October 4, 2010

from < http://www.sfetcu.com/book/Types-prostitution>

• Poulin, Richard. (n.d.). The legalization of prostitution and its impact on

trafficking in women and children. Retrieved October 4, 2010 from <
http://sisyphe.org/spip.php?article1596>.

11
• Taubitz, Udo. (2004). What German Prostitutes Want. Retrieved October
4, 2010 from <http://www.dw-world.de/dw/article/0,,1176335,00.html>

• Germany's Smut Tariff Sex Tax Filling Cologne's Coffers. (2006).

Retrieved October 2, 2010, from
<http://www.spiegel.de/international/0,1518,454749,00.html>
• Prostitution. (2010). In Encyclopædia Britannica. Retrieved October 13,
2010, from Encyclopædia Britannica Online:
http://www.britannica.com/EBchecked/topic/479546/prostitution

• Sex Sold: An Interview about Prostitution with Mastering Life Ministry.

(2010). Retrieved October 5, 2010 from <
http://rockthecampus.wordpress.com/2010/03/12/sex-sold-an-interview-
about-prostitution-with-mastering-life-ministry/ >

12
The Legalization of Prostitution in Germany

A Case Study

Presented to

Prof. Eucil Pabatang-Hussien

Department of Political Science

College of arts and Social sciences

MSU- Iligan Institute of Technology

In Partial Fulfilment of the Requirements

For Political Science 113N

(Western Political System)

Pacote, Mariam Allyssa M.

October 14, 2010

13
 Outline

I. Introduction
II. The Legalization of Prostitution in Germany

III. Impact of the Legalization of Prostitution in Germany

A. The Impact of Legalization on Women’s Rights

B. The Impact of Legalization on Pimps and Brothel Managers

C. The Impact of Legalization on German Economy

Conclusion

Bibliography

14