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Full Description
The establishment of the Communist social model in one part of Germany was a result of international postwar developments, of the Cold War waged by East and West, and of the resultant partition of Germany. As the author argues, the GDR's 'new' society was deliberately conceived as a counter-model to the liberal and marketregulated system. Although the hopes connected with this alternative system turned out to be misplaced and the planned economy may be thoroughly discredited today, it is important to understand the context in which it developed and failed. This study, a bestseller in its German version, offers an in-depth exploration of the GDR economy's starting conditions and the obstacles to growth it confronted during the consolidation phase. These factors, however, were not decisive in the GDR's lack of growth compared to that of the Federal Republic. As this study convincingly shows, it was the economic model that led to failure.
Contents
Introduction Chapter 1. A Difficult Start? Initial Conditions in the Soviet Occupation Zone
Economic Potential and Structure at the End of the War
Plant Dismantling and Reparations
Political Forces in the Soviet Occupation Zone and their Ideas on Economic Policy
Land Reform and Nationalisation of Industry
Restarting Production
Chapter 2. The Establishment of the Planned Economy 1948-1952
German Economic Commission and Currency Reform
Problems of Economic Control
Reorientation of Foreign Trade and Industrial Development
Agriculture and Supplies for the Population
The Resolution to 'Build Socialism'
The Events of 17 June 1953
Chapter 3. Between Shortages and Growth 1953-1963
Industrial and Structural Policy
The Private Sector and Agriculture
Problems of the Steering Mechanism
Growth, Structural Transformation and Standard of Living
The 'Main Economic Task': 'Catch Up and Overtake'
Collectivisation and the Road into Crisis 1960/61
Chapter 4. The 'Golden' Sixties? Economic Reform between Take-off and Crisis 1961-1971
Störfreimachung and Produktionsaufgebot 1961/62
A 'New Economic System'?
Implementation of the Reform
'Overtake without Catching Up'
Economic Results and Living Standards in the Reform Period
The Growth Crisis of 1969/70 and its Political Consequences
Chapter 5. 'Unity of Economic and Social Policy' 1971-1982
Honecker's 'Main Task'
Fewer Investments and Innovations?
Concentration in Industry and Agriculture
And More Consumption?
Debt Crisis
Chapter 6. Continued Economic Decline 1982-1989
Getting out of Debt?
Dispensing with Reforms in the Steering of the Economy
Growing Loss of Assets
More Money, Fewer Goods
Final Crisis
Brief Biographies
Index
