GDR 2b.2 Flashcards
(104 cards)
consumer socialism
rewarding workers if they worked for the state
state would provide them with consumer goods
“protective wall”
what the SED called the Berlin Wall
Division was fixed
The people just had to accept the situation
NES:
name + years
New Economic System
1963-68
why was the NES implemented
the GDR’s newfound security after the building of the Berlin Wall allowed it to implement new policies
promote innovation + efficiency
NES:
aims
focused on scientific + technological advancements
encouraged unis + industries to develop links to improve production
allow decision making from lower levels
introduced profit making as an indicator for performance
problems with the NES
managers did not possess the financial skills
difficulties in obtaining necessary resources
opposition to NES from those committed to communism
led to some deliberately sabotaging industrial production, eg, breaking machinery and taking extended sick leave
led to very wealthy people
wage differentials unnecessary when theres a lack of consumer goods
successes of the NES
increased industrial output in some areas, esp chemicals and engineering
more efficient decision making due to local managers having more power
technological progress
Why was the NES abolished
Brezhnev wanted to recentralise economic planning
Brezhnev’s curt visit to the GDR in December 1965 made it clear he did not want the NES to continue
failure to meet targets + accusations of relying on the FRG
Erich Apel
former rocket scientist for nazi + soviets
appointed by Ulbricht as chairman of the state planning commission
supported ulbricht in implimenting the NES
December 1965 - he shot himself, signalled an end to any chance of continuing the NES
ESS:
name + years
Economic system of socialism
1968-71
ESS:
aims
more centrally planned
expanded to include agriculture, trade + industry
placed more emphasis on developing computer technology, chemical + plastic industrie
growth of GDRs economy comapred to western ones during ESS
GDRs economy grew by 5.7%
western GNP grew to 5.1% from 3.5%
% of industrial production growth during ESS
Industrial production rose 43%
quality of trained labour increased
failures of the ESS
never lived up to the high expectations
failed to overtake the FRG’s economy
emphasis on industries and not enough on consumer goods led to shortages esp during the winter
successes of the ESS
By 1970, the GDR replaced Poland as the USSR’s main trading partner
By 1970, FDR was in the top 10 industrial nations in he world (10th place)
GDR’s economy grew by 5.7% whilst Western GNP grew to 5.1% from 3.5%
Industrial production rose 43%
The quality of trained labour increased
what was the main focus of the SED after 1971
raising living standards through consumer socialism + better welfare
more content workforce = workers work longer and harder for the state
nationalisation in 1972
all private + semi private buisnesses nationalised
however, this sector created over 11% of GDRs production + employed nearly 500,000 people
restricted impact of honeckers consumer socialism
Unity of Social and Economic policy
years
1971-85
% of industrial growth per year through 1970s
5% per year
by 1980 how many households had a:
TV
refrigerator
washing machine
nearly every household had a TV + refrigerator
85% had washing machines
Delikat + Exquisit shops
government-run stores selling high-quality luxurious goods, eg, Dresden china
designed for elite party members
accepted East German currency
products unaffordable for the vast majority of GDR citizens
Intershops
shops which sold western goods at lower prices than the FRG but only accepted western currency
OPEC crisis of 1973
worldwide oil prices were raised
the GDR had very few natural recourses
GDR sheltered from the steepest oil price rises by using soviet supplies - COMECON
liquidity crisis
by 1982, the GDR found it difficult to secure credit
the slowdown in retail trade caused a shortage of consumer goods
raising production costs increased state expenditure
mounting interest rates and failing trade led to the GDRs inability to borrow money