Unit 2: The development of the East German state 1961-85 Flashcards
(37 cards)
Background
2a - stabilisation of E.G after 1961
- Berlin Wall built.
- Guaranteed labour supply.
- Advances towards Communism could begin.
The GDR’s economy after 1961
2a - stabilisation of E.G after 1961
- Mid-60s to the mid-70s, there were improvements in living standards.
- But housing shortages began after it was built, as the mass migration alleviated the problem before.
- Problems reaching 100% employment.
- SED had no scapegoat
- OPEC crisis resulted in problems. As did NES and NSS.
The end of mass emigration
2a - stabilisation of E.G after 1961
- End of mass migration was abrupt.
- 136 were killed trying to cross the Wall while it was erected.
- No real opposition in the GDR. Some remembered the results of the 1953 uprising.
- There was some support for the Wall. Border-crossers were hated in the GDR.
The NES, 1963-8
2a - stabilisation of E.G after 1961
- Launched by Ulbricht, directed by Mittag
2. Not political, purely economic.
The aims of the NES, 1963-8
2a - stabilisation of E.G after 1961
- Government maintain economic planning
- Directors lower down in economy given more autonomy
- Profit introduced as measure of economic performance
- Workers received bonuses and higher wages for those with higher level skills
- Focus on scientific and technical innovations in optics and chemicals.
- Industry-university links made
- Allowed as an experiment by Khrushchev
- Create competitiveness between the FRG and the GDR
Problems with the NES, 1963-8
2a - stabilisation of E.G after 1961
- Managers given new powers often did not have the financial skills to balance books and turn profits
- Resources still scarce and managers had hard time getting what they needed
- Some saw it as deviation from Marxism-Leninism. They did this by taking extended sick leave or working slowly.
- The higher wages were often useless, no goods to buy.
- It didn’t remove the central planning – therefore inefficiencies compared to West Germany.
- Reparations went on, and Ruhr was in the West – structural inefficiencies that could not be fixed with economic system
Why the NES ended, 1963-8
2a - stabilisation of E.G after 1961
- USSR wanted to centralise central planning throughout Eastern Bloc
- Brezhnev ousted Khrushchev in 1964. Was a hardliner, and was worried about the effects of experiments in the Bloc.
- The Chairman of the State Planning Commission, Apel, shot himself in response to Brezhnev’s criticism.
The ESS (Economic System of Socialism) 1968-71 (2a - stabilisation of E.G after 1961)
- Centralisation put back.
- Extended central planning to agriculture and trade.
- Restored price subsidies to promote key industries like computers, chemical and plastics.
- Higher planned production
Problems with the ESS (Economic System of Socialism) 1968-71
2a - stabilisation of E.G after 1961
- Difficult to maintain desired progression in research and development
- GDR still didn’t have resources to equal the west
- Between 1968 and 1971 there was an average growth rate of 5.7%
- Productivity never reached FRG levels
- Centralised control stifled efficiency and innovation
- Consumer goods neglected
- Ended when Honecker ended it while Ulbricht was on holiday
Positives of the ESS (Economic System of Socialism) 1968-71
2a - stabilisation of E.G after 1961
- GDR replaced Poland as USSR’s main trading partner
- Got into top 10 trading nations in the world
- Achieved while reparations were still being paid to the USSR and Marshall Aid money was never taken.
Increased econ production
2a - stabilisation of E.G after 1961
- SED recognised need to increase consumer goods production
- Televisions, fridges and washing machines were all best in Eastern Bloc
- Chocolate, shoes, coffee and fruit, however, was poor compared to the West
- SED often avoided blame. These problems often blamed on the USSR and the division of Germany
Consumer Socialism and Better Welfare
2a - stabilisation of E.G after 1961
- SED thought that a contented workforce would work harder
- Called “Unity of Social and Economic Policy”
- 1972 saw every single private and semi-private enterprise nationalised, even though these industries made up 11% of GDR production
- Nationalisation ended in 1976
- Industry grew at average of 5% each year through the 70s
- By 1980, almost all the households had a television and a fridge
- 85% had washing machines
Intershops
2a - stabilisation of E.G after 1961
- Intershop was chain of state owned stores in the GDR
- Sold foreign goods and only took foreign currency
- They provided stark contrast to East German stores who had poor quality goods
- Didn’t cause as much discontent as Delikat and Exquisit stores.
Delikat and Exquisit
2a - stabilisation of E.G after 1961
- Government run stores.
- Took East German currency
- Sold Western Goods
- Out of reach for majority of the E.G. population, resulted in resentment.
- Party officials used it a lot.
- Sold goods like Dresden China
Problems from the Unity of Social and Economic Policy
2a - stabilisation of E.G after 1961
- Problems arise from mid-70s onwards. Problems undermined ability of the government to provide consumer goods
- OPEC crisis of 1973 suddenly raised oil prices
- GDR had very few natural resources
- Lots of money spent on oil resulted in little money to spend on imports
The Deal between the SED and FRG
2a - stabilisation of E.G after 1961
- 1982, GDR found it difficult to secure credit. A liquidity crisis occurred
- Secret negotiations between the two groups
- 2 billion DM deal in 1983 and 1984
- GDR’s oil use reduced
- Things taken out of stores to sell to the West – Easterners noted ‘a thousand little things’ disappeared from stores
Problems of economic planning
2a - stabilisation of E.G after 1961
- Exemplified in two ways
1. Robots - SED wanted to increase efficiency through use of robots in industry.
- Factories simply reclassified vacuum cleaners and lifts as robots being used to create goods!
2. Trabant - Low quality, plastic car
- Planners deliberately lowered production, as they wanted people to use public transport
- People joked rear heater was to warm people’s hands as they were pushing it
Membership with COMECON
2a - stabilisation of E.G after 1961
- Membership in 1950
- 76% of all trade with the USSR and the Eastern Bloc
- As the West overtook the GDR in most areas, trade with the East became increasingly important.
- 70s, GDR dealt with labour shortage by getting workers from Cuba, Vietnam and Angola along with other socialist counties.
- USSR bought East German goods at below market prices.
- Sheltered GDR during first OPEC crisis. Second, they didn’t help.
- 80s, total crisis was averted by trade with the FRG, not the USSR
Background
2b - Honecker and the creation of a distinct identity
- Ulbricht argued there was one German nation in two states, and eventually these two states would be united under socialism
- Honecker came along and was more realistic – he didn’t see reunification happening.
The Development
2b - Honecker and the creation of a distinct identity
- Demarcation begun
- Propaganda portrayed FRG as Americanised.
- Exports labelled “Made in the GDR” rather than “Made in Germany”
Mass media - Newspapers
2b - Honecker and the creation of a distinct identity
- Neues Deutschland was main paper of SED, many people bought it to look conformist then never read it.
- Honecker approved front page
- Only one news agency
- All funded by government, never advertising.
- Western Communist Party papers allowed into GDR
- FRG problems like homelessness and drug problems were accentuated
Mass media - Radio
2b - Honecker and the creation of a distinct identity
- 70s, there were several stations including Radio DDR 1, 2. Radio DDR 2, Berliner Rundfunk. 1964 saw the addition of DT 64, a youth station.
- Western radio stations were not easily jammed, so Radio Free Europe got though.
- In 1985, there were 6.6 million licenced radios.
Mass media - Television
2b - Honecker and the creation of a distinct identity
- Televisions owned by almost all households in the GDR
- State television company was DDR-FS
- Colour programming in 1969
- Popular programmes aired at same time as the news in the FRG to put people off watching.
- Black Channel was the key propaganda programme
- Took snippets of FRG news and explained them with Marxist-Leninist context
- Most citizens claimed not to watch it, but did, in sheer shock at host Von Schnitzler’s style
- The Sandman was a favourite of children. It was a cute little animation with a tune just before bedtime for children, and showed a folk creature sending the children of Germany to bed. 9. The programme lasted longer than the GDR itself, it was so loved.
Other examples of demarcation
2b - Honecker and the creation of a distinct identity
- Supermarkt in the GDR known as a kaufhalle (buying hall).
- The job description of ‘secretary’ was never used outside the SED. They were called ‘skilled worker for writing technology’
- The capital of the GDR was written ‘Berlin, capital of the GDR’.
West Berlin was run together as Westberlin, to give the impression of a totally different city. - Russian terms, like Kollectiv were used.