1.2a To what extent did the GDR's economy stabilise after 1961? Flashcards
What was the key aim of the NES?
More decision making at lower levels
Why was the NES able to be put in place?
Due to the security of the wall along with USSR recognition to economically push on
What industry was the focus of the NES?
Scientific advancements to create more jobs
What was the main strength of the NES?
Reinvestment was done using extra profits
What was the focus of consumer goods under the NES?
Quantity
What was the downfall of the NES?
A lack of resources
Why was the NES sabotaged by Soviet supporters?
It was a compromise on Socialism
Why did the increase in jobs and wages from the NES not effect the lives of GDR citizens?
There were not enough consumer goods to buy
What was the effect of ESS on consumer goods?
Increased quality
How did the ESS promote key industries?
Restored some subsidies
What was the effect of the ESS on equality?
Wages differentiated hugely
What was the key success of the ESS?
Progress was made rebuilding urban areas like Dresden and Leipzig
What was the key downfall of the ESS?
Ulbricht claimed that the GDR needed to overtake the FRG
How large was the loan that the GDR took out?
2 billion DM
What was done with the loan taken out by the GDR?
Put in banks rather than being invested back into industry