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
Why did the GDR put the loan into banks?
To try to seem a credible investment for other countries
What effect (statistically) did selling spare fuel to the USSR have on the GDR’s imports and exports?
Imports: fell by 30%
Exports: increased by 9.1%
What percentage of the GDR’s trade was with COMECON countries?
76%
What crisis did COMECON protect the GDR from?
OPEC oil crisis
What was the GDR’s accolade within COMECON?
The most sophisticated economy with the highest living standards
What was the key policy within ‘Consumer Socialism’?
‘Unity of Social and Economic policy’
What was the ‘Unity of Social and Economic policy’?
The idea that a happier workforce would be more efficient
When and why was the ‘Unity of Social and Economic policy’ reversed?
1976
Small businesses were nationalised
What 2 things happened as a result of the reversing of the ‘Unity of Social and Economic policy’?
Lost 500,000 workers
Lost 11% of production
What was the main negative of the ‘Unity of Social and Economic policy’?
The inferior quality of consumer goods
What 2 things were the failings of the ‘Unity of Social and Economic policy’blamed on?
The division of Germany
USSR reparations
