Economic Decline In The 1980s/1990s Flashcards
- What happened to the trade deficit?
2. What happened to fuel shortages?
- Increased
2. Got worse
Debt owed to western countries in 1970 vs 1989
1970= DM2.2 billion 1989= DM46 billion
What happened to favourable trading conditions w/USSR and COMECON
Lost it
How much of foreign trade can be attributed to the USSR?
34% in 1985
How much trade could be attributed to Western countries and the FRG?
36% (including 16% with the FRG)
How much of the GDR’s raw materials did it get from the USSR?
70%
What was the second economy?
Black market
Statistic for economic growth
Slowed from 2% to 1.5% from 1976 to 1982
What caused the shortage of consumer goods?
They were selling them to foreign countries to alleviate economic issues
Aims of the 5 year plan
Build/ modernise 1 million houses
Focus on new technology
Failures of the 5 year plan
❌ achievements overshadowed by the events of 1989
X. Failed to improve consumer goods
X. Failed to bridge the gap between the west german economy
What impact did fewer exports have?
Made it difficult to generate currency that could help to pay off debt
Did the SED leadership know about the economy?
No. Only honecker knew
Expenditure in healthcare
DM72.9 billion to DM12.3 billion from 1980 to 1985
Impact of heavy industry on pollution
Led to high levels of pollution. Bitterfield was so bad that it is unsuitable for human habitation by the UN standards
