GDR Economy

Question 1

Land production co-operatives

Answer 1

• land production grew slowly through the 1950s

- a third of East German farms were collectivised by 1958

Question 2

Response to collectivisation and impact in 1960s

Answer 2

• farmers fled to West Germany

- the amount of migration was so much that food rationing had to be introduced in 1961

Question 3

Renewed effort to collectivise in 1960

Answer 3

• in 1960/61 there was more effort put into collectivising land in East Germany
• not collectivising also brought about more extreme consequences, such as farmers not being allowed to use state machinery
• the state eventually began arresting farms and confiscating their land
• 85% of farms were collectivised by 1962

Question 4

Aim of collectivisation

Answer 4

• a larger, collective farm, achieved by combining smaller ones, was believed to be more productive
• the collectivised farms were known as Land Production Co-operatives
• collectivisation was implemented in 1952 by the SED

Question 5

Response to collectivism and impact in 1950s

Answer 5

• many farmers left their farms
• around 13% of agricultural land was deserted
• this led to a drop in food supplies going to cities
• many farmers left for West Germany

Question 6

Collectivisation overall

Answer 6

• in the long-term collectivisation did become more efficient

Question 7

Five Year Plan 1952 - heavy industry

Answer 7

• the primary focus of this and other economic plans was the development of heavy industry
• there was a particular focus on iron, steel and chemicals

Question 8

Five Year Plan 1952 - improving productivity

Answer 8

• the government established production targets in an effort to improve productivity
• the SED also controlled discipline and social activities for the workers
• this meant that they controlled all aspects of the workers’ lives

Question 9

Five Year Plan 1952 - living standards

Answer 9

• the heavy industry focus meant that consumer goods were not top priority
• however, consumer goods are vital to the economy, and improve living standards, which reduces social discontent
• when East Germans compared their lives to West Germans the disparity in living standards was clear
• wages were low and there was little to no reward for workers
• this resulted in many migrating to West Germany

Question 10

Five Year Plan 1952 - nationalised industry

Answer 10

• under the SED industries were nationalised

- this made it easier to implement economic policies and pursue a socialist objective

Question 11

Five Year Plan 1952 - evaluation

Answer 11

• the state declared that from 1950 to 55 productivity levels in industry had gone up by 100%
• profitability and quality aren’t taken into account however
• the quantitative aim of the plan meant that products were of poor quality and not profitable

Question 12

Seven Year Plan - aims

Answer 12

• introduced 1959

- aimed to develop East Germany’s economy similarly to the Soviet Union’s

Question 13

Seven Year Plan - evaluation

Answer 13

• under this plan industrial growth fell
• this resulted in more migrating West Germany up until the Berlin Wall
• the influence of the Soviet Union’s economic needs meant that it wasn’t a balanced, diverse economy which had sustainable growth

Question 14

New Economic System - aims

Answer 14

• introduced 1963
• aimed to bring greater flexibility for workers
• workers allowed portion of profits

Question 15

New Economic System - evaluation

Answer 15

• workers were incentivised to be more productive by the profits
• quality was favoured over quantity
• by the early 90s GDR growth levels were higher than any other Eastern Bloc country

Question 16

Five Year Plan 1956 - aims

Answer 16

• emphasis was placed on producing goods and technological progress

Question 17

Five Year Plan 1956 - evaluation

Answer 17

• economy grew by 12% between 1956 and 58
• living standards improved
• low food prices benefitted workers
• amount of workers moving West stabilised
• economy was growing but not at the scale of the West