KQ2: Economic Stabilisation after 1961 Flashcards
What was the economic policy in the GDR before 1963?
Building Socialism
When was the NES introduced?
1964
What were the aims of the NES?
- Quality over quantity of goods.
2. Aimed to improve efficiency.
How did they achieve the aims of the NES?
- Central planning reduced, giving producers more freedom/ less bureaucratic interference
- Retained control over targets, resources and prices.
- Introduced a bonus system for workers to inspire higher labour productivity.
Weaknesses of the NES?
The NES took longer to embed than originally thought because of;
- Labour force lacked expertise and needed to be retrained.
- Pricing structure- as prices were still set by central planners, they tended to be too low the planners promoted, so producers either had to accept less profit or produce fewer goods.
Who opposed the NES?
Khrushchev originally opposed it because of the reward system for productive workers.
What were the aims of the ESS?
- Increase production of consumer goods.
2. Aimed to create closer ties between scientific and technology researchers to facilitate industrial development.
Weaknesses of the ESS?
- COMECON decreased productivity/ amount of consumer goods.
2. Periodic and unexplained shortages
What percentage of the GDR’s oil was supplied by the USSR?
87%
When was the Economic Miracle?
1969-1973
Why was 1969-1973 described as an economic miracle?
- National income increased
- Labour productivity increased
- Slight increase in consumer goods
By what percentage did refrigerator ownership increase by between 1960 and 1970?
50.3%
What percentage of the population was employed in industry by 1975?
38%
By 1975, what percentage of worker were skilled?
53%
What percentage of worker were too skilled for their job?
20%
