To what extent was communism an economic failure for the DDR? (not finished) Flashcards
What were the benefits of the DDR economy?
-less war damaged than the FRG
-large areas of agricultural lands->helped with rationing and food shortages
What were the disadvantages of the DDR economy?
-there was a shortage of raw materials usually supplied by West Germany
-provinces and vital coal supplies were lost to Poland
-limitations of industrial development->experts had been taken to the USSR
What were the DDR economy principles?
-Nationalism
-Centralism
-Planning
What was the DDR economy principle Nationalism?
-industry under control of state, not private (government owns all industry)
What was the DDR economy principle Centralism?
-centralised planning which pursued production at high quantities (central government controls what is produced)
What was the DDR economy principle of planning?
-state planned economy that was highly supervised to achieve clear production aims
What is state capitalism?
-the use of capital (state) money to drive the economy
What principles does the DDR follow?
-Soviet/Communist principles
Who had the East Germany relied on resources from before the war? What was a result of this?
-West Germany and it could sell its products in larger Western markets->but post 1945 economic development of East and West Germany became very separated
What measure did the GDR take to integrate within the Eastern Bloc?
-joining Comecon in 1950 (organisation of economy within soviet states)
What key things did the DDR do to help the economy? (3)
-Nationalised industry and developed a series of 5 year plans to increase production rates
-agriculture divided amongst the people and development of state owned farms
-collectivisation->cooperatives (collectivised farms and collective machinery) which pushed to create a socialist society on land->work together on supposedly more productive farms
When did the DDR join Comecon (Council for Mutual Economic Assistance) and what did it lead to?
-1950->led to economic integration into the Eastern Bloc
What was an impact of the DDR becoming the second largest power in Comecon?
-Foreign trade trebled between 1950-1955
When was the Berlin Treaty signed and what was a result of it?
-in 1951 the Berlin Treaty was signed which allowed bartering between the two Germanys->he GDR did not have to pay tariffs and were able to pay in goods rather than currency
What was a negative about the DDR joining Comecon?
-didn’t have the technology to compete with Western markets they became increasingly isolated->due to the disappearance of experts and the dismantling of factories