Why were the economic problems of the GDR so severe by the late 1980s? Flashcards
What severely restricted the GDR’s capacity to adapt to new technologies?
Economic growth was grinding to a halt during the 1980s, while the national debt and a lack of currency severely restricted this capacity to adapt.
What goods were hard to get a hold of?
Consumer goods
As the GDR tried to recover who did it become more dependent on?
West Germany
What did people have to do to get their food?
food might have been readily available but the queues for it were often long and luxuries were increasingly rare
What production was slowing in the GDR in the 1980s?
There was slower industrial growth and slower economic growth
What things did Honecker do to try and respond to the economic growth rate?
There were reductions in public selling and around 1,500 political prisoners were sold each year to the FRG as well as loans being taken from the FRG
What was put in place to try and address these economic issues?
The Five-Year Plan of 1986-90
What problems did this 5YP try and address?
The housing shortage and the aim of trying to construct or modernization over a million homes.
It also tried to focus on new technologies such as the production of microchips.
What were the results of this 5YP?
It didn’t really get anywhere due to the events of 1989-90 and also it did little to improve the quality of items produced in relation to their quantity
What was taking up 8% of government spending?
This was defense spending which hampered the economy.
What said about the amount of money spent on the Berlin Wall?
The money said to have been spent on the maintaining, modifying and guarding the Berlin Wall alone was sufficient to pay for the GDR’s gas and electricity bills and would’ve allowed implementation of a 35hour working week
How much did debt grow throughout the 1980s?
The det in the 1980s grew to over DM40 billion. This was not insurmountable for a state with a GDP of around DM250 billion
What had high government spending in the GDR?
There was increased expenditure on subsidized housing, education, health and welfare which rose from DM72.9 Billion in 1980 to DM112.3 Billion in 1985
Why was health an important issue for the GDR?
A health workforce increased productivity while a good health-care system also got a good international prestige. It was also seem as preventing opposition if citizens were content and so prevented mass demonstration against SED rule.
What did the focus on heavy industry cause?
A trend fir the neglect of consumer goods. This neglect had an impact on the availability and quality of the consumer goods for the remainder of the GDR’s existence. Attempts had been made to halt this trend but nothing worked.
What did the East German population have little problem obtaining?
Most essential goods such as meat, butter, potatoes, bread and basic items of clothing
What did the East German population have problems obtaining?
However, they had problems with the amount of time they spent shopping as people regularly had to hunt for what they required and often purchased items after queuing for long periods even if they weren’t what they needed as they didn’t know when the item might become available again. One common example is that there were limited clothes sizes
What was the widespread culture with families, friends and neighbors?
The widespread culture of family members, friends and neighbors was informally exchanging goods with one another
What was there a growth in which showed the unease about the economic ability of the country?
There was a growth in the more illegal activities which involved various tips or bribes to get the desired item or service particualry if a product was in short supply.
What were these illegal, under the counter goods called?
Buckware or duck goods as they were found below the counter
What did the ‘second economy’ highlight?
The illegal activities highlighted the deficiencies in the East German service sector
What did the western culture allow the East German’s to see?
Allowed them to see the sharp contrast in living standards
How much of East Germany’s trade by 1989 was with West Germany?
20%
