Economy of East Germany: Difference between revisions

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apart economically, not least because of the Soviets' much greater use of disassembly of German industry under its control as a form of reparations. Military industries and those owned by the state, by Nazi activists, and by war criminals were confiscated. These industries amounted to approximately 60% of total industrial production in the Soviet zone. Most heavy industry (constituting 20% of total production) was claimed by the Soviet Union as reparations, and Soviet joint stock companies (German: Sowjetische Aktiengesellschaften -SAG-) were formed. The remaining confiscated industrial property was nationalized, leaving 40% of total industrial production to private enterprise. Trade in the east was slowly being absorbed by two state-controlled organizations (] and ]) which were given special preferences. On January 2 1949, a two-year plan of economic reconstruction was launched, aiming at 81% of the 1936 ] level, and, by cutting 30 per cent off production costs, hoping to raise the general ] level 12% to 15%. The plan also called for an increase in the daily food ] from 1,500 to 2,000 ]. In May 1949 Soviet Foreign Minister Vishinsky claimed that Eastern production in March had reached 96.6 per cent of its 1936 level and that the ] of the Soviet zone showed a surplus of 1,000,000,000 ]s, despite a 30% cut in ]es. There were several reasons given for this economic backwardness of Eastern Germany. Its lack of essential natural resources and the separation from its traditional West German market were probably the most important. Furthermore, while large sums had been poured into Western Germany, especially by the United States, the ] not only put nothing into the economy of its zone but actually took out large amounts in reparations and occupation costs (c. 6,000,000,000 marks per year). It was estimated that by 1949 It was estimated that 100 per cent of the automotive, between 90% to 100% of the chemical, and 93% of the fuel industries were in Soviet hands.

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the GDR, perennially lacking enough hard currency. As a result, in the summer of 1977 the Politburo withdrew most cheaper brands of coffee from sale, limited use in restaurants, and effectively withdrew its provision in public offices and state enterprises. In addition, an infamous new type of coffee was introduced, Mischkaffee (mixed coffee), which was 51% coffee and 49% a range of filler including chicory, rye, and sugar beet. Unsurprisingly, the new coffee was generally detested for its awful taste, and the whole episode is informally known as the "coffee crisis". The crisis passed after 1978 as world coffee prices began to fall again, as well as increased supply through an agreement between the GDR and Vietnam - the latter becoming in the 1990s under World Bank influence one of the world's largest coffee producers. However, the episode vividly illustrated the structural economic and financial problems of the GDR.

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competitive in some sectors such as mechanical engineering and printing technology. However the attempt to achieve a competitive edge in microchips against the research and development resources of the entire western world - in a state of just 16 million people - was perhaps always doomed to failure, but swallowed increasing amounts of internal resources and hard currency. A significant factor was also the elimination of a ready source of hard currency through re-export of Soviet oil, which until 1981 was provided below world market prices; the resulting loss of hard currency income produced a noticeable dip in the otherwise steady improvement of living standards. (It was precisely this continuous improvement which was at risk due to the impending debt crisis; the Schürer-Papier's remedial plans spoke of a 25–30% reduction.)

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enterprises incorporated 75% of the industrial sector. The First Five-Year Plan (1951–55) introduced centralized state planning; it stressed high production quotas for heavy industry and increased labor productivity. The pressures of the plan caused an exodus of East German citizens to West Germany. The second Party Conference (less important than Party Congress) convened in July 9-12 1952. 1565 delegates, 494 guest-delegates and over 2500 guests from the GDR and from many countries in the world participated in it. In the conference a new economic policy was adpoted, "Planned Construction of Socialism". The plan called to strengthen the state-owned sector of the economy, further to implement the principles of uniform socialist planning and to use the economic laws of socialism systematically.

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self-sufficient growth possible. Overall, centralized planning was reintroduced in the so-called structure-determining areas, which included electronics, chemicals, and plastics. Industrial combines were formed to integrate vertically industries involved in the manufacture of vital final products. Price subsidies were restored to accelerate growth in favored sectors. The annual plan for 1968 set production quotas in the structure-determining areas 2.6% higher than in the remaining sectors in order to achieve industrial growth in these areas. The state set the 1969–70 goals for high-technology sectors even higher. Failure to meet ESS goals resulted in the conclusive termination of the reform effort in 1970.

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1576: 1076:(Vereinigungen Volkseigener Betriebe, or VVBs), parent organizations intended to promote specialization within the same areas of production. The central planning authorities set overall production goals, but each VVB determined its own internal financing, utilization of technology, and allocation of manpower and resources. As intermediary bodies, the VVBs also functioned to synthesize information and recommendations from the VEBs. The NES stipulated that production decisions be made on the basis of profitability, that salaries reflect performance, and that prices respond to supply and demand. 554:(Vereinigungen Volkseigener Betriebe, or VVBs), parent organizations intended to promote specialization within the same areas of production. The central planning authorities set overall production goals, but each VVB determined its own internal financing, utilization of technology, and allocation of manpower and resources. As intermediary bodies, the VVBs also functioned to synthesize information and recommendations from the VEBs. The NES stipulated that production decisions be made on the basis of profitability, that salaries reflect performance, and that prices respond to supply and demand. 1132:

institutions, a sum not astronomical in absolute terms (the GDR's GDP was perhaps DM250bn) but much larger in relation to the GDR's capacity to export sufficient goods to the west to provide the hard currency to service these debts. An October 1989 paper prepared for the Politburo (Schürer-Papier, after its principal author) projected a need to increase export surplus from around DM2bn in 1990 to over DM11bn in 1995 in order to stabilise debt levels. It is doubtful whether such a Herculean effort could have succeeded without political turmoil, or indeed at all.

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positions in the economic structure. Efforts were also made to promote a common sense of purpose through mass participation of almost all workers and farmers in organized discussion of economic planning, tasks, and performance. An East German journal reported, for example, that during preliminary discussion concerning the 1986 annual plan, 2.2 million employees in various enterprises and work brigades of the country at large contributed 735,377 suggestions and comments. Ultimate decision making, however, came from above.

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predecessors and who had acquired managerial and technical skills. As a consequence of the new policy, the SED elite became divided into political and economic factions, the latter composed of members of the new technocratic elite. Because of the emphasis on professionalization in the SED cadre policy after 1963, the composition of the mass membership changed: in 1967 about 250,000 members (14%) of the total 1.8 million SED membership had completed a course of study at a university, technical college, or trade school.

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Malenkov's policy, which aimed at improvement in the standard of living, stressed a shift in investment toward light industry and trade and a greater availability of consumer goods. The SED, in addition to shifting emphasis from heavy industry to consumer goods, initiated a program for alleviating economic hardships. This led to a reduction of delivery quotas and taxes, the availability of state loans to private business, and an increase in the allocation of production material.

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large number of industrial ministries to the State Planning Commission. In order to accelerate the nationalization of industry, the SED offered entrepreneurs 50-percent partnership incentives for transforming their firms into VEBs. At the close of 1960, private enterprise controlled only 9% of total industrial production. Production Cooperatives (Produktionsgenossenschaften--PGs) incorporated one-third of the artisan sector during 1960-61, a rise from 6% in 1958.

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prominence. The Main Task restated the economic goal of industrial progress, but this goal was to be achieved within the context of centralized state planning. Consumer socialism—the new program featured in the Main Task— was an effort to magnify the appeal of socialism by offering special consideration for the material needs of the working class. The state extensively revamped wage policy and gave more attention to increasing the availability of consumer goods.

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conformity. Within the individual enterprises, the number of professional positions and jobs for the technically skilled increased. The SED stressed education in managerial and technical sciences as the route to social advancement and material rewards. In addition, it promised to raise the standard of living for all citizens. From 1964 until 1967, real wages increased, and the supply of consumer goods, including luxury items, improved much.

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restated the economic goal of industrial progress, but this goal was to be achieved within the context of centralized state planning. Consumer socialism—the new program featured in the Main Task— was an effort to magnify the appeal of socialism by offering special consideration for the material needs of the working class. The state extensively revamped wage policy and gave more attention to increasing the availability of consumer goods.

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instances of hiring an acquaintance to repair a clock, tune up an automobile, or repair a toilet. Such arrangements take place in any society, and given the serious deficiencies in the East German service sector, they may have been more necessary than in the West. They were doubtlessly common, and because they were considered harmless, they were not the subject of any significant governmental concern.

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comprised 70% of all arable land; only 6,000 Agricultural Cooperatives (Landwirtschaftliche Produktionsgenossenschaften--LPGs) had been formed. In 1958–59 the SED placed quotas on private farmers and sent teams to villages in an effort to encourage voluntary collectivization. In November and December 1959 some law-breaking farmers were arrested by the SSD.

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tended to reinforce the primacy of central planning and to limit the autonomy of the Kombinate, apparently to a greater extent than originally planned. As of early 1986, there were 132 centrally managed Kombinate, with an average of 25,000 employees per Kombinat. District-managed Kombinate numbered 93, with an average of about 2,000 employees each.

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adapted Liberman's theories and introduced the New Economic System (NES), an economic reform program providing for some decentralization in decision making and the consideration of market and performance criteria. The NES aimed at creating an efficient economic system and transforming East Germany into a leading industrial nation.

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1007:. There were several reasons given for this economic backwardness of Eastern Germany. Its lack of essential natural resources and the separation from its traditional West German market were probably the most important. Furthermore, while large sums had been poured into Western Germany, especially by the United States, the 1316:

Another control mechanism was the assignment of prices for all goods and services. These prices served as a basis for calculating expenses and receipts. Enterprises had every incentive to use these prices as guidelines in decision making. Doing so made plan fulfillment possible and earned bonus funds

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in 1971, formulated domestic policy for the 1970s. The program re-emphasized Marxism-Leninism and the international class struggle. During this period, the SED launched a massive propaganda campaign to win citizens to its Soviet-style socialism and to restore the "worker" to prominence. The Main Task

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While the New Course increased the consumer goods workers could get, there were still high production quotas. When work quotas were raised in 1953, it led to the 1953 Uprising. Strikes and demonstrations happened in major industrial centers. The workers demanded economic reforms. The Volkspolizei and

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The agrarian reform ("Bodenreform") expropriated all land belonging to former Nazis and war criminals and generally limited ownership to 1 km². Some 500 Junker estates were converted into collective people's farms (German: Landwirtschaftliche Produktionsgenossenschaft -LPG-), and more than 30,000 km²

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Like other ]an ] states, ] had a ] (CPE) similar to the one in the former ], in contrast to the ] or ] of most Western states. The state established production targets and prices, and allocated resources, codifying these decisions in a comprehensive plan or a set thereof. The means of production were

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More difficult to assess, because of its covert and informal nature, was the significance of that part of the private sector called is the "second economy." As used here, the term includes all economic arrangements or activities that, owing to their informality or their illegality, took place beyond

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enterprises by subordinating the latter to both the Ministry of Foreign Trade and the Kombinate. The goal of the Kombinat reform measure was to achieve greater efficiency and rationality by concentrating authority in the hands of midlevel leadership. The Kombinat management also provided significant

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The fact that East Germany had a planned economy did not mean that a single, comprehensive plan was the basis of all economic activity. An interlocking web of plans having varying degrees of specificity, comprehensiveness, and duration was in operation at all times; any or all of these may have been

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Due to the strong German tradition of drinking coffee, coffee imports were one of the most important for consumers. A massive rise in coffee prices in 1976/77 (leading to a quadrupling of the annual costs in hard currency of importing coffee, compared to 1972-75) caused severe financial problems for

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In the first phase of planning, the centrally determined objectives were divided and assigned to appropriate subordinate units. After internal consideration and discussion had occurred at each level and suppliers and buyers had completed negotiations, the separate parts were reaggregated into draft

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on February 4, economic exploitation in the Soviet interest was still the dominant trend. The budget envisaged expenditures of 34,688 million East marks, an increase of about 10% over the 31,730 million of the 1952 budget. Its main object was to provide investments for strengthening the economy and

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In 1956, at the 20th Congress of the Communist Party of the Soviet Union, First Secretary Nikita Khrushchev repudiated Stalinism. Around this time, an academic intelligentsia within the SED leadership demanded reform. To this end, Wolfgang Harich issued a platform advocating radical changes in East

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There was another kind of private economic activity, however, that did concern the government: the stealing and selling of goods for profit by individuals who had ready access to them. For example, an individual might siphon gasoline from a public vehicle and sell it to a friend. No statistics are

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The private sector of the economy was small but not entirely insignificant. In 1985 about 2.8 percent of the net national product came from private enterprises. The private sector included private farmers and gardeners; independent craftsmen, wholesalers, and retailers; and individuals employed in

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Low-range (five-year) planning used the same indicators, although with less specificity. Although the five-year plan was duly enacted into law, it is more properly seen as a series of guidelines rather than as a set of direct orders. It was typically published several months after the start of the

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The Second Five-Year Plan encountered difficulties, and the regime replaced it with the Seven-Year Plan (1959–65). The new plan aimed at achieving West Germany's per capita production by the end of 1961, set higher production quotas, and called for an 85% increase in labor productivity. Emigration

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An SED party plenum in July 1956 confirmed Ulbricht's leadership and presented the Second Five-Year Plan (1956-60). The plan employed the slogan "modernization, mechanization, and automation" to emphasize the new focus on technological progress. At the plenum, the regime announced its intention to

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When the 1953 budget was introduced in the ] on February 4, economic exploitation in the Soviet interest was still the dominant trend. The budget envisaged expenditures of 34,688 million East marks, an increase of about 10% over the 31,730 million of the 1952 budget. Its main object was to provide

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The ], introduced by ] in 1971, formulated domestic policy for the 1970s. The program re-emphasized Marxism-Leninism and the international class struggle. During this period, the SED launched a massive propaganda campaign to win citizens to its Soviet-style socialism and to restore the "worker" to

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The State Planning Commission, sometimes called the Economic General Staff of the Council of Ministers, advised the Council of Ministers on possible alternative economic strategies and their implications, translated the general targets set by the council into planning directives and more specific

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The regime also accelerated the construction of new housing and the renovation of existing apartments; 60% of new and renovated housing was allotted to working-class families. Rents, which were subsidized, remained extremely low. Because women constituted nearly 50% of the labor force, child-care

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not only put nothing into the economy of its zone but actually took out large amounts in reparations and occupation costs (c. 6,000,000,000 marks per year). It was estimated that by 1949 It was estimated that 100 per cent of the automotive, between 90% to 100% of the chemical, and 93% of the fuel

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Each occupation power assumed rule in its zone by June 1945. The powers originally pursued a common German policy, focused on denazification and demilitarization in preparation for the restoration of a democratic German nation-state. Over time however the western zones and the Soviet zone drifted

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Operationally, long-term planning was the most important for production and resource allocation. It covered one ] and encompassed the entire economy. The key targets set at the central level were overall rate of growth of the economy, volume and structure of the ] and its uses, utilization of raw

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One kind of informal economic activity included private arrangements to provide goods or services in return for payment. An elderly woman might have hired a neighbor boy to haul coal up to her apartment, or an employed woman might have paid a neighbour to do her washing. Closely related would be

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By the early 1980s, establishment of Kombinate for both centrally managed and district-managed enterprises was essentially complete. Particularly from 1982 to 1984, the government established various regulations and laws to define more precisely the parameters of these entities. These provisions

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enterprises, which the state incorporated into their structures to provide better focus for research efforts and speedier application of research results to production. A single, united management directed the entire production process in each Kombinat, from research to production and sales. The

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By mid-1960 nearly 85% of all arable land was incorporated in more than 19,000 LPGs; state farms comprised another 6%. By 1961 the socialist sector produced 90% of East Germany's agricultural products. An extensive economic management reform by the SED in February 1958 included the transfer of a

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The Third SED Party Congress convened in July 1950 and emphasized industrial progress. The industrial sector, employing 40% of the working population, was subjected to further nationalization, which resulted in the formation of the People's Enterprises (German: Volkseigene Betriebe--VEB). These

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Ulbricht in 1968 launched a spirited campaign to convince the Comecon states to intensify their economic development "by their own means." Domestically the East German regime replaced the NES with the Economic System of Socialism (ESS), which focused on high technology sectors in order to make

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Under the NES, the task of establishing future economic development was assigned to central planning. Decentralization involved the partial transfer of decision-making authority from the central State Planning Commission and National Economic Council to the Associations of People's Enterprises

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The annual industrial growth rate declined steadily after 1959. The Soviet Union therefore recommended that East Germany implement the reforms of Soviet economist Evsei Liberman, an advocate of the principle of profitability and other market principles for communist economies. In 1963 Ulbricht

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These irregularities did not appear to constitute a major economic problem. However, the East German press occasionally reported prosecutions of egregious cases of illegal "second economy" activity, involving what are called "crimes against socialist property" and other activities that are in

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who also cultivated private plots (which can be as large as 5,000 m²). Their contribution was significant; according to official sources, in 1985 the farmers privately owned about 8.2 percent of pigs, 14.7 percent of sheep, 32.8 percent of horses, and 30 percent of laying hens in the country.

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The system functioned smoothly only when its component parts were staffed with individuals whose values coincided with those of the regime or at least complemented regime values. Such a sharing took place in part through the integrative force of the party organs whose members occupied leading

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The SED emphasis on managerial and technical competence also enabled members of the technocratic elite to enter the top echelons of the state bureaucracy, formerly reserved for political dogmatists. Managers of the VVBs were chosen on the basis of professional training rather than ideological

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Much of the debt originated from attempts by the GDR to export its way out of its international debt problems, which required imports of components, technologies and raw materials; as well as attempts to maintain living standards through imports of consumer goods. The GDR was internationally

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The NES brought forth a new elite in politics as well as in management of the economy, and in 1963 Ulbricht announced a new policy regarding admission to the leading ranks of the SED. Ulbricht opened the Politburo and the Central Committee to younger members who had more education than their

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The Second Five-Year Plan committed East Germany to accelerated efforts toward agricultural collectivization and nationalization and completion of the nationalization of the industrial sector. By 1958 the agricultural sector still consisted primarily of the 750,000 privately owned farms that

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Although in the end political circumstances led to the collapse of the SED regime, the GDR's growing international (hard currency) debts were leading towards an international debt crisis within a year or two. Debts continued to grow in the course of the 1980s to over DM40 bn owed to western

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Stalin died in March 1953. In June the SED, hoping to give workers an improved standard of living, announced the New Course which replaced the Planned Construction of Socialism. The New Course in East Germany was based on the economic policy initiated by Georgi Malenkov in the Soviet Union.

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available on such practices. Surface impressions, however, suggest that they are not very common or significant, certainly not as significant as may be the case in other socialist states where they were reportedly quasi-institutionalized. Popular products were car spare parts or plumbings.

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system, ensuring each element of the economy access to the basic goods it needed to fulfill its obligations. Since most of the goods produced by the economy were covered by this control mechanism, producing units had difficulty obtaining needed items over and above their allocated levels.

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plans. In the final stage, which follows the acceptance of the total package by the State Planning Commission and the Council of Ministers, the finished plan was redivided among the ministries, and the relevant responsibilities were distributed once more to the producing units.

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five-year period it covered, after the first one-year plan had been enacted into law. More general than a one-year plan, the five-year plan was nevertheless specific enough to integrate the yearly plans into a longer time frame. Thus it provided continuity and direction.

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Another common activity that was troublesome if not disruptive was the practice of offering a sum of money beyond the selling price to individuals selling desirable goods, or giving something special as partial payment for products in short supply, the so called

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except for private plots. The collective farms were formally self-governing. They were, however, subordinate to the Council of Ministers through the Ministry of Agriculture, Forestry, and Foodstuffs. A complex set of relationships also connected them with other

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materials and ] and their distribution by sector and region, and volume and structure of ]. Beginning with the 1981 plan, the state added assessment of the ration of ] use against value and quantity of output to promote more efficient use of scarce resources.

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modified during the continuous process of performance monitoring or as a result of new and unforeseen circumstances. The resultant system of plans was extremely complex, and maintaining internal consistency between the various plans was a considerable task.

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facilities, including nurseries and kindergartens, were provided for the children of working mothers. Women in the labor force received salaried maternity leave which ranged from six months to one year. The state also increased retirement annuities.

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1168:, which monitored and directed ongoing economic processes. That key group, however, could concern itself with no more than the general, fundamental, or extremely serious economic questions, because it also had to deal with many other matters. 1419:, such individuals were strictly regulated. In 1985, for the first time in many years, the number of individuals working in the private sector increased slightly. According to East German statistics, in 1985 there were about 176,800 private 1063:

again increased, totaling 143,000 in 1959 and 199,000 in 1960. The majority of the emigrants were white collar workers, and 50% were under 25 years of age. The labor drain exceeded a total of 2.5 million citizens between 1949 and 1961.

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1423:, an increase of about 500 over 1984. Certain private sector activities were quite important to the system. The SED leadership, for example, had been encouraging private initiative as part of the effort to upgrade consumer services. 236:

almost entirely ]. In ], for example, state-owned enterprises or ]s earned 96.7 percent of total net national income. To secure constant prices for inhabitants, the state bore 80% of costs of basic supplies, from bread to housing.

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of most Western states. The state established production targets and prices, and allocated resources, codifying these decisions in a comprehensive plan or a set thereof. The means of production were almost entirely

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In the early 1970s, long-term, comprehensive planning began. It too provided general guidance, but over a longer period, fifteen or twenty years, long enough to link the five-year plans in a coherent manner.

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At the base of the entire economic structure were the producing units. Although these varied in size and responsibility, the government gradually reduced their number and increased their size. The number of

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Professionals such as commercial artists and doctors also worked privately in their free time, subject to separate tax and other regulations. Their impact on the economic system, however, was negligible.

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The individual ministries had major responsibility for the detailed direction of the different sectors of the economy. The ministries were responsible within their separate spheres for detailed planning,

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In addition to those East Germans who were self-employed full time, there were others who engaged in private economic activity on the side. The best known and most important examples were families on

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of various sorts for the enterprise. These bonuses were not allocated indiscriminately for gross output but were awarded for such accomplishments as the introduction of innovations or reduction of

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of sixteen. The Council of Ministers supervised and coordinated the activities of all other central bodies responsible for the economy, and it played a direct and specific role in important cases.

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develop nuclear energy, and the first nuclear reactor in East Germany was activated in 1957. The government increased industrial production quotas by 55% and renewed emphasis on heavy industry.

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develop nuclear energy, and the first nuclear reactor in East Germany was activated in 1957. The government increased industrial production quotas by 55% and renewed emphasis on heavy industry.

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economists, most of whom are convinced that it is important in CPEs. In the mid-1980s, however, evidence was difficult to obtain and tended to be anecdotal in nature.

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were distributed among 500,000 peasant farmers, agricultural laborers, and refugees. Also state farms were set up, called Volkseigenes Gut (State Owned Property).

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earned 96.7 percent of total net national income. To secure constant prices for inhabitants, the state bore 80% of costs of basic supplies, from bread to housing.

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were distributed among 500,000 peasant farmers, agricultural laborers, and refugees. Also state farms were set up, called Volkseigenes Gut (State Owned Property).

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plan targets for each of the ministries beneath it, coordinated short-, medium-, and long-range planning, and mediated interministerial disagreements.

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and encompassed the entire economy. The key targets set at the central level were overall rate of growth of the economy, volume and structure of the

149: 93: 31: 28: 995:. In May 1949 Soviet Foreign Minister Vishinsky claimed that Eastern production in March had reached 96.6 per cent of its 1936 level and that the 1308:

accountability. One such mechanism was the System of Material Balances, which allocated materials, equipment, and consumer goods. It acted as a

979:) which were given special preferences. On January 2 1949, a two-year plan of economic reconstruction was launched, aiming at 81% of the 1936 1533: 1499:, most people were perhaps occasionally tempted to provide a "sweetener," particularly for such things as automobile parts or furniture. 1380:

was only slightly more than one-fifth that of 1960. Their independence decreased significantly as the Kombinate became fully functional.

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sector of the economy had a somewhat different place in the system, although it too was thoroughly integrated. It was almost entirely

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organs responsible for formally adopting and carrying out policies elaborated by the party congress and Politburo was the

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This tag does not indicate the copyright status of the attached work. A normal copyright tag is still required. See

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Operationally, long-term planning was the most important for production and resource allocation. It covered one

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Germany. In late 1956, he and his associates were quickly purged from the SED ranks and imprisoned.

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Germany. In late 1956, he and his associates were quickly purged from the SED ranks and imprisoned.

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the Soviet Army suppressed the uprising, in which approximately 100 participants were killed.

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The production plan was supplemented by other mechanisms that control supplies and establish

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the Soviet Army suppressed the uprising, in which approximately 100 participants were killed.

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reform also attempted to foster closer ties between the activities of the Kombinate and the

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use against value and quantity of output to promote more efficient use of scarce resources.

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The ultimate directing force in the economy, as in every aspect of the society, was the

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level, and, by cutting 30 per cent off production costs, hoping to raise the general

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state control or surveillance. The subject has received considerable attention from

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and their distribution by sector and region, and volume and structure of

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level 12% to 15%. The plan also called for an increase in the daily food

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so-called free-lance activities (artist, writers, and others). Although

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investments for strengthening the economy and for national defense.

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Directly below the ministries were the centrally directed

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Prints and Photographs Division under the digital ID

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of the Soviet zone showed a surplus of 1,000,000,000

1495:and frequent shortages in luxury items and durable 1066: 1041: 1401:and related industries, such as food processing. 906: 1590: 1164:More important was the supervision of the SED's 1556:This image is available from the United States 1262:and its uses, utilization of raw materials and 1024: 616:===Economic System of Socialism (1968-1970)=== 1534:Landwirtschaftliche Produktionsgenossenschaft 1434: 1383: 1117: 1409: 1241:When the 1953 budget was introduced in the 1487:(money used to "grease" a transaction) or 1328: 1203:In addition to the basic structure of the 1155:Sozialistische Einheitspartei Deutschlands 953:, for example, state-owned enterprises or 1483:(a tip), but they may have also involved 1171: 1366: 1359:input for the central planning process. 1231: 1144: 1088:Economic System of Socialism (1968-1970) 1126: 932:(CPE) similar to the one in the former 1591: 1295: 1249: 1139: 521:===New Economic System (1963-1968)=== 405:===Economic growth and improvement=== 1545: 80: 46: 1222: 1015: 191: 186: 160: 143: 136: 125: 99: 87: 13: 1286: 1277: 1012:industries were in Soviet hands. 905: 35: 1625: 1451: 1404: 903:Revision as of 16:11, 7 July 2007 331:===Introducing planned economy=== 146:Revision as of 16:11, 7 July 2007 90:Revision as of 20:41, 5 July 2007 1574: 1549: 1151:Socialist Unity Party of Germany 1096: 908: 1067:New Economic System (1963-1968) 1042:Economic growth and improvement 701:===Coffee Crisis (1976-1979)=== 965: 1: 1614:Economies of former countries 1469: 913:Economic activity in the GDR. 901: 878:==== Short-term planning ==== 871:==== Short-term planning ==== 860: 848: 837: 830:=== Planning by timescale === 823:=== Planning by timescale === 761: 752: 740: 729: 720: 708: 697: 688: 676: 667: 655: 644: 635: 623: 612: 603: 591: 582: 570: 561: 549: 540: 528: 517: 508: 496: 487: 475: 466: 454: 445: 433: 424: 412: 401: 392: 380: 371: 359: 350: 338: 327: 318: 306: 295: 286: 274: 263: 252: 243: 129: 1519:Economic System of Socialism 1333: 18:Browse history interactively 7: 1604:Economic history of Germany 1502: 1025:Introducing planned economy 10: 1630: 1609:Former communist economies 1435:Informal economic activity 960: 733:===External debt crisis=== 127: 1539: 1384:State agricultural sector 1236: 1118:Coffee Crisis (1976-1979) 930:centrally planned economy 858: 846: 835: 802: 799: 759: 750: 738: 727: 718: 706: 695: 686: 674: 665: 653: 642: 633: 621: 610: 601: 589: 580: 568: 559: 547: 538: 526: 515: 506: 494: 485: 473: 464: 452: 443: 431: 422: 410: 399: 390: 378: 369: 357: 348: 336: 325: 316: 304: 293: 284: 272: 261: 250: 241: 202: 199: 142: 86: 1460: 1410:Legal private enterprise 1213:environmental protection 794:== Central leadership == 787:== Central leadership == 1349:The Kombinate included 1329:State industrial sector 1003:, despite a 30% cut in 85: 1374:industrial enterprises 1246:for national defense. 1172:Government bureaucracy 914: 299:===Agrarian reforms=== 1570:for more information. 1367:Production facilities 1232:Planning by timescale 1145:Socialist Unity Party 936:, in contrast to the 912: 1568:Knowledge:Copyrights 1524:Volkseigener Betrieb 1493:money in circulation 1182:Council of Ministers 1127:External debt crisis 991:from 1,500 to 2,000 909:File:GDR economy.jpg 1584:Library of Congress 1558:Library of Congress 1514:New Economic System 1296:Planning mechanisms 1268:exports and imports 1250:Short-term planning 1198:resource allocation 1176:At the head of the 977:Handelsorganisation 648:===The Main Task=== 1140:Central leadership 915: 158: 97: 1582: 1581: 1571: 1205:industrial sector 1159:general secretary 1001:East German Marks 900: 267:===Reperations=== 144: 88: 68: 1621: 1578: 1565: 1553: 1552: 1546: 1529:Volkseigenes Gut 1428:collective farms 1260:domestic product 1223:Central planning 1105:, introduced by 1016:Agrarian reforms 938:market economies 910: 189: 181: 176: 157: 152: 134: 133: 132: 120: 115: 96: 69: 60: 59: 57: 52: 50: 42: 39: 21: 19: 1629: 1628: 1624: 1623: 1622: 1620: 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1442:Western 1321:costs. 1217:housing 961:History 203:Line 1: 200:Line 1: 1540:Source 1340:trusts 1237:Budget 1215:, and 997:budget 989:ration 973:Konsum 928:had a 180:13,633 119:13,633 67:Inline 49:Visual 1461:Theft 1342:, or 1319:labor 1264:labor 1005:taxes 949:. In 182:edits 121:edits 1388:The 1378:1985 1101:The 985:wage 975:and 951:1985 169:talk 155:undo 150:edit 108:talk 94:edit 1376:in 940:or 1595:: 1219:. 1211:, 171:| 110:| 1153:( 218:] 211:] 175:) 167:( 114:) 106:(

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