How successful were Ulbricht's economic policies
- Created by: Amelia Louise Harris
- Created on: 09-03-16 18:30
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- How successful were Ulbricht's economic policies
- Industry
- Failures
- USSR controlled the GDR
- in 1951 the GDR joined COMECON and as a result 76% of its trade was directed towards the GDR.
- they were largely dependent on the USSR
- Unrealistic expectations
- Attempts to raise production levels resulted in uprisings in June 1963.
- the 2nd 5 year plan that wanted to specialise regionally failed and was an]abandoned.
- Targets were met by lowering standards
- 5 year plans were constantly being introduce and revised and abandoned
- originality quantity not quality was the expectation
- Economic disadvantages
- their economy didn't grow at the rate of the FRG;s
- trading partners were limited
- the GDR was cut off from the Ruhr on which they depended on for naturaln resources such as coal and steel
- USSR controlled the GDR
- Successes
- Employment and living standards improved
- Everywhere housing and health remained major priorities
- After the June uprisings profitability and consumer satisfaction became the focus.
- by 1959 they were able to raise wages
- 5 year plans set ambitious production targests
- they gave the impression of progress
- they had good intentions, e.g. specialising regionally
- in 1963 a more flexible approach to economic planning was introduced, focusing in profitability, yet it later failed.
- industry and enterprise in state hands
- 213 SAG's set up to produce goods for the USSR.
- most plants were turned into VEB's which accounted for 76% of production
- banking and insurance was taken into state hands.
- Employment and living standards improved
- Failures
- Agriculture
- Failures
- Rationing
- in 1961 the rationing of meat, sugar and butter was re-introduced.
- throughout the 1950's fat consumption dropped by 50% of what it had been between 1934-8
- State subsidies continued
- Food shortages
- lack of fertiliser reduced yields
- a shortage of livestock led to a lack of milk, cheese and meat.
- in 1961 the rationing of meat, sugar and butter was re-introduced.
- Use of force
- the Stasi were used in order to force people to join collectives.
- the Berlin wall was created to keep farmers and other specialised workers in
- People were coerced into joining collectives through preferential treatment
- Benefits came at the expense of freedom, being forced to join their trade union.
- Rationing
- Successes
- Collectivisation
- Broke up large land holdings
- By 1960 85% of farms were collectivised
- by 1959 45% of farms were a part of a cooperative
- later became more efficient
- by the 1970's the GDR was largely self sufficient.
- After the building of the Berlin Wall GDR farmers became increasingly efficient due to their being specialists.
- Farmers began to treat farms like a place of work, not inherited property.
- Collectivisation
- Failures
- Industry
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