How did the GDR develop economically, and the results?

How did the GDR develop economically, 1949-1961?

Centralised Planning.

The strengths of centralised planning was social needs were emphasised rather than personal needs, but the weaknesses was that they focussed on quanity rather than quality, it was difficult to plan what was needed for five years and the setting of work targets were unrealistic targets.

The Five Year Plan.

The aims were to develop heavy industry, such as iron, to increase living standards and to take over the living standards in the FRG to make it more appealing.

The success was that they achieved some success in industral production, such as a man called Henneke, was able to increase his daily output by 380%. The failings were the increases were at the expense of living standards and there was conflict between the heavy industrial output and the consumer goods. Also, the supply and demand rules were not followed.

The impact of Cenral State Planning.

Everyday items were hard to buy, such as paper and clothing, the prices of consumer goods increases as the shortages increase, rebellions and riots resulting to the prison numbers increasing and the wages were cut.

Agricultural Collectivisation

The GDR made larger farms to produce more crops, animals and machinary.

The strength was that they were promoted by tax relief on equipment, but the weaknesses were that it was not voluntary- increased taxes and limited equipment if you don't do it, and people may not work as hard yet recieve the same pay as hard workers which created conflict.

Socialist Spring (New start- moving foreword)

19659-1960 'Soaring' of collectivisation.

The aim was to self suffciency in food.

83.9% of collective farms.

There were resentment by farmers, which lead to them fleding to the west.

The Socialist Spring was a frced process.

There was acorrelation between collective farms and emigration to the west.

Socialist…