Why did the USSR demand reparations from the GDR and how much did they want?
Russia was weak after WW2, and Stalin wanted to keep Germany weak so they would not pose a threat to the USSR. They asked for $20 million
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What was the total cost of reparations for the GDR 1945-54?
54 billion ostmarks
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How many industrial plants were taken from the GDR?
1,500
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What percent of its wartime industrial capacity did the GDR lose due to reparations?
29%
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How did the seizure of reparations affect living standards in the GDR?
Living standards fell significantly and those dismantling industries were mistreated.
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What does the seizure of reparations imply about how Stalin regarded the GDR?
He was not greatly concerned about its development and did not believe that Germany would remain divided.
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What were the SED's aims for the economy of the GDR?
To create a marxist-leninist state and to centralise planning
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When was the State Planning Commission created?
1950
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What did the 5 Year Plans outline?
Targets for production, prices and quantity of goods produced
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What were the advantages of socialist economics and planning?
Ideological- The economy could be harnessed to meet the needs of the state and it benefitted the community, not the individual
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What were the limitations of socialist economics and planning?
Quantity favoured over quality, system inefficient as the idea of supply and demand was not always considered, it discouraged innovation and there was no profit motive so it was not cost effective.
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What were the aims of the 5YPs in the GDR?
To develop the GDR's heavy industry so that it could rival/overtake the FRG and to improve living standards.
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How did the 5YPs fail?
They resulted in cuts to welfare and shortages as money was diverted to industry, there was a continued lack of consumer goods, ambitious targets mostly not met, GDR still paying reparations and was a high state deficit
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In what areas did the 5YPs particularly succeed?
Pig Iron and steel output
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Between 1950-55 how much did pig iron and steel outputs expand?
GDR statistics suggest that output of pig iron expanded from 37,000 tons to 1,597,000, steel expanded from 999,000 tons to 2,508,000 tons
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What were the positive impacts of socialist economics on the GDR?
Expansion of heavy industry (in some areas), society became more equal (although living standards not great)
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How did socialist economics lead to poor living standards?
Lack of consumer goods as 5YPs attention was on heavy industry, goods produced were not of high quality, the social contract could not be fully funded, food/ goods shortages.
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How did socialist economics have a negative effect on the GDR?
GDR in debt as a result, they became dependent on the USSR, the system was inefficient and there was no innovation or foresight, citizens resented work norms and control was tightened after June uprising
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What were the aims of collectivisation?
To support those with relatively small farms and impose socialist ideology onto the agricultural sector. To achieve more 'economies of scale', make GDR self sufficent
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What is an 'economy of scale'?
The practise of making goods in bulk thereby cutting the costs of production
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How did the government try to promote and to some extent force collectivisation?
Higher tax rates imposed for those who refused to collectivise and a lack of equipment, was promoted by the offer of tax relief and essentials to farmers e.g seed.
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In 1955 how many hectares were covered by collective farms?
there were 6000 farms which covered 1.2 million hectares,
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What was the 'socialist spring'?
A hurried period of forced full collectivisation which aimed to overtake FRG in terms of food production.
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When did the process of collectivisation soar?
1959-60
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What was the result of the socialist spring?
Resentment of farmers, crop yield fell 30% between 1960-61
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What is some evidence of the opposition to socialist economics in the GDR?
Farmers resented collectivisation, by mid 1953 750,000 hectares of land unused as farmers fled, unofficial strikes common over work norms and living conditions, lack of motivation
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Why might GDR citizens have been opposed to the socialist system?
They remembered the capitalist system and did not actively support communism. They were slow to adapt to the new system because they were unused to it.
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What was the new course of 1953?
A soviet initiative to slow down socialist development after Stalin's death and there was a power vacuum and lack of guidance.
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What did the new course aim to achieve?
More support for the socialist system
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What were the effects of the new course of 1953?
No more collectivisation, more consumer goods, withdrawal of April price rises, end to discrimination of christians, restoration of ration cards, restoration of property to returning emigrants which had been confiscated when they left.
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What could the new course of 1953 be seen as?
SED self criticism and recognition of failure
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Other cards in this set
Card 2
Front
What was the total cost of reparations for the GDR 1945-54?
Back
54 billion ostmarks
Card 3
Front
How many industrial plants were taken from the GDR?
Back
Card 4
Front
What percent of its wartime industrial capacity did the GDR lose due to reparations?
Back
Card 5
Front
How did the seizure of reparations affect living standards in the GDR?
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