What was significant about oil production in the GDR in the 1980s?
In a country increasingly reliant on coal for domestic consumption, the GDR modernised its fuel techniques with oil refineries, buying expensive equipments from the west to do so
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why was the timing right for the GDR to start selling oil products?
The high world price of oil in the early to mid 1980s meant it was profitable to sell oil
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What percent of GDR earnings to the west did oil exports make up?
33%
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What effect did oil exports have on life in the GDR?
Deterioration in road surfaces as crude oil was diverted for export and not turned into asphalt. many consumer goods and foodstuffs disappeared from the shelves at his time
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What effect did the selling of oil have on national debt?
It stabilised it, at around 28 million Ostmarks between 1980-86
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What problems did oil exports create for the GDR?
Lower domestic living standards and an over-reliance on the export of oil at a high price- when world price for crude oil fell in 1986 GDR in big trouble
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What economic problems was the sale of oil masking?
wastage of resources, dependence on expensive raw materials, obsolete equipment, unrealistic target, untrustworthy data and an unreliable workforce
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Other cards in this set
Card 2
Front
why was the timing right for the GDR to start selling oil products?
Back
The high world price of oil in the early to mid 1980s meant it was profitable to sell oil
Card 3
Front
What percent of GDR earnings to the west did oil exports make up?
Back
Card 4
Front
What effect did oil exports have on life in the GDR?
Back
Card 5
Front
What effect did the selling of oil have on national debt?
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