Economic stagnation in the 1980s- solution to economic problems

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What solution did some USSR economists propose for the GDR as the only way out of economic malaise?
Some sort of confederation between the GDR and the FRG
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How did Gorbachev respond to the proposal of a confederation of FRG-GDR?
He was not in favour of this- he hoped for reform and he believed that there were talented middle managers who could effect it- a return to ESS?
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How did GDR leaders respond to the proposal?
buried their heads in the sand- Honecker favoured some sort of alliance with other communist countries who opposed reform, Czechoslovakia or Romania
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What did Honecker state about the GDR's economy and how did Gorbachev respond?
he insisted that it was among the top 10 world economic performers at the speeches to mark the GDR's 40th birthday celebration. Gorbachev snorted with derision
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What did a confidential memorandum of 1989 from economic experts predict about hard currency debt?
It would soar from 41.5 billion Ostmarks to 52.6 billion by 1995
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What solution did the economic experts suggest?
Intervention by the International Monetary Fund and that the GDR should cut consumption by 20-30% which would destabilise the country and thus be self defeating
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What was the response to calls for cuts in defence and reductions of wastage?
Nothing really happened
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After the dismissal of Honecker in Oct 1989, what did a confidential memo for the new regime suggest about the economy?
Things were even worse than appeared- half of all industrial facilities and machines were obsolete, half of the transport infrastructure was decayed and ave productivity= 35% of FRG productivity
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What was increasingly acknowledged about the suggestions of a confederation?
There would be little point to two german states confederated along capitalist lines because once the socialist economic system was removed, there was no reason for separate development
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Card 2

Front

How did Gorbachev respond to the proposal of a confederation of FRG-GDR?

Back

He was not in favour of this- he hoped for reform and he believed that there were talented middle managers who could effect it- a return to ESS?

Card 3

Front

How did GDR leaders respond to the proposal?

Back

Preview of the front of card 3

Card 4

Front

What did Honecker state about the GDR's economy and how did Gorbachev respond?

Back

Preview of the front of card 4

Card 5

Front

What did a confidential memorandum of 1989 from economic experts predict about hard currency debt?

Back

Preview of the front of card 5
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