I have been obsessed with East Germany for about one year. The reason is quite simple, why doesn't it exist anymore. The answer seems at first to be pretty simple, socialism failed there as with the rest of the region. But did it? The East Germans had by far the highest living standards of all socialist states, and their Purchasing power compared to a West German on things like food stuffs and rent was higher, but in terms of luxuries it was lower. For instance you could buy 6 sacs of potatoes in East Germany for the cost of one in West Germany. East Germany was a state that is undoubtedly renowned for its Stasi, and spying on virtually on all of its citizens. But I am not really looking into that faucet of East Germany (DDR). Economically speaking the DDR was a socialist powerhouse, she was only third to the Soviet Union, and Poland economically. It was a state that was lucky from the beginning. The Soviet Union of all the states in Eastern Europe she wanted to keep it was the DDR. She represented the front against Western capitalism. So the USSR treated her favorably economically and politically. In return the DDR would be a staunch ally of the Soviet Union. In the West the economic boom years of the 50-60's was happening, but the East was also growing at significant rates at that time as well. By 1969 the revitalization of East Berlin had begun with the development of Alexander Platz and the Berliner Fernsehturm being built. In Berlin you had the competition of the tower, in the West you had the BMW sign gracing the West Berlin sky, and in the East you had the Berliner Fernsehturm. By the 1970's East Germany's economy was rolling along. For the time the East Germans were shielded from the oil crises that affect the West. Trade increased in East Germany with the rest of the world. But by the 80’s when oil prices began to slip the East Germans actually began to pay more then their western counter parts, because the Soviet Union and the DDR had set a price. The Germans were unique in the region because she was the only one who was really developing a IT economy believe it or not. She had become a important centre of technological development in the socialist world. Why? Well because East Germans are not known for their productivity, the DDR faced a population crises, that population simply wasn't growing. She had the largest percentage of female workers in the work force. So in order to increase productivity the East Germans begun to think of IT. By the late 80's they had begun to use robots on assembly lines. Also quality was an issue with the East Germans, and they wanted to make sure things got better: Please Register or Log in to view the hidden image! Please Register or Log in to view the hidden image! In terms of international trade East Germany by 1988 was exporting a handsome $31 billion worth of goods, that is 31% that of the Soviet Union. For a country the size of East Germany in comparison to the Soviet Union to export so much is a testament. That trade was favorable because of competition. The West Germans had begun in the 70's a program of "Ostpolitik" which was to directly compete with the Soviet Union in Eastern Europe, and more specifically with East Germany. But the weakness of East Germany was found here, like a tragic hero something had to give. That something was the Soviet Union. By 1988 74% of exports went to COMECON countries, a mere 10% to the "EU 15".The economic collapse did not happen in East Germany. The economy was doing well, it was the rest of the COMECON community that wasn't doing all that well. Let me show you what I mean: In 1988 the GDP of the DDR was : $207.2 billion, per capita: $12,500, and growth was 1.8%. The growth was not great we can all agree with that, but it consider the GDP of the DDR in 1984 was $164 billion. Compare the DDR economy to that of what is generally considered a vibrant EU economy: The Netherlands 1988: GDP: $223.3 billion, per capita: $15,170, growth: 4.0% In 1989 the economic fortunes were overturned: GDP:$159.5 billion, per capita: $9,679, and growth: 1.2% That is not because East Germany's economy collapsed. It was her surrounding states. East Germany's economy like the West was dependant on trade for survival. Just look at the level of trade that the DDR had from 1988-90: Millions of dollars 1988- Exports:$30,672 Imports:$29,647 1989:Exports:22,200 Imports:22,200 1990:Exports:11,842 Imports:10,876 As clearly evidenced the drop in DDR GDP was a result of the rest of the region falling. I do not deny that the DDR didn't have grievous economic problems, low capital investment, aging factories, pollution. But nevertheless it had a somewhat vibrant economy, that would have benefited from more stable neighbors. She had the same problems that plagued other states, like low productivity, lack of employee interest, and general inefficiency. But let's consider that by 1998 the GDP of East Germany had declined to $144 billion. The Germans today pump up to $70 billion in the Fmr. DDR, but the reason why is not because the DDR was bad economically. But because it's markets collapsed. With the last nationalized company sold in Germany, it's a end of an era. But it has served as a lesson to those in Korea, the South Koreans don't want to go through the German experience. It is estimated that it would take about $1trillion to bring North Korea up to South Korean standards of living. South Korea doesn't even make that much in GDP yet (but it soon will). What the South Koreans are doing is investing North Korea so they can develop on their own, the Sunshine policy is their version of Ostpolitik. The same should have been done with East Germany but that's all in the past now. 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...And they made the Trabant in East Germany, a very small car with the body made partially from particleboard, and a 3-cylinder 2-stroke engine that you fill up under the hood. It accelerates like a lawnmower, but its pretty good in snow. I have an East German friend, and she feels things were better in GDR times, even though her mom went to prison after trying to cross the wall to be with her fiance. Everyone had work then, and there is high unemployment now. They may have started to use robots in industry, but mostly they have alot of catching up to do. There is still a big difference between East and West Germany, and between East and West Germans.
I agree that there was a big difference btwn East/West Germany. But as I said, the social problems are not the point of this thread. Purely economic, the East was a successful socialist state, the number prove it. As I said quality and productivity was a issue. But you cannot blame the East German government solely for this, the country wasn't growing economically, and the mass exodus of skilled workers in the late 50, early 60's. A capitalist would say this; as long as it sells it's good. That same analogy can be used with East Germany; I believe that East Germany could have existed today, albeit I also believe that massive social reforms had to have been initiated. The difference btwn east/west is the in the east things for basic living were much cheaper, things in the consumerist west were much cheaper for luxury goods
How many people were shot trying to defect from West Germany to East Germany? That's really the only number that matters.
I like it better when the Germans were allowed to bitch at the US: Please Register or Log in to view the hidden image! Hehe...
