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The German Democratic Republic, 1949–90

Economic situation after 1961

  • 3 things to know
  • Paper 2

Overview

Recall questions on the New Economic System and why it was abandoned, Comecon, how the GDR compared with its neighbours, and Honecker's social policy.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Who and when

What economic reform ran 1963–68?

Numbers

What were the Kombinate in the GDR economy?

Numbers

How successful was the New Economic System?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What economic reform ran 1963–68?

    Model answer

    The New Economic System.

  2. 2

    Which economic bloc did the GDR belong to?

    Model answer

    COMECON.

  3. 3

    What were the Kombinate in the GDR economy?

    Model answer

    Giant conglomerates formed in the 1970s and 1980s by merging state enterprises into vertically integrated groups, such as Carl Zeiss Jena and Robotron.

  4. 4

    How successful was the New Economic System?

    Model answer

    Growth improved markedly in the mid-1960s, but the reforms threatened the party's control of the economy and were curtailed after 1968.

  5. 5

    Why was the New Economic System abandoned?

    Model answer

    Soviet suspicion after the Prague Spring, resistance from planners whose power it reduced, and Ulbricht's own retreat towards central control.

  6. 6

    What happened to the GDR's remaining private and semi-state firms in 1972?

    Model answer

    Honecker's regime nationalised them in a single campaign presented as voluntary, ending private industry and worsening shortages of small consumer goods and services.

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AThe government admitted 96 dead and 333 wounded.
BOther estimates run to several hundred dead.
COpponents claimed thousands.

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