History of East Germany

[2] Estimating the territory that the converging armies of the western Allies and the Soviet Union would overrun, the Yalta Conference determined the demarcation line for the respective areas of occupation.

The Potsdam Conference of July/August 1945 officially recognized the zones and confirmed jurisdiction of the Soviet Military Administration in Germany (German: Sowjetische Militäradministration in Deutschland, SMAD) from the Oder and Neisse rivers to the demarcation line.

It was later shown that although these events were subsequently used for cold war propaganda purposes against the Soviet Union, the main reason for halting shipments east was not the behaviour of the USSR but rather the recalcitrance of France.

Some 500 Junker estates were converted into collective people's farms (German: Landwirtschaftliche Produktionsgenossenschaft—LPG), and more than 30,000 square kilometres (12,000 sq mi) were distributed among 500,000 peasant farmers, agricultural laborers, and refugees.

An SMAD decree of June 10, 1945 allowed the formation of antifascist democratic political parties in the Soviet zone; elections to new state legislatures were scheduled for October 1946.

Malenkov's policy, which aimed at improvement in the standard of living, stressed a shift in investment toward light industry and trade and a greater availability of consumer goods.

In 1955 Prime Minister Otto Grotewohl was invited to Moscow and, between September 17 and 20, concluded the Treaty on Relations between the USSR and the GDR with the Soviet Union which entered into force on October 6.

An extensive economic management reform by the SED in February 1958 included the transfer of a large number of industrial ministries to the State Planning Commission.

Decentralization involved the partial transfer of decision-making authority from the central State Planning Commission and National Economic Council to the Associations of People's Enterprises (Vereinigungen Volkseigener Betriebe—VVBs), parent organizations intended to promote specialization within the same areas of production.

The central planning authorities set overall production goals, but each VVB determined its own internal financing, utilization of technology, and allocation of manpower and resources.

The SED emphasis on managerial and technical competence also enabled members of the technocratic elite to enter the top echelons of the state bureaucracy, formerly reserved for political dogmatists.

Domestically the East German regime replaced the NES with the Economic System of Socialism (ESS), which focused on high technology sectors in order to make self-sufficient growth possible.

Ulbricht feared that hopes for a democratic government or a reunification with West Germany would cause unrest among East German citizens, who since 1961 appeared to have come to terms with social and living conditions.

Foreign and domestic policies in the final years of the Ulbricht era reflected strong commitment to an aggressive strategy toward the West and toward Western ideology.

The Ulbricht Doctrine, subsequently signed by these states, committed them to reject the normalization of relations with West Germany unless Bonn formally recognized East German sovereignty.

Ulbricht also encouraged the abrogation of Soviet bloc relations with the industrialized West, and in 1968 he launched a spirited campaign to convince the Comecon states to intensify their economic development "by their own means."

In August 1970, the Soviet Union and West Germany signed the Moscow Treaty, in which the two countries pledged nonaggression in their relations and in matters concerning European and international security and confirmed the Oder-Neisse line.

In his reformulation of East German foreign policy, Honecker renounced the objective of a unified Germany and adopted the "defensive" position of ideological Abgrenzung (demarcation or separation).

Honecker's references to the former Prussian king in his speeches reflected East Germany's official policy of revisionism toward Prussia, which also included Bismarck and the resistance group Red Band.

Among them was the poet-singer Wolf Biermann, who with Robert Havemann had led a circle of artists and writers advocating democratization; he was expelled from East Germany in November 1976 for dissident activities.

The 10th Party Congress, which took place in April 1981, focused on improving the economy, stabilizing the socialist system, achieving success in foreign policy, and strengthening relations with West Germany.

An October 1989 paper prepared for the Politburo (Schürer-Papier, after its principal author Gerhard Schürer) projected a need to increase export surplus from around DM2bn in 1990 to over DM11bn by 1995 in order to stabilise debt levels.

In other words, despite larger-than-ever numbers of voters rejecting the single candidate put forward by the Front (an exercise of defiance that carried great risk—including being sacked from a job or expelled from university), the vote had been flagrantly rigged.

The Hungarian government told their furious East German counterparts that international treaties on refugees took precedence over a 1969 agreement between the two countries restricting freedom of movement.

The GDR subsequently announced that it would provide special trains to carry these refugees to West Germany, claiming it was expelling "irresponsible antisocial traitors and criminals.

However, no one on the Politburo told the government's de facto spokesman, East Berlin party chief Günter Schabowski, that the new regulations were due to take effect the next day.

Communist rule formally ended on December 1, when the Volkskammer deleted the provisions of the Constitution that declared East Germany to be a socialist state under the leadership of the SED.

As a result, the new East German transitional government faced massive medium-term financial problems, which might—as the Schürer-Papier had even suggested—lead to the International Monetary Fund being called in, although in the short-term gold and other reserves ensured that bills continued to be paid.

Whilst Article 146 had been expressly designed for the purpose of German reunification, it was apparent in 1990 that employing it would require a vastly longer and more complex process of negotiation—and one which would open up many political issues in West Germany, where constitutional reform (particularly to respond to changing economic circumstances) was a longstanding concern.

Any debate, for example, about the value of the various social institutions (such as the childcare, education, and healthcare systems, which had implemented policy ideas discussed in West Germany for decades, and still today) was simply ruled out by this legal route.

Occupation zone borders in Germany, 1947. The territories east of the Oder-Neisse line , under Polish and Soviet administration/annexation, are shown as white, as is the likewise detached Saar protectorate . Berlin is the multinational area within the Soviet zone.
The Oder-Neisse Line
Map showing the different borders and territories of Poland and Germany during the 20th century, with the current areas of Germany and Poland in dark gray
1951 East German stamp commemorating the Treaty of Zgorzelec establishing the Oder-Neisse line as a "border of peace", featuring the presidents Wilhelm Pieck (GDR) and Bolesław Bierut (Poland)
Allocation policy for "surplus" German heavy industry under the "Level of Industry" plans
The logo of the SED
Economic activity in the GDR
Inter-German Border Strip at the Berlin Wall
GDR era Karl Marx monument in Chemnitz (renamed Karl-Marx-Stadt from 1953 to 1990)
Logo for the 40th anniversary of the German Democratic Republic in 1989