A Nation Divided

A Study of the economies of East and West Germany by Justin Freeman

Overview
Germany originally divided into 4 sections
Two Nations formed after occupation
Similar geography, culture, etc.
Capitalism vs. Communism

German Democratic Republic

Controlled by the Soviet Union
One of the most powerful economies in Soviet bloc
Occupation lasted much longer than West Germany
Suffered from an unstable currency and fleeing population
Nation struggled to catch up to West Germany

East Germany Plans

First Five-Year Plan (1951-1955)
High Production Quotas in Industry
Led to revolt by workers
Second Five-Year Plan (1956-1960)
Stressed Industry and Agriculture
Seven-Year Plan (1959-1965)
Morphed from Second Five-Year Plan
Aimed to bring East Germany to West Germanys level

Uprising of 1953
Caused by workers striking in response to First Five-Year
Plan
In a day, spread to an uprising in the population
Soviet tanks violently suppressed uprising
More people began fleeing the nation

People Leaving East Germany

All time high a result of the First Five-Year Plan
Soviet Union responded with more patrols, mines, and
Berlin Wall

Federal Republic of Germany

Formed after 10 years of Western Allies occupation
Never formally recognized East Germany as a separate
nation
Had a flourishing economy
Was allowed to have a military force in response to Korean
War

Wirtschaftswunder
Economic Miracle
Occured at the end of the occupation
Brought West Germany into the world economy
Began with currency swap to Deutsche Mark
Time of very low inflation and very rapid industrial growth

Marshall Plan
United States gave large sum of money to West Germany
Helped start the wirtschaftswunder
West Germany used money to expand industrial power
Without it, likely no economic miracle

West German Party System

Began as a two party system, much like the US
CDU and SDP
Morphed into multi party system, much like UK, after a few
years

Reunification
Long process that ended in 1990
Ronald Reagans Berlin Speech
Economic Merge
Deutsche Mark became official currency
Treaty with really long name

Works Cited
"Allies End Occupation of West Germany." History.com. A&E Television Networks. Web. 12 Apr. 2015.
Glenn E. Curtis, East Germany: A Country Study, ed. (Washington, D. C.: Federal Research Division of the Library of Congress, 1992). Print.
Harrison, Hope Millard. Driving the Soviets up the Wall: Soviet-East German Relations, 1953-1961. Princeton, NJ: Princeton UP, 2003. Print.
Gimbel, John. Science, Technology, and Reparations: Exploitation and Plunder in Postwar Germany. Stanford, Calif.: Stanford UP, 1990.
Print.
Reagan, Ronald W. "Speech in Berlin." Federal Republic of Germany, Berlin. Aug. 1961. History Place. Web. 12 Apr. 2015.
"West Germany." West Germany - Wikipedia. Wikimedia Foundation. Web. 12 Apr. 2015. <https://en.wikipedia.org/wiki/West_Germany>.
Wallace-Hadrill, John M., Germany. Encyclopedia Britannica. 2015. Print.