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The New Course (German: Neuer Kurs) was an economic policy that aimed to improve the standard of living, increase the availability of consumer goods and lower the price of foodstuffs by returning small businesses and farms to the private sector in East Germany (the GDR).
The New Course was initiated in the Soviet Union, but would be applied to the satellite countries under its influence, including the GDR. The Council of Ministers believe the previous mistakes made should be corrected. The Minister President described the need to rehabilitate many social programs; including the distribution of ration cards, methods of tax collection amongst others. The plan was instituted in June 1956. [1] [2]
There were three major thrusts of the new course: improvement of consumer goods, the end of terror, and a relaxation of ideological standards. It was announced in March 1953, after the death of Soviet premier Joseph Stalin. Investment in heavy industry was to be cut and production of consumer goods stepped up. A series of taxes on farmers, craftsmen, shopkeepers, and private firms was lifted. Private businesses that had been closed down by the authorities could start up again. Refugees who had gone to the West were invited to return and offered help. Farmers were promised back their land. They could borrow money, machines, and seeds. Intellectuals received permission to attend conferences in West Germany, and West Germans could get permission more easily to visit relatives in the GDR. Students expelled from a university because of their religious beliefs could come back. All those arrested on religious grounds were to be released, and the campaign against the church was to end. The idea of "class justice" was abandoned. The middle class would get ration cards back and some recent price increases were revoked. The SED Politburo admitted to "errors in the past."
Although the "New Course" led to certain material improvements, it did not address the productivity quotas that had been raised in May. (It was this increase that originally sparked the agitation that led to the uprisings of June 17, 1953). On July 2 President Wilhelm Pieck explained the new policy, inaugurated on June 9, as one designed to raise the standard of living and bring about a rapprochement of the two parts of Germany. He estimated its cost at two billion marks, to be covered by cutting the heavy industries and defense programs. [3]
The New Course was also applied to other Eastern bloc countries after the death of Stalin in 1953.
Leonid Ilyich Brezhnev was a Soviet politician who served as General Secretary of the Communist Party of the Soviet Union from 1964 until his death in 1982, and Chairman of the Presidium of the Supreme Soviet from 1960 to 1964 and again from 1977 to 1982. His 18-year term as General Secretary was second only to Joseph Stalin's in duration. To this day, the value of Brezhnev's tenure as General Secretary remains debated by historians. While his rule was characterized by political stability and significant foreign policy achievements, it was also marked by corruption, inefficiency, economic stagnation, and rapidly growing technological gaps with the West.
Walter Ernst Paul Ulbricht was a German communist politician. Ulbricht played a leading role in the creation of the Weimar-era Communist Party of Germany (KPD) and later in the early development and establishment of the German Democratic Republic. As the First Secretary of the Socialist Unity Party from 1950 to 1971, he was the chief decision-maker in East Germany. From President Wilhelm Pieck's death in 1960 on, he was also the East German head of state until his own death in 1973. As the leader of a significant Communist satellite, Ulbricht had a degree of bargaining power with the Kremlin that he used effectively. For example, he demanded the building of the Berlin Wall in 1961 when the Kremlin was reluctant.
The Eastern Bloc, also known as the Communist Bloc, the Socialist Bloc, and the Soviet Bloc, was the coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were aligned with the Soviet Union and existed during the Cold War (1947–1991). These states followed the ideology of Marxism–Leninism, in opposition to the capitalist Western Bloc. The Eastern Bloc was often called the "Second World", whereas the term "First World" referred to the Western Bloc and "Third World" referred to the non-aligned countries that were mainly in Africa, Asia, and Latin America but notably also included former pre-1948 Soviet ally Yugoslavia, which was located in Europe.
The five-year plans for the development of the national economy of the Union of Soviet Socialist Republics (USSR) consisted of a series of nationwide centralized economic plans in the Soviet Union, beginning in the late 1920s. The Soviet state planning committee Gosplan developed these plans based on the theory of the productive forces that formed part of the ideology of the Communist Party for development of the Soviet economy. Fulfilling the current plan became the watchword of Soviet bureaucracy.
In the USSR, during the eleven-year period from the death of Joseph Stalin (1953) to the political ouster of Nikita Khrushchev (1964), the national politics were dominated by the Cold War, including the U.S.–USSR struggle for the global spread of their respective socio-economic systems and ideology, and the defense of hegemonic spheres of influence. Since the mid-1950s, despite the Communist Party of the Soviet Union (CPSU) having disowned Stalinism, the political culture of Stalinism — a very powerful General Secretary of the CPSU—remained in place, albeit weakened.
The Socialist Republic of Romania was a Marxist–Leninist one-party socialist state that existed officially in Romania from 1947 to 1989. From 1947 to 1965, the state was known as the Romanian People's Republic. The country was an Eastern Bloc state and a member of the Warsaw Pact with a dominant role for the Romanian Communist Party enshrined in its constitutions. Geographically, RSR was bordered by the Black Sea to the east, the Soviet Union to the north and east, Hungary and Yugoslavia to the west, and Bulgaria to the south.
The East German uprising of 1953 was an uprising that occurred in East Germany from 16 to 17 June 1953. It began with strike action by construction workers in East Berlin on 16 June against work quotas during the Sovietization process in East Germany. Demonstrations in East Berlin turned into a widespread uprising against the Government of East Germany and the Socialist Unity Party the next day, involving over one million people in about 700 localities across the country. Protests against declining living standards and unpopular Sovietization policies led to a wave of strikes and protests that were not easily brought under control and threatened to overthrow the East German government. The uprising in East Berlin was violently suppressed by tanks of the Soviet forces in Germany and the Kasernierte Volkspolizei. Demonstrations continued in over 500 towns and villages for several more days before eventually dying out.
In the mid-1980s, Communist Czechoslovakia was prosperous by the standards of the Eastern Bloc, and did well in comparison to many richer western countries. Consumption of some goods like meat, eggs and bread products was even higher than the average countries in Western Europe, and the population enjoyed high macroeconomic stability and low social friction. Inhabitants of Czechoslovakia enjoyed a standard of living generally higher than that found in most other East European countries. Heavily dependent on foreign trade, the country nevertheless had one of the Eastern Bloc's smallest international debts to non-socialist countries.
Intershop was a chain of government-owned and operated retail stores in the German Democratic Republic in which only hard currencies could be used to purchase high-quality goods, usually from or associated with Western countries. The East German mark was not accepted as payment. Intershop was originally oriented towards visitors from Western countries, and later became an outlet where East Germans could purchase goods they could not otherwise obtain. An unintended consequence was that ordinary East Germans had some insight into the selection of goods available in the West, which they could then compare with the rather limited offerings available in their own country.
East Germany had a command economy, similar to the economic system in the Soviet Union and other Comecon member states — in contrast to the market economies or mixed economies or other capitalist states. The state established production targets, set prices, and also allocated resources, codifying these decisions in comprehensive plans. The means of production were almost entirely state-owned. The GDR had an above-average standard of living compared to other Eastern Bloc countries or the Soviet Union, and enjoyed favorable duty and tariff terms with the West German market; in 1989, it was estimated that 50 to 60% of its trade was with Western countries. However by the mid-1980s its economy had reached a state of stagnation.
Consumer goods in the Soviet Union were usually produced by a two-category industry. Group A was "heavy industry", which included all goods that serve as an input required for the production of some other, final good. Group B was "consumer goods", final goods used for consumption, which included food, clothing and shoes, housing, and such heavy-industry products as appliances and fuels that are used by individual consumers. From the early days of the Stalin era, Group A received top priority in economic planning and allocation so as to industrialize the Soviet Union from its previous agricultural economy.
The New Economic System, officially the New Economic System of Planning and Management, was an economic policy that was implemented by the ruling Socialist Unity Party (SED) of the German Democratic Republic (GDR) in 1963. Its purpose was to replace the system of Five-Year Plans which had been used to run the GDR's economy from 1951 onwards. The System was introduced by Walter Ulbricht to try to improve the performance of the existing central planning, so that the economy might be run in as efficient a manner as possible.
The Hungarian People's Republic was a one-party socialist state from 20 August 1949 to 23 October 1989. It was governed by the Hungarian Socialist Workers' Party, which was under the influence of the Soviet Union. Pursuant to the 1944 Moscow Conference, Winston Churchill and Joseph Stalin had agreed that after the war Hungary was to be included in the Soviet sphere of influence. The HPR remained in existence until 1989, when opposition forces brought the end of communism in Hungary.
The German Democratic Republic (GDR), German: Deutsche Demokratische Republik (DDR), often known in English as East Germany, existed from 1949 to 1990. It covered the area of the present-day German states of Mecklenburg-Vorpommern, Brandenburg, Berlin, Sachsen, Sachsen-Anhalt, and Thüringen. This area was occupied by the Soviet Union at the end of World War II excluding the former eastern lands annexed by Poland and the Soviet Union, with the remaining German territory to the west occupied by the British, American, and French armies. Following the economic and political unification of the three western occupation zones under a single administration and the establishment of the Federal Republic of Germany in May 1949, the German Democratic Republic was founded on 7 October 1949 as a sovereign nation.
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The Soviet famine of 1946–1947 was a major famine in the Soviet Union that lasted from mid-1946 to the winter of 1947 to 1948.
This article describes the development of agriculture in East Germany, both the Soviet occupation zone of Germany as well as the German Democratic Republic (GDR) between the years 1945 and 1990.
The economy of the Soviet Union was based on state ownership of the means of production, collective farming, and industrial manufacturing. An administrative-command system managed a distinctive form of central planning. The Soviet economy was characterized by state control of investment, prices, a dependence on natural resources, lack of consumer goods, little foreign trade, public ownership of industrial assets, macroeconomic stability, low unemployment and high job security.
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