industry

• Aims for industry: nationalisation, centrally planned economy based on Stalinist model (state ownership), increase productivity, control workers
• production of steel and ligitine increased; fell short of targets
• many new industrial enterprises established and unprofitable
• emphasis on heavy industry at expense of consumer
• planning process slow and inflexible; quantity over quality
• pressure placed on workers
• GDR short of hard currency
• 7 year plan aims: increase industrial production by 188%, increase consumer goods by 177% and extend colectivisation
• industrial growth declined from 1960; number of refugees from Berlin climbed to 1000 a day
• living standards were slow to improve
• September 1950 GDR joined COMECON (council for mutal economic assistance) formed by USSR
• by 1950 76% of industrial production under control of VEBs
• proclaimed as overfulfilling targets
• second 5 year plan 1956 backed development of nuclear energy and first nuclear reactor in GDR activated 1957
• 1958-9 GDR's economy grew by what?

  12%
• workers cultural centres and polytechnics set up
• Berlin wall stabilised workforce (prevented people leaving)
• 1963 New economic system was helpful, flexible