1. Risen from the Ruins: The Economic History of Socialism in the German Democratic Republic
- Author:
- Tricontinental: Institute for Social Research
- Publication Date:
- 04-2021
- Content Type:
- Working Paper
- Institution:
- Tricontinental: Institute for Social Research
- Abstract:
- The German Democratic Republic (DDR) was a socialist state founded in 1949 as a democratic, antifascist reaction to the Second World War. It redistributed land, socialised the means of production, and collectivised the agricultural system. This socialist state established an egalitarian education, healthcare, and social system, and guaranteed equal rights between men and women. It cultivated friendly and close-knit economic relationships with other socialist states and supported countries fighting for their independence in Latin America, Asia, and Africa by showing international solidarity. The establishment of a just society based on the principles of equality was the DDR’s declared objective. With public ownership of the means of production as its foundation, the country developed into a powerful and efficient industrial state that used its economic profit for the benefit of its citizens and guaranteed them a life of social security. Ultimately, the DDR was extremely successful in realising its main socio-political goal: the satisfaction of the growing material and cultural needs of its people. But why bother re-examining the DDR’s achievements, principles, and structures thirty years after its downfall? What can we learn from the DDR’s alternative economic practices in today’s world, where the triumph of capitalism has exacerbated the problems of inequality and poverty and has resulted in more frequent crises? What did socialist democracy really look like? What contradictions arose from the everyday application of a planned economy? What lessons can we draw from the DDR’s ultimate failure? With this series Studies on the DDR, the Internationale Forschungsstelle DDR (International Research Centre DDR) together with Tricontinental: Institute for Social Research seek to encourage a new engagement with the history and principles of the DDR. It is our goal to re-evaluate the legacy and experiences of this socialist state. For this reason, we use the German acronym DDR, or Deutsche Demokratische Republik, (English: GDR) specifically because it often represents a positive point of reference in many parts of the world and especially for countries in the Global South. This educational series on the socialist agenda and realities of the DDR explores aspects of everyday life, provides facts about the country’s social achievements, and examines the political and economic foundations of this socialist state. By reflecting on the lived experiences of daily life, which are generally left out of the dominant narrative due to the crushing victory of capitalism and the dominance of the market economy, we hope to make a useful contribution to the debate currently taking place within progressive movements. After all, millions of people around the world are still fighting for advancements that were once a given in this socialist system but were lost with its downfall. This first publication in Studies on the DDR will briefly outline the formation of the DDR and its economic circumstances from the country’s inception to its end. In order to fully understand the specific DDR brand of socialism, we must highlight the historical conditions from which it emerged. The DDR was born in times of crisis in the aftermath of a devastating war as Germany – the instigator of the Second World War – was divided in two. It is imperative that we examine the DDR in its relationship to West Germany, which it opposed in the ensuing Cold War between the communist and capitalist systems. In 1990, after the reunification of Germany, the DDR economy was dismantled. It was treated as a shock therapy prototype for the austerity measures that were soon imposed on other countries – and not just the former socialist states. At the same time, the DDR was politically, judicially, and morally delegitimised. The publications in this series are a rejection of the narrative propagated by enemies of socialism, both new and old, that the downfall of the DDR proves the inevitable failure of socialist policy and economy. By depicting the realities of life in the DDR and by affirming the experiences of DDR citizens, we hope to remind the reader that alternatives to capitalism did and do exist.
- Topic:
- Economics, Governance, State Building, Socialism, and Political Crisis
- Political Geography:
- Europe, Germany, and East Germany