Economic changes - Nationalisation

What had the SED already began planning?

To plan an economy based on the Stalinist model.

How was nationalisation already in place?

In many industries it was.

76% production under control of ‘People’s own Factories’ run and owned by the state.

What was there an emphasis on to raise productivity?

Heavy industry e.g. fuel, iron, steel.

What did the party set?

Production levels, handled worker discipline and ran social activities, all of which allowed it to control workers and their lives.

What did the state proclaim regarding the first Five Year Plan targets?

They were comfortably exceeded.

This ignores that many factories and industries were constructed in inappropriate areas and were not profitable.

What was the states planning like?

It was slow and therefore were often out of date before being implemented, and were unable to respond to short-term changes.

What did they have little focus on?

Little focus on consumer goods.

Living standards only improved slowly.

How was the impact of nationalisation seen?

Many workers, who were put under pressure to meet quotas saw little gain from their work and moved to the West.

What did the second plan have more emphasis on?

Consumer goods, and also attempted to emphasise the need for technological progress.