Economic Causes - Berlin Wall 1961

Favourable Economic Situation in West Germany

• Marshall Aid (1948)

• Korean War (1950)

• Treaty of Paris (1951)

• West Germany Joins IMF (1952)

• West Germany Joins NATO (1955)

Marshall Aid to West Germany

(1948) - Creates ‘economic miracle’ in west Germany - $1,391 million 1948-1952

Effects of Korean War on West Germany

(1950) - provided boost in demand for German steel and manufactured goods

Effects of Treaty of Paris on West Germany

(1951) - formed European Coal and Steel Community → lead to formation of European Economic Community (ECC) 1957

West Germany Joins IMF

(1952) - International Monetary Fund - West Germany also funded and assured when it joined NATO - 1955

Poor Economic Situation in West Germany

• Ulbricht’s Programme of forced collectivisation

• Falling living standards

• Worker’s strike in East Berlin (1953)

• 1950s - East German population 1/3 of West German

• 1950s - East German output 20% of West German

Worker’s Strike in East Berlin

(June 1953) - major rebellion over economic issues - EG must catch up to WG)

Migration from East → West Berlin

• August 12th 1961 alone - 40,000 fled East to West Germany

• From 1945-61 1/6 of German population migrated to West

• Improved West German economy - skilled workers

• Damaging for East German economy