Economic change - Collectivisation

What did the Five Year Plan put emphasis on?

Trade and industry.

What was the Five Year Plan at first?

Politically and economically cautious about proceeding with collectivisation.

What was a concern by 1952?

Concern over food supplies, so introduced voluntary collectivisation through creation of agricultural production co-operatives called LPGs.

What did LPGs do?

Led to the slow growth of collectivisation.

Attracted small-scale farmers, being given financial incentives to join.

What happened by 1953 with agricultural land?

13% of agricultural land was not being farmed.

Refugees to the West grew.

But what happened from 1959?

Ulbricht’s position was secure and collectivisation was reattempted.

2nd wave in 1960/61.

What happened to farmers who didn’t sign collectives?

They were denied use of machinery and party officials sent to villages to persuade farmers of the merits of collectives.

What is collectivisation?

Where private ownership of land, tools and production is replaced by collective, cooperative or state ownership.

How many farms were collectivised by 1962?

Some 85% farms; often against the will of the farmer.

When did refugees reach their peak?

In 1961.

How severe were these issues?

Food production declined so much that rationing was reintroduced in 1961.

What happened as rationing was reintroduced?

Agriculture was collectivised.

In long-term, farms were more efficient than many in Eastern and Western Europe, but not until 1970s.