...ce-great city of Berlin as beginning its long climb from the ruin of ar. Under terms of the Yalta Agreement, Germany had been divided among the three victorious Allies ith an area assigned to the French taken from the American Zone of Occupation in estern Germany. Similarly, Berlin as divided into four sectors for each of the occupying poersUS, France, Great Britain, URSS. Hoever, this division as not able to prevent further conflict. For example the East Germany asnt enjoining the same high standard of living as the est Germany. hen the U.S. initiated the Marshall Plan in 1947, to improve Europes market strength, it offered to extend it to Eastern Europe as ell as estern Europe. The Soviets vieed this as a propaganda ploy and ould not allo any East European countries to join. In 1949 the Soviets decided to blockade any land routes to est Berlin to prevent any goods from arriving there. The Soviets ended their blockade in May 1949. In 1961, the Soviet and East German leaders decided to build a HYPERLINK http.foothill.fhda.edudivisionsunificationall.html all around East Berlin and ultimately a HYPERLINK http.foothill.fhda.edudivisionsunificationborderdi
agram.html fortified border beteen the to German states. According to East German officials, this as done to protect East Germany from the est, but the fortification also made it impossible for East Germans to go to the est. So the to Germany ere no officially divided and ere vieed as separate entities. Since no on until 1990 hen the unification of Germany as done they had to go on different roads. In 1949 the East Germany had to face reconstruction. The reconstruction folloed the Soviet model industry as accounted for by nationalized enterprises, the banking and insurance ere taking over by the state. From the Soviet model they established five year plans ere they ould invest in heavy industry. The pensions ere minimum. In 1954 the consumption of basic food stuffs regained their initial levels but they still lacked resources to economically expand. They also established a ne economic system here the factory managers had a greater independence, there as a more flexible pricing system, and the orkers participation in management as limited. But in 1970 the hole policy collapsed. By 1980 the GDR as financially dependent on loans from FRG. In 1947 the U.S. government initiated the European Recovery Program, commonly called the Marshall Plan, hich offered generous investment loans to all European countries that had been devastated by the ar. Under the steardship of economics minister Ludig Erhard, the Marshall Plan helped launch a 20-year economic expansion in est Germany that raised living standards and industrial production above prear levels. est Germanys economic achievement as impressive the gross national product GNP rose by 8 percent per year from 1951 to 1961. In 1945 est Germany Economy as so great that the term economic miracle as used to describe it. estern Germany possessed a series of inherited advantages hich helped it to take advantage of the great economic upturn of the 1950 a high proportion of the German orkforce as skilled and Germany had a strong scientific and technical tradition despite the bombing much of its industrial equipment survived. In 1966 the inflation rate as creeping up to an annual rate of 4. In 1969 the economy of the FRG gre by 5.6 and inflation dropped to 1.5.All due to the fact that the Great Coalition increased the governments poer to intervene through 2 important measuresIt gained poer trough the Stabilization La to steer the economy in times of recession by raising loans, increasing taxes, and investing money in job creation projects.In December a further la as passed in the Budestang hich gave the central government the poer to plan financially 5 years ahead and to coordinate the spending of the Lander and the cities ith the overall federal budget.In 1985 the orld trading conditions moved in favor of the FRG they escaped the collapse in oil pricesand over the next 5 years est German exporters build up a large trade surplus but unemployment still remained at over 2 million.In the Federal Republic of Germany there ere three major parties CDU Christian democratic union, KDP communist party SPD socialist party.One of the major issues of the government as to maintain democracy and not to be authoring. On the other hand, East Germany as under the strict supervision of USSR they ould have only one main party SED.GDR ere basically imitating the USSR ,as part as the Eastern Bloc states they ould have a different ay of electing then in est Germanypublic could vote against candidates and they ould possessed a secret police ho as maintaining the poer. hile the politic in GDR as pretty clean only one party,in FRG every single party had a different vie on the state future for example SED anted a democratic order hile CDU a state control of industry. But in the same time FRD ere still dealing ith major problems as the inflation, the unemployment, the flood of refuges, the reconstruction of the state, and the fear of communism.The Social Democratic Party that operated in the estern zones as, in contrast to the Eastern SPD, markedly anticommunist see Social Democratic Party of Germany, ch. 7. This attitude reflected a continuation of its bitter hostility to the Communist s during the eimar Republic. The reestablished party, headed by Kurt Schumacher and, after his death, by Erich Ollenhauer, could look back on a distinguished history of creating better living conditions for the orking class ithin the context of parliament entire democracy. Although anticommunist, the SPDs leadership still regarded the party as Marxist and remained committed to orking for a socialist economy. As such, the SPD envisioned a neutral socialist Germany located beteen the capitalist economies of the est and the Soviet dictatorship of the East. The SPD as able to build on its extensive orking-class membership, hich predated Hitlers seizure of poer in 1933.The foreign policys for the to Germanys ere mainly divided trough the relations ith their protectorsand the relations ith the est for FRG and eastGDR orld. In September 1973, both Germanies ere admitted to membership in the United Nations UN, and East Germany has been active ever since in advancing Soviet and East European positions in that international forum. During the same period, it also became active in the developing orld, particularly Africa. In Third orld countries, the to German states compete ith each other for influence on behalf of their respective alliance systems. ithin the UN, the to states have found. From 1970 to 1985, trade beteen the to countries more than doubled. Travel beteen East Germany and est Germany has also gron substantially.In the 1980s, relations beteen East Germany and est Germany fluctuated beteen conflict and cooperation. To a large extent, relations beteen the to German states are held hostage to relations beteen the...
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