IV.

Strict Party Control

In domestic affairs Ulbricht's first concern was to rebuild the East German economy. After World War II East Germany was left with only one-fourth of its prewar resources, but was required by the USSR to pay three-fourths of overall German reparations to aid Soviet war recovery. Ulbricht attained his goal by imposing an iron discipline comparable to that of Soviet leader Joseph Stalin. The Socialist Unity Party completely controlled the government, which had already taken over all large industry and agriculture and which gradually acquired all small holdings as well. Emphasis was on heavy industrial production to satisfy Soviet requirements. In 1953 increased production quotas and food shortages caused worker revolts, which were put down by Soviet troops.

With the New Economic System of 1963, a policy characterized by partial decentralization and computerized planning, economic recovery in East Germany occurred rapidly. As workers' incomes and benefits improved and many of them were given advanced technological education, they became somewhat more reconciled to the Communist government. A new, fully socialist constitution was adopted in 1968.