Chapter 9 - West Germany 1949-63

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LO: To learn about the progress in West German economy and society. How successful the new democratic state in West Germany was.
Karima Ranieri
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Karima Ranieri
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Questão Responda
What happened at the London Six Power Conference in 1948? It was decided to draft a new constitution for a West German state.
What did the new constitution entail? - Remain under control of Western occupying powers. - New constitution to be drawn up by a parliamentary council of 65 delegates from the Lander.
What was the focal aim with the establishment of the new constitution? - To create a stable, safe and strong democracy that could not be overthrown (unlike Weimar and Nazi Germany).
When was the FRG founded? May 1949
What was the Basic law? A document that was approved in May 1949, but not a constitution. This meant that the creators would be able to amend it if and when Germany became reunified. It had the features of a constitution but was called the Basic Law.
What did the new constitution place a special emphasis on? Human and civil rights
How much power did the head of state attain under the new constitution? How was the president chosen? - Powers of the federal president diminished to representative functions. - Term in office reduced from 7 to 5 years. - They could only be re-electable for one more term. - President chosen by a special assembly made up of the Bundestag and members elected by the Lander parliaments.
Who were the Bundestag? The 'federal assembly' or 'lower house' of the FRG parliament.
How was this different to how it was under Weimar? People had elected the president. The person in power had influence over the appointment of the chancellor and use of Article 48 to make law by decree.
How did Parliament work under the new constitution? How much power did the chancellor have? - It was like Weimar, made up of the Bundestag (the federal parliament) and the Bundesrat (federal council or upper house) - The chancellor had a clear line of authority, as he had to be elected by and solely responsible to the Bundestag.
How was the parliament under the new constitution different to Weimar? How was it better? - Weimar: Simple vote of no confidence regularly brought down a government and destabilised the political system. - New constitution: Bundestag could only bring down the chancellor and his government by 'constructive vote of no confidence.' This meant that the opposition would not only require a majority supporting the vote of no confidence, but also had to be able to offer a stable positive majority for an alternative government.
How did the electoral system work under the new constitution? How was it different to weimar? - They upheld pluralism (idea that democratic parties are an essential part and cannot be abolished (article 20). - The option for using direct votes on laws and other important issues (plebiscites and referendums) was not allowed. - Weimar had been based on proportional representation. - Under the new constitution there was the 'mixed member PR' which allowed each voter to have two votes. It adopted the first past the post policy. - In 1953, a 5% hurdle was introduced for elections. - If any party won less than 5% of the national vote, it was barred from parliament. So that the larger parties were favoured and stable coalitions could be formed.
How did the supreme court and democratic rights alter/remain the same under the new constitution? Although Weimar had created the idea of a supreme court, its judiciary had not been wholly sympathetic to democracy. A new agency was created with the right to investigate and prevent any anti-democratic activities from left or right in the FRG.
Which parties were banned in the 1950s? The right-wing Socialist Reich Party (SRP) in 1951. 11 communist organisations, most notably the Free German Youth in 1950. The League of German Youth (extreme right-wing group) in 1953. Communist Party, which gained 2.2% in the 1953 elections.
Evaluation of the Basic Law, successful? Completely democratic? The Basic Law successfully laid the basis for the FRG to create a stable democracy in the 1950s. West Germany experienced economic growth and overcame its diplomatic isolation, creating allies. The constitution was flexible and efficient. However, some critics point out that the FRG was not so genuinely democratic, for example the 5% rule and banning of left and right wing extremists.
In the 1949 Bundestag election, which party gained majority votes? CDU/CSU with 31% votes and 139 seats.
Was the left-wing CDU sympathetic to the idea of creating a great coalition with the SPD? Yes, but the leader of the CDU, Konrad Adenauer, was more determined to form a small coalition with the FDP and one of the smaller parties.
Why did the CDU want to form a small coalition with the FDP and one of the smaller parties? Because there were significant differences between the CDU and SPD (who gained 29.2% and 131 seats) over economic and foreign policy.
What happened on the 15th September 1949 in the Bundestag? Adenauer was elected chancellor of the first government with a majority of just one.
Who became president of the FRG in 1949? Theodor Heuss, the leader of the FDP.
What did Adenauer support? - He supported Western Liberal democracy and Catholic conservatism.
What were Adenauer's aims in the 1950s? - Western integration - The 'German question' - Economic policy - Social aspects.
What was meant by Western integration? What did Adenauer want? - Adenauer mistrusted and feared the Soviets and looked for protection from the West. - He wanted to gain the trust of the Western powers in order to become a reliable ally and strong economic partner.
What was meant by the 'German question'? What was his aim? - Adenauer believed that the reunification of the FRG and GDR had to be on the terms of maintaining a Western capitalist-orientated state. - Although he wanted a reunification, he did not want to make any concessions to communism. - He believed that if the FRG could achieve a Western partnership, not only would it secure the state against communism, but also attract East Germans to join West Germany.
Was the 'magnet theory' a success? Yes, nearly 3 million refugees left East Germany for the West before the closing of frontiers with the building of the Berlin Wall in 1961.
What was meant by economic policy? What was his aim? - Adenauer and his finance minister, Ludwig Erhard, were determined to create economic stability. - The onset of the Korean War, 1950-3, spurred the Germany economy out of recession and into boom. - This boom was also shaped by Erhard's 'social market' policy which aimed to create a free market. - The economic miracle sustained years of major growth until the recession of 1966-7.
What was meant by social aspects? What were his aims? Adenauer recognised the need for the CDU/CSU to give more than economic growth. It needed to provide social policy that would overcome hardships of the poor and refugees through new social legislation, industrial peace and quick growth in living standards. - Create social unity that would counter threat of communism.
What happened in the second election of 1953? CDU/CSU increased their share of votes to 45.2%, which gave them an absolute majority of one seat.
What were the successes of the CDU's 1957 election campaign? - They gained an absolute majority of 50.2% of the votes and the FDP did not join. - Democratic participation improved. - In the first Bundestag election in 1949, 78.5% of the electorate had gone to the polls. - In 1957, interests raised in the campaigns were met with more interest, which grew further until turnout reached 87.8% - Small extremist splinter groups and parties disappeared, not only due to the 5% rule in 1953 but also because big parties proved to be more inclusive and drew more voters from the extreme right and left.
Which party had opposing views against the CDU? The SPD
What did the SPD criticise about the CDU? - They argued that Erhard's social market economy plans were just liberal capitalism and therefore not in the interests of the majority. - SPD leader Kurt Schumacher denounced Adenauer and Erhard's plans of fast-rising living standards and social security for everyone as unachievable. - With regard to the 'German question' the SPD felt that it was the only party that could serve the true interests of the whole of Germany.
Why did the SPD not enjoy similar support to the CDU? - Schumacher died in 1952 and was replaced by Erich Ollenhauer, who was a rather colourless character. The SPD, up against Adenauer, failed to engage and sympathise with more than one-third of the electorate.
How did the SPD eventually overtake the CDU/CSU in votes? - After the SPD lost a third time in 1957, it decided to create a new programme in 1959. - This program took on a new liberal economic course, which outlined social injustice, and was open to Western integration and remilitarisation. - The Bad Godesberg programme appealed to a broader electorate that would embrace the middle classes.
What were the aims of social market economy? - To rise consumption and economic growth. - Its aim was to combine political and economic freedom with social justice and security.
Did Erhard's implementation of the social market economy in 1948-9 immediately launch an economic take-off? - The currency reform and abolition of price controls liberated the economy, as it made more consumer goods available. - However, the steep rise in prices was not matched by wage increases, this caused hardship for poorer elements in society. - The shortages of many resources, especially coal, led to a sharp increase in imports and serious balance of payments deficit.
What was the 'foundation crisis' in 1949-50? Why/how did it come about? - Germany economy faced recession. - Not enough demand to sustain growth. - Lack of foreign currency for investment. - Unemployment as high as 13.5% - Prices still rising (cost of petrol rose up by 50%)
Why was the crisis short lived, what event happened that helped with economic growth in Germany? The Korean War had begun to take effect and exports, rose steeply.
Economic growth What was the FRG's highest percentage rate of growth? What was the rate of their annual growth? - Economic growth was high and carried on for nearly 15 years. - FRG had a rate which rose as high as 12% in 1955. - Their average annual growth was a rate of 8%
Gross national product What happened from 1950 to 1955? How much did the GNP increase by 1960? - 1950-1955 Gross national product almost doubled - Increased another 50% by 1960. - In 1950s more coal was being mined in the FRG than in the whole of Germany in 1936. - Massive growth of motorisation.
Balance of trade How did the balance of trade turn positive in 1956? Because of Germany's rapid growth of exports. - By 1954 the FRG had already become the 3rd biggest trading power behind Britain and the USA.
Employment How much did unemployment go down by in 1955? Within a few years, how did this change? Was the creation of jobs limited? What happened by the early 1960s, an increase in....? - Unemployment went down to just 1 million (4.2%) by 1955 and, West Germany, within a few years, enjoyed a period of full employment until the early 1970s. - No, the creation of jobs managed to also satisfy the influx of another 3 million people who arrived from the GDR before 1961. - Immigration! By the 1960s there was a shortage of workers which led to immigration of foreign labour from Italy and Turkey.
Agriculture Success or failure? - Farmers received heavy subsidies - proportion of workforce employed in farming halved from 23 to 13% in the 1950s. - However, rationalisation by more mechanisation brought about substantial increase in production, nearly 25% over the same years.
What advantages did the FRG inherit in terms of their economic success? (mention resources, German skills, foreign aid, etc...) - FRG had access to extensive resources, such as coal and iron from the Ruhr region. - Country's population was well educated with a high level of technical skills. - Marshall plan provided the economic context for recovery. - However, it must be considered that Britain received twice as much aid as Germany.
Causes of the economic boom/miracle 1. World Trade What did the USA do to help? External circumstances, what did the Korean war lead to? In what way did the OEEC (European Economic co-operation) help Germany? - After 1945, USA used its influence to reduce tariffs globally. - Korean War led to a real growth in world trade in the early 1950s. - OEEC helped open up European markets and speed up reintegration of German trade into world market.
Causes of the economic boom/miracle 2. Refugees Problem or boost to economy? - At first it was viewed as a problem, but with growing industry it became an advantage. - The continued influx of refugees from the GDR provided a continuous supply of qualified, disciplined and highly motivated employees to the labour market who were easily satisfied with moderate incomes.
Causes of the economic boom/miracle 3. Industrial peace Did strikes in West Germany diminish? What is Co-determination? - The idea of co-determination between employers and employees was shaped by two crucial laws: the co-determination Law of 1951 and the Works' Constitution law of 1952. - Co-determination was the practice in which employees have a role in the management of a company. - The number of strikes in West Germany fell dramatically and the country enjoyed real industrial peace for 20 years.
Causes of the economic boom/miracle 4. Consumption demand Was West Germany prospering? - Demand expanded enormously. - Incentives like special subsidised savings programmes to buy your own property, pushed up private demand. - The demand for consumer goods such as cars, televisions, refrigerators, showed West German was prospering.
Causes of the economic boom/miracle 5. Financial stability What was the name of the central bank, how did they operate in order to ensure stability? - The Bundesbank was the central bank, it operated separately from the government. - It watched over stability of the currency by controlling the money circulation and the interest rates.
Causes of the economic boom/miracle 6. Government expenditure The FRG signed an agreement in 1952 to payback what? What did the FRG not have to pay back after the war? - In 1952 the FRG signed an agreement to pay debts from the Marshall Plan credits and the Dawes Plan. - However, it did not have to pay reparations and its defence costs were at first limited. - Government expenditure was therefore more limited than other countries.
What was the 'Equalisation of Burdens Law' of 1952? - This law introduced a property levy on capital and real estate that had not been affected by the war to give something to those people who had suffered heavy losses.
How much money was redistributed from the legislation in the next three decades? DM 143billion
Law 131 in 1951 restored what? Employment and pension rights of civil servants. This move was financially very expensive and controversial. Even though it did reconcile millions of middle-class public employees to the emerging new state. This meant ex-civil servants and military, a few who were Nazi sympathisers and had been dismissed by the Allies, were generously re-employed in their old positions.
What was Adanauer's key issue? Wiedergutmachung. - Compensation to Nazi victims of brutality. However, he had to balance German guilt with financial needs of the country post-war. Talks between Israel and Germany began in March 1952.
Education success or failure? - There was a lack of school buildings - Shortage of appropriate teaching material (since most school books had been published by Nazis) - Large classes (as a high proportion of qualified teachers had been killed in the war or removed as Nazis) - New teachers were not properly qualified and had no training for the changed of the new West Germany. - Therefore, in the 1950s there was no clear consensus on how to proceed with educational developments. - Eventually in 1959 a draft of a report by the Lander for a new modern school system triggered fierce discussions among politicians and the public.
Women Points that it was dealt with successfully - Women significantly outnumbered men after the war and were able to take on new roles that they had been previously denied. - Women status in the 1950s was advanced in the FRG. - Article 3 of the 1949 Basic Law gave women equal rights. - The Law of Equality of the Sexes of 1957 allowed wives the right to take up work without permission of their husbands, and enabled them to keep control of their property after marriage. - New career opportunities for women. - Growth in new household gadgets gradually made chores at home more manageable.
Women Points of failure/lack of change - Working women did not have equal pay for equal work. - Average woman's wage was still about 40% less than the average man's. - In higher education the proportion of female students had only risen from 19% in 1950 to 30% in 1968. - The typical female role was still that of the married family women who represented the three k's.
Social change How was the social situation in the early 1950s? - 20% of households still lived on little more than the mere subsistence level. - Over half of the population had no more than a one-bedroom flat to live in. - Only 11% of households owned a fridge. - The average weekly working hours were 49% and over a third of the population had never been on a holiday in their life.
Social change How was the social situation in the second half of the 1950s? - Working week was reduced to 45 hours with the introduction of the 5 days working week. - In 1965 it was reduced again to 40 hours, with longer holidays. - By 1962: 63% of households owned a fridge 42% owned a television 38% owned a car 36% owned a washing machine - Tax relief programmes witnessed an increase in privately owned houses.
What was the population in 1951 and what did it become by 1965? 1951- 47.5 million 1965 - 59.6 million
How did the structure of the labour force change? - Social mobility grew (more people moved from the countryside to the cities. - number of people working in the agrarian sector declined.
What did the massive expansion of transport manufacture consist of? - Growth in number of cars (2 million in 1950 to 12. 1 million in 1965) - Systematic expansion of road network
What were Adenauer's aims in terms of foreign relations? - Establishing sovereignty for the new state. - A united west Europe led and protected by the USA. - Create a close network of multinational institutions. - Co-operate with allies - Win trust in the West - Shared western opposition to communism.
What was agreed in the Petersberg agreement? What did the chancellor gain? When was it signed and between whom? - Signed in 1949 - With Allied High Commission. - Purpose: to allow the FRG to join the International Ruhr Authority. - Dismantling of industry by the Allies was radically limited. - FRG gained the right to establish diplomatic relations with other states. - FRG was allowed to join the European council in 1950.
What was the Schuman plan, how did it come about? - In 1950, French foreign minister, Robert Schuman, suggested a supranational organisation to oversee German and French steel and coal production. - His initiative became known as the Schuman Plan.
What was the ECSC, when was it founded? What was the benefit for the FRG? - European Coal and Steel Community - Founded in 1951 by its six members: FRG, Italy, France and Benelux states. - Members lifted restrictions on imports and exports of coal and steel between member states. - Secured Franco-German understanding after generations of hostility. - Harmonised trade and prices in areas such as agriculture and fisheries. - By 1964, 85% of West German agricultural produce came under EEC trade.

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