West and East Germany : 1949-1991 - The Marshall Plan:
Yalta Conference: June 1947
Feb 1945 Plan introduced by George Marshall
Between Roosevelt, Stalin and Churchill $1.3 billion spent between 1948 and 1952 in Western Europe (by
the US)
Germany & Austria divided into 4 zones of occupation Began revival of German economy in Western Zones
Special arrangements for Berlin
War criminals to be put on trial
New borders for Poland Economic Recovery in West Germany:
1950s - “economic miracle” (“wirtschaftswunder”)
Potsdam Conference: Highest annual growth rate in Western Europe
July 1945 (after Germany surrendered) Full employment
Between Truman, Stalin and Atlee High productivity
Very low inflation
Agreed occupation would end at some point
There would be a final peace treaty
Germans in Poland, Czechoslovakia & Hungary would be moved back Causes of Economic Recovery in West Germany:
to Germany
Marshall Plan
Deutschmark
Impacts of Conferences: Latest technology introduced to replace war damage
Stable economic policies (Dr Ludwig Erhard)
German Expulsions: Investment
9.5m Germans forced to leave Eastern Europe Research
Over ½ m Germans killed (estimate) Strong central bank
Not done in the humane manner agreed at Potsdam Currency stability
Mixed economy (private capital & state capital used to create
Developments in Western Zones: wealth)
Britain, France & USA decide to revive economy of their zones Relatively high rates of taxation to support social reforms &
1947 - Introduce new currency (Deutschmark) ; intended to end welfare provision
inflation 1950-53 - Demand from USA due to Korean War (Germany supplies)
1947 - Western Zones united into single economic unit Moderate Trade Union movement (avoided strikes)
June 1947 - Marshall Plan
★ Led to division of Germany in 2 parts for 40+ years
Yalta Conference: June 1947
Feb 1945 Plan introduced by George Marshall
Between Roosevelt, Stalin and Churchill $1.3 billion spent between 1948 and 1952 in Western Europe (by
the US)
Germany & Austria divided into 4 zones of occupation Began revival of German economy in Western Zones
Special arrangements for Berlin
War criminals to be put on trial
New borders for Poland Economic Recovery in West Germany:
1950s - “economic miracle” (“wirtschaftswunder”)
Potsdam Conference: Highest annual growth rate in Western Europe
July 1945 (after Germany surrendered) Full employment
Between Truman, Stalin and Atlee High productivity
Very low inflation
Agreed occupation would end at some point
There would be a final peace treaty
Germans in Poland, Czechoslovakia & Hungary would be moved back Causes of Economic Recovery in West Germany:
to Germany
Marshall Plan
Deutschmark
Impacts of Conferences: Latest technology introduced to replace war damage
Stable economic policies (Dr Ludwig Erhard)
German Expulsions: Investment
9.5m Germans forced to leave Eastern Europe Research
Over ½ m Germans killed (estimate) Strong central bank
Not done in the humane manner agreed at Potsdam Currency stability
Mixed economy (private capital & state capital used to create
Developments in Western Zones: wealth)
Britain, France & USA decide to revive economy of their zones Relatively high rates of taxation to support social reforms &
1947 - Introduce new currency (Deutschmark) ; intended to end welfare provision
inflation 1950-53 - Demand from USA due to Korean War (Germany supplies)
1947 - Western Zones united into single economic unit Moderate Trade Union movement (avoided strikes)
June 1947 - Marshall Plan
★ Led to division of Germany in 2 parts for 40+ years
