Intra-German Trade as a Factor in the Development of the East German Economy from the Second Half of the 1940s to the Early 1960s

This article examines the development of the East German economy from the second half of the 1940s to the early 1960s. The division of Germany, carried out contrary to the Potsdam Agreements, had grave consequences for the countrys economy, particularly for East Germany, which found itself cut off from sources of essential raw materials, a significant energy base, and a large portion of its domestic market and finished goods. At the same time, internal economic ties between the occupation zones, and later between the GDR and the FRG, were regulated by separate agreements, allowing Bonn to use various trade restrictions to exert political pressure on East Berlin. The need to build a sustainable economy became the defining vector of the GDRs development for many years, with extensive support from the Soviet Union playing a key role. Mutually beneficial cooperation within the Council for Mutual Economic Assistance (COMECON) and the development of trade and economic relations with socialist states, particularly the USSR, made it possible to significantly stabilize the socio-political system that had been developed in eastern Germany by the early 1960s., thereby creating the preconditions for strengthening the GDRs position in the international arena.