Socialism with a Human Face: Using Behavioural Economics to Understand East German Economic History

East Germanys economic history is often portrayed as a story of a flawed system, but this book combines behavioral economics with archival research to reveal a more functional perspective. It examines the establishment of socialist workplaces, productivity growth, and efficiency, and the emergence of financial crisis, offering a more realistic understanding of the system beyond political preconceptions.

Format: Hardback
Length: 356 pages
Publication date: 01 April 2022
Publisher: Springer Verlag, Singapore

East Germany's economic history is often portrayed as a tale of a system inherently flawed from the start. While the inefficiency of the system is undeniable, its economic history is far more complex and nuanced than its relatively poor economic performance suggests. For many who lived under the regime, it was a system that, over its forty-year span, achieved significant accomplishments and generally functioned at a tolerable level. This book combines the insights of behavioral economics with archival research to peel back layers of rhetoric and assumptions about the East German economy and explore aspects of its underlying functionality.

Through a series of case studies that examine the establishment of socialist workplaces, the pursuit of productivity growth and efficiency, and the emergence of financial crises, the book considers the system from the perspective of the humans who operated it and made the decisions that propelled it forward. Unencumbered by political preconceptions, it offers a more realistic understanding of East German economic history than that derived from stagnant debates about the clash of systems. The new perspectives and approaches presented demonstrate that, when extracted from its Cold War context, East German economic history can be analyzed for what it was, rather than what it symbolized.

East Germany's economic history is a complex and multifaceted tale that defies simple categorization. While the system faced numerous challenges and inefficiencies, it also exhibited remarkable resilience and adaptability. The establishment of socialist workplaces, for example, was a significant achievement that provided employment and social benefits to millions of people. The search for productivity growth and efficiency was also a central objective of the regime, and while it faced setbacks and failures, it made significant strides in improving industrial production and increasing the country's economic output.

However, East Germany's economic history was not without its flaws. The regime's centralized planning and control mechanisms often led to inefficiencies and bottlenecks, which hindered the country's ability to compete in the global market. The lack of market competition and private enterprise also contributed to economic stagnation and limited opportunities for innovation and growth. Additionally, the regime's emphasis on heavy industry and military production at the expense of consumer goods and services further exacerbated the country's economic problems.

Despite these challenges, East Germany's economic history was not entirely negative. The regime's commitment to social welfare and public services, such as healthcare and education, was a significant achievement that improved the quality of life for many citizens. The country also made significant strides in environmental protection and energy conservation, which were important for sustainable development and reducing the country's dependence on fossil fuels.

In conclusion, East Germany's economic history is a complex and multifaceted tale that requires a nuanced and comprehensive analysis. While the system faced numerous challenges and inefficiencies, it also exhibited remarkable resilience and adaptability. The book combines the insights of behavioral economics with archival research to peel back layers of rhetoric and assumptions about the East German economy and explore aspects of its underlying functionality. By examining the system from the perspective of the humans who operated it and made the decisions that shaped it, the book offers a more realistic understanding of East German economic history than that derived from stagnant debates about the clash of systems. The new perspectives and approaches presented demonstrate that, when extracted from its Cold War context, East German economic history can be analyzed for what it was, rather than what it symbolized.

Weight: 616g
Dimension: 210 x 148 (mm)
ISBN-13: 9789811906633
Edition number: 1st ed. 2022