Social Contract

Social Contract

1. Pensions

   • minimum wage was increased in 1976
   • Pensions had been comparatively neglected during Ulbricht years
   • Pensions increased by 20% between 1971 +72 as a result of voluntary contributions + ageing population
     • overall increase of 6.5% between 1965-72, OAP benefits increased faster than any other group
   • Minimum monthly pension raised from 230 to 300 Ostmarks in Dec 1976, + to 327 by 1979
     • was less than 33% of average wage so people encouraged to remain in employment for longer
   • Public servants such as teachers, police, doctors and SED officials had occupational pensions of 60-80% of their final salaries [more generous than those in working industry]

2. Housing

   • Housing provision was to be prioritised
   • As much as 2/3rds of housing stock had been destroyed/severely damaged due to war
   • Renovated housing in the 1970s, were falling into disrepair and were dilapidated
   • Most complaints in Eingaben were related to poor quality housing
   • Ulbrichts policy had been to renovate existing housing stock wherever possible --> satellite town developed.
     • Whilst Honecker, was more concerned with quantity, and the 1970s saw extensive building of accommodation
   • In a Leipzig survey of peoples goals in Oct 1984, 53% responded saying their priority was to acquire a decent quality home
     • In Dresden, 1980, a survey of living standard satisfaction found that only 35% were happy in older accommodation, while the figure rose to 76% of those living in new housing
       • = most people preferred new ones. By 1986 it was estimated that 7% of families still lacked their own homes + had to share with parents/others
   • Rents
     • rents subsidised by the state were cheap- no more than 4% of income. --> one of the bug advantages of life in the GDR
       • Jounalist Leonhard wrote about a family in Dresden paying 38 Ostmarks a month, to DM paying 400 per month
     • Berlin residents paid 1.00 to every 1.25 Ostmarks / m2 of living space
   • New towns + New estates
     • many new towns + estates need to be build at the centre of new industrial developments.
       • e.g. Chemical industries around Frankfurt near the border of Poland attracted Polish migrant workers
       • in the 3new towns of Schwedt, Eisenhuttenstadt and Guben, 75-83% of residents worked in the massive new chemical + petrochemical factories around the area
     • Many new constructions throughout the GDR were huge, concrete complexes with all the problems of loneliness + isolation which residents experienced
     • Berlin Marzahn comprised 64,000 dwelling units, Leipzig 34,000
       • much of the accommodation was poorly built with damp conditions, unreliable lifts.
         • some 8 storey apartments have no lifts at all
   • Private housing=10% of housing market in 1980s + were built at 11,000-12,000 a year, catering mainly for wealthier people

3. Healthcare

   • Healthcare was to be improved by September 1973
   • was comprehensive + based on 2 principles: communities needed to be healthy for the strength of the nation & individuals need to be healthy so they can produce more
   • was largely funded by a system of national insurance for which employees and employers contributed 10%of their GI
     • During the 1970-80s healthcare provision improved: the amount of doctors grew from 27,555-->40,193 and dentists 7,345 -->12,011
       • As a result of better ante natal and post natal care, the infant mortality rate fell. 1950: 20.57 deaths per 1000 births to 11.4 in 1985
   • PROBLEMS
     • overarching problem was the ageing population, increased costs of healthcare and the combination of this with growing economic problems
     • emphasis on illness prevention, so more money spent on this + promotion of healthy lifestyle > clinical medicine. --> no hospital beds were cut from 190,025 in 1970 to 163,305 in 1989.
     • Poor care homes + mental institutions that predated Nazi period. Society reluctant to address issue of alcoholism, suicide + domestic violence
     • the economy could not afford the quality of care it sought. Much specialist equipment had to be imported + the state lacked the resources to pay. In 1988 only 30% of the equipment needed for heart surgery + transplants was available
     • unequal provision as political elite + valued persons received better treatment, although they were expected to pay 10% more from salaries
     • environmental pollution took a fierce toll on health

4. Education

   • Education was to be expanded
   • AIM: conformity combined with initiative that challenged creativity --> led to tension
   • Schools
   • Vocational education
     • there were developed links with industry that offered work placements + training schemes. There were annual 'Fairs of Tomorrow's masters' --> encouraged careers in science, technology etc.
     • ESS introduction meant tighter links between enterprises and universities
     • huge pressure for adults to attend evening classes
   • Military training
     • From Sep 1973, 13-15 year olds had to undergo military instruction [firing practice, survival techniques 1 afternoon/ week]
     • Military even did talks in kindergarten to show off equipment etc.
   • Problems
     • pressure for ideological conformity caused huge resentment and the work force became over qualified, so weren't enough skilled jobs for no of skilled workers. A survey in 1970s suggested that 70% of workers were skilled but only 55% had opportunities
     • other data suggested that 20% of workers were doing jobs which they were overqualified for
   • 1951-52 16% of students spent more than 8 years in school, by 1972 this rose to 72%

5. Living Standards

6. General Problems

   • Problems emerged in financing the improved welfare system and in shortages of goods
   • Problems were compounded by the introduction of hard currency shops where those wealthy enough could by western goods
   • HOUSING PROBLEMS
     • the overall target of 3 million new builds was not attained
     • between 1971-1990 new construction varied from 1.7-1.9million. But in 1990, 34% of the housing stock predated 1919 + much of it had not been renovated
     • by 1980s, 44% of older homes had no hot water, while 60% lacked a bath or shower, and 65% an indoor toilet
     • by 1989 there was a waiting list of 800,000 for repairs to accommodation

7. What was it?

   • In the 1970s social welfare was developed to the point where people spoke of a social contract
   • Living standards would be guaranteed in return for at least outward acceptance of the regime
   • Honecker spoke of the connection between the economy + social policy in establishing harmony
   • One aim of social policy was to ensure that no one got left behind as society developed
   • Honecker's policies during the 1970-80s hoped to secure support through social + welfare programmes
   • Honecker had particular sympathy for working classes, derived from witnesses the poverty of his earlier life
   • Social welfare programmes emerged in the early 1960s but Honecker developed them into an informal social contract in which minimum standards would be guaranteed in return for tacit support
   • There was genuine support and appreciation for the social welfare programmes, and the policy soon became known as 'really existing socialism'
   • GDP spent on social welfare rose from 12.7% in 1970 to 16.8% in 1979
     • this doesn't include subsidised housing,cost of guaranteed jobs etc so figure would be higher
   • in 1971 state subsidies spent 8500 million Ostmarks on food, industrial goods and wages
   • the central features were outlined in the Main Task announced at the 1971 SED conference
     • party committed itself to improvements in SOL --> great labour productivity--> dev. of greater scientific + technical stuff

8. Minimum wage

   • Oct. 1976 monthly min. wage raised from 350-400 Ostmarks, with smaller increases for those earning 400-500 Ostmarks
   • 1 million people benefitted [1/7 of the workforce] shows that they were only very low wages before
   • AIM: hoped it would lead to an increase in productivity
   • the gov. had been reluctant to call for increased work norms since June 1953 rebellion and with greater job security + continuing inadequate equipment + work etc. people weren't encouraged to work harder

9. Crime

   • Crime rates tended to be higher in areas of high rise apartments rather than older areas. The new accommodation at Halle-Neustadt had a 20% higheer crime rate than in Halle itself