ABSTRACT
The German Democratic Republic (GDR) economy was a subject of special fascination for foreign observers in the 1980s. The importance of the question of East German economic development was further underscored by the rapid deterioration of the GDR economy during the critical months of late 1989 and early 1990. Questions are posed about the actual significant effects of West German economic assistance and the problems with the GDR leadership's attempts to improve economic performance. The inner-German economic relationship was nevertheless dwarfed in magnitude by the GDR's decades-long ties with its Soviet ally. The tendency to proffer economic rewards to East Germany when the "totality" of Federal Republic of Germany-GDR relations were judged favorable thus revealed a striking continuity with earlier Social Democratic Party-Free Democratic Party practices. Additional aspects of GDR life must be viewed to grasp the dynamics of the toppling of the Honecker regime.
