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→DDR created 1949
==DDR created 1949==
==DDR created 1949==
As West Germany was reorganized and gained independence from the occupation, Stalin lifted the Berlin Blockade of 1948-49 and established the German Democratic Republic, also in 1949. The creation of the two states made permanent the 1945 division of Germany.<ref>http://web.ku.edu/~eceurope/hist557/lect17.htm</ref>
The ruling Communist party, known as the "Socialist Unity Party" (SED), was formed in April 1946 out of the forced merger between the German Communist Party (KPD) and the Social Democratic Party of Germany (SPD). As Walter Ulbricht noted, everything was made to look democratic while in realty Communists retained control in the background. They were totally loyal to Stalin, and realized their regime would collapse if it lost the backing of the SSoviet army--as indeed happened in 1989. Historians debate whether the decision to form a separate country was initiated by Stalin or by the SED.<ref> See Spilker (2006) </ref>
As West Germany was reorganized and gained independence from the occupation, Stalin established the German Democratic Republic in 1949. The creation of the two states made permanent the 1945 division of Germany.<ref>http://web.ku.edu/~eceurope/hist557/lect17.htm</ref>
In 1949 the Soviets turned control of East Germany over to the Communist Party, headed by Wilhelm Pieck (1876-1960), who remained in power until his death in 1960. The old Socialist Party was taken over by the Communists, and Socialist leader Otto Grotewohl (1894-1964) became prime minister.
In 1949 the Soviets turned control of East Germany over to the Communist Party, headed by Wilhelm Pieck (1876-1960), who remained in power until his death in 1960. The old Socialist Party was taken over by the Communists, and Socialist leader Otto Grotewohl (1894-1964) became prime minister.
===Refugees===
===Refugees===
One of the most lucrative exports of East Germany was live humans. After discovering West Germany would pay ransom, East Germany sold people who were likely to be troublemakers. The government accumulated 3.5 million West German marks in a special hard-currency account from money paid by the West German government to buy the freedom of political prisoners. The propaganda machine said this would buy scarce consumer goods, but over three-fourths of the money was used to reduce balance-of-payments deficits and to support international Communist allies.
One of the most lucrative exports of East Germany was live humans. After discovering West Germany would pay ransom, East Germany sold people who were likely to be troublemakers. The government accumulated 3.5 million West German marks in a special hard-currency account from money paid by the West German government to buy the freedom of political prisoners. The propaganda machine said this would buy scarce consumer goods, but over three-fourths of the money was used to reduce balance-of-payments deficits and to support international Communist allies.
==Collapse of Communism, 1989==
==Collapse of Communism, 1989==
The dissidents in East Germany were actually pro-socialist, critical of the West, and merely wanted to reform, not destroy, the Communist system. Since the more democratic East Germans had already fled, the remaining dissidents were more leftist than in the rest of the Soviet bloc, posed no ideological alternatives, and represented an alternative counterculture, not unlike protesters in the West.
The dissidents in East Germany were actually pro-socialist, critical of the West, and merely wanted to reform, not destroy, the Communist system. Since the more democratic East Germans had already fled, the remaining dissidents were more leftist than in the rest of the Soviet bloc, posed no ideological alternatives, and represented an alternative counterculture, not unlike protesters in the West.