Cold War Germany: Post-WWII Reconstruction

Cold War Politics

• Post-WWII Germany was divided into four occupation zones controlled by the United States, Great Britain, France, and the Soviet Union.
• The Potsdam Agreement (1945) established the Allied Control Council to oversee the demilitarization and denazification of Germany.
• The Cold War tensions between the United States and the Soviet Union led to the formation of two separate German states:
  • West Germany (Federal Republic of Germany, FRG): established in 1949 with a capitalist economy and aligned with the Western Bloc.
  • East Germany (German Democratic Republic, GDR): established in 1949 with a socialist economy and aligned with the Eastern Bloc.

Economic Reconstruction

• The German economy was in shambles after WWII, with widespread destruction and a severe shortage of resources.
• The Allies implemented policies to promote economic recovery, including:
  • Currency reform (1948): introduction of the Deutsche Mark to replace the Reichsmark and combat hyperinflation.
  • Marshall Plan (1948-1952): a US-led initiative providing economic aid to war-torn Europe, including Germany.
  • Ludwig Erhard's economic reforms: implemented policies to promote free market economy and encourage private enterprise.

Denazification

• The Allies aimed to remove Nazi influence from German society and institutions through denazification policies.
• Key aspects of denazification:
  • Purge of Nazi officials and members from government, industry, and education.
  • Trials of Nazi war criminals, such as the Nuremberg Trials (1945-1946).
  • Confiscation of Nazi property and assets.
  • Re-education programs to promote democratic values and counter Nazi ideology.
  • Creation of a new German government and constitution, ensuring a democratic and federal system.