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- <text id=89TT0826>
- <title>
- Mar. 27, 1989: Rigid But Prosperous
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1989
- Mar. 27, 1989 Is Anything Safe?
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- WORLD, Page 48
- Rigid but Prosperous
- </hdr><body>
- <p> Can an East European state reject reform and still thrive?
- Yes, says the doctrinaire regime of East Germany's party boss
- Erich Honecker. The leadership in Berlin has stuck faithfully
- to the eternal Communist verities and pulled off a hat trick.
- Under one of the most authoritarian systems in the Warsaw Pact
- and with a rigid, centrally planned economy to match, East
- Germany boasts the most powerful industrial base, the highest
- standard of living and the most per capita exports to the West
- of any nation in the East bloc. Declared Honecker, 76, in a
- speech to party leaders that implicitly rejected any
- reform-minded changes in his winning formula: "If one finds that
- one has embarked on a course that is right, then one should
- continue along it."
- </p>
- <p> Yet beneath the veneer of rosy statistics, evidence is
- mounting that East Germany's orthodox course ultimately leads
- to a dead end. A Prussian work ethic and meticulous
- implementation of carefully honed five-year plans are no longer
- quite enough. Even that well-oiled machine is wearing down under
- the same contradictions of Communism that have driven other East
- bloc economies onto the rocks. Pointing to the increasing
- scarcity of consumer goods, ten-year waiting lists for East
- German-made Trabant automobiles and deepening competition in
- foreign markets from third world producers, a Western diplomat
- in Berlin says, "They are treading water. Everything is getting
- pretty waterlogged."
- </p>
- <p> Ironically, Honecker and his elderly colleagues in the
- ruling Politburo have been able to fend off unpalatable reforms
- in large part because of huge subsidies from West Germany: some
- $1 billion a year in bank credits and other transfers. East
- Germany also profits from back-door access to the rich European
- Community market through West German middlemen. The special
- treatment reflects West Germans' strong emotional bond with
- their countrymen across the Berlin Wall -- and deep-seated hopes
- that the two Germanys may one day be reunited.
- </p>
- <p> Despite a near reverence for authority, East German youths
- are growing restless because of contact with the freedoms and
- goods of the West, while an increasingly impatient cadre of
- younger, more reformist party figures are chafing over the
- closed door to change at the top. While East Germany seems out
- of step with other countries of the bloc, it is still marching
- toward its own brand of Communist crisis.
- </p>
-
- </body></article>
- </text>
-
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