Restructuring in the GDR

© Deutsches Historisches Museum, Berlin GDR propaganda poster: „Socialism is the future - working farmers become members of the agricultural production co-operatives (LPGs)“

On 9 July 1952 in East Berlin the 2nd conference of the Socialist Unity Party of Germany (SED) is convened. The assembly makes significant decisions concerning the economic and political future of the GDR. The SED Politburo under the leadership of Walter Ulbricht finalises a „systematic restructuring of the country into a socialist state on the model of the Soviet Union“. This includes collectivising agrarian enterprises into agricultural production co-operatives (LPGs), massively expanding heavy industry to overcome the difficult economic situation and creating a centralised state by abolishing federal states. These are to be superseded by 14 administrative districts. The resolutions are accepted unanimously by the 1,565 conference delegates.