Starting from the observation that some of the East European post-socialist governments produced coherent reform policies which successfully transformed their countries’ economies into capitalist ones, while others lingered behind muddling through half hearted reforms, this paper takes a...

Part one. Before the 1963 'economic reform' -- The prevention of democratic change in East Germany after World War II -- The role of the soviet military administration in Germany (SMAD) -- The foundation of the GDR on October 7, 1949 -- Stalin's diplomatic initiative in March/April --...