Under Ulbricht's leadership the SED began to transform the GDR radically.
The SED had the role of guiding people through the transitional phase from from capitalism to socialism.
Elections were not genuine expressions of democratic choice; voters were simply presented with a list of government-nominated candidates.
The number of seats in the Volkskammer was predetermined and it was considered democratic to maintain the SED's leading role because it provided guidance to the electorate.
The SED saw itself as having a clear and essential role in transmitting socialist beliefs to the masses.
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State control of Agriculture and Industry
The GDR pursued policies of state ownership of agriculture and industry, which wre modelled on the policies pursued by Stalin in the USSR in the 1930's.
In July 1952, at the second party conference, the SED announced that it would be taking more industry and agriculture into state ownership - it stressed that economic priorities woud be with heavy industry.
By the late 1950's all energy productiom and major industries were in the hands of the state and many farms had been collectivised.
At the end of the GDR's 5 year economic plan in 1955 it had doubled its industrial production.
Collectivistaion was followed in order to increase the size of farms and to exploit both machinery and agricultural labour to the full - In spite of human costs it was ultimately successful and productivity increased. Upto 15,000 farmers left for the FRG in the 1950's rather than being forced into collectivisation
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Lack of Support for the GDR
Overall morale in the general population was low.
There was a desperate shortage of housing, and resentment from small businesses.
The SED continued to increase its control and influence over most areas of people's lives and there was a general culture of repression.
Some Christian organisations were declared illegal.
The USSR urged the SED to try to reduce tension by easing travel between the two Germany's, and to allow some private industries state loans.
The USSR believed that this wuld reduce some of the discontent, as well a leave the way more open for the possible reunification of East and West Germany.
On 16 June 1953 East German builders working on the new prestigious and propaganda showpiece Stalinallee in east-central Berlin downed their tools in protest at the demand increase in work norms which was not being met with a rise in the standard of living.
This began a strike which soon spread across the enture of the GDR.
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The Ministry for State Security (Stasi)
In 1950, the GDR parliament passed a law to set upa Ministry for State Security - 'The sword and shield of the party'.
Its main function was too use surveillance to prevent disturbances by exposing pockets of oppositiion.
It also had power to find and arrest opponents to the GDR government.
After the uprising in June 1953, the stasi began to recruit IMs - These were civillians rather than full-time Stasi employees, who were often recuited on a short-term basis and were expected to report back on specific individuals to a Stasi officer.
The number of Stasi employees reached 50,000 bybthe late 1960's with approximately 100,000 IMs.
This grew under Honecker to nearly 100,000 Stasi employees and approximatey 300,000 IMs by the mid-1980s
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