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Review of:

Armageddon des Kommunismus - Strategie, Wirtschaft und die DDR 1970-1990 by Bernd F. Schulte
Hamburger Studien zu Geschichte und Zeitgeschehen, Bd. 3, Hamburg, 2006
Pages: 675. Euro 39.80

Reviewed By: John A. Moses
Reviewed in: Australian Journal of Politics and History
Date accepted online: 14/01/2008
Published in print: Volume 53, Issue 03, Pages 465-504
See all reviews for this journal

Book Reviews

The Hamburg historian has here added to the already extensive list of his pioneering studies yet another major work. A work that reveals for the first time the secret machinations of West German big-business to infiltrate and cripple the industrial enterprises of communist East Germany is certainly breaking new ground. Historians of modern Germany are well aware of the revolutionary impact of the work of an earlier Hamburg historian, Schulte's doctoral supervisor, Fritz Fischer. His Griff nach der Weltmacht (1961) revealed that the various branches of German industry and financial management had crucially influenced official government policy regarding imperial expansion and annexations of foreign territory. "The Fischer Controversy" became the most passionately conducted academic debate of the post-war era. As much as Fischer's conservative, right-wing critics tried to belittle his achievement the more the passage of time confirmed the accuracy of his findings: German industry and finance had indeed exerted a shaping influence on the formulation of grandiose imperial German war-aims.

Given Schulte's remarkable list of publications it is interesting to learn that he is not a professor at some renowned German university, but a self-supporting, free-lance historian. There may be an explanation in the fact that Schulte refuses to bow to political correctness, and is not afraid to unmask the frankly embarrassing political machinations perpetrated at the highest levels of the German economy. Schulte's record, though, demonstrates how important it is for an open society to have scholars who are not inhibited from going behind the archival scenes to find out "how it actually happened", to adapt a phrase made famous by Ranke.

In particular, Schulte's work illustrates how critical it is for the historian of international conflict to be aware of the industrial-economic potential of the competing powers and to understand how this as a structure de longue durée impacts on policy making. Schulte is very interested in the economies of the Soviet bloc countries in general and that of the former GDR in particular. It was crucial that during the East-West conflict these so-called command economies could deliver the necessary means to ensure that their military capacity could approximate that of the West. Schulte's work lays bare the economic realities of the Warsaw pact countries and highlights their underlying dependence on trade with the capitalist West. In all this the renowned economic strength of the Federal Republic of Germany from Adenauer to Kohl was a factor of the highest importance. Ultimately the economy of the rival German Democratic Republic was dependent upon both the formal political and the behind-the-scenes economic arrangements made between the leaders of West German industries, particularly automobile concerns, and their communist counterparts.

By virtue of his unusual determination to investigate the records of the relevant firms Schulte has developed a unique kind of historiography, one that conventional university historians would feel inhibited to practise. And herein lies the importance of his contribution. By tracing the deals made between "industry" in the West and the managers of the East German economy, Schulte has illustrated the total inefficiency and bankruptcy of so-called command economies. They were doomed to collapse from the very beginning, and fell to the illusion that they could possibly compete with the infinitely superior technical and economic expertise of the West. What is extremely interesting is to learn how the captains of West German industry played their roles in bringing about the implosion of the Warsaw Pacts putatively most efficient economy.

Schulte's extremely detailed research, accomplished without the luxury of paid research assistants, must be an embarrassment to the highly paid and sometimes frankly arrogant West German historians because he has pursued lines of enquiry that the established professors would be loath to do. This unconventional work has immensely enriched our knowledge of the internal history of the collapse of the Eastern bloc.