Page 39 - The Making of the German Post-war Economy
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12    THE MAKING OF THE GERMAN POST-WAR ECONOMY

           affirmed the new American goal to establish stable political and economic
           conditions in Germany to enable the country to make a maximum
           contribution to  European recovery.  Thus, the  American  authorities
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           encouraged German self-government and sought to establish a political
           organisation  which derived from the people and  was  subject to their
           control, which operated in accordance with democratic electoral
           procedures and which was dedicated to uphold the basic civil and human
           rights  of the individual.   Within  these principles, the ultimate
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           constitutional form of German political life was supposed to be left to the
           decision of the German people made freely in accordance with democratic
           processes. In doing so, all political parties whose programmes, activities
           and structure demonstrated their allegiance to democratic principles were
           encouraged, none enjoying a privileged status.  Thus the first occupying
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           power to  provide the essentials for a democratic structure was the US
           administration.  Initially, however, German politicians were recruited into
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           the American governmental machinery  rather than democratically
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           elected. On 28 May 1945,  the former member  of the  conservative
           Bayerische Volkspartei (BVP) and founding member of the CSU, Fritz
           Schäffer, was appointed Prime Minister of Bavaria. Although he was
           arbitrarily dismissed just four months later, there were Land governments
           headed by appointed German politicians throughout the American
           occupation zone  by the end  of 1945.  In order to provide for growing
           coherence of the individual  Länder as policy-making units within the
           federal organised American sovereign territory, a so-called ‘Länderrat’
           (Council of States), composed of the respective Prime Ministers of the
           states in the  American zone,  was established in Stuttgart on 5 October
           1945. Although the institution, designed primarily to coordinate the
           efforts of the governments of Bavaria, Hesse, Wuerttemberg-Baden, and
           Bremen in their attempts to reconstruct the economic and social system of
           their Länder, was not given executive authority, the Länderrat’s agreements,
           when approved by the Military Government, could be issued as decrees in
           each state. Nevertheless, the German officials were still appointees of the
           occupying authority and were neither selected by nor responsible to the
           German people. In making the German administration responsible to the
           people, the  American Military  Government for Germany argued for
           public elections to be held progressively from the village to the state level.
             Regarding the electoral system, all western occupation powers virtually
           left the decision to the Germans in their respective zones while the Soviet
           occupiers resorted to the so-called ‘unity list’ system which pre-arranged
           quotas for the individual quotas to secure Communist dominance. Due to
           historical experience and in  order to stabilise support for the emerging
           democratic political parties, seven of the originally eleven West German
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