Collective Farms in Transition in the Former German Democratic Republic

Leila Sfeir Lueschen

Comparative Economic Studies, 1994, vol. 36, issue 2, 33-50

Abstract: This paper applies the theory of social control—achieved through a combination of state control and institutional changes, and individuals' compliance and cooperation achieved with the aid of the central authority—to analyze collective farms restructuring in the former German Democratic Republic (GDR). The control function of the state—or external stimuli—is reflected through government intervention and protectionism. Through power mechanisms, the government intervenes to reduce uncertainty regarding privatization, bargain with farmers, negotiate new legal forms and control economic resources. Farmers' behavior is not only regulated by external pressures and constraints. It is also regulated by farmers' internal demands and preferences. However, the impact of this control is never total.

Date: 1994
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