There are two goals which serve as the basis for building and developing a socialist society, and it is in light of these goals that reforms in the GDR must be considered:' 1) An increase in efficiency of the total economy in order to bring about the necessary material foundation for specific social learning processes as well as the enlargement of general social wealth. This is a question of the optimal allocation of social work and of the many conceivable allocation possibilities. 2) The development of socialist consciousness as a subjective basis for present and subsequent socialization of political decisions. The reforms of 1963 and 1970 separate the development of the GDR into three phases: 1945-1963, 1963-1970, 1970-present. Because both reforms determined conditions for the socialization processes, they cannot be attributed to "economic" causes alone; rather the reforms have been fundamentally social in scope. The highly centralized Soviet (Stalinist) system of government and control, which had demonstrated its effectiveness in the development of the Soviet Union and in its resistance to fascism, served as the model for postwar reconstruction in the GDR.2 In order to carry out plans to establish its own raw material processing and heavy industry and to push economic reconstruction in the territory now designated as the GDR, the Socialist Unity Party (SED) began to regulate the activities of individual plants and factories (Betrieb)3 by direct planning. Each factory was assigned particular goals and modes of operation in the form of specific plans which encompassed the entire planning period. The central planning administration had the responsibility of coordination and was expected to take the broad goals defined by the Party for development of the society and assign specific tasks to individual plants. Other factory, administrative, and party authorities had the task of implementing and supervising such plans. The limits of this centralized administrative and control model became apparent when the factories concentrated solely on quantity, that is, in meeting