Guenter Mittag – East German Economic Tsar

Guenter Mittag was the third most powerful man in the former East Germany, after Erich Honecker, General Secretary of the Socialist Unity Party of Germany (Sozialistische Einheitspartei Deutschlands – SED), and Erich Mielke, Minister of State Security. From 1976 to 1989, Mittag headed the Economic Commission at the Politbuero (Deutsche Wirtschaftskommission – DWK), advocating and implementing the state’s economic policies.

Guenter Mittag who headed the East German Economic Commission at the Politbuero from 1976 to 1989. Photo: Bundesarchivbild

Guenter Mittag who headed the East German Economic Commission at the Politbuero from 1976 to 1989. Photo: Bundesarchivbild

Guenter Mittag’s rise and fall

Born in 1926, Guenter Mittag joined the Communist Party of Germany (Kommunistische Partei Deutschlands – KPD) in 1945. A year later, he became member of the newly created SED). In 1958, Mittag earned a doctorate with his dissertation “Problems of Socialist Development of the Transport System”. At the same time, he became Secretary of the Economic Commission at the Politbuero, the principal policymaking committee of the SED. From 1976 on, he headed the Commission.

Along with Erich Apel, Guenter Mittag designed the New System for Economic Management and Planning (Neues Oekonomisches System). The system was implemented in 1963 and replaced Walter Ulbricht’s Five-Year Plans, which had been launched in 1951. The New System for Economic Management was to streamline and modernize the East German economy by reducing waste of raw materials, increasing mechanization, reducing food shortages and improving product quality. Above all, the new policies were to demonstrate East German competitiveness with the West German economic miracle. The new system was also put into place to halt Republikflucht attempts (desertion from the Republic), which had plagued the East German economy prior to the construction of the Berlin Wall in 1961. But Mittag’s new system did not generate the expected results and was replaced in 1967/1968 by policies, which concentrated on building up East Germany’s high-tech industries.

Guenter Mittag was a central figure in the German planned economy from 1958 to 1989. Although he recognized sooner than his comrades that the centralized and monopolistic economic policies did not produce the desired results, he did not want to admit his plan’s failure and hid the facts by doctoring the balance sheets. It was not until mid-1989 that Mittag proposed a radical change of course, but by then it was too late. Following German reunification in 1990. Guenter Mittag was among the first to be relieved of his duties.


For a sneak peek at the first 20+ pages of my memoir, “Walled-In: A West Berlin Girl’s Journey to Freedom,” click “Download a free excerpt” on the home page of

Tags: , , , , , , , , , ,

Leave a Reply