Rigid But Prosperous

Can an East European state reject reform and still thrive? Yes, says the doctrinaire regime of East Germany's party boss Erich Honecker. The leadership in Berlin has stuck faithfully to the eternal Communist verities and pulled off a hat trick. Under one of the most authoritarian systems in the Warsaw Pact and with a rigid, centrally planned economy to match, East Germany boasts the most powerful industrial base, the highest standard of living and the most per capita exports to the West of any nation in the East bloc. Declared Honecker, 76, in a speech to party leaders that implicitly rejected...

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