How did the Weimar Republic recover from 1924 to 1929?

By Prince Muchono and Metsabisi Kunene

Foreign Policy
Stresemann was responsible for a series of foreign policy successes. In 1925, Germany signed the
Locarno treaties with Britain, France and Italy which guaranteed Germany’s frontiers with France. In
1926, Germany was allowed to join the League of Nations as permanent member. These changes help
strengthen ties with neighbouring countries and help improve relations.

In terms of foreign policy Germany had suffered greatly in the years after the war. These measures,
generally imposed upon Germany from other powers under the Treaty of Versailles were to be, most
notably detrimental to the social and economic state of the nation. Firstly in 1923 the German
economic recovery was exacerbated by the French occupation of the Ruhr, which was most notable
for its industrial prowess. This action was undertaken by the French to ensure the supply of industrial
raw materials used to pay reparations would continue to be produced. This was detrimental to
Germany due to the fact that reparations were being paid through raw industrial materials decreases
the quantity of goods that could be exported to make revenue for the German government and thus
expediting the economic recovery. In this respect German foreign policy was not to be positively
augmented in the five year period mentioned, although evidence of the fact that it was can be
observed in the form of the Dawes plan of 1924. This plan was to lower the amount of reparations that
Germany had to pay and thus signified Germany’s reconciliation with the rest of the West. The Dawes
plan was to also give Germany greater capacity for commerce with other countries and therefore
increase the rate at which the German economy could recover. Germany was also to be negatively
impacted socially through the seizure of territory under the Treaty of Versailles. This negative impact
was to be generated through the vast quantity of German nationals left within these territories. This
would have been detrimental to German society as it meant the ostracism of large groups of people
and thus damaging the composition of German society. Another factor that added to the dire state of
Germany’s foreign policy was the country’s lack of league of nations membership. This signified the
fact that although the Dawes plan symbolized the increase in favorable outlooks upon Germany in the
Western world, this quite clearly displays no intent to reestablish Germany’s political or economic
significance leading to the slowing of Germany’s economic recovery. It is evident from the points
above that although Germany increased its relationships with the rest of the West under the Dawes
plan there were many ways that the international restrictions imposed upon Germany were still
advocated such as the rejection of German league of nations membership and therefore Germany only
marginally benefitted in terms of foreign policy in the five year period.

Local Politics
It is evident that prior to the year 1924 the situation that the Weimar republic found itself in was one
of uncertainty and fragility having experience political, economic and cultural unrest. Therefore the
purpose of this essay is to outline to what extent the Weimar republic was to regenerate after the fore-
mentioned year. The first idiom to be discussed will be the political problems that faced Germany.
The political unrest that faced Germany before 1924 was drastic and varied. The problem of the
greatest significance that faced the Weimar republic prior to the five-year period mentioned was that
of political instability. Evidence for this can be observed in the fact that the Weimar republic had had
25 five individual coalition governments within the parameters of fourteen years. It can be observed
from the state of the German political system and constitution, which was comprised with the
electoral strategy that the number of seats won in the Reichstag, should be proportional to the
percentage of the vote that you receive, this therefore poses the problem of the inherent formation of
coalition governments. These formations combined with the diverse nature of the German political
system caused great political instability due to the conflicts of interests formed within the coalition.
Another notable problem with regards to the formation of coalitions is the fact that due to ideological
dispute the margin of change that can be implemented by the government is exceptionally small.

This therefore has major connotations for the other key areas discussed in this essay, as without
political stability it is impossible for a government to instigate an effective economic plan. This is
easily observed in the Weimar Republic although the success of coalition governments in Germany is
augmented within the five year period mentioned. The causes of this stability are most likely to be the
more frequent formation of coalitions with similar ideologies. Another political problem that faced the
electoral system of the Weimar republic was the contemplation of change and power on a conceptual
level rather than that of a human one. This is evident from the lack of public support for the republic
displayed in the form of the election of Hindenburg to the role of president. The conceptual side of
this point is exhibited in the fact that for such a great quantity of time the entirety of the Republic was
held together by the parties in support of the Weimar even though it is evident from the previous
statement that the people nor the parties on the extremities of the political system were in support of
the Republic and therefore although there was increased political stability it came with a cost which
was the formation of a pseudo-dictatorial democracy. This is due to the fact that the continuation of
the republic was contrary to the views of the people as demonstrated earlier. Contrary to this point it
could also be argued that it was in the hermeneutics of the people due to the fact that there was a
progressive increase in the number of seats awarded to the Social democrat party from 1924 to 1929.
Although another factor that increased political instability in Germany was that of the increase of
radical ideologies. This is evident from the stabilization of the number of seats achieved by both the
Nazi party on the right and the Communist party on the Left. The fact that the German political
system made the formation of coalitions almost inevitable meant that between the years 1924 and
1929 the margin of change that could occur in any area was minimal. This therefore means
definitively that Germany was only mildly augmented, politically, during the five year period.

The Economy
Secondly, Germany had witnessed mass economic turmoil in the years preceding the war this
included hyper-inflation, which successful managed to eradicated the value of the German
Reichsbank mark causing the savings of the less economically endowed to, simplistically, evaporate.
This hyper-inflation directly led to the great economic gap between rich and poor. This mainly
occurred due to the fact that the rich had their money invested in commodities in comparison to those
who had saved money. This would have given rise to the increased investment in fanatical ideologies
such as communism creating not only economic juxtaposition but that of social contrast also. Relief
for the economic problems that Germany had experienced came in the form of a new currency called
the Rentenmark and with this came the reduction of prices by 12 zeros and this thus stabilized the
German economy in January of 1924. Although one could argue that this effective new economic
policy was not implemented earlier due to the political instability and almost inevitable formation of
coalitions discussed earlier. More financial relief arrived in Germany under the Dawes plan of 1924 in
which Germany was lent 800 million. This was beneficial for Germany as it allowed for increased
industrial and agricultural investment and therefore finally allowed Germany a consistent form of
income with which to repay reparations and the loans with which this augmentation had occurred.
This with an element of retrospect contrary to the beneficial nature of the Dawes was indeed not a
positive economic move for the newly emerging Germany as this may have provided short term relief
from the burdens of economic instability but with the great depression on the horizon the timing of
the plan did not Germany sufficient time to recuperate and therefore be able to pay back The United
States and thus just increased the economic burden which had to be bore by the future Germany.
Germany also suffered ecnonmically in Therefore from the points mentioned above an immediate
increase in the economic situation of Germany was to occur in 1924 although with the ability of
retrospect one is able to observe that this immediate relief would indeed to be detrimental to the
financial position of Germany in the coming years and thus showing only a very small extent to
which, economically, German was to improve.

During the Hyperinflation crisis, Germany took loans from the USA via the Dawes plan, a total of 800
million Marks to help solve the crisis, which helped and slowly the German economy improved. In
1928, Industrial production surpassed the pre – WWI production levels. However, the economy still
had its weaknesses It became dependant on American loans which could be withdrawn anytime. The
Unemployment in the country was still a problem. The Government was spending too much on
Welfare benefits, making employers complain. Some industries had still not recovered such as the
agriculture industry in which farmers earned.