Abstract
In Communist societies in general and East Germany in particular, state companies were a key institution. Their independence was limited through planning and the single party's omnipotence. State firms also considerably influenced society owing to their role in redistributing wealth. But for those who lived in East Germany, this influence was also felt because these firms were less well managed; and planning proved incapable of running the economy effectively. The survival of this key communist institution depended on informal networks and practices, which arose as political authorities "gave up", sometimes even encouraging their formation. This twofold dimension of the reality of East German firms can turn history into a resource for our own times.
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