The Extent of Change in Foreign and Economic Policy (1924-1933)

Foreign Policy (1924-1933)

Gustav Stresemann, who served as Germany’s Foreign Minister from 1923 to 1929, sought to revise the terms of the Treaty of Versailles and reintegrate Germany into the international community.
Stresemann signed the Dawes Plan in 1924. The Dawes Plan reduced Germany’s yearly reparations payments and allowed for a loan of 800 million marks to prop up the struggling economy.
In 1925, Germany signed the Locarno Pact with Britain, Italy, France and Belgium, who saw this as a guarantee that Germany accepted its current borders and would not seek to change them by force.
Stresemann also navigated Germany’s admission into the League of Nations in 1926, which signified a return to the international arena, despite its role in World War I.
However, these changes deepened social divisions within Germany as they were seen by many nationalist elements as ‘selling out’ to Germany’s former enemies.

Economic Policy (1924-1933)

A new German currency, the Rentenmark, was introduced in November 1923 to combat hyperinflation and stabilise the economy.
The Dawes Plan not only helped Germany in terms of reparations but also stimulated economic growth by attracting foreign investment, particularly from the United States.
These American investments were great for short-term economic recovery, but left Germany vulnerable when the Great Depression struck in 1929, as the USA withdrew funds.
As a result of the depression, unemployment rose from 1.3 million in 1929 to more than 6 million in 1932. The government was unable to effectively handle the crisis, leading the public to lose faith in democratic governance.
Despite some economic recovery under Stresemann’s leadership, the social cost of his policies - including austerity measures and reliance on foreign capital - created significant dissent and destabilisation.
By 1930, governments could not command parliamentary majorities and relied on President Hindenburg’s use of Article 48 to govern, undermining democratic legitimacy.

Impact on Democracy

The extent of change in foreign policy and economic restructuring strengthened Germany’s position internationally but also highlighted the inherent weaknesses of the Weimar government.
While the Weimar era marked a period of relative stability and progress, this was sharply juxtaposed by its failure to alleviate the considerable economic distress and societal unrest, thus paving the way for the rise of extremist ideologies like National Socialism. Consider this when evaluating the overall efficacy of Weimar democracy in this period.