VEB, also known as "Volkseigener Betrieb" in German, was the term used to designate state-owned enterprises in the former German Democratic Republic (GDR) during the era of East Germany (1949-1990).
The VEB, which translates to "people-owned enterprise" or "publicly owned enterprise," referred to companies and industries that were owned and operated by the state rather than private individuals or shareholders. It was a central component of the planned socialist economy in East Germany, highlighting the collective ownership principle advocated by the Communist Party of Germany.
Under the VEB system, various sectors such as manufacturing, agriculture, mining, and services were nationalized, and their management was taken over by state-appointed officials. These state-owned enterprises played a crucial role in the GDR's command economy, with the government determining production plans, allocating resources, and setting prices.
VEBs were characterized by centralized decision-making, limited competition, and a focus on meeting production targets set by the state. The workforce of VEBs was predominantly composed of employees who were often members of trade unions affiliated with the Socialist Unity Party of Germany.
With the reunification of Germany in 1990, the VEB system was dismantled, and the state-owned enterprises were either privatized or restructured to align with market-oriented principles. The term VEB now largely refers to the historical context of East Germany and the socialist economic system that was in place during that period.
