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There were many more important reasons than just the de-nazification:

- Companies and specialists moved to the West (before 1961) because many saw the writing on the wall (living under the Soviet yoke vs living a comfortable life in the 'free West'). As a result, Bavaria and Saxony essentially switched places in terms of industrialization.

- The East had to endure crushing war reparations, the Russians dismantled and moved entire factories to the Soviet Union, while the West was rebuilt through the Marshall plan.

- Despite all that, up until around the mid-60's the East German industry was actually still somewhat competitive, and many people still believed in 'the system'. The apathy and economic downturn mostly set in during the early 70's.

Under the hood, the East German authorities were well aware that they couldn't just get rid of all nazi sympathizers, there would simply be no population left to build a country on after all. So essentially if you were not an obvious war criminal, and pinky sweared that you saw the light and had converted into a good communist, the authorities didn't have much of a choice than forget about the past. It basically became a game of "don't ask, don't tell".



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