The issue was who could decide political power.
Before the transformation, the SED determined the political order. Elections and other parties existed, but unified lists did not offer free competition for government power. The words “Democratic Republic” in the state’s name did not change that balance of power.
The Peaceful Revolution challenged this order. Citizens demanded rights and a political voice. At the end of 1989, the SED lost its constitutional claim to leadership; in March 1990, people could elect the Volkskammer through free competition.

The other three answers
The alternatives fit neither the starting point nor the direction of the transformation.
from a liberal market economy to socialism.
Before 1989, the GDR was already a socialist state with a state-directed economy. The transformation did not lead from a market economy to socialism. The correct answer also concerns the form of political rule.
from a monarchy to social democracy.
The GDR was not a monarchy with a hereditary king or queen. Social democracy is also a political tradition; the required contrast is dictatorship and democracy.
from a religious state to a communist state.
Before autumn 1989, the GDR was not a state governed by religion. The transformation overcame SED rule; it did not introduce it as a new communist system.
The transformation was a process, not a single switch.
Autumn 1989 marks the decisive start of the transformation. Free elections, the development of democratic institutions and state unity followed in several stages. The exam answer summarises that development.
Democratisation and reunification are connected but distinct concepts. Democratisation concerns rights and political power; reunification concerns state unity. The first free Volkskammer was elected before the GDR’s accession.
Free Volkskammer election · German Bundestag ↗Turning point: SED dictatorship ends, democratic choice becomes possible.
Ask about political power before and after, not merely about a new name.
Three words for this question
- die Wendeturning point / transformation
- A common term for the fundamental transformation in the GDR in 1989–90.
- die Einheitslisteunified electoral list
- A joint list that did not allow free competition for power in the GDR.
- die Demokratisierungdemocratisation
- A process that creates or strengthens democratic rights, participation and institutions.
