This article describes the ''moral economy'' of socialism and its impa
ct on everyday life and action orientations before and after the break
down of the GDR-society. Drawing upon ethnographic research concerning
the former and the recent political establishment in an East German v
illage, it sheds some light on fundamental distinctions, the mode of i
dentity construction, and the very specific forms of political interac
tion beween political powerholders and the local community. Central th
eme of the essay is the question of social recognition and the way it
shapes the perception of the ongoing transformation process. Seen this
way, it becomes clear that the rationale of both the success of the P
DS and the resentment against the West is anything but a surprise.