The New Economic System
From 1963, Ulbricht and his economic adviser Wolfgang Berger attempted to create a more efficient economy through a New Economic System (Neues Ökonomisches System or NÖS). This meant that under the centrally coordinated economic plan, a greater degree of local decision-making would be possible. The reason was not only to stimulate greater responsibility on the part of companies, but also the realization that decisions were sometimes better taken locally. One of Ulbricht's principles was the 'scientific' execution of politics and economy – making use of sociology and psychology but most of all the natural sciences. The effects of the NÖS, which corrected mistakes made in the past, were largely positive, with growing economic efficiency.
The New Economic System was not very popular within the party, however, and from 1965 onwards opposition grew, mainly under the direction of Erich Honecker and with tacit support of Soviet leader Leonid Brezhnev. Ulbricht's preoccupation with science meant that more and more control of the economy was being relegated from the party to specialists. Also, Ulbricht's motivations were at odds with communist theory, which did not suit ideological hardliners within the Party.
Read more about this topic: Walter Ulbricht
Famous quotes containing the words economic system, economic and/or system:
“Theres something about Marxism that brings out wartsthe only kind of growth this economic system encourages.”
—P.J. (Patrick Jake)
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892?)
“In nothing was slavery so savage and relentless as in its attempted destruction of the family instincts of the Negro race in America. Individuals, not families; shelters, not homes; herding, not marriages, were the cardinal sins in that system of horrors.”
—Fannie Barrier Williams (18551944)