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:
“It does not follow, because our difficulties are stupendous, because there are some souls timorous enough to doubt the validity and effectiveness of our ideals and our system, that we must turn to a state controlled or state directed social or economic system in order to cure our troubles.”
—Herbert Hoover (1874–1964)
“In our personal ambitions we are individualists. But in our seeking for economic and political progress as a nation, we all go up—or else all go down—as one people.”
—Franklin D. Roosevelt (1882–1945)
“I have no concern with any economic criticisms of the communist system; I cannot enquire into whether the abolition of private property is expedient or advantageous. But I am able to recognize that the psychological premises on which the system is based are an untenable illusion. In abolishing private property we deprive the human love of aggression of one of its instruments ... but we have in no way altered the differences in power and influence which are misused by aggressiveness.”
—Sigmund Freud (1856–1939)