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 the new, economic and/or system:
“...I had grown up in a world that was dominated by immature age. Not by vigorous immaturity, but by immaturity that was old and tired and prudent, that loved ritual and rubric, and was utterly wanting in curiosity about the new and the strange. Its era has passed away, and the world it made has crumbled around us. Its finest creation, a code of manners, has been ridiculed and discarded.”
—Ellen Glasgow (1873–1945)
“A society which is clamoring for choice, which is filled with many articulate groups, each urging its own brand of salvation, its own variety of economic philosophy, will give each new generation no peace until all have chosen or gone under, unable to bear the conditions of choice. The stress is in our civilization.”
—Margaret Mead (1901–1978)
“I am fearful that the paper system ... will ruin the state. Its demoralizing effects are already seen and spoken of everywhere ... I therefore protest against receiving any of that trash.”
—Andrew Jackson (1767–1845)