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
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