New Economic System

The New Economic System of Planning and Management ( NES or NÖSPL ) was a government program for the reform of the planned economy in the GDR. It looked like elements before performance bonuses for workers and greater autonomy of operations. As a result, labor productivity grew by seven per cent in 1964.

The NES was largely developed in 1963 by Erich Apel. It was by the decisions of the Sixth. Approved by Congress of the SED, Walter Ulbricht in January 1963 although it was controversial within the SED. His policies were decided at the Economic Conference of the SED Central Committee on 24 and 25 June 1963, approved by the State Council of the GDR on 15 July. As of 1967, the reform effort has been modified and now carried the designation Economic System of Socialism ( OLS ).

Both the NÖSPL and the OLS were indeed successful in economic terms, but also led to an appreciation of decentralized units, such as the operating lines, at the expense of the central government as well as by economists at the expense of political functionaries. This led to increasing criticism within the SED, since the absolute claim to power of the party was at risk. In particular, however, the reforms of the Soviet Union under Leonid Ilyich Brezhnev were considered critical, although the new system was inspired by the ideas of Lenin's New Economic Policy ( NEP ).

The economic policy was a key reason that Erich Honecker could replace Ulbricht in 1971 as the first man in the state with the support of the Soviet Union. With the Eighth Congress of the SED then a new economic policy has been hit, which made the reforms reversed. New Guideline was now proclaimed by Honecker unity of economic and social policy.