East German New Economic System
동독의 신경제체제
A planning and management reform introduced under Walter Ulbricht in 1963. It retained central planning while using enterprise costs, profits and performance indicators to encourage productivity and innovation.
In depth
A planning and management reform introduced under Walter Ulbricht in 1963. It retained central planning while using enterprise costs, profits and performance indicators to encourage productivity and innovation.
Reform sought to reduce excessively detailed administrative direction, but prices and investment priorities remained strongly political. Later emphasis on strategic industries and renewed controls limited the continuity of enterprise autonomy.
The case illustrates different management options within a planned economy. Profit indicators alone did not create a market economy: authority over targets, prices and investment remained crucial.