New Economic System

The New Economic System (German:Neues Ökonomisches System), officially the New Economic System of Planning and Management, was an economic policy that was implemented by the ruling Socialist Unity Party (SED) of the German Democratic Republic (GDR) in 1963. Its purpose was to replace the system of Five-Year Plans which had been used to run the GDR's economy from 1951 onwards. The System was introduced by Walter Ulbricht to try to improve the performance of the existing central planning, so that the economy might be run in as efficient a manner as possible.