Abstract
This chapter provides an outline of the principal mechanism of the new economic system (NES) reform, to explain why it was apparently successful at first, and to analyze the causes for its ultimate failure. Every Soviet-type economy is basically one huge firm, run by a planning hierarchy. The NES delegated many balancing functions and reduced the intervention of the top in enterprise affairs—though it is possible that much of what the top did not prescribe was added by intermediate organs. The first years of the NES were characterized by slack plans. They were the proper environment for an experiment each of whose parts could not have functioned under taut plans. The guidelines for the NES were imbued with the desire to improve the structure of incentives and prices so as to permit indirect, instead of administrative, direction of the economy.
Original language | English |
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Title of host publication | German Democratic Republiv |
Subtitle of host publication | A Developed Socialist Society |
Publisher | Taylor and Francis |
Pages | 61-84 |
Number of pages | 24 |
ISBN (Electronic) | 9780429706271 |
ISBN (Print) | 9780367017422 |
DOIs | |
State | Published - 1 Jan 2019 |
Bibliographical note
Publisher Copyright:© 1978 by Taylor & Francis.