ABSTRACT
The German Democratic Republic (GDR) economic leadership was forced to react to the worsening situation, aggravated by the increases in the world market prices of oil and raw materials. The economic leadership envisaged much greater progress in intensification, introducing, for this purpose, a flood of new planning coefficients, directives and improved management techniques. It was hoped that improvements would flow from greater precision in direct planning and a strengthening in cost-benefit thinking. Profitability also was to stimulate intensification and greater cost discipline. The use of credits and improved monitoring mechanisms was directed at the promotion of more efficient production, investment and innovation. The GDR economic leadership is aware of the persisting limitations and has started on an interesting series of economic measures designed to bring about improvements, a series which will have to be continued.
