ABSTRACT
This chapter examines the objectives and specifics of Hohere Veredlung and reviews briefly the recent development and evolution of current German Democratic Republic (GDR) economic strategy. Given the high expectations or even demands implied by this thrust towards product and process renewal, and given the restricted investment resources available, GDR planners decided that the methods and procedures for reaching investment decisions were once more to be substantially revised. One should not lightly dispute the view of the GDR leadership that the economy it directs has delivered a rather notable success and that its short- and middle-term prospects are excellent. The GDR is governed by sober men who have demonstrated realism in their actions, and the economy by any reasonable measure is functioning well. New products and processes are weighted advantageously by assigning them higher prices than those previously in effect for the replaced items.
