The S.E.D.'s intention was to transform the GDR into a socialist and later into a communist state. These processes would occur step by step according to the laws of scientific 'Marxism-Leninism' and economic planning was the key to this process. In July 1952, at a conference of the S.E.D., Walter Ulbricht announced that "the democratic (sic) and economic development, and the consciousness (Bewusstsein) of the working class and the majority of the employed classes must be developed so that the construction of Socialism becomes their most important objective." This meant that the administration, the armed forces, the planning of industry and agriculture would be under the sole authority of the S.E.D. and its planning committee. Industries would be nationalized and collectivization introduced in the farm industry. When the first Five-Year Plan was announced, the flow of refugees out of East Germany began to grow. As a consequence, production fell, food became short and protests occurred in a number of factories. On 14 May 1952, the S.E.D. ordered that the production quotas (the output per man per shift) were to be increased by 10%, but wages to be kept at the former level. This decision was not popular with the new leaders in the Kremlin. Stalin had died in March 1953 and the new leadership was still evolving. The imposition of new production quotas contradicted the new direction of Soviet policies for their satellites.