CHAPTER VI ECONOMIC Section 60. Introduction

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01055A000200070001-1
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 1
• Publication Date: June 1, 1955
• Content Type: REPORT

Approved For Release : CIA-RDP79-01055A000200070001-1
JUNE 3.955
CHAPTER. VI
ECONIMIC
Section 60. Introduction
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Approved For Release : CIA-RDP79-01055A000200070001-1
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,5U' E 19,55
A. Economic structure
B. Economic dynamics
C. Economic planning
D. Strategic aspects of the economy
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Approved For Release : CIA-RDP79-01055A000200070001-1
Section 60. Introduction
 Approved For Release : CIA-RDP79-01055A000200070001-1
ECONOMIC
Section 60. Introduction
The purpose of this Section is twofold. Firstly, it is designed
to give an integral view of the structure of the economy, the pattern
and direction of its development, and the capacity of the economy to
adjust itself to e.-ternal or internal political, economic, and social
changes. Secondly, it is to serve as a frame of reference for proper
evaluation of the material, both factual and interpretive, presented
in the subsequent sections of the chapter.
Detailed accounts of the component parts of the economy are to
he presented in the respective sections of this and other chapters and
supplements, Here, the task is to define the significant aspects of
each sector of the economy, and to assess the part it plays in the
total economic scope and direction of the economic process. It should
present the overall production or other figures needed to indicate the
position of any vital industries (such as steel), both in structure of
the economy of the area and in relation to world production.
This subsection should be given over to a statement in broad
terms of the main structural features of the economy. It should examine
the position and importance of the various sectors of economic activity
both in terms of their contribution to national income and in relation
to the countryts resources and to their potential development. Note
the relation of the various sectors of the economy to national stability.
It should also discuss types and rate of domestic capital accumulation,
recent pattern of utilization, and factors stimulating or limiting capital
formation such as private or government investment policies, domestic and
foreign markets, foreign investments, etc. The discussion should,
moreover, analyze the nature of the economic development in terms of
changes in-the composition of the gross.product.
B. Economic dynamics
This subsection should be devoted to a definition and analysis of
the forces, including socioeconomic trends and attitudes, which at
present determine the orientation of the economy. The discussion
should examine the technological advance of economic processes as it
affects the various sectors of the economy. Note the effect, if any,
of U.S. and other foreign activities in the country which have significance
to t'413 economy. Evaluate the competitive strength of the economy
in teems of productivity of labor, degree of mechanization, etc., and
sr.praise the ability of the economy to make appropriate adjustments to
cia ue, including changing patterns of world trade. It should also
examine the role of the state in controlling and influencing economic
organization, activity, and development and should evaluate the
significance of entrepreneurial activities of the state.
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JUNE l955 ECONOMIC
C. Economic planning
Describe briefly the orientation of current rational policy and
indicate the areas of economic activity to which it applies, the scope
and orientation of long-range economic planning, and examine critically
the degree of disuarity between plans and economic capabilities of the
area. Note important factors influencing economic planning and development
such as the ability and attitudes of the economic el'te, its political
power and international ties. Indicate how the government proposes to
finance the realization of its long-range economic plans, and examine the
extent to which such plans are being realized. Discuss the nature and
amount of assistance, if any, from abroad (e.g., ECA, Eximbank, Morrison
Knudson, etc,) in furthering plans.
D. Strategic aspects of the economy
In this subsection discussion should cover the problem of the strategic
supply position and economic war potential, including the extent to which
t6:be country is or can readily become self-sufficient in its major requirements
a.:Ad what conditions mast be fulfilled in order to increase the degree of
self-sufficiency of the area. The problems of self-sufficiency and economic
capacity for war should be considered not only with respect to available
natural resources '_ut also in relation to existing manpower and its technical
capabilities, and in relation to available installations affecting production.
With respect to manpower, consideration should be given to conclusions
ieeached in Chapter IV on problems of mobility, existing skills, adaptability
of labor to new productive processes, and feasibility of increasing the
labor force through mobilization of overage and underage laborers and
women. With respect to the existing productive plant, attention should be
r:-ven to the degree of utilization of existing facilities. The analysis
should indicate the causes of significant deficiencies or surpluses. It
should also indicate the degree to which the economy is vulnerable to
r1litary attack, in terms of dependence on a particular sector of the
economy or a particular group of installations. In this connection it would
be appropriate to consider conclusions reached in Chapter III with respect
to the transportation system and the manner in which it affects the economic
war potential of the area. Special attention should be given to the economy's
vulnerability to manipulation by foreign interests either through infiltration
of the economy or external economic measures. To what extent is the nation
able to or does it carry on similar activity abroad (cross-reference to
Sectiors57 and 58 if appropriate)?
PACE VI-4
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