POSTWAR DEVELOPMENTS IN LOCAL AND COOPERATIVE INDUSTRIES OF THE USSR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01093A001000010001-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 38
• Document Creation Date: November 9, 2016
• Document Release Date: July 6, 1999
• Sequence Number: 1
• Publication Date: September 27, 1955
• Content Type: IR

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PROVISIONAL INTELLIGENCE REPORT
POSTWAR DEVELOPMENTS
IN LOCAL AND COOPERATIVE INDUSTRIES
OF THE USSR
CIA/RR PR-123
27 September 1955
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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PROVISIONAL INTELLIGENCE REPORT
POSTWAR DEVELOPMENTS IN LOCAL AND COOPERATIVE INDUSTRIES
OF THE USSR
CIA/RR PR-123
(ORR Project 38.615)
NOTICE
The data and conclusions contained in this report do not
necessarily represent the final position of ORR and should
be regarded as provisional only and subject to revision.
Comments and additional data which may be available to the
user are solicited.
Office of Research and Reports
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CONTENTS
Summary . . . . . . . . . . . . . . . . . . . . . . . .
A. Producers' Cooperatives . . . . . . . . . . . . . . . 5
B. Local Industry . . . . . . . . . . . . . . . . . . .
C. Other Control Organs of Local and Cooperative
Industries . . . . . . . . . . . . . . . . . . . . . 7
III. Labor Force . . . . . . . . . . . . . . . . . . . . . . . 9
IV. Technology . . . . . . . . . . . . . . . . . . . . . . . 9
A. Types of Production . . . . . . ? ? . . . . . 11
B. Specialization and Amalgamation . . . . . . . . . . . 11
C. Mechanization . . . . . . . . . . . . . . . . . . . 12
D. Inputs . . . . . . . . . . . . . . . . . . . . . . 14
E. Labor Productivity . . . . . . . . . . . . . . . . . 15
V. Production . . . . . . . . . . . . . . . . . . . . . 15
A. Gross . . . . . . . . . . . . . . . . . . . . . . 15
B. Consumer Goods . . . . 16
C. Industrial . . . . . . . . . . . . . . . . . . . 16
D. Servicing Operations . . . . . . . . . . . . . . 16
VI. Capital Investment and Construction . . . . . . . . . . . 18
VII. Current Status and Future Trends . . . . . . . . . . . . 20
VIII. Conclusions . . . . . . . . . . . . . . . . . . . . . . . 22
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Page
Appendixes
Appendix A. Methodology . . . . . . . . . . . . . . . . . . 25
Appendix B. Gaps in Intelligence . . . . . . . . . . . . . . 29
Appendix C. Source References . . . . . . . . . . . . . . . 31
1. Distribution of Local and Cooperative Industries in the
USSR before World War II . . . . . . . . . . . . . . . . 4
2. Data on Labor Force and Number of Enterprises in Local
and Cooperative Industries in the RSFSR and in the USSR,
1930, 1934, 1937, 1941, and 1946-54 . . . . . . . . . . 10
3. Gross Production of Local and Cooperative Industries in
the USSR, 1940, 1945-54, and 1955 Plan . . . . . . . . . 17
4. Consumer Goods Production of Local and Cooperative
Industries in the USSR, 1940, 1945-54, and 1955 Plan . 18
5. Working Indexes for Tables 3 and 4 . . . . . . . . . . . 26
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CIA/RR PR-123 CONFIDENTIAL
(ORR Project 38.615)
POSTWAR DEVELOPMENTS IN LOCAL. AND COOPERATIVE INDUSTRIES
OF THE USSR*
Summary
Local and cooperative industries of the USSR, which currently
produce about 25 percent of the consumer goods made or processed by
the Soviet ministries specifically charged with the production of con-
sumer goods, doubled their level of production during 1950-55. The
recent Soviet trend toward increased production of consumer goods, a
trend which includes larger budgetary allocations-for investment in
local industry, has made more evident the increasingly important role
of local and cooperative industries in the economic structure of the
USSR.
Local and cooperative industries in the USSR produce goods for
local requirements out of local raw materials and the waste products
of state industries. The present Soviet emphasis on these industries
is based not only on the need for consumer goods but also on the Soviet
desire for a greater degree of regional self-sufficiency, an obvious
advantage in wartime. Any substantial increase in the production of
local industry would lessen the demands now being made on the strained
transportation system. In addition, the greater production of locally
made goods would permit the allocation of more centrally located sup-
plies to the highest priority projects.
To increase the capacity of these industries, a budgetary alloca-
tion of 810 million rubles was included in the "consumer goods"
decree of 28 October 1953 for investment in the various republic Min-
istries of Local and Fuel Industry and Ministries of Local Industry.
In addition, the Central Union of Producers' Cooperatives was granted
1,188 million rubles for capital investment in 1955, an amount one-
third greater than the 195+ allocation. Local industry and producers'
cooperatives in the USSR plan capital investments of 3 billion rubles
in 1955 as compared with investments of 2.5 billion rubles in 1954.
The estimates and conclusions contained in this report represent
the best judgment of ORR as of 1 July 1955.
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The products of local industry in the USSR are of poor quality
and limited variety. Local industry has high production costs, low
labor productivity, dated equipment, limited production facilities,
and few skilled labor services. These conditions are the result of
the traditional Soviet desire to increase production in this sector
with a minimum of productive resources.
I. History.
Soviet local and cooperative industries and their predecessors,
the craft and cottage industries of Tsarist Russia, have always
played an essential role in supplying consumer goods needed in local
communities of the USSR. !:/* Even as early as 1917 the Supreme
Council of the National Economy (SEC) had begun encouraging the growth
of both producers' and consumers' cooperatives. Because of the in-
creasing government control over agricultural commodities and other
raw materials, individual craftsmen and small artisan workshops were
forced to resort to collectivization in order to obtain raw materials
to continue operation.
By 1927, producers' cooperatives in the USSR included 183 unions
composed of 13,500 artels with more than 1 million members. 2/ In
19+1 the direction of producers' cooperatives was placed entirely in
the hands of the Council of People's Commissars of each union and
autonomous republic and the executive committee of the oblast or
Council of Workers' Deputies to which were subsequently attached di-
rectorates of producers' cooperatives. / In 1946 the control of
producers' cooperatives was centralized by the formation of the Chief
Directorate for Producers' and Consumers' Cooperative Affairs attached
to the Council of Ministers, USSR. The task of this organization was
to coordinate activities of both consumers' and producers' coopera-
tives (including the cooperatives of invalids) in order to effect
a more rational exchange of available foodstuffs and consumer goods
between urban and rural populations. In late 1950, however, their
* For serially numbered source references, see Appendix C.
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administration was split, and the Central Union of Producers' Coop-
eratives, USSR, took over the direction of all types of producers'
cooperatives, including the republic unions of invalids', metal-
working, and woodworking cooperatives, and the like. J In mid-1953
an even tighter organization of producers' cooperatives was effected
by the merging of the various types of republic unions into a single
union in each republic. J Currently, much emphasis is being placed
on the drive to specialize and mechanize artels for the more eco-
nomical output of individual items. J
At the XVII Party Congress in 1934, it was decreed that People's
Commissariats of Local Industry should be established in each of the
union and autonomous republics. Small-scale enterprises, which had
been nationalized in 1920 and administered badly since then, were
placed under these new commissariats, whose principal assignment was
to produce consumer goods out of raw materials available in the area
in which they were operating. During the period from 1934 to 1940,
local industry received aid in the forms of materials, equipment, and
central budgetary allocations. J A decree of 7 January 1941 es-
tablished detailed procedures for the financing of local industry,
thus making it dependent upon loans from the various banks and not
upon further central allocations of nonreturnable funds. J During
World War II, local industry and cooperative enterprises provided
the bulk of consumer goods to the population. Many enterprises,
particularly in the Ukraine, became inoperative or were destroyed. J
Both the Fourth (1946-50) and the Fifth (1951-55) Five Year Plans
called for the rapid expansion, mechanization, and specialization of.
local industry in the USSR. Local industry was given additional assign-
ments for the production of consumer goods for the market. Raw
materials and centrally allocated funds were again made available
to local industry for the carrying out of these new assignments. 10
The re-emphasis on heavy industry in late 1954 and early 1955 has
effected a corresponding re-emphasis in the Soviet press on the
necessity for further development in the production of consumer goods
by local industry from local raw materials. 11
The purpose of local and cooperative industries is to accomplish
the greatest possible regional self-sufficiency in satisfying consump-
tion and servicing needs by exploiting a region's own production and
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raw material resources. Local industries and cooperatives in the USSR
have not been dispersed according to population distribution or on the
basis of availability of resources. Instead, before World War II these
industries were concentrated geographically as shown in Table 1.
Distribution of Local and Cooperative Industries
in the USSR 12
before World War II
Region
Local
Industry
Producers'
Cooperatives
Central and Northwest
53
48
Ukraine
20
21
Siberia, Urals, and the Far East
5
7
Other
22
22
Total
100
In 1951, local and cooperative industries were still concentrated.
in western USSR, but the development of a network of local enterprises
in the Volga region, the Urals, Siberia, and the Far East is being
stressed. 13 The land reclamation projects as well as the efforts to
accelerate the development of heavy and light industry in Central
Asia have required the fuller growth of local and cooperative indus-
tries in the area, 14+ and the necessity to build up the public ser-
vicing and repair facilities in Central Asia have been particularly
stressed. 15
II. Structure.
The fundamental structures of state local industry and of producers'
cooperatives in the USSR are similar. Both Ministries of Local Industry
and producers' cooperatives are subject to centralized control, and
the same plurality of subordination exists for both.
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A. Producers' Cooperatives.
The Central Union of Producers' Cooperatives, USSR, under the
Council of Ministers, USSR, established in late 1950, administers
the republic Unions of Producers' Cooperatives. L6/ Each of the 16
republics has its own Union of Producers' Cooperatives, which is sub-
ordinate to the republic Council of Ministers as well as to the
Central Union. Each autonomous republic also has a Union of Prod-
ucers' Cooperatives, which is under the direction of the Council of
Ministers of the autonomous republic as well as of the republic Union.
Under the republic Union of Producers' Cooperatives operate
the oblast or kray unions (oblpromsoyuz or kraypromsoyuz), which are at
the sale time subordinate to the executive committee of the oblast or
kray Council of Workers' Deputies. Subordinate to these unions are
branch unions (oblastnyye soyuz) which unite the actual producing
units, called artels, under one jurisdiction. The branch unions are
administered by the rayon or city executive committees as well as by
the oblast or kray unions. The number of branch unions varies ac-
cording to the size, population, and resources of the oblast or kray,
but the number of oblast or kray unions in the republic is, of course,
the same as the number of such regional divisions in the republic.
The number of artels of a branch union varies according to the size
and population of the area under jurisdiction, the availability of
materials, and the extent of specialization and mechanization of the
individual artels. The artel may be a single workshop, or it may be
a number of small shops or household producing units.
From 5 to 7 persons are required to constitute an artel.
Members joining an artel or forming one are expected to pool their
equipment and materials and to agree to the bylaws determining their
rights, duties, and responsibilities. An artel is registered with
a branch union according to its field of production and thus becomes
eligible for obtaining credit, raw materials, and technical and or-
ganizational assistance from the oblast or kray union. A new member
joining an artel must pay dues amounting to his anticipated average
wage for 3 months. In practice, however, membership dues are most
frequently collected by withholdings from the member's monthly wage.
Any tools or raw materials which the member contributes to the artel
are credited to his membership dues. An artel elects its own board of
directors and its representatives to its branch union. An elective
board of directors of the branch union in turn elects delegates to the
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oblast or kray union, and the board of the republic union is elected
by the oblast or kray union. 17 The board of the central Union of
Producers' Cooperatives, USSR, is elected by the ballot of the del-
egates to a congress of producers' cooperatives of all the republics. 18/
Supply and sales operations of producers' cooperatives are
coordinated by each republic Union of Producers' Cooperatives and ad-
ministered by the supply and sales office in the oblast or kray unions
and in the branch unions. 19
B. Local Industry.
Ministries of Local Industry were established in each Soviet
republic in 1934. 20 These republic ministries, having no union re-
public counterparts, are directly subordinate to the Council of
Ministers of each republic.
Each republic Ministry of Local Industry coordinates the direc--
tion of all local industry enterprises, which are classified as re-
public-subordinated, oblast-subordinated, or rayon-subordinated. Re-
public-subordinated enterprises are usually the largest and most im-
portant enterprises of the network and are administered either directly
by the ministry or through trusts which are controlled by the ministry.
Ministries of Local Industry are also established in the auton-
omous republics. These ministries are under the jurisdiction of the
Council of Ministers of the ASSR as well as of the republic Ministry of
Local Industry.
The basic organizational form for the direction of enterprises
of rayon subordination is the rayon industrial combine (raypromkombinai_).
Such combines are subordinate to the rayon executive committee of the
Council of Workers' Deputies and engage in such operations as production
of a wide assortment of basic consumer goods, repair operations, pro-
duction of construction materials, and the processing of such items as
fish and fruit. They are also subordinate to the oblast or kray de-
partments of local industry.
Moscow and other large cities of republic subordination which
have a growing and varied local industry have rayon trusts of local
industry in place of rayon industrial combines. The largest enter-
prises, such as the Moscow City Textile Industry Trust or the Moscow
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City Woodworking Trust, are united in city trusts. Local industry in
Moscow also includes rayon combines for servicing and repair opera-
tions and rayon trusts and combines for servicing, which are sub-
ordinate to the executive committee of the rayon Council of Workers'
Deputies and to the department of local industry of the executive com-
mittee of the Moscow city council.
C. Other Control Organs of Local and Cooperative Industries.
The activities of local and cooperative industries in the USSR
are also guided by other organs of the Soviet government, such as the
Gosplan; the Ministry of Finance, USSR; the Ministry of Industrial
Consumers' Goods, USSR, and its union republic ministries; and the
Ministry of Internal Trade, USSR, and its union republic ministries.
1. Gosplan.
Planning of the production of local and cooperative indus-
tries in the USSR was decentralized by the decree of 7 January 1941 21
and placed in the hands of the primary producing units -- that is, the
artels of producers' cooperatives and the enterprises of local industry.
The central planning organ, Gosplan, through its regional offices is
the ultimate authority, however, in the planning for local and cooper-
ative industries, and the general pattern of Soviet planning is
followed.
2. Ministry of Finance, USSR.
To the Soviet state financial institutions, Gosbank and
the specialized banks, is assigned an important role in the adminis-
tration of local and cooperative industries -- "control by the
ruble." 22 Procedures for the financing of the local production oper-
ation and of cooperative industries which cannot be executed out of
local working capital were established by the decree of 7 January
1941. 2 By another decree of 9 November 1946, crediting operations
by the banks for local and cooperative industries were extended to
include investment as well as the manufacturing process: Local and
cooperative industries were thus given opportunities foP expansion and
development far beyond what they could have achieved out of their
own limited resources. The banks, particularly Gosbank, control
not only credit but also use of credit.. They approve or deny credit
according to the profitability of a venture. This system of financial
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control extends the influence of banks into such phases of the operations
of local and cooperative industries as the execution of their assigned
production goals, the proper use of raw materials, the suitability of
seasonal purchases, and their general financial status. 24 Most cred-
iting operations are conducted through the regional office of the banks,
which deal with the petitioning enterprise. The interest on loans and
the terms for repayment are set according to the type of loan, the
amount borrowed, and the identity of the borrower. If loans are for
more than a specified amount, they must be requested by the republic
Union Producers' Cooperatives or Ministry of Local Industry. 25 The
particular bank to which a request for a loan should be submitted is
determined by the type of organization requesting the loan and by the
use to which the funds would be put. 26
3. Ministry of Industrial Consumers' Goods, USSR.
The Ministry of Industrial Consumers' Goods, USSR,* and its
republic ministries also influence the operations of local and coopera-
tive industries. This ministry is concerned chiefly with the textile,
knitwear, footwear, and garment industries. Because both local indus-
try and producers' cooperatives have an effective share in all these
industries, the coordination of their separate efforts is necessary.
With regard to producers' cooperatives, the Ministry of
Industrial Consumers' Goods exercises its influence through Gosplan.
The assortment and amount of textile, knitwear, footwear, and sewn
articles produced by the Unions of Producers' Cooperatives are deter-
mined by agreement between this ministry and its republic ministries,
Gosplan and its officer, and the Unions of Producers' Cooperatives. 29J
The Ministry of Industrial Consumers' Goods, USSR, and its
republic counterparts also influence the operations of the Ministries
of Local Industry, also chiefly through Gosplan. 30 With regard to
the Ministries of Local Industry of the RSFSR and the Ukrainian SSR,
--
however, the method of control is direct. Light industry enterprises
that is, those producing textiles, footwear, knitwear, and sewn arti-
cles -- are under the jurisdiction of the appropriate chief directorate
or territorial directorate of the Ministry of Industrial Consumers'
Goods. 31
Up to 1953, called the Ministry of Light Industry. It was merged in
March 1953 with the Ministry of Food Industry, USSR, into the Ministry of
Light and Food Industry, USSR. 27 In the fall of 1953 the industries
were again separated and reconstituted as the Ministry of Industrial Con-
sumers' Goods, USSR, and the Ministry of Food Industry, USSR. 28
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4+. Ministry of Internal Trade, USSR.
Since mid-1953 there has been an increased emphasis on a
fuller exploitation of the potential of the commercial network of the
USSR for influencing the production activities of local and cooperative
industries. Trade workers have been told to participate in inspection
teams to check the quality and assortment of output of local and coop-
erative industries and to refuse goods which do not meet specifica-
tions. 32
III. Labor Force.
The number of workers employed by local industry and producers'
cooperatives in the USSR since World War II has steadily increased, but
employment by local industry has increased much more rapidly. Although
increases in employment by local and cooperative industries are appar-
ent, a distinct trend indicates that the number of enterprises and
artels of local and cooperative industries is decreasing, as shown in
Table 2.*
IV. Technology.
Official Soviet statements emphasize that the level of technology
in local and cooperative industries is lower than in other Soviet in-
dustries. The process of bringing small-scale production operations
under Soviet control destroyed much of the vigor and initiative of the
sector. This factor,,plus the priority concentration of the develop-
ment of heavy industry, agriculture, and union light industry, has
tended to keep local and cooperative industries at a low level of
technology despite government encouragement and aid. The "consumer
goods" decree of 28 October 1953 stated:
Many enterprises of local industry and
producers' cooperatives are situated in
dwelling houses and basement premises,-un-
suitable for the purpose of production; the
workshops of a number of enterprises are
scattered. A large part of the enterprises
LiJ poorly mechanized, Las obsolete and
unproductive equipment and L1 7 poorly pro-
vided with qualified personnel, which re-
sults in low labor productivity and high
production costs. 33
* Table 2 follows on p. 10.
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Data on labor Force and Number of Enterprises in Local and Cooperative Industries in the RSFSR and in the USSR a/
1930, 1934, 1937, 1941, and 1946-54
1930 1934 1937 1941 1946 1947 1948 1949 1950 1951 1952 1953 1954
Producers' cooperatives, RSFSR J
Number of artels
Number of members
Number of workshops
Local industry, RSFSR J
Number of enterprises 7,000
Number of workers 145,500 (Plan)
Number of enterprises
Number of workers
Number of artels 11,862
Number of members 1,150,000 1,000,000
Number of workshops 60,000
Local industry, USSR J
Number of enterprises
Number of workers
Number of enterprises
Number of workers
11,000
1,000,000
35,000
11,000 9,600
1,000,000 1,200,000
4,000
738,800
16,000 15,000
1,865,000 2,000,000
126,000
17,000 14,000 15,000
1,738,800
5,818
956,700
21,800
2,821,700
a. Blank spaces indicate that data are not available.
b. 34
c. 35 The number of enterprises for 1953 was derived by subtracting the number of producers' cooperative artels from the total number of enterprises for both local
and cooperative industries. The number of workers for 1953 was derived by subtracting the number of members in producers' cooperatives from the total number of workers
in both local and cooperative industries.
d. 36
e. 37 The numbers of enterprises and of workers for the USSR for 1953 were derived in the same manner as for the RSFSR (see footnote c, above).
f. 3
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Since the inauguration of the postwar planning period, considerable
progress has been achieved toward the government aim of improving the
technology of local and cooperative industries. At the same time that
the assortment of goods produced is expanding, local and cooperative
industries have achieved definite progress in mechanizing production
processes, in amalgamating and specializing enterprises, in raising
the level of skill of the workers by means of training programs, and
in establishing their own raw materials base.
A. Types of Production.
The enterprises and artels of local and cooperative industries
in the USSR range in size from the small basement workshop to the fully
mechanized plant, but the majority have a very limited production po-
tential. This limited potential has resulted largely from the broad
scope of the operations which the local industries conduct -- mining
and metallurgy; machine building for their own use or for agricultural
and other nonmarket consumption; servicing, such as furniture and shoe
repair and the operation of dry-cleaning establishments, beauty par-
lors, and public baths; retail merchandising; and the production of
consumer goods ranging from necessities, such as cooking utensils,
razor blades, and vodka, to comparative luxury goods, such as silk
lampshades, samovars, bicycles, and radios.
B. Specialization and Amalgamation.
During the Fourth Five Year Plan, it became evident that little
progress could be achieved by Soviet local and cooperative industries
in increasing output, lowering production costs, and improving quality
until the individual producing units could be enlarged. An article in
Planovoye khozyaystvo illustrated the inefficiency and unproductiveness
of the very small enterprise, as follows:
... In local industry and producers' cooperatives,
RSFSR furniture production is carried out by nearly
2,000 enterprises and workshops. Out of this num-
ber there are nearly 500 specialized enterprises
which produce up to 40 percent of all products. 39
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Since 1949, 40 both local and cooperative industries have been
amalgamating and specializing small producing units. This concentra-
tion of industry was not to be carried out "by sharply increasing the
scale of enterprises, but rather by centralizing the manufacture of a
single product in a given enterprise ?only obtainable on the basis
of the specialization of enterprises."41
The directives of the XIX Party Congress stressed the unsatis-
factory direction of local and cooperative industries by the local
Councils of Workers' Deputies. Planning commissions at the oblast level
were called upon to work out planned assignments for the republic Min-
istries of Local Industry and the Central Union of Producers' Coopera-
tives for basic products and also for all items produced by individual
enterprises and to promote the specialization of enterprises. The
need for amalgamation and specialization of artels of producers' coop-
eratives is essential to any improvement in technology; the concentra-
tion of production in specialized artels would allow the use of more
production equipment and more advanced technological organization of
production.
Unification of various unions (the producers', timber industry,
and invalids' cooperatives) into Unions of Producers' Cooperatives
removed many administrative barriers. In the RSFSR, artels have begun
specializing in the production of felt boots, knitwear, and wagons,
and plans have been formulated for the specialization of the leather
and footwear industry and the textile, metalworking, chemical, food,
tailoring, and furniture enterprises. 42 As shown in Table 2,* the
number of artels of producers' cooperatives has decreased from 18,000
in 1949 to about 15,000 in 1954.
C. Mechanization.
By the decrees of 7 January 1941 43 and 22 August 1945 44 and
by the "consumer goods" decree of 28 October 1953, 45 necessary funds
for the mechanization of production were made available to local and
cooperative industries in the USSR. Despite these measures, however,
the level of mechanization of the sector is still extremely low, as
is illustrated in the following example cited in the fall of 1953 con-
cerning local and cooperative industries in Gor'kiy Oblast, RSFSR:
* P. 10, above.
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... Manual labor is still widely used even in the
metal processing. enterprises. Suffice to say that
productign in local industry is only 37 percent
mechanized, and in the producers' cooperatives,
40 to 45 percent. Artels lack the most elementary
lathes and planers, not to mention rolling machines
and special semiautomatic and multipurpose lathes. 46/
Enterprises of the republic Ministries of Local Industry have
mechanized more rapidly than have Unions of Producers' Cooperatives.
During the Fourth Five Year Plan, in the RSFSR alone, nearly 14,000
units of equipment were installed in enterprises of the Ministry of
Local Industry, including metallurgical machine benches, forge-press
outfits, and woodworking machine benches. L7/
The mechanization of enterprises of local industry has con-
tinued under the Fifth Five Year Plan, having received particular im-
petus since the death of Stalin. In mid-1953 it was stated:
/ has been supplanted by
It focal industry7
a large quantity of new equipment, including high-
output machinery. Many enterprises which are in-
troducing advanced machinery and copying the
experience of industry under USSR jurisdiction are
using multiple dies and attachments. Mass produc-
tion has been introduced on a wide scale. A
machine-building base has been specially created
for supplying local industry with various types
of general-purpose and special metal-cutting,
woodworking, and forge-press equipment. 48
Little progress in the mechanization of artels of producers'
cooperatives was achieved under the Fourth Five Year Plan. An
editorial in Izvestiya on the occasion of the formation of the Central
Union of Producers' Cooperatives, USSR, in November 1950, emphasized
the urgent need for the application of new machinery in the artels:
"It cannot be considered normal that the producers' cooperatives have
hitherto had no plan for technical re-equipping of enterprises ... ." 49
Under the Fifth Five Year Plan, discussions of the development
of artels of producers' cooperatives emphasized the necessity for the
expansion of production facilities before mechanization could accomplish
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any substantial increase in output. The artels of producers' coopera-
tives have been so small that machines could not be utilized to their
fullest operative capacity. "... Specialization of footwear produc-
tion will make it possible to utilize new kinds of materials and
permit extensive use of stretching, nailing, and other machines." c/
Newly constructed factories of producers' cooperatives are being
equipped with modern machines. 51
D. Inputs.
The lack of a steady and reliable supply operation for local in-
dustry and producers' cooperatives in the USSR is perhaps the factor most
responsible for the inefficiency and slow technological development of
these industries. The determination of the Soviet government that there
should be a high degree of regional self-sufficiency in the raw material
input of local and cooperative industries has been responsible for much
of the waste and confusion. Local and cooperative enterprises are fre-
quently diverted from their primary function of producing consumer goods
required locally into the manufacture of articles for which raw materials
are available 52/ or into filling orders for customers with their own
raw materials. 53/
In the postwar period the Soviet government has been forced
to supplement local raw material resources by allocating such ma-
terials as were necessary from central stocks. This allocation has
been done particularly since mid-1953. 54+ In May 195+ the govern-
ment announced that "in the future, local industry and producers'
cooperatives will be based on locally utilized raw materials." 55/
At the same time that local and cooperative industries were
receiving raw materials from central stocks, they were assigned as a
priority task the establishment of their own raw materials base 56
which could efficiently supply local enterprises and artels with all
the raw materials and the capital equipment necessary to meet produc-
tion assignments. This task was to include the establishment of new
processing plants and extractive industries. Planning organs were
advised to aid in the establishment of such a base, and union industry
was called upon to give technological assistance. 57 Some progress
toward the accomplishment of this task was achieved by the end of
1953, particularly in the output of yarns for textiles and knitwear,
in rolled metals, and in the processing of industrial wastes. 58
The production of materials required for furniture production, such
as veneers and varnishes, is far short of requirements. 59
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E. Labor Productivity.
Although it is evident that the low labor productivity of
local and cooperative industries in the USSR is the result of its low
level of technological development, the lack of skilled labor and
technicians available in the sector is another important contribu-
ting factor. Even when the machinery and raw materials available are
the same as those used by union industry, output per machine by local
and cooperative industries tends to be lower. In Moscow, productivity
of a single machine at a knitwear combine in light industry was 6,100
outer knit garments a month, whereas the same type of machine operated
in an artel of a producers' cooperative produced only 4,900 articles. 60
Training activities by the republic Ministries of Local Industry
and their trade unions and by the Central Union of Producers' Coopera-
tives appear to be much more broadly organized than they were in mid-
1953. The Ukrainian Local Industry Trade Union in August 1954 claimed
to have trained 38,000 skilled workers since 1950. 61 In December
1954 the Central Union of Producers' Cooperatives, USSR, announced the
organization of an institution of higher education with a correspond-
ence department, the functioning of 33 colleges, and the formulation of
plans for other such institutions. 62
V. Production.
Gross production of local industry and producers' cooperatives
expressed in ruble value of a specified year is defined as the sum of
the productive effort. Figures for the gross production of both local
and cooperative industries in the USSR are higher in relation to salable
output than those for other sectors of the economy. Some of the goods
produced are not marketed, because of either poor quality or lack of
demand. In 1948 a Deputy Minister of Trade, RSFSR, stated that
"... enterprises of local industry have been able to sell a mere 26
percent of goods offered for sale, and producers' cooperatives only
29 percent. The rest of the goods do not find a market." L3/ more
recent statements indicate that a serious imbalance between output
and salable output still exists. 64
By the end of the Fourth Five Year Plan, local and cooperative
industries had exceeded the level of gross production in 1940 by 50
percent. 65 During the period of this Plan the republic Ministries
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of Local Industry were assigned and apparently achieved a much higher
rate of growth than producers' cooperatives. 66 Under the Fifth
Five Year Plan, local and cooperative industries were originally
ordered to increase gross production by 60 percent. Since producers'
cooperatives under the "new course" were told to double their 1950
production by the end of 1955, L7/ it is assumed that local industry
has a similar goal. Gross production of local and cooperative in-
dustries for-1940, 1945-54, and planned 1955 is given in Table 3.*
Seventy percent of the gross production of local and coopera?-
tive industries in the USSR in 1952 was in consumer goods. The ratio
of 70 percent consumer goods production to 30 percent industrial produc-
tion and servicing operations is assumed as constant since the prewar
period. A statement in mid-1953 that local and cooperative industries
in Moscow were supplying the inhabitants of that city with about 20 per-
cent of all consumer goods 68 indicates that the estimate of the share
of local and cooperative industries in the production of Group B goods**
is at least approximate. Consumer goods production of local and coop-
erative industries in 1940, 1945-54, and planned 1955 is given in Table 4.***
Industrial production of local and cooperative industries in
the USSR appears to include the following types of output: special
and multipurpose machines and instruments, such as pneumatic drills,
measuring devices, and all-purpose saws; agricultural machines and
equipment, such as wagons and carts, corn planters, and cane-cutters;
hoisting and transport equipment; and building materials, such as
bricks, cement, and hardware. L91
D. Servicing Operations.
The majority of servicing shops and combines in the USSR are
operated by producers' cooperatives. It is apparent from the sharply
worded criticisms of both local and cooperative industries that re-
pair, laundry, dry-cleaning, and other servicing facilities are com-
pletely inadequate. In 1952, only 101 dry-cleaning and dyeing plants
* Table 3 follows on p. 17.
** According to Soviet classification, consumer goods production is
"Group B" goods which excludes food and foodstuffs. This classifica-
tion was used in the calculation of consumer goods production by
local and cooperative industries in the USSR in Table 4.
*** Table 4 follows on p. 18.
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Table 3
Gross Production of Local and Cooperative Industries
in the USSR
19, 1945-54, and 1955 Plan
Producers'
Cooperatives
(Billion Rubles) 1
Share of
Total
(Percent)
Local Industry ~J
(Billion Rubles) _!
Share of
Total
(Percent)
Local and Cooperative
Industries
(Billion Rubles) J'/
Share of
Total
(Percent)
1940
28
8.4
13.29
4
41.29
12.4
1945
20.80
6.8
18.36
6.o4
39.16
12.8
1946
16
6.2
12.5
4.8
28.5
11
1947
25.14
8.1
11.92
3.8
37.06
12
1948
28.63
7.3
16.10
4.1
44.73
11.4
1949
28.98
6.2
19.32
4.1
48.31
10.3
1950
31.2
5.4
24.31
4.2
55.51
9.7
1951
36.25
5.4
28.25
4.2
64.5
9.6
1952
42
5.6
32,73
4.3
74.73
10
1953
47
5.6
36.62
4.3
83.62
10
1954
55
5.8
42.86
4.5
97.86
10.3
1955 Plan
62.4
6.4
48.63
4.9
111.03
11.3
a. Wholesale prices as of 1 January 1952.
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Table 4
Consumer Goods Production of Local and Cooperative Industries
in the USSR
1940, 1945-54, and 1955 Plan
Total Consumer Goods Production Share
of Local and Cooperative,Industries
(Billion Rubles)
in Total Group B
Production
(Percent)
1940
28.90
22.6
1945
27.40
36.3
1946
19.95
23.3
1947
25.94
24.7
1948
31.31
24.7
1949
33.82
24.7
1950
38.86
24.6
1951
45.15
24.6
1952
52.31
25.8
1953
58.54
25.8
1954
68.5
26.7
1955 Plan
77.72
28.8
a. Wholesale prices as of 1 January 1952.
and 31 knitwear repair shops were operating in the RSFSR. 70 The
number of servicing shops in all of the USSR rose from over 50,000 in
1952 71 to 60,000 by the end of 1953. 72 Since mid-1953 the develop-
ment and expansion of the servicing network has been one of the pri-
ority tasks of local and cooperative industries. 73
VI. Capital Investment and Construction.
Local and cooperative industries in the USSR derive funds for in-
vestment in capital construction from the following sources:. (1) loans
from Gosbank and the specialized banks; (2) accumulations, or funds set
aside from the profits of the enterprises for capital construction.; and
(3) central allocations of grants from the Soviet budget or from the
republic budgets.
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The most important of these sources are the loans extended to the
enterprises of local and cooperative industries. Provision for ex-
tending credit for capital investment by local industry and producers'
cooperatives was first established by the decree of 7 January 1941,
"Measures for Increasing the Production of Goods of Wide Consumption
Out of Local Raw Materials." 74 Even under this decree, reasonable
terms were extended to enterprises of local and cooperative industries
for the expansion or construction of enterprises and for the purchase
of equipment. Another decree issued on 9 November 1946 75 broadened
the terms set forth in the 1941 decree. The "consumer goods" decree
of 28 October 1953, 76 extended still further the funds available to
local industry and producers' cooperatives. According to the terms
of this decree, up to 2 million rubles may be borrowed toward the
construction of a single enterprise.
Provisions for the utilization of accumulations from the profit of
enterprises for investment in construction were set forth in the same
three decrees. The "consumer goods" decree called for a redistribution
of up to 60 percent of the accumulations which had been set aside for
capital construction.
Until 1954, no references to allocation from the Soviet budget for
investment in local or cooperative industries had been noted since
1937- 77/ The "consumer goods" decree called for an allocation for
capital investment of 810 million rubles for republic Ministries of
Local and Fuel Industry and Ministries of Local Industry. The 1955
budget speech, 78 but not the 1955 budget decree, _79included local
industry in central allocations for capital investment. Producers'
cooperatives do not appear to have shared in the centrally allocated
funds for investment.
Although no attempt has been made to estimate the total investment
in local and cooperative industries, information published since mid-
1953 gives some indication of the extent of expenditures on capital
construction.
The most inclusive statement gives the total amount assigned for
capital works in 1955 by producers' cooperatives in the USSR as 1,188
million rubles, which is said to be one-third higher than the amount
expended in 1954. 80 Investment in local industry in the RSFSR in
1954 increased by 39 percent as compared with 1953. 81 Although
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810 million rubles were centrally allocated in 1954 to all the republic
Ministries of Local Industry, L2/ no information was available to give
an indication of the funds available from loans and from ministry accumu-
lation. These data, added to the many references to the completion of
new enterprises and the expansion and re-equipment of old enterprises,
indicate that the total amount invested by local industry and producers'
cooperatives in the USSR in 1954 was about 2.5 billion rubles, and in
1955 about 3 billion rubles.
VII. Current Status and Future Trends.
In line with the recent re-emphasis on the necessity for priority
development of heavy industry and agriculture and the corresponding
de-emphasis on the "new course" goals for the rapid expansion of light
industry, the statutory role of local and cooperative industries in
the USSR -- the production of goods for the satisfaction of local re-
quirements out of local raw material resources -- has been firmly re--
established. From the death of Stalin to mid-1954, local and coopera-
tive industries had been allocated substantial quantities of short-
supply, high-quality raw materials. In May 1954 it was stated that
these supplies would no longer be available to local and cooperative
industries and that in the future they must be supplied by their own
local raw material resources and the waste products of union industries. 83
The end of centrally allocated materials, however, has not meant a
reversion to the status of local and cooperative industries before the
death of Stalin. On the contrary, the sector is evidently being ac-
corded more high-level administrative attention than under the "new
course."
One indication of the determination of the Soviet government to con-
tinue the accelerated drive to develop industry of the local type was
the calling of a meeting of the Central Union of Producers' Cooperatives,
USSR, in December 1954. 84 This meeting, the first since the organi-
zation of this central control organ for producers' cooperatives in late
1950, 85 reviewed the progress made by the unions since that time and
discussed means of correcting the chronic ills of artels -- that is,
poor assortment, low-quality output, and high production costs. Par-
ticularly stressed in the course of this meeting was the necessity for
an increase in the production of building materials and of agricultural
machinery and equipment. Participating in this meeting were Kosygin,
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who is said to have supervisory control over all consumer goods produc-
tion; Mikoyan, at that time Minister of Trade; and Shatalin, Secretary
of the Central Committee of the Party.
In the Soviet budget speech, 86 Sverev, Minister of Finance,
spoke at length of the potential of local and cooperative industries
for further development. He indicated that besides an increase in
funds for capital investment from accumulations of the enterprises,
local industry would again receive a central allocation for capital in-
vestment in 1955. The decree of the Soviet budget, $7 however, did
not indicate such a grant. Currently, local industry and producers'
cooperatives are continuing their effort to increase production by
means of the expansion, specialization, and mechanization of their net-
work and by the building up of their own raw material base.
Assuming that the current policy of granting financial concessions,
technological assistance, and top-level administrative attention will
continue, local and cooperative industries should be able to carry out
their assigned role of satisfying local needs out of local resources.
It is probable that both industries will fulfill their revised Five
Year Plan goals for the doubling of the 1950 gross production level
by the end of 1955. (See Table 3.*) The current drive for techno-
logical development indicates that a continued sharp increase in
output will be demanded in succeeding years. It is difficult to see
how either local industry or producers' cooperatives can achieve cor-
responding rapid success in improving the quality of output, lowering
production costs, and increasing labor productivity if such pressure
to increase output continues. There should be a more gradual cor-
rection of these ills as the technology of the enterprises and the
skill of the workers improve.
Although enterprises of local and cooperative industries are being
encouraged to put into production such luxury goods as electrical ap-
pliances, fine china, and glassware, the main responsibility of these
enterprises is the supply of basic needs in consumer goods -- that is,
such items as sleeveless jackets, felt boots, furniture; and cooking
utensils.
The continued development of local industry and producers' cooper-
atives should inevitably create a much greater degree of regional
self-sufficiency in the supply of consumer goods as well as of other
* P. 17, above.
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items such as building materials or agricultural equipment. The
resulting easing of the demands on central sources for the supply of
such articles could be advantageous to the Soviet government both
politically and militarily. Regional self-sufficiency in the produc-
tion of regional requirements has evident military advantages --
permitting the diversion of heavy and light industry production and
transport facilities toward a war effort and constituting a valuable
potential source for the support of war.
VIII. Conclusions.
The Soviet government regards local industry and producers' cooper-
atives as an indispensable economic sector and is currently sponsoring
a drive to accelerate their development. The government is developing
these industries, which are by their nature difficult to control and
uneconomical to operate, for the following reasons:
1. At no time since the Revolution of 1917 has the production
of consumer goods by state light industry been sufficient to allow
the disbanding of an industry which produced approximately one-
fourth of all consumer goods.
2. In remote regions and newly developed areas the output of local
and cooperative industries is at times the only source for the supply
of essential consumer goods and other requirements.
3. The ability to supply consumer goods within an area lessens
the drain on transportation facilities.
4. The production of essential consumer goods out of local raw
material resources allows the allocation of central supplies to high-
priority projects.
5. An increased supply of consumer goods, farm implements, and
building material from local and cooperative industries could allow
the Soviet regime to divert heavy and light industry output or possibly
surplus agricultural raw materials toward desired political goals.
6. The functioning of technically competent regional industry
has the potential during a war not only to supply the area with essen-
tial consumer goods but also to convert to war production.
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At the present time, local industry and producers' cooperatives in
the USSR still produce only a proportionately low output of goods,
of poor quality and limited assortment. They have high production
costs, low labor productivity, poorly equipped and limited production
facilities, and, for the most part, unskilled labor. Nevertheless,
the sector has effectively increased its ability to fulfill its as-
signed role since the postwar planning era. The current accelerated
drive to build up local industry and producers' cooperatives should
greatly increase their potential, even within the next 2 or 3 years.
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APPENDIX A
METHODOLOGY
The indexes of gross production and consumer goods production of
local industry and producers' cooperatives in the USSR shown in Tables
3 and 4* were estimated by means of official data on total industrial
production of the USSR and total consumer goods production of the
USSR and by applying the experience factor of the RSFSR industries.
Data for consumer goods production were used to extrapolate the pro-
duction of local and cooperative industries in the years 1947, 1948,
1949, and 1951, having assumed that the trend of total consumer goods
production and that of local and cooperative industries' production
were the same. Prices for 1926-27 were converted to wholesale prices
as of 1 January 1952 by determining the value of the production of
local industry and producers' cooperatives in terms of both types of
prices. It was established that figures published since 1953 on
gross production and consumer goods production of producers' cooper-
atives are in terms of wholesale prices as of 1 January 1952. 88
Until 1949 or 1950, producers' cooperatives had given such data in
terms of 1932 prices. L9/
The working indexes for Tables 3 and 4 are given in Table 5.**
Data presented in Table 5 are based on linking indexes of Soviet
gross production in terms of 1926-27 prices through 1950 and there-
after in terms of 1 January 1952 prices. This linkage is similar to
that used by Soviet statisticians.
* Pp. 17 and 18, respectively, above.
** Table 5 follows on p. 26.
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Year
Total Consumer Goods
Production, USSR
(1926-27 Prices)
Gross Production of
Local and Cooperative
Industries, USSR
(1926-27 Prices)
Gross Production
of Producers'
Cooperatives, USSR
(1926-27 Prices)
Gross Production
of Producers'
Cooperatives, USSR
(1952 Prices)
Gross Production of
Local and Cooperative
Industries, USSR
(1952 Prices)
Total Consumer Goods
Production, US
(1952 Prices)
Consumer Goods Production
of Local and Cooperative
Industries, US
(1952 Prices) c
Total Gross
Production, USSR
(1926-27 Prices)
1940
53.6
15.508
10.521 J
28 9/
41.297
127.943
28.970
138.5
1945
31.6 /
20.80 J
39.16 /
75.413
27.40
127.42 mJ
1946
35.9
16.00
28.5
85.675
19.95
107.822
7
43.952
25.144
44
737
104.913
25.944
128.805 i~j
1948
53.064
28.631 p/
.
126.663
31.315
163.43 5/.
1949
57-352
28.989 p/
48.316 g/
136.899
33.821
195.285 J
1950
65.928 /
23.262 r/
14.098 /
31.2
55.516 J
157.370
38.861
239.605 J
1951
76.648 ,)f
36.254
64.509
182.958
6
45.156
2
12
279-770 /
698
312
1952
84.696 j/
42
0
74.732 i'/
9
202.1
5
.3
.
1953
94.859 J
47
83.629
i/
226.428
58.540
350.221
1954
107.190 J
55 u
.
.
97.864 g/
255.862
68.504
395.749 J
1955 Revised Plan
112.736 J
62.4 /
111.032
269.100
77.722
409.724 /
a. Pp. 17 and 18, respectively, above.
b. 1926-27 prices were converted into wholesale prices as of 1 January 1952 by dividing the gross production of local and cooperative industries in the USSR as estimated for 1950 in 1952
prices by the gross production of local and cooperative industries as estimated for 1950 in 1926-27 prices. The resulting price index (238.7) was applied to the total consumer goods produc-
tion in the USSR reported in 1926-27 prices. C. c. It was reported in 1951 that consumer goods production of local and cooperative industries in the USSR accounted for 70 percent of the gross production. 90 This ratio has been assumed to
be generally true for the years 1940 and 1945 through 1955.
d. 91 ,,.,~
e. In 1950, local and cooperative industries in the USSR were reported as having surpassed the level of production in 1940 by 50 percent. 92
f. The same rate of increase as that planned for the total production of consumer goods, 9 Percent, 93 was applied to the Ministries of Local Industry in the USSR. The difference between
the gross production of local industry in 1940 and the gross production of total local and cooperative industries represents the gross production of producers' cooperatives. 24
g. 95
h. The total gross production of local and cooperative industries in the USSR in 1940 was derived by applying the estimated percent of total production which was the production by producers'
cooperatives In 1926-27 prices to the production reported for producers' cooperatives in 1945 in 1952 prices. 966 The total gross production of local and cooperative industries in the USSR in
1950 was derived in a like manner, using the percentages derived from 1950 production in 1926-27 prices. 97/
1. J
duction in the USSR in 1945-53 was derived from reported percentage increases applied to production as reported for 1940 and to the resulting estimated produc-
J. The total consumer goods pro5091
tion for each succeeding year. k. The gross production of producers' cooperatives in the RSFSR was reported to have increased 1.5 times during the Fourth Five Year Plan. 100 To derive figures for 1945, it was assumed that
the same was true for the gross production of producers' cooperatives in the USSR,
1. The gross production of local industry in the RSFSR in 1950 was reported to have surpassed the 1945 level by 32.4 percent. 101 The same percentage was applied to local industry in the
USSR. After subtracting the gross production of producers' cooperatives In the USSR as reported in 1950 from the estimated total production of local industry and producers' cooperatives in
1950, production figures are derived for the gross production of local industry In the USSR in 1950 (24.3 billion rubles). Estimates for the production of local industry in the USSR and for
that of producers' cooperatives in 1945 were added to get a total.
in. An index of the total gross production in the USSR in 1926-27 prices was derived by applying percentage increases 102 to the total gross production in the USSR in 1940 as reported in
source 103 and to the resulting estimated gross production for the following years. 1926-27 prices are converted to 1952 prices by applying the estimated price index (238.7). Production
figures in 1952 prices were used in deriving the percentage shown in Table 3 (p. 17, above).
n. The gross production of producers' cooperatives in the USSR in 1950 was reported as nearly twice that of 1946. 104
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Working Indexes for Tables 3 and 4 J
(Continued)
o. The gross production of producers' cooperatives in the USSR in 1950 was reported to be nearly -Brice that of 1946. 105 It was assumed that the same increase was true for local
industry in the USSR, and it was applied to the estimate for the production of local industry in 1950. Finally, the total production of local and cooperative industries in the USSR in
1946 was derived by the addition of the two estimated components.
p. The production of producers' cooperatives in the USSR was reported to be " ... nearly the same as in 1940." 106 The gross production of producers' cooperatives in the USSR in 1947
was derived by applying the estimated percent of total production which was production by producers' cooperatives in 1940 to the estimated total production of local and cooperative
industries in the USSR in 1947. Estimates for 1948 and 1949 are straight-line interpolations between those for 1947 and 1950. For estimates for 1950-55, the ratio between the production
of producers' cooperatives in the USSR and production of local industry in the USSR in relation to total production is assumed to remain constant because the original Fifth Five Year Plan
goals are the same. la7
q. The gross production of local and cooperative industries in the USSR for 1947, 1948, 1949, and 1951 are extrapolations based on the production of consumer goods in the USSR, applying
reported percentage increases.
r. The planned gross production for local and cooperative industries in each republic totals 20.054 billion rubles. 108 The same percentage, 16 percent overfulfillment, 109 as
reported for the production of local and cooperative industries in the RSFSR was applied to the production of local and cooperative industries in the USSR.
s. The same percentage increases as pertained to the production in the RSFSR were applied to the total production in the USSR. The gross production of producers' cooperatives in the
RSFSR in 1950 was reported as a 34-percent increase over production in 1940. 110 The gross production of local industry in:the'RSFSR in 1950 was repo,r,~! ted as 2.2 times that of 1940. 111
The consumer goods production of local and cooperative industries in the RSFSR in 1950 was reported as a 59-percent increase over production in 1940. / The Plan for the production
local industry in the USSR in 1950 called for an 80-percent increase over production in 1940. After applying these percentage increases, it was estimated that in 1950 the production
of cooperative industry in the USSR represented 67.84 percent of the total production of local and cooperative industries in the USSR, whereas in 1
only 56.22 percent of the total production of consumer goods. 940 cooperative industry had produced
t. The gross production in 1954 was reported as having increased 13 percent over that of 1953. 113 Production of producer goods was reported to be 70 percent of the gross production in
1953. 114 It was assumed that this ratio (70 percent, producer goods; 30 percent, consumer goo applied to 1954 as well.
u. 115
V.
w. It was assumed that the increase in production planned for 1955 under the revised plan for local industry in the USSR is the same as that for producers' cooperatives in the USSR
(nearly twice that of 1950). 117
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APPENDIX B
GAPS IN INTELLIGENCE
The biggest impediment to a knowledge of local and cooperative
industries in the USSR arises from the nature of their organization as
independent entities in each of the republics. Although a fund of
information exists from which studies on separate republics could be
derived, this approach was not practical for this report.
Since the establishment of the Central Union of Producers' Co-
operatives, USSR, in 1950, a good deal of aggregative information has
been published on the producers' cooperatives. Data on the'Ministries
of Local Industry, however, have been particularly limited. Some
figures have been published on expenditures for capital investment in
each republic, and a later report will include these data.
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APPENDIX C
SOURCE REFERENCES
The sources used for this report on local and cooperative indus-
tries in the USSR are either Soviet newspapers and periodicals or'
non-Soviet material which has been based on Soviet open material.
Evaluations, following the classification entry and designated
"'Eval.," have the following significance:
Source of Information
Doe. - Documentary
A - Completely reliable
B - Usually reliable
C - Fairly reliable
D - Not usually reliable
E - Not reliable
F - Cannot be judged
1 - Confirmed by other sources
2 - Probably true
3 - Possibly true
4 - Doubtful
5 - Probably false
6 - Cannot be judged
"Documentary" refers to original documents of foreign governments
and organizations; copies or translations of such documents by a staff
officer; or information extracted from such documents by a staff
officer, all of which may carry the field evaluation "Documentary."
Evaluations not otherwise designated are those appearing on the
cited document; those designated "RR" are by the author of this report.
No "RR" evaluation is given when the author agrees with the evaluation
on the cited document.
All sources listed below are evaluated RR 2 and are UNCLASSIFIED
unless otherwise designated.
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1. Baykov, A. The Development of the Soviet Economic System,
New York, 19, p. 6-7.
2. Kravchuk, P.F. Novoye v rabote promyslovoyy kooperatsii,
Moscow, Vsesoyuznoye Kooperativnoye Ob yedinennoye Izdatel'stvo,
1947, P? 5.
3. Mashinostroyeniye entsiklopedicheskiy spravochnik:
0rganizatsiya i ekonomika mashinostroitel'nogo proizvodstva,
Moscow, Mashgiz, vol 15, 1951, p. 29-20.
4. Pravda, 21 Nov 50, p. 2.
5. Izvestiya, 30 Jun 53.
6. Ibid., 28 Feb 51.
7. Baykov, op. cit. (1, above), Table 64, p. 396.
8. Izvestiya, 12 Jan 41.
9. Voznesenskiy, N. Voyennaya ekonomika SSSR v period
otechestvennoy voiny, Moscow, Gospolitizdat, 194b, p. 159.
10. Pravda, 28 Oct 53, P. 1-3-
11. Izvestiya, 12 Dec 53, p. 2.
12. Balzak, S.S. Economic Geography of the USSR, New York, 1949,
P? 338-339-
13- Planovoye khozyaystvo, no 2, 1953, P. 92-93-
14. Pravda, 22 May 50-
15. Kazakhstanskaya pravda, 9 Jan 54.
Pravda vostoka, 3 Jan 54-
16. Pravda, 21 Nov 50, p. 2.
17. The American Slavic and East European Review, New York, 1951,
vol 10, no 1, p. 26-30-
18. Pravda., 19 Dec 54.
19. The American Slavic and East European Review, op. cit.
(17, above)., p. 32.
20. Katsman, L. Finansy mestnoy promyshlennosti, Moscow,
Gosfinizdat, 1936, P? 3-
21. Izvestiya, 12 Jan 41.
22. Uranov, P. Rol' gosudarstvennogo banka v mestnoy promyshlennosti,
Munich, Institut fuer Erforschung der Geschichte and Kultur
der USSR, 1954, p. 65.
23. Izvestiya, 12 Jan 41.
24. Uranov, og. cit. (22, above), p. 65-66.
25. Ibid., p. ~7-.
26. Ibid., p. 43-44.
27. Pravda, 28 May 53, p. 1-
28. Ibid., 16 Sep 53, p. 6.
29. The American Slavic and East European Review, op. cit. (17,
above), p. 33?
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30. Planovoye khozyaystvo, no 1, 1954, p. 70-
31- Pravda, 27 Feb 52.
32. Ibid., 25 Oct 53, p. 2-5-
33. Ibid., 8 Sep 53, p. 2.
34. Kravchuk, off. Sit. (2, above), p. 9.
Izvestiya, 30 Jun 53, p. 2.
Ibid., d Dec 54, p. 2.
35. Katsman, oR. cit. (20, above), p. 4.
Gosudarstvennyy plan razvitiya narodnogo khozyaystva SSSR
na 1941 god, American Council of. Learned Societies Reprints,
Russian Series no 30, Appendix 267, p. 547.
Planovoye khozyaystvo, no 1, 1954, P. 59.
36. Pravda, 5 Jul 50, p. 3.
Planovoye khozyaystvo, no 4, 1951, p. 48-62.
Ibid., no 1, 1954, P. 59.
37. Yugoff, A. Economic Trends in Soviet Russia, New York,
1930, P. 187-188.
Oblovatsiy, F.Ya. Ekonomika i planirovaniye sovetskoy
torgovli, Moscow, Gostorgizdat, 1949, p. 52.
Trud, 14 Nov 47, p. 2. /
Balzak, op. cit. (12, above), p. 338?
Pravda, 27 Aug 53, p. 4.
Ibid., 14 Dec 54, p. 1.
Ibid., 10 Aug 53, p. 6.
Izvestiya, 15 Dec 54, p. 1.
38. Gosudarstvennyy plan razvitiya narodno o khozyaystva SSSR
na 1941 god, op. cit. (35, above), Appehdixes 267-279,
P. 547-579.
39. Planovoye khozyaystvo, no 1, 1954, p. 65-
40. Izvestiya, 22 Mar 51-
41. Voprosy ekonomiki, no 5, 1954, P? 35.
42. Izvestiya, 30 Jun 53, p. 2.
43. Pravda, 21 Nov 50, p. 2.
44. Ibid., 19 Dec 54.
45. Katsman, op. cit. (20, above).
46. Birman, A.M. Finansy otrasley narodnogo khozyaystva SSSR,
Moscow, Gosfinizdat, 1953, vol I, p. 222.
47. Planovoye khozyaystvo, no 4, 1951, p. 59-60.
48. Izvestiya, 15 Jul 53, p. 2.
49. Ibid.) 29 Nov 50.
50. Ibid., 30 Jun 53, p.. 2.
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51.
52.
53.
54.
5-5.
56.
57?
58.
59.
STATSPEC 60.
61
62
Izvestiya, 2 Mar 55, p. 1.
Planovoye khozyaystvo, no 5, 1950, p. 82-90.
Trud, 5 Sep 52.
Izvestiya, 1 Aug 51, p. 1.
Voprosy ekonomiki, no 5, 1954, P. 33.
Ibid., no 5, 1954, P. 33.
Ibid., no 5, 1954, P. 32-33.
Planovoye khozyaystvo, no 1, 1954, p. 66.
Lesnaya promyshlennost', 7 Oct 51.
Izvestiya, 11 Jun 53, P. 2.
63. Trud, 11 Jul 48.
64. Pravda, 28 Oct 53, p. 1-3-
65 * Voprosy ekonomiki, no 7, 1951, p. 78.
66. Ma shinostroyeniye entsiklo edicheskiy s ravochnik, op. cit.
3, above)-
67. Pravda, 22 Dec 54, p. 1.
68. Izvestiya, 11 Jun 53, p. 2.
69. Ibid., 14 May 52.
70. Trud, 6 Jun 52.
71. Izvestiya, 7 Jun 52.
72. Birman, off. cit. (46, above).
73? Pravda, 28 Oct 53, P? 1-3?
74. Izvestiya, 12 Jan'41.
75. Uranov, op. cit. (22, above). p. 47-49.
76. Pravda, 28 Oct 53, P. 1-3-
77 * Baykov, op. cit. (1, above), p. 396, Table 64.
78. Izvesti aa, 4 Feb 55, p. 4-5.
79. Ibid., 11 Feb 55, p. 2.
80. Ibid., 2 Mar 55, P. 1.
81. Pravda, 25 Jan 55, p. 2-3-
82 * Ibid., 28 Oct 53, p. 1-3-
83 . Voprosy ekonomiki, no 5, 1954; P? 33.
84. Pravda, 15 Dec 5 4,, p. 1.
85. Izvestiya, 29 Nov 50.
86. Ibid., 4 Feb 55, p. 4-5.
87. Ibid., 11 Feb 55, p. 2.
88. Kypriyanov, A. Podokhodnyy nalog c romyslovoyy kooperatsii,
Moscow, Gosfinizdat, 1954, p. 71, 74Y 77, and 50.
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89. Slovar'-s ravochnik po sotsial'no-ekonomicheskoyy statistike,
Moscow,, Gosplanizdat, 1948, p. 79-
90. Trud, 6 Jun 52.
91. Voznesenskiy, N. Economic Results of the USSR in 1940 and
the National Economic Development for 1941, Moscow, Foreign
Languages Publishing House, 1941, p. 14.
92. Izvestiya, 17 Apr 51.
93. Voznesenskiy, op. cit. (91, above).
94. Gosudarstvennyy plan razvitiya narodnogo khozyaystva SSSR
na 1941 god, op. cit. (35, above), Appendix 30, p. 1b7-
95. Pravda, 2 Aug 53, p. 4.
96. Ibid.
97. Ibid.
98. Voznesenskiy, op. cit. (91, above).
99. Ibid.
STATSPEC Pravda, 6 Oct 52, p. 2-9.
100.
Ibid., 31 Jan 54.
Planovoye khozyaystvo, no
1951,
p. 49.
101.
Ibid.
102.
Pravda, 6 Oct 52, p. 2-9.
STATSPEC
103.
Voznesenskiy, op. cit. (91, above).
104.
Ibid.
105. Ibid.
106. Izvestiya, 29 Nov 51, p. 1.
107. Planovoye khozyaystvo, no 2, 1953-
108. Soviet News. Five Year Plan for the Rehabilitation and
Development of the National Economy of the USSR, 194b-50,
London, 194b., p. b-103-
log. Pravda, 15 Jul 51.
110. P anovoye khozyaystvo, no 4, 1951, p. 49.
111. Ibid.
112. Pravda, 15 Jul 51. STATSPEC
113. Ibid.. 21 Jan 55.
114.
115, Pravda, 15 Dec 54
116. Ibid., 22 Dec 54.
117. id.
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