JPRS ID: 8649 USSR REPORT ECONOMIC AFFAIRS

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000100090008-3
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 35
• Document Creation Date: November 1, 2016
• Sequence Number: 8
• Content Type: REPORTS

APPROVE~ FOR RELEASE: 2007/02/OS: CIA-R~P82-00850R0009 00090008-3
I ~

6 SEPTEM6ER i979 CFOUO 9l79) i OF i
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~
~OR UM'~'ICIAL US~ UNLY
� JPRS L/8649 ~
6 September 1979
I~~SR Re ort
p
ECONOMIC AFFAIRS
~
. (FOUO 9/79)
~
FB~$ FOREIGN BROADCAST INFORMATION SERVICE
FOR OFFICiAL USE ONLY
(
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
NOTE
JPIt5 publications contain information primarily from foreign
newspapers, periodic~ls ~nd bo~ks, bue alsn from news agency
transmissions and brn~dcasCs. M~terials from foreign-l~nguage
sources are trgn~lated; those frnm ~ngli~h-l~ngugge sources
are transcribed ar reprinC~d, with the origin~l phrasing and
other characCerisCics reCained.
Headlines, edirorial r~ports, and material enclosed in brackets
(j are supplied by JpR5. Proc.essing indicaCors such as [Text)
or [~xcerptJ in the firsC line of each iCem, or following the
last line of a brie�, indicaCe how the nrigin~l information was
processed. Where no processing indicaCor is given, rhe infor- _
mation was eummarized or exCracted.
Unfamiliar names rendered phonetically or translieerated are
enclosed in parenCheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses we~e not clear in the
original but have been supplied as appropriate in conCext.
Other unattributed parenthetical notes within the body of an
item originate with th~ source. Times within items are as
given by source.
The conCents o: this publication in no way represene the poli-
::ies, views or attitudes of the U.S. Government.
For f:?rther information on report content
call (703) 351-2938 (economicl; 34G8
(political, sociological, military); 2726
(lire sciences); 2725 (physical sciences). -
COYYRICHT LAWS AND REGULaTIONS GOVERNINC OWNERSHIP OF
MATERIALS REPRODL'CED HEREI~I REQUIRE T}WT DISSEMINATION
OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE 0~1LY.
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
- FOR OFF7CrAL USE ONLY
JPRS L/8649
- 6 September 1979
USSR REPORT
ECONOMIC AFFAIRS �
(FOUO 9/79) -
CONT~NTS PAGE
W~ys of
Increasing the Efficiency of Capital Investments
(T. Khachaturov; VOPROSY EKONONIIIQ, Jul 79) 1
~ Structural Reserves for the Saving of Primary Raw Material Resources
_ (Sh. Rozenfel~d; VOPRO5Y EKONOMIKI, Jul 79) 19
' a - [III - U5SR - 3 FOUOJ
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~'OR Ok'~TCIAL USE ONI,X
:
~ WAY5 OF INCREA5ING THE EFFICIENCY OF CAPITAL INVESTMENxS
Moscow VOPROSY EKONOMIKI in Russian No 7, Jul 79 pp 120-132
[Article by Academician T. KhachaCurov]
[Text] In publishing this article, the editorial office
opens the discussion on the questions dealt with in it
and invites authors Co send in articles w~th their
- recommend$tions for increasing the effectiveness of
capi.tal investments and improving capital construction.
The quesCions of improving the capital construcCion in the USSR are of great
importance to the national economy and go far bey4nd the confines of th~
construction industry. This is ex~Iained first by the fact that by way of -
capital construction one carries out the expanded reproduction of fixed
assets, which determines both the increase in the country's production poten-
tial and the increase in the volume of output produced, and the i.ncrease in
the degree of satsifying the public and personal needs of Soviet citizens.
Secondly, the increase in capital construction requires greater and greater
� material, labor, and f inancial resources. The chief source of capital in-
vestments is the national income, the part of that income which is being -
accumulated. Part of the capital investments are carried our at the expense
of the recovery fund. The benefit derived from these funds occurs after a
more or less prolonged period of time that is necessary for the planning of
capital investments, the designing of construction projects, and the con-
struction and assimilation of the capacities to be created. Thirdly, the
growing scope of coizstruction, with its tremendous importance at the stage
~ of mature socialism and the creation of the material-technical base of
� communist society, poses with a greater and greater degree of acuity the
questions of increasing the effectiveness of capital investments.
Capital investments have been increasing with every passing year. In 1978
they constituted 129 billion rubles and were 14 percent more ttian in 1975,
that is, during those three years they increased by 4.5 percent a year. The
activation of fixed assets in 1978 achieved 120 billion rubles and exceeded by _
13.6 percent the 1975 level. During a period of eight years from 1971 throug:i
1978, inclusive, capital investments constituted 862 billion rubles, or
1
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOR Ok'FICTAL USE ANLX
~lmost half the toCnl ~nvearmenCs duxing Che years o~ the SovieC author~.tyi
(1833 billion rubl.es), and the act~vaeion o~ fixed assets dsring ehp same
p~riod came to 799 billion rubles, ox 4:i percent of the activation between
191g and 1978 (1692 billion rublea).
,
~ In order to c~rry out capiCal construct3on on auch a ecope, the naCional
' economy allocated a considerable parti of the national income for accumulation.
' The share of accumulation in r.he national income was equal in 1977 to 26.4
percent.
Tl~c overwhelming pnrt of capiCal investmenCs more than 71 percent is
ci~anneled ir~eo our producCion sphere, and Che remainder into housing
construct�ion (15 percent), the construction of insCituCions o� science,
culeure, art, and national education (more than 5 percent), as well as
~ public healCh, communal econamy, and other pro~ects (8 percene). As a
~ result of ttie investments, there has also been a subsCantial increase in
the production and nonproducCion funds in the national economy.
In 1971--1978 Che fixed producCion assets increased by 89 percent and constituted ~
1006 billion rubles as of the end of 1978, These figures characterize the
increase in the country~s production potential. The capacities that were
~ acrivated at electric~power stations during 1971-1978 are equal to 41 percent _
of the existing capacities as of the end of 1978. In oCher branches, the
capacities activated during the same period achieved the following, in respect
to the volume of production in 1978: for iron ore, 70 percent; fertili2ers,
53; synthetic resins and plastics, 45; turbines, 35; motor vehicles, 54;
tfres, 37; tractors, 29; and cement, 24 percent. Thus, for aLl the
types of output that were indicated above, the capacities activated during the
past eight years constituted a considerable paxt of the existing capacities
or volumes of production.
~apital investments for the individual branches of the naCional economy
increased rather unevenly, as can be seen from the data in T~ble 1.
T}~ere was a rapid increase in Che capital investments in agriculture and
the construction industry; this corresponds to the necessity of overcoming
the lag in the development of these two important branches. There was a
considerable increase in the capital exp~nditures for transportation and com-
munication (excluding railroad Cransport, which, with regard to growth rates,
occupies the next-to-last place in th~ table). Capital investments in the
Group B industry, the construction of institutions of science, culture, art,
e~~ication, and housing construction are growing more slowly than in the other
b anches of the national economy.
A positive factor in the dynamics of the capital investments in the production
sphere is the increase ir? the proportion of the expenditures for the remodel-
ing, expansion, and technical re-equipping of the existing enterprises in the
, overall volume of capital investments in industry, which is attes~ed to by
the figures in Table 2.
2
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~'Olt OFFICYAL USE ON~X
TAble 1
Incrense in capital inv~sCm~nts (in percenCages w~.th respece to 1960)
I 1965 I IPIQ I 1075 ~r. I 1~7,~.
1 Bcero no Hapon~+oHy' :(03fiACTBy 136 195 273 296
~2; CIpOM61W11CNHOCTb . , , . . . . 139 192 271 297
3 ~PYnn~ Rps . . . . . . . . 142 19~ ?i8 :307
~pynne ~Ei, . . . . . . . 118 19J 224 244
~ l:enecKOe xoist~lr7oo li3 25'1 417 450.
TpaHCnopr N ce~~b( nce A~+aw) . 1"~i I~J~ ~t?'1 337
~ }KG'Ie3H0A0r~~SKHW11 rpancnopr 126 IRR 219 237
CrpoNrene~ia~ ?+nnycTp?i~ , 127 256 375 ~li
}KN+1Hl1(NOC CTpO{ITCAhCTBO 102 14: 173 181
H8YK8, Ky.1bT}'n8, Nl'Ky'CCT90 N Ofi� -
pa~oeaHee , . . . . . . . . l44 185 ~46 264
, Key: 1. Tol�al for nationnl economy 9. Housing construcCion
2. IndusCry 10. Science, culture, ttrC, and
3. Group A educaCion
4. Group B 11. 1965
5. Agriculture 12. 1970
6. Transportation and communi- 13. 1975
cation (all types) 14. 1977
7. Railroad transportation
8. Construction industry
During the past 50 years there have been progressive changes in the
structure of capital investments by types of operaCions, which can be seen
from the random data for individual five-year plans, as cited in Table 3.
The share of capital investments in construction-and-installation operations,
which are conventionally called "passive," has been decreasing since the
First Five-Year Plan, and the share of the "active" part, that is, invest-
ments in equipment, tools, and stock, which are directly used in the produc-
Cion of output, has been steadily increasing. This is explained only par-
tially by the increase in the prices of machinery and equipment, but for
the most part reflects their improvement, increased complexity, and the -
increase in productivity.
~
During the 1971-1978 period, as a res~lt of capital investments, the nonpro-
duction assets increased by 62 percent and, as of the end of 1978, constituted
532 billion rubles. During ttiose years, I8 million new apartments were
built, providing housing for 65 million persons. We activated 24,000
general-educational schools with accommodations for 12 million students,
hospital insti.tutions with 540,000 beds, and 63,000 retail-trade enterprises.
There was a noticeable expansion in the cammunal ecnnomy.
3
FOR OFFICIAL USE OIVLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~41t O~FICIAL USE ONLX
Table 2 -
_ Capit~l 3nvest~te~tts i.n exisCing enterprises (in percentages with
respect to the volume o~ cap~.tal investmenta in lndusCry)
~ 11 I 1 I I(15)
ia;o ~esa iyro isrs t971 n
(1) &ero no o6beKYa+~ npoH~�
roacTeeHHOro N8]H84CHNf1 55 dl 58 68 69
B ToM 4HCne
~ 3JIEK7p03NEp1'CTNK9 . 20 28 20 32 3A
YI'O11bH8N fipONEIW:I~HHOCTb 6'1 i I 85 i8 77
~ KepHaa MerannyprNa 63 61 60 73 82
~6 XMMNVlCNaA N HCtQTCXNMH4C�
cxaA npoMwwneHHOCTe 52 46 4b 63 65
~7~ M8111HHOCTpOCHHC N NflT8AJ10�
o6pe6oTKa il 76 63 71 T6
TIpONNI1f.1CHHOCTb CTpONTtlib�
nax xarept+anoe 41 51 50 64 67
(q) JlerxaA npon+wwneHHOCrb 52 46 ~ 40 61 fi8
(10) n~esaa npoMdwneeaocrb b2 65 66 7Z 73
Key: 1. Total for pro~ects destined 10. Food industry ~
for producrion use 11. 1960 `
2, Including 12. 1965
3. Electric-power engineering 13. 1970
~i. Coal industry 14. 1975
5. Ferrous metallurgy 15. 1977
6. Chemical and petrochzmical
industry
7. Machine building and metal-
working
8. Building-materials industry
9. Light industry
_ 'I'h~ expansioti of rhe country's production potenCial and the rise in the
level of the national standard of living are the prerequisites for the rise
in the national income, which increased by 45 percent during 1971-1978 (from
290 billion rubles in 1970 to 422 billion rubles in 1978).
T'espite the tremendous importance of the construction-industry complex in
:~ssuring the expanded reproduction, its percentage as part of the branches
the Soviet national economy is not large. The total number of persons
employed in the construction industry in 1977 reached 10.9 million, including
8.1 million in construction~and-installation operations. The number of con-
struction workers constitutes less than 12 percent of the total number of
persons employed in material production. Capital investments in the con-
struction industry in 1977 exceeded 3.9 percent of the total amount of invest-
ments. Fixed production assets in construction by the end of 1977 constituted
43 billion rubes, or only 3 percent of the country's fixed assets (4.6 percent
of the fixed production assets) . ~
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
i
FOR OFFICIAL USE ONLX
Table 3
~
5CrucCure n� capiral inveatiments ~ox sCaCe and cooperaCive enterpx3ses
and orgnnizatinns (excluding ko~.khozes, ~n percentagea o� total)
' ctppr� oaovrAO� Ftpovue K..
TlJI~NO� ~~HNl~ NM� ~NflA?HW!
~ MOIfT~Mt� CTDYMlIIT paborei N
� ~ ~ Nw~ p~6o� N NH~lH� ~~Tp~TY
' *M Tipb
~883 ~9~2 ( bo, `
1 Ilepean naTNnerKa . . . . .
~ Btopae nAT~+.ierKa 77 17, 6
4ereepraa n~ri~nerKa , 59 34 7
BOCbMdA flATNlICTKB . . . . , 51 � ~0 ~ '9' '
g � AlSAT2A ItATN.1CTK~ 50 4~
r g~ 1976 roA . ; : � � ~ � ~ � 46 45 10
t 7 1977 rolt . . . . . . . 45
Key: 1. lst Five-Year Plan 8. Construction-and-installation
2. 2nd Five-Year Plan operations ~
3. 4th Five-Xear P11n 9. Equipment, tools, and sCock
4. 8th Five-Year Plan 10. Other capital operations and
5. 9th Five-Year Plan expenditures _
6. 1976
7. 1977
During 1970-1977 there was a considerable increase in the quantity of
construction machines and machinery: excavators, from 103,000 to 153,000;
scrapers, from 29,000 to 44,000; bulldozers, from 102,000 to 158,000;
traveling cranes, from 119,000 to 190,000. That made it possible to increase
labor productivity in the construction-and-installation operations and ta
reduce the percentage of workers engaged in manual labor. Despite the
increase in the mechanization of construction operations, its level continues
to be insufficient. This pertains especially to the labor-intensive finishing
operations, and to operations linked with the remodeling and expansion under
conditions of existing production, when it is impossible to employ heavy,
powerful earth-digging and construction machines. It must be kept in mind
that the volume of operations involved in remodeling, as its share in capital
investments increases, will grow more and more. The low level of inechaniza-
tion also explains the fact that, as compared with industry, the individual
output per worker in construction is 6,9C0 rubles, as compared with 7,400
rubles of net output per worker each year in industry. TY?e number of persons
employed in construction in the USSR is twice as large as in the United
5tates (in 1977, 5.2 million persons), with the approximately i~entical
volume of capital investments.
In addition to the construction industry, the construction--industry complex
also includes the branches of industry that provide construction with
materials and equipment the building-materials industry, the timber and �
5
FOR OFFICIAL USE ONI,Y
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOR OFFICIAL US~ ONLX
wond-processing .Cndustry, m~chine bu~,lding and meeal~working, and ferrous
merallurgy. The~~e branChes pxov~.de consrxuction with materials, sCructurals, '
~ nnd parts, technulogical equipment to be inatalled ae enCerprises ChaC are
~rnder construction or thae ar~ Co be remodeled, conseruction equipmenC and
machinery, technic~l-sanitation, electrical, nnd other equipmenC. With a
consideration of this facC, Che percentage of capi~al invesCmenta in the
entire construction-industry complex in the overall total of capitial
investments is approximately one and a hnlf times greater Chan in Che
construction industry.
'i'he dar~7 provided concerning the capiCal investments, pXoduction asseCs,
and tt~e aceivation of c~pACities atCest to Che large achievements in capiCal
construc~ion, However, this success could be much greater if there had been
complere implementation of rhe measures stipulaCed in the decisions of the
24th and 25tti CPSU Congresses, the maCer~:als pertaining to the Plenums of
rhe CPSU Central Committee, and the decrees of Che CPSU Central CommiCtee and
ttie USSR Council of Ministers that were aimed at eliminating the shortcomings
existing in capital construction.
The unused capabilities are attested to, first of all, by er?~~ fact that the
country's national income is increasing more slowly than the capital invest-
ments are growing. The produced national iacome, in prices that are actually
in effect, increased during 1971-1978 by an average of 4.7 percent a year,
with an average annual incre~se of 5.7 percent in the capitnl investments.
Tn the past, the ratio between Che growth of national income and capital in-
vestments was more favorable. For example, from 1961 through 1969, the
natiot~al income increased by an average of 6.9 percene, t1iaC is, at a
rate that was 1.5 times faster than in 1971-1918, while capital investments
increased by 6.5 percent a year more slowly than. the national income.
Inasmuch as the national income recently has been growing more slowly than
rf~e capiral investments, there has been a reduction in the return on invest-
ments. National income, in terms of a single ruble of fixed production
assets, in 1970 was 55 kopecks, and in 1978, 42 kopecks. Correspondingly the
a~sets-intensity of the national income, that is, the fixed production assets
per ruble of national income, increased from 1.�S3 rubles in 1971~ to 2.40
rubles in 1978. This attests to the fact that, during recent years, there
has developed an undesirable assets-intensify type of reproduction in the
national economy of the USSR.
The increase in the assets-intensity of production, in and of itsAlf, does
not yet attest to the reduction in the effectiveness of production. The
in~:rease in assets-iutensity and capital-intensity can compensate itself
b�, ehe reduction in the production costs. That me~~ns that the increase (or
decrease) in effectiveness is influenced by the entire course of production,
by all its qualitatLve indices. The reduction of production costs is
influenced by the increase in labor productivity, the reduction in the
material expenditures, and the improvement in the use of equipment.
However, in recent years the reduction in the production costs has slowed
6
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOI~ U~k'~C~AI, USE ONLX
down, and in cextain brt~ncties the pxoducr~,on coaCa have ~ncreased~ Let us
consider the relarionship between the cap~.Ca1 investments tn indus~ry And
the reduction in Che expend~.Cures for the production of the commerc3al
outpu~ of indusCry.
- Table 4
Capital investnients and the reduction of the product3on cost~
in indusCry
I 1960/n I 19tid F. I t90 r! I 199,r. I 19710r~
(Z) Banoaas~ nponyHU~+a npoatbiwneHHOCrt~ r ~
conocrao~~Hwx ueuax Ha I.I.1967 r, (a
Mnpq, p}�6,) , 153,8 153,6 a49,2 500.0 553,7
(2) Li~MeHeHac aatpar iia py6nb Toeapt+of~ npo�
AYKUNN npo~iu w.9fHHOCTN (n npoucHrax
K npeA~Ay?uetiiy roty; e conocrae~i~~wx
ueiiax) . , . , . . , . . . . . -l,8 -0,8 -l,0 -0~7 -0,3
(3) CH~i~e~if~c aaTpar Ha eccb oGtic~~ npun.yK�
u?~ti npon+~w.~enFiocTN (e a+.~pu. pyd.? . 2,8 2~~ 3,5 3~5 1,7
(4) Kan~~tanbH~e ono~ncuE~A B f1pOMbIIU:ICl1-
� HOCTb ~6 Hnpu� p)'6.; B COOOCTi1BNMW%
uetiax) , , . . . . , . , . . . 14,3 21,3 28,0 38,9 42~7
(5) OTHOWOHNC K8f111T811bHbIX D110N(fHHfl K CHN� 5,1 IU,6 g,p 11,1 25,1
~cettHb aarpat (rouw) . . . . . .
J ~ '
1
~ Key: l. Gross output of industry in 6. 1960
comparable prices as of 1 7. 1966
January 1977 (in billions of 8. 1970
rubles) 9. 1975
, 2. ~hange in expenditures per 10. 1977
ruble of commercial out~ut
of industry (in percentages
as compared with preceding
year; in comparable prices)
3. Reduction in expenditures -
for entire volume of output
of industry (in billions
of rubles)
4. Capital investments in
industry (in billions or
rubles; in comparable prices)
5. Relationsh~p of capital
investments to reduction
in expenditures (years) _
- The ac~nual capital investments in industry, which constitute more than 35
percent of the total investments in the national economy, and which are, to
a considerable degree, channeled into the expansion of production and the
introduction of new technology, are supposed to lead to a reduction in the
; expenditures for the production of output. It can be seen from the table that
7
- FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
k'OR OF~ICIAL USE ONLY
, �
L�his clocs occur, UuC it does so unevenly~ k'ox example, in 1960 the expendi-
tures per t'uble of commerci.Al output dropped by 1.8 percent, but in 1966, by
0.8 percent; i.n 1~7q, by 1 percent; and in 1977, by 0,3 percent. Correspondingly,
~he :~aving of exptndi~ures per ruble o~ commercial ouCput 3n 1960 const:Ltuted ,
one-fifth of rhe capital investments in industry; in 1966, approximately one- '
tenCh; in 1970, one-eighth; and in 197~, ~ust one-twenty-fifth, that is, the
rep~ymenC period was equal to 25 years. Tt can be seen from the Cable Chat,
with the sCead.y increase in cap:ital investments, their repa}nnent periods can
be decreased if provision is made ~or a~reater reducCion in the expenditures
p~r ruUle of commercill ourpue. I~ is easy to show (as will be mentioned
- later on) Chat a considerab].e reduction in the expendiCures both oE live and
p,asr labor is completely possible as a result of using the exisCing reserves.
In ol�her branches of the national economy, one observes absolutely no
re~uction in Che production costs. Tn agricttlture, producrion costs are
growing both on sovkhozes and on kolkhozes. In transportaCion, especially
- rciil rransportation, one ~bserves a tendency toward the increase in the
sl~ipmenr cos~s. There has also been an increase in production costs in con-
strucrion. Consequently, the capital investments as a resulr of a reduction
in the production costs have not been repaying themselves t~ere.
The causes of the increase in the assets-inCensity ot output both in industry
and in construction can be objective or subjective. The ob~ective causes
inclt.ide firGt of a].l the worsening of the quality of raw materials and the
i.ncrease in the price of obta:Lning ttiem. The best deposits of raw materials
that were used during the years of the first five-year plans have been, to _
a considerable degree, worked out (the petroleum of Baku, Groznyy, Emba,
and other old areas, the iron ore in Gora Magnitnaya, the coal from a number
of deposits in the rloscow Basin and the Donbass, the timber in the Northwest,
eec.). And yet the needs for raw materials have been increasing as a result
c~f the substaneial increase in production. Therefore it is necessary to use
?nore remore raw-material source~, raw materials with a lesser conrent of the _
h._~neficia]. component. During recent years the capital-intensity of the country's
Euel-and-energy complex rose by 17 percent, with the raise for the fuel
indu~rry being ~0 pe~rcent, and that for the petroleum-drilling industry, 44
percerit (see VOPRO5Y ~KONOM:LKI, No 3, 1979, pp 22, 23). One can expect a
�urt}:er increase in the capital-intensity of the fuel-and-energy complex over
tne long run too. Titanium-magnetite and other ores with a relatively low
iron content require concentration. The specific capital ir~~estments per ~
ton of increase in production of commercial iron ore increased from 47
rubles in 1961-1965 to 70 rubles in 1971-1975, that is, by a factor of
alm~~st 1.5. That tendency will apparently continue in the future.
'The increase in the capital-intensity of production is promoted by the
- stii~ts in the placement of industry, and its rapid development in the eastern
areas. This is leading to an increase in the shipping distances.
Construc~ion costs are also increasing considerably in the nera areas. Heze,
as a rule, it is necessary to create a number of concomitant branches, to
develop power engineering, to construct electrical-transmission lines, roads,
8
FOR OF~'ICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOR OFFICIAL USE~ONLY
repair enterpxises, h~us~ng, maes~cu~.tuxal entexpr~.aes, and many other
pro~ects. A11 this cons~.derab~.y ~,ncxeases the expenditures and cannot
repay itsel� unCil subsequent7.y, as the new terr~.toriea are asai.milated.
The increase in ehe asseCs~:Lntens~ty~ and cap~.tal~intensity of production
can occur as a consequence o~ the crowding out of manual labor and its
replacement by machinery, mechanized labor~ a~ occura~ ~or example, in
agriculture and construction. Without Che introduction of machinery, the
increase in production would be 3mpossible. The increase resulCing in
Assets-intensity fran a11 Chese cauaes is ~ustiPied and is prugreseive.
As the production of output 3ncreasea, the increase in assets-intensity is
replaced by a decrease in it.
A negaCive effect is exerted upon Che economic indicea by the fact that
labor producCivity is lagg3ng behind the i~aerease in the capital-labor �
ratio. This is attested to by the~following comparisons for 1971-1977.
Table 5
Po~rS~oH� P~~~p~�
aoeoopy� nisoaH�
�(lHHOCTH TCAbNOC~II
rpvaa rpyaa
_ (1) Rpo~~~wneHHOCrb . . , , -~56 -}-�14
2 CenbcKOe xo3A~lcTeo . . . . -}~91 -}-24
~3~ if(ene3NOdopofitiwEt rpaec�
nopr , . . . . . . . -r39 -f-22
~4'~ CTPOHTf.1bCiEiO . . . ~ , -~-69 -}-3~
Key: 1. Industry 5. Incre~se in the capiCal-labor
2. Agriculture ratio
3. Rail transportation 6. Increase in labor productivity
4. Construction
The extent to which the increase in labor productivity is lagging
behind etie increase in the capital-labor ratio is especially
great in agriculture, ttie technical base ot which requires considerable
intensification. But in construction and rail transportation also Che
gaps between these indices are extremely substantial.
The increase in the capital-labor ratio a value index can depend to
a certain degree upon the change in prices of equipment and machinery.
Therefore it is more dPSirable to compare the increase in labor productivity~
not only with the capital-labor ratio, but also with the technical-labor
ratio of labor, for example, with the electrical-labor ratio, power-labor
ratio, machinery-labor ratio, etc. It is typical that in industry the
increase in labor productivity is outdistancing the increase in electrical-
labor ratio. These figures constitute respectively 44 and 33 percent. In
agriculture, and also in rail transportation, the situation is different.
In agriculture the power-labor ratio increased from 1970 to 1977 by 77
percent; in rail transportation the labor productivity is considerabJ.y less
than the growth in the electrical--labor rat3o.
9
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~'Oit dF~ICf.AL US~' ONLY -
l~~wever, the i.ncre~s~ i.n l~bor pxoduc~~,Vi.ty ~1so infl~aenced by ~~ceor~
nther than the t~chnic~L~l~bo~ rxtJ,o t Ch~ ~tnprovemer?t in the oxganiz~t~.nn
nf pt�oductidn; tl?~ ~peci~liz~tion nnd Poxmatidn o� coop~~aeive~; ehe incr~age `
tn ~hc ~irafici~ncy l~vpl o~ the workere~ and the providing o� material ~nd
~~qyr.hological inCeneive~ Por th~m. These factorg can ac~outtt for no lee~
th~~n one-third of ihe increg~e in l~bdr productivi,ty~ Apparently th~ir
influence is gtill in~uff icihnt if the laber productivity noe only f~i1g en
~row tci prapnrtion to the incr~ase in tihe capi~al-labor. ratin, but al~o -
considerably lags behind it. ~C is n~c~agary Co acCiv~~e ~11 thp indicatpd
r~~serves for ir?cre~sing the l~bor produc:Civiry~ -
C.~rtors of great importnnce for aCCel~raeing ehe incre~ge in labor pruducCiv~.Cy
would be the scientific organization of
labor; the Ganpression o� the work
~f~~y; ~1nd the r~le~sing of excess workere. IC is typical that with regntd
ta the labor prnductiviey of Ch~ basic production workers, machine-Cool
operators, b1a~r-furnacp workers, etc., the U55R standg on the level of the
most adv~nCed countrles, but the large number nf auxiliary and roainten~nee
pcrsonncl lead~ to ~ reducCion in the finul indices of labor productiviry.
on~ of ttie objective causeg for the increase in ehe asseta-intengity of
production lieg in the every increesing expenditures to protecC Che environ-
ment. Durir_g the current five-year plan these expenditures in the state _
l~udg~t alone will amount to 11 billion rubles ~nd, with the passnge of time,
thev will incre~yse. The total figure rcoresenting Che expenditures for
tt~c protertion of th~ environment even now is considerably greater th~n ehe
iig~~re indicated above. IC is also necessary to take into consideration the
t~ct tt~ar the assets-intensity in the broad sense the assets-inteneity
~~f c.t~e tiatiottal income is increasing also ae a result of the expenditurea
(~r t}~e development of the infrastructure and the services sphere, for the
'7rrease in the comfort factor in housing, and other measures aimed at
i^;~~roving the living conditions of the Soviet citizens.
~ nc~~ re~nsidered ob,jective c3uses for the increase in the assets-intensity of
~~r~~_?uction should be carefully analyzed, and one ahould develop methods for
th p.~rtial or complete elimination of the negative consequences that arise.
~ut ar the s~~ne time measures that are even more necessary are those involved
1~; ~~1Sninating the subjective causes for the increase in assets-intenaity, _
whi~}~ depend upon shortcomings in the work performed by people. They
;nclude first of. all the instability of the capital-investmen~s plan.
1)espite the 28 ~tay 1969 decree of the CPSU Central Committee and the USSR
~~'~~uncil of Ministers concerning the improvenent of the planning of
~:.;~itzl construction and the providing of incentives for constructton
;�~oduction, the five-year plan has not yet become the basic planning document
~~a: directs the entire course of capital construction in the country.
rre~~~ently the annual capital-investments plans are also adjusted and
ceftned. The introduction of numerous changes has a detrimental effect
~ipon t}~e entire course of construction.
.~toreover, there has been a failure to fulfill the impertant instruction in the
same decree concerning the concentration of funds at the decisive projects,
prtmarily those that are scheduled for activation in the next planning
10
FOR OFFICIAL U5E ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~
~OIt U~'F'IC1AL U5~ ONLY
perind, The p~,nn c:onti.nue~ Cn ~.nc~,ude an exce~e~,vely laxg~ quant~,ty a�
- >>ro~ect~ bei.ng eimultaneou~ly aun~txuct~d. Tht~ is e e~CuaCion Ch~C le~de to
thc progre~~iv~ di~eipe~eion o~ eh~ cap~r.a1 ~.~vnetmeriCe. 7'he numbgr of
production pro~~c~g alone that are included ~n tt~~ pia~~ ie 250,000-260~000.
- tf ane Compa~es that Pigure wtth the num6er o! cc~estrucCion worker~
~mploy~d in th~ Canetructiati oP producCi~a projectn (approximat~ly 4 millinn),
~ th~ gvc~rage number of work~r~ per production pro~ect in only 15-16. it id
np,:pg~ary tio analyz~ and gtudy th~ reasan~ why such ma~or ~:ad gen~rally
~ knbwn ~hd1�ecomi.ngs an ehe in~sec~bili ty of eh~ plans and ehpir frequ~nC .
re-examin~eions, Che dis~ipation of capital inv~etmpneg, and ehe poor qu~lity
~ ef operA*,iong havp not yet 'bepn el3minaCed despitp Ch~ gt~p~ that are being
tuken.
- mh~ r~~ult ~f eh~ dis~ipa~i~n of ~apital �Lnve~t~n~ne~ i8 eh~ dr~gging ou~ of
th~ ronstruction ppriod~. IC Cakes ~n ~xce~~ively long period of time for
, congtructing pro3e~tg, and th~ acCuai periodg of time r~quired for congtruc-
tion con:~iderably ~xceed the ~pprov~d notme~ Ie eak~~ 5-10 yeerg or mor~
to cnnstruct large-5C81~ industri~l pro~ecte, and 3-4 yeare to congtruct
~ medium-sized one~. This is coneifl~erably more than the construction times
in th~ Unie~d Seat~s and other developed counerieg, where large-acal~
enterprisea in ferrous metallurgy are ~Leatrd in perioda up to 24 monChg,
and enterpr3se~ in mQ~t of the other branchee, within a year. There are
currently excesgively long periods required ~or ttre planning of praj~ctg.
0�ten this takea 2-3 years or more, and t'ae time required for the technical
. and economic ~ssimilaCinn of the introduced production ~apacities. As a
result, ~ohen a new or remodeled enterpriae begin~ to operate at full capacity,
it proves to be already obgolete frnm a technical point of view. And thig is
notsurpri~ing, tgking into cansideration the modern rates of scientific-
technicnl progress.
Unfortunately, one cannot agree with certain statements that have appeared
in the press to the effect that in recent years the construction periods have
accelerated. The existing data does not permit us to come to that conclusion.
'fhe opposite tendency is attested to by the increase in uncompleted construc-
tion from 69 percent of the annual volume of capital investmentg in 1965
to 73 percent in 1970, 75 percent in 1975, and 85 percent in 1977. Mor~over,
for projects destined for pro~uction uae the uncompleted construction is even
greater, and in individual branches of industry electric-power engineering,
coal, ferrous metallurgy, chemical and petrochemical industry it subatan-
tially surpasses the annual volume of capital investments.
In order to put the volumea of construcCion into cottfonoity with the capacities
of the construction organizations and to assure that they are not assigned
work programs that they are unable to implement, it is necessary to determine
those capacities and their possible increase over the course of the year. There
should be no discrepancies such as those that were reported in the article
by chief of the Main Econaaic-Planning Adminiatration of the USSR Miniatry
of Construction, A. Yakovlev (see Ya. Yakovlev, "How to Develop an Expertment,"
PRAVDA, 25 March 1979), when an increase of 13.7 percent in the annual volume
of contractual operations was planned at USSR Minatroy; 14.9 percent at
11 .
FOR OFFICIAL U5E ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~dR O~~ICIAL US~ ONLY
Minpt~omserdy; ~nd t~oxe th~n ~0 p~xeent i.n ~nd~.Yi.du~1 Consexu~tidn gubdi-
vi~ions, d~p~ndi.n~ upon r~yons. xn ord~r tio fu~.f~il tihese ~.ncr~ae~d work
volum~~, ie is nece~~ary ~o bring in approxim~tely 150~000 worker~ ~nd
crente dn~w 75 lorge�scale conetruct3on trusts, end thie i~ unr@alietir.
'The aC~~l~ration of ~ongeruceion~ with a curtailment oP tihe uncrnnpleC~d
r~n~truceion, eo a l~rg~ ~xeend depende upon inc~~asing eh~ r~sponsibility
~nd zr~ating the ~~lf~-ine~r~stedn~~g oP th~ coneeruceion org~nizationg in
turntn~ ov~r eompl~t~ly ~ompi~e~d pro~eces on deadlin~ or ah~ad of d~adl3n~.
in ehis in~tance the eon~trurtion work~rg mu~e be p~id bonuse~ from eh~ ~
s~ving ehac the cu~tom~r d~riveg from eh~ pree~rm handin~ over of th~ pro~~ct.
At ~he game tim~ it ig npcessary to puC an ~nd complet@ly to the o1d ~ygt~m
of financin~ thp contra~tore for the fu1Pi11m~ne of a volume of operations
by grag~s; thig i~ad~ eo the~.r self-ineer~st~dneg~ in eh~ primary execution
of eh~ "rrofit~ble" nperatidn~ and Chp dragging oue of the "unFrofitabl~"
dneg, and, in ~h~ final analy~is~ to th~ incr~ag~ in uncompl~t~d ~on~truetion.
With this sygtem the ca~+ital-investmenC~ plan ig fulfill~d but th~ pl~n for
h~nding pro~ectg over fer op~r~tion ig not fulfil~~d. The chang~ov~r to ~
sygtem of having the rugCOm~rg make ~~t~lem~nt~ with th~ contr~ctorg for
th~ projects ehat h~ve b~~n cumplet~d and handed over i~ provided for in
~h~ pr~vionsly m~ntion~d d~cr~e of the CPSU Centra~ Commitee~ and ch~ USSR ,
Council of Mini~C~rg, but it ha~ not b~en compl~t~ly carried nut, p~:tly
b~enuge of ehe ghorrage of Working eapital ar the contrecting organiz~tiong.
In recent years the posirive experi~nc~ of thp Ministry of Co7~truction,
Beldrussign 5SR, is b~coming increasingly Wid~~pread. 'fhe broad introduction
of th~t experience mak~~ it pogeiblp ta acc~l~raC~ congtruction and
activ~tior~ of proj~cts. As in industry, th~ g~ttl~ment in thig in~tance ig
made fdr the commerei~l output, that is, the finish~d pro~~ctg to be
turned over "under lock and key." The inc~ntive for the contractor~ here ig
the prefit that they can obtain. If there is a ahortage of working capital,
the soncractor gets a loan at Stroybank. As a result of the adopted system,
th~re was an incrpase tn the handing over df finiah~d projects, a decr~age
in the number of pro~ects being simultaneously constructed, and a rpduction
in the volume of uncomplet~d construction. But the overall amount nf
"as~imilated" fundg decreaspd, and it is specifically according to that grosa
i:,~icator that one gtill judges the plat~ fulfillment. It i~ necessary, con-
sequently, to reject ~anpletely rhat method of evaluating thE results
of the work performed by the construction ~orkers. An experim~nt analogous
to the Belorussian one is also bcing carried out by Ministry of Construction,
Lithuanian SSR. Positive results have also been obtained there, although in
r~~e course of the exp~riment other shortcomings such as the lack of
L-ilance in planning were also ascerta~ned.
An important role in eliminating the shortcaaings in capital construction can
be played by the broader use oP long~-terca credit instead og unrepayable
budgetary planning. The changeover to the granting oP credit increases the
cuatomer's responsibility for the making of the decision concerning the con-
struction of the particular pro~ect. The f~nds obtained on credit must be
returned. This should force the custaner ta give careful substantiation for
12
FOR O~FICIAL U5E 01'LY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~OR nFFtCIAL US~ ONT~Y
the de~irability d~ ehe Gttpxt~], i,nve~tm~nts ~nd ~~~ute the @~'feCC~Y~
operation o� the edn~tructed pro~ece, wh~re~s, wl,eh budg~eaxy f~.n~ncing~ ie
is guffiaient to "~cAiev~" ehe ~ncl,u~~.on o~ th~ pxo~ecC ~.n eh~ pian and th~
a1l~cation of the �unde Co coneCrucC ~.t. B~oad applicat~,on af ].on~-t~rm
Credit i~ promoted by rhe changpover to the control of the ~conomy by way
of the gygr~m of eose-~ecountit~ production associaCione a~ r~cipipnCe of
cr~dit who ~r~ r~~poneible for 3~s ~PPecCiv~ uge ~nd prompt r~turn. Long-
term ~r~dit i~ not b~ing crnnpletely ug~d y~t. It~ ghar~ in th~ finan~ing of
capit~l inv~;~tm~ntg, although ie h~s incr~a~~d som~what during re~ent y~gr~,
cdme~ to ~ppru.�i~nately 12 pereent, and it ~hould ba brought up to 25-~0
perrent. it woui~ be deeirable eo us~ cr~dir in ehe cnnstru~eion nf e11
pra3e~tg with a repayment ~eriad of up to 9 yearg, I'r~eCie~1 life showg ue `
th~t congtru~tion proj~stg carried our on eh~ bagi~ of credit are put into
oper~tidtt an ~chpdule o~ ah~ad oP ~~hedLl~ tn a much gr~~ter degree thgn ehe
construction pro~eetg being financed by Che budg~e.
A fgctor that c~nsid~r~bly dreg~ out the work performed by the construction
workers and del~ys th~ ~ctiv~tinn of ehe projectg is the tardy ~nd incomplete
delivery of equipment, and, not infrequ~ntly, it~ ingdequ~te quality. t~ls
~ result there ~re p~riod~ of idle time in the cnur~e df ~anstruction gnd
exCessiv~ly ldng periodg af time for fh~ adjustment and assimilution of the
equipment. The gasic Trends in the Uev~lopment of the U55R National ~conomy
in 197~-19gU, which Were ~dopted by the 25th CPSU Congress, gtipulgte
increa~ing the role and respongibility of th~ enterprises i~ the mgchine-
building ministries in ctsguring che camplete delivery, installgtion, and
~~ssimilation of the equipment that ig manufactured by them. Thege tasks also
cdnfrunt the rompon~nt-supplyin~ organiza~ions in the sygtem of muteriel-
technical supply. It is neres~ary to di~continue the shipment of equipment td
machine builders "in bulk." It is neCessary to assure the opporrunity of
paying the machine builders for received equipment at two times: payment
of 70-SO percent of the value of the equipment after the delivery, with
final settlement after the installation and start-up, with the machine
bui2ders having the right to obtain bank credit for the pet~iod of time
between the partial payment ancl the final settlement.
The lagging behind of the construction operationg and Che interruptions
in the obtaining ~nd installing of equipnent lead to the formation of large
reserves of equipmenr at rhe warehouses, with a total value of several
billiott rubles. and simultaneously to the existence of empty produr.tion
areas, Which are measured in the million~ of square ~neters.
'I~iie Ca i lure to fulf ill the .zct ivation on the new cap~~cit tes ot~ schedule not
only reduces the effectivene~s of the construction itself, but also exerts
a detriziental effect upon the entire national econor~y, since the output
, that is planned to b~ obtained from che activated capacities has been
pretriously distributed in the supply plans~ and assets have been issued
for ic; tardy rechipt of output from the unactivaced capacities violates the
normal operation of the enterprises that are the holders of the assets,
digrupts [heir plans, and keeps operating like a chain reaction, affecting
other enterprises.
13 .
FOR OFFICIAL U5E ONLY ~
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~o~ or~~ct~ us~ oNLY
in the �ield n� c~,vi~. cnnBCxucti~,on~ ~~~ctpx o~ gx~at ~tnpoxeance �or ~tnproving
itd ~ntix~ organization i.~ the ~pp~.~,cat~.on o� the metihod used by the Ore1.
cnngCr~icCi,on work~r~. In conCo~caity w~eh that method~ prov~sion 3~ made for.
rr~ntin~ in t1~e ciey a~~.ng1e cus~omer~organi~ati~.on Por civil cc~netruction,
~ wlii~h cnncentr~tes in 3.c~ handt~ all th~ xelat3ons between cuetomere and
anntrnctor~. This creat~g a~lexible sy~Cem e! planning and �ulfillment
nf rhe construceion op~raCione and the maneuvering of construction machinery,
m~Cerial~, and work~r~. In addition~ the planning oQ construceion operatione
in thig ingtance is carried ouC ~n ~ccordance with a mliding plan drawn up
annu~lly for g twu-ypar perind, wieh the aim of eliminating the "all-oue
effnrt" toward Che end of the year and the cre~eion of the neceseary carr~?over
backlog for work to be done during ehe subsequent period. These methodg
ghould becom~ wid~ap~ead, buC for some unaccountable reasona Chie is not
yee b~ing ddne. ~
The r~iging of the level of organizntiott of consCruceion is promoCed by
ttie bro~d exeengion of Ctie brigade-conerace meChod, the initiaCor of which
was N. A. Zlobin. According t~ ehis method, the brigade assumes the respon-
sibility of carrying out all the operations ittvolved in the constructlon of
the project and has compl~ee disposal of the obtained funds. At the present
time a large number of collectives are operaCing according to Che Zlobin
mzthod at thousands of pro~ects. The fulfillment of consCruction operations
h~s been accelerated, a saving of many millions of rubles has been achieved,
and simultaneously the workers' earninge have increased. There are differenC
varieties of the brigade contracC, each with its own type of payment by the
~ob by deadlines for fulfilLnenr of assignments, by payment deadlinea (with
rayment of ~ri advance), etc. An important condition for the successful ap-
plication of the brigade-contract method is the continuous supplying of the
construction site with materials and equipment. Consequently, the aucceas of
t}~e meChod requires the initiatory work not only on the part of the brigade
~ollective, but also on the part of the construction-site administrators,
and, if there is any complication in the system of coordinated activities,
~t even higher economic levels.
c~nP of the major shortcomings of construction is the considerable increase
in its costs as fiompared with the original estimate sametimes by a factor
of i.5-2, or even more. The increase in construction costs can be explained
only partially by ob~ective reasons rise in prices of materials and equip-
ment. increase in wa~es. ~iore frequently the surpassing of the estimated
cost of construction is the result of sub~ective factors that are completely
amenable to elimination. When developing the estimate, both the designers
an-' the customers have a self-interestedness in assuring that the estimate
is drawn up as rigidly as possible: the designers with a view to receiving a
b~.~us, and the customers with a view to seeing that the "cheaper" pro~ect
ig fncluded more quickly in the plan. But after it has been included in
the master construction list, it is almost always necessary to reconsider
the estimate for purposes of increasing it.
An unfavorable effect is exerted upon the estimated cost of the project by
ttie long delay in the fulfillment of the construction operations: tha longer
1!~
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOIt OFFICIAL US~ ONLY
~ ehe conr~Cruce~.on C~pte, the gxeaCex ~,tis coat. MoxeoYe~~ Che cose, ae a
rule, ~ncreases progresgive],y, ~cCual,~,y~, the casC o~ consCxuction greatily
dependH upon ehe organi,zaCi.on o~ xhe conetiruction opexa~iona, upon the
prompt deliv~ery o$ everyeh~ng needed ~or conetruction.
One ouBht to re~ognize As a great om~se~.on tP?e fact that no execuCive esti- '
maCea are drawn up for us, and there ~.a no analqsie o~ the actual e~�fectiveness
of the capiCal ~.ttvestmenta. WiChout Ch~,s, it 3s innpossible to supervise the
resules of construction. There~ore iC is necessary to analyze Che coat of
the executed operatione by individual crnnponents~ ascer,taining the reasons
for the increase in cose and ident:tfying the individuals responeible for the
fnilure to take ehese factore into consideration promptly. The accep~anae~~
of ehe turned~-over construcCion pro~ect onto the cuatomer's balance sheet
ahould be done not on the baeis oP rhe approved esCimete cost, as is currently
done, but on the basis of the actual coat. The organizationa and individuals
who have allowed an overexpenditure ahould bear the responaibility for that.
Only under eheae conditions is iC poasible to improve the evaluation of the
executed construction operaCions and to prevent a sharp increase in the cost
of the pro~ects to be handed over. It would also be desirable to syatematize
the estimate prices with a conaideration of the increase in prices of
materials, srructurals, and arCiclea~ with a consideration of Che payment for
credit, changeE in the territorial placement of coustruction, the increase in
the shipping disCance, etc. It ia necessary to resolve the quesCion of the
possibility of developing consolidated pricea for individual standard
pro~ects, which would greatly facilitate the computations of the effectiveness
at the initial atage of planning of pro~ects, when their technical-economic
substantiation is being made.
It is important to re~ect completely the existing system of evaluational
indices pertaining to the work of the construction workers, proceeding from
the expendiCures of capital investments. At such time there is created
a self-interestedness on the part of the construction workers which ia
contrary to common sense and which lies in the use everywhere of expenaive and
heavy materials. And this occurs even in agricultural construction, where,
for example, prefabricated reinforced concrete is used even to construct cow
sheds. It is necessary Co create the con~truction workers' self-interestedness
in the use oP materials that are Che most effective for the particular pro~ect,
for example, brick, in the automation of th~ production of which considerable
successes have reeently been achieved (tl-.us making it possible Co effect a
sharp reduction in its production costs) and various ligfit-weight and inexpen-
sive materials and heaters, plastics, steel flooring for buildings, monolithic
reinPorced concrete, and other types of materials.
The broad application of prefabricated reinforced concrete played an important
role in achieving major successes in our capital construcCion. But this does
not mean in any way that it should be used in absolutely all types of con-
struction operations or to construction the most varied pro~ects. For
example, in the area of the Tyumen' petroleum-gas complex, under marshy
conditions with a lack of roads and an acute insufPiciency of ineans of ground
transportation, it is more desirable to employ monolithic reinforced concrete,
15
FOR OFFICIAL USE ONLY
~
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
, ~O~t d~I~"~~tAL US~ ONLY
which makes ~.C posa~.ble :.o eave ~ue1, and me~~al. Mono~,3.th~,c xe~,n~oxced
concreee obtained loca].ly can be moxe econam~.cal Chan sh~,pped~in pxe~abxi~-
cnted. Another lar,ge bene~3,t cou7.d be pxoV~ded by ~he use of var3ous
wooden structurals Cha~ have been propex].y ~npregnaCed ro proCecL� ehem from _
dearrucCion~
Progressive methoda oQ or~anizing and execut3ng planning operntions deaerve
to be more widespread. Fox examp].e, dur~.ng the conserucCion of ehe Volzhak
Automobile Plant, in many instiances, Chere was a failure to adhere Co Che
ordinary "sequenCial" procedure of carrying out the designing and construction
operations, and Che des3,gn3ng and� construction were carried out in parallel.
That provided ehe oppor~unity to reduce Che overall conatruction time and
the volumes oE the design documentation, which, unfortunately, continuea ro
. be excessively large and cumbersome,
- 5omett~ing thaC can be of greaC importance is Che execution of construction
operations by complexes, with the purpose of handing over of large-scale
combines in individual phases, ehus making it poasible ro accelerate the
return on capital investmenCs during the implementarion of each phase of the
construction operations. The elimination of the previously mentioned ahort-
comings will provide a tremendous economic benefit. If the 1978 return on in-
vt:5tments h~zd rem~ined arthe 1971 level, then wiCh the amount of fixed
production assets in 1978 1006 billion rubles the national income Chat
year would have been 552 bi~lion rubles, or 113 rubles (37 percent) more than
- that which was actually produced.
_ Capital investments that have the purpose of eliminating the ma~or loeses
in individual sectors of the national economy are providing to be highly
effective.
Here is the first example. In machine building and metal-working, every year
approximately 19 million tons of inetal waste products are produced, half
of which are shavinga.
The average efficiency of inetal in the country is 78 percent, as compared
wi*h 85 percent in the United States. One of the reasons for such a con-
siderable amount of waste products is the high share of inetal-working by
cutting, and the insufficient share of processing by means of pressure
(respectively 86 and 14 percent). The increase in the processing by means
of pressure is restrained by the small share of sheet in the production
o' rolled metal approximately 40 percent, including cold-rolled thin sheet
only 7 percent. In or~er to decrease the losses, capital investments are
r~eded for ehe development of tne production of rolled metal fram sheet and
c~~e production oP precision castings, as well as the production forge-press
r~achinery. That will make it possible within the very near future to reduce
the amount of inetal waste in machine building and metal-working by at least
2 million tons, with an annual saving of current expenses of 400 million
rubles and with Che repaying oP those expenditures within 3-4 years. .
Here is the second example. WiCh the annual shipment of trimned timber .from
16
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~OIt O~FICIAL US~ ONLY
~
Che logging siCea ~.n ~ quanti~,Cy ChaC som.~whae exceeda 300 m~llion cub~.c
meterg a yegr, a11 eypes o~ wasCe products in the rrocesqes nf eimber
opernCion, transporta~~.on, sawnt~.11 o;,eration~ and woodwork3ng conae3tute
as much as 2d0~250 million meters~ including branchee~ tiops, roote, logs
thaC eink during Ploating operaeione, and aawmill waste producte. A consider-
able pare of these wasCe products could be ueed. Tf one were to collecr -
and process only parC tihese wae~e producGe, converting them inC~ wooden
slabs, cardboard, paper~ eCc., which would requir~ capieal invesemenes in
Che correapond~.ng induserial eneerprises and trattsportaeion, one could save
more Chan 2 billion rubles nf investmenes in the cre~Cion of new capacitiea
in logging and shipping oY Cimber which would be ttecessary Che wasCe
products were not used.
And a Ch~.rd example. Tn agricultuxal producCion, ev~ry year ehere r~re losses
of a lArge quantity o~ grain, poeatoea~ vegerables, fruits, and l~~e weight
of livestock becauae oE a shortage of storage capacitiea at e1ev~Cors,
vegetable storage facilitiea, warehouses, and primary-proceasing enterprisea,
and the poor road condiCion. ComputaCions indicaCe that the capital invesC-
ments in elevators can repay themselves within 3-4 years as a resulC of the
preservation of the grain, and in vegeCable storage factliCies within an even
shorC period 1~1.5 years. It ia necessary to increase the capital inveat-
ments in the sCOrage, shipment, and primary processing of agri.cultural output
until the sufficienC titorage facilities have been created, in order to reduce
Che losses and improve the supplying oE products to the conaumers.
Analogous problems confront the other branchea. It is neceasary Co achieve
a sharp increase in the number of trailer machinery to be pulled by tractora
in agriculture, to begin to produce small tractora and other machinery for
use on private plots, to expand the production of truck trailers in order to
make better use of the tractive force of trucks, and to create more means
- of minor mechanization in construction. The elimination of this and similar
disproportion~ in individual types of technical re-equipment requires com-
paratively small capital investments, but can yield a considerable benefit
in the national economy.
This article has considered Che question of how to assure an increase in the _
return on investments, given the particular volumes of capital investments
and Cheir trends. But it is also necessary to pose the question of how to
change these trends, what it is necessary to build in order to increase the
effectiveness oP capital investments and the return on investments. This
should become the topic of special analyais~ on the basis of which one can
ascertain those branches, rayons, and pro~ects in which one should invest
the capital investments in order to achieve their greatest effectiveness.
The merits of the Soviet construction workers in expanded socialist reproduc-
tion, in the creation af our country~s production potential, in the develop-
ment of the nonpxaduction sphere, are extremely large and are generally
acknowledged. But these successes could be much greater. It is necesAary
to use the internal reserves existing in construction in order to achi.eve a
17
FOR OFFICIAL ilSE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
_
~ox nr~zcr~, us~ ornY
subetaneial ~.ncrease in Che e~~ecti,Yenesa o~ cap~,ta]. ~.nvestm~nte ~tnd the
acCiviCiea of the enC~.re ~,ndustx~,a~.~cone~xuction compJ.ex o~ rhe Soviet Union. -
~OPYRIGHT: Tzdatel~stvo "Pravd~~~' ~'Vopxosy ekonomik~.," 1979.
5075
CSO: 1820
18
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~
~
~OEt 0~'F'ICIAL US~ ONLY
1 .
STRUCTURAL RESERVES FOR THE SAVING OF PRIMARY RAW MATERIAL RESOURCES
Moscow VOPROSY EKONOMIKI in Russian No 7, Ju1 79 pp h6-74 '
/Artiicle by Sh. Rozenfel'd?
/Text7 Raw maCerial zesourees are the initial material base ~ for the
development of productive forces, and this determines ~heir importiant ~
~ role in public production. As the latter develops,the problem of how to
supply the national economy with a reliable, highly-efficien~ raw-ma~erial
and fuel-energy base acquires ever greater significance. This is explained,
on ~he one hand, by the enormous scale of raw-material and fuel consumption
and ~he continuous growth in ~he demand for them, and, on the o~her hand,
by ~he specific featiures of tihe sphere of raw-material resource extrac~ion
and production.
Our. country has crea~ed a powerful fuel-energy base which is capable of
meeting the rapidly growing demands for raw ma~erial resources. For
a majority of minerals the reserves which have been discovered are
large enough to support exploitation over an extended historical period, but
they are not limitless. The reserves of certai.n--especially high-quality--
forms of raw materials and fuel are declining in relative ~erms (calculated
in terms of supply). The natural physico-chemical properties of minerals
axe limited,and in many cas~s they do not meet new production requirements
that arise from scienCific and tectmical progress. The mining and geological,
as well as the economic conditions for the extraction of primary raw
materials and fuel are often found to be declining, and this leads to
an increase in the per unit cost for raw materials as well as for the
i'inal product. ,
In a number of cases the specific characteristics of primary raw material
resources (limited reserves, composition and physico-chemical properties,
increased mi.ning costs) result in those resources becoming a restrai.ning
factor in the developmen~ of material production. ~iowever, under the
influence of scientific and CecYmical progress there are significantly
expanding opportunities for making economic us~ of newl types of raw
materials, as~ well as low-grade raw materials, of which there arc greatier
reserves tihan there are of resources with a high mineral content;
19
FOR OFFICItiL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~OIt nF~'~CIAL US~ ONLY
i iC is becomin~ practiicable ~o wor.k r3.ch new sources of raw material
xesour.ces Zttd to ~v~racti minerals locatied ~ti ~~eati dep~hs;3 condi~ions
ax~ l~eing provided fo~ Che comprehensive u~ilizatiion of raw maCerials "
and tihe crea~ion of was~e-f~ee produe~ion. Techni.cal progress also
plays an importan~ ~ole in lowering ~he rela~ive mass of ~aw ma~erials,
and of rheir per uniC expenses and cosC.
Thus, Che developmenti of productive forces and th~ accelerarion of' scien~i~'ic
and ~echnical progress compensates for the limi~atiions charae~eris~ic
of raw ma~erial resources, and tihey c~eate ~he necessary conditions ~o
provi.de ~he country with an ~conomical raw matierial base. The realiza~ion
of thc achievemen~s of science and ~echnology in tihis sphere requires the -
implementa~ion of an ex~ensive se~ of complex measures Go improve the
sCructure of produc~ion and consumption of �uel and ~aw-maCerial resources.
As ~he r.aw-maCerial demands of produetion inerease, thexe is ever grea~er
significance ~o ~he need to improve ~he propo:tions between raw material
consump~ion volumes and ~he outiputi of finished produc~s and tio fur~her
increase the outiput o� the laCter and tio reduce the level o� raw-matierial
use (r~a~w-material intensiveness) in all public produc~ion. In sum, tihis
means an increase in tihe mass of consump~ion costs per unit of primary
raw maCerials as a result o� the in~ensificatiion of productionf i~ also
means all-possible savings in raw materials and fue1, a reducLion in
relai:ive voltime of the raw materials which are consumed, as well as of
the labor expendi~:ures and of the fixed production capi~al used to
ex~racC (or produce) and process raw ma~erials.
The implementiatiion o� a set o~' ~hese measures requires Che mobilization
of reserves in all spheres of the ec momy. We shall consider one of these
the sCrucCural reserves for saving fuel.and raw-material resources in
~he extraction and processing procedures.4 It is important to analyze
i.n which processes (production unitis) these reserves are concentrated
,1nd L-he fundamental methods for using them. An evaluation of the reserves
for savine maCerial and labor resources should, in our view, be carried
out primarily on the basis of data about the funetional structure of the
L�aca ma~erials (in its weigh~ and costi forms), as well as about the
level af labor expenditures and of fixed production capital, The
wisdom of using any given sources of reserves depends on the ~argets
which have been set.
According to our calculations, ttie total mass of raw materials and fuel
in terms of weight is made up of the followings one-half is ore
~:nd mineral non-ore (crushed stone, gravel, sand, etc.) raw materials
~or Che production of building materials (including about 40 percent for
~~:~ilding parts), more than one-third i�s for energy resources and
one-tenth is for agricultural raw materials. In terms of cosC ~h~
I~ropor~ions are differents agricultural raw materials account for less
than Chree-quarters, energy resources for one-sixCh, and ore and non-ore
raw maCerials for less than one-sixth.5 For this reason a substantial
reduction in the mass of the raw materials which are consumed requires
20
FOR OFFICIi,L USE ONLY
/
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOEt OT~'FZCTAL USC ONLY
- s~rue~ura7. cha.n~e~ ~irs~ of all 3.n ~he sphere of consCructiion and
nower en~inee~ing~ whe~e ~hree-~ou~~hs of the ~o~al weighti of raw ma~erials
and ~fuel is used. A reduc~ion in the ~o~al cos~ o� raw ma~erials is
~o,5ihle pr.imarily on ~he basis of improvemen~s in ~he produc~ion of
n~;r.icultiu~~]. r~w materials and of an increase in i~s effec~iveness.
Lar~c res~rves ~or Lhe reductiion of labo~ and capi~al expendi~ures
are also loca~ed in agricu].~ural prnduction, wh3.eh has significan~
concen~ra~ions o~ labor and ma~erial resources--nearly nine-~enths
nf tihe tio~al number of employed people and approximately 75 pereent of fixed
capitial of a11 raw-material sectors. In compar3.son with the average
indices for all o~her ~ypes of raw ma~er3.als, the labor in~ensiveness
- is 2.6-fold grea~er he while the capitial-in~ensiveness is only 10 percent ~
less. Aside from ~he objective reasons (the seasonal na~ure of ~he work,
~he influence of na~ural-climaCic conditions, e~c~), tihe high labor-
in~ensiveness of agricul~ural wo~k is explained by ~he fac~ tha~ the
technical 1eve1 is lower ~han ~hat of the extraeting industry (i.e.,
Che lack of automa~ion and the signi~icantily lower level of inechanization
and electrifica~ion of productiion processes). In the ex~racCing
industries and forestry, fuel raw ma~erials accoun~ for nearly 40 percenti
of all workers and 60 percen~ of fixEd capital. Mo�,eover, pc~roleum
production domina~es in terms of fixed capital and coal in ~erms of the
number of workers. A large proportion is. employed in logging.
Amon~ all forms of mineral resources and timber, ~he most capi~al inCen-
sivc (1.3-1.4 in comparison with the average indica~or) are petroleum
nrociuc~ion, under~round mining of coal, me~al ores and minin~-and-chemical
raw materials, while,~he indicator is 0.4-0.6 for loggi.ng and Che minin~
of mineral non-ore materials. The labor-intensiveness for extraction
Processes is highest for underground coal mining, for logging (1.7-1.8
on average), as well as for the extraction of non-ore raw materials.
It is lower for ~he mining of inetal ores and chemical raw materials
(0.6-0.8~and is Che lowest for gas and petroleum produ~tion and for
open mining of coal (0.1-0.3).
It should also be taken into account that the level of capital-intensiveness
and labor-intensiveness for the most important types of minerals is
as a rule, significantly hig her ~han in the corresponding production
units ~or Che processi.ng ot raw ma~erials: for petroleum tihe figures are
- respec~ive].y nearly 4-fold and 1.5-fold, for metal ores more than
2-fold and 1.5-2-fold, for mining ancl chemical raw materials they are �
2- and 1.5-fold. The labor-intensiveness of logging is 1.5-fold greater than
it is for wood processing. For this reason a reduction in the
capiCal and labor intensiveness of extraetion processes yields a great
effect ~ahen the calculations are made for a comparable unit of production
(in terms of cost).
- In analyzing the indicators for a group of raw maCerial produc~ion
_ units for mineral resources and wood, we see that one of the firsC-
21
FOR OFFICI~~L USE UNLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FUR Or~ICIAL US~ ONI,Y
~~rinxiLy ~asks ~.s ~o mobi7.ize ~he ~.argc rese~ves ~or ~he reduc~ion o~ �
Uo~h labor and capi~al expendi~ures for underground eoal mining. Among
o~he~: sec~ors i~ wou~.d be mos~ e~~fec~ive to reduce fixCd cap3.~a1 ~'irsti
o~f: a'Ll in the ex~rac~ion of pe~ro:leum, oxe and m3ning-and~chemical
xaw m~~erials and tio ~educe labor expenditu~es in logging and ~he ex~ractiion
non-ore raw ma~e~ials, Th3.s direcCinn and sequence for ~he lowering of
~.abor and capital expenditures wi11 ensure a relaCi.vely large ei'fecti on
Che uniC of produc~ion cos~, and consequently, a no~iceable increase in tihe
ei'Cectiveness o~ public producLion.
:Ln order ~o cte~ermine ~he me~s and me~hods for ~he ef~ective utilizaCion
n~ ra~~-ma~erial resources i~ is essen~ial ~o examine the specific condi-
~ions o~ ~11e individual. s~ages oi' a single
' ~echnological process as well as of each raw ma~erial indus~ry. The
format�ion of ~he raw ma~erials stiruc~ure begins virLual.ly at the stiage
oc ~~oio~~~~l explorations. The size of the increase in the reserves
of Pr.o~ressive types of raw ma~erials, �uel and~ consequen~ly, of
Che structure of the reserves depencls largely on the thrus~ and inCensi~y
of ~hese explorat�ions. Tncreas3ng tihe scale of these explorations and
improving tiheir Cechnical level cons~itute a top-prioriGy goal.
This applies especially Co ore raw matierials, energy resources (primarily
Pe~roleum and gas), as well as ~o a number o� raw materials which are
in short supply altihough no~ used in large amounts. As an importiant
rescrve for increasing Che nation's raw-maCerial potential ic is
advisable ~o ~aork intensively on brin~ing into production corunon mul~i-
comPonenC resources (speai~i.^ally grani~e, Uasalts and o~her raw ma~erials
cotiraining various ore elements), as well as 1ow-gradc raw ma~erials.
In the i~nmedia~e fui:ure improvements in the organization of labor and
i'ul].er utiliza~ion of available production capacities will provide
Che grca~es~ resul~s wi~hout substan~ial addi~ional investment in
the exL�ractiion of raw materials and fuel, where labor expendi~ures and
cai~iral in~ensiveness are high. Ho~aever, ~he intensification o�
m:neral resource extraction based on ~he application of new tecYmology
has decisive signiFicance for the technieal improvement of the extracting
.~~cL~rs. It is especially important Co emphasize i:his as a result of
the rapid growth in open mining o� minerals and an increase in the
depth of under~round mining. With Che open metihod of mining there is
an opportuni~y to creaCe powerful complexes (metallurgical enterprises,
~lectric power p1anCs and others ) with the mo st favorable conditions for
:he or~anization o� waste-free production. And special machinery and
~nui.Tmetit systems must be created for these complexes. As the
~lep~h of mining increases, it is more and more important to nave
automaLed mining and to creaCe the conditions for mining without
the use of people, i.e., Co eliminai:e underground labor. However, it
should be taken inCo accoun~ Chat the scale of Che minin~ intensification
and its effec~iveness are limited by the size of capiCal investments.
Also, in a number of cases the application of new equipment provides
only a partial result--the lowering of labor-intensiveness. For this reason
22
FOR OFFICIE,L USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
FOR OFI~'ICIAL USE ONLY
iC ca.n bc: expec~ed Cha~ in ~he ex~rac~3.on sphere ~he ~rea~esti e�fect
wi11 come i'rom ~he more comple~e ex~rac~ion of na~ural resou~ces from
~he ear~h. This wil~. also pxovide savings of �ixed c~pi~a1 and an increase
in rhe real rese~ves of ra~a ma~erials.
Tn order ~o reduce the re~.a~ive mass of the raw ma~erials consumed, ~ha~
is, ~o increase the e~fectiveness of ~heir utilizatiion, ~here musC be
fur~her improvemen~ in the quali~atiive composi~ion of raw matierials and -
in~ensificaCion of ~he processes ~or working ~hem. In recenC decades--
under the influence of scientific and ~echnical progress--~here have Ueen
subs~an~ial changes in the qualita~ive composi~ion of ~he raw ma~erials
consumed. This has been seen in the broad use of petrochemica]. raw
ma~erials a~~er thc production of polymer materia7.s first sCartied;
in a sharp increase in ~he consump~ion of non-ore raw matierials as a
resul~ o~ ~he broad developmen~ of ~he production of reinfoxced concrete
c~ns~ruc~ion par~s and in ~he reduc~ion in amoun~ o~ brick clays used
~o produce less effec~ive produc~s; in a significan~ reduc~ion in
wood consump~ion as wood is being displaced by other raw matierials;
in ~he rapid increase in gas and pe~roleum consumption resulCing from
~he ~asifica~ion of the economy and the increased demands of a11
bra.nches of ~he natiional economy for diesel fuel. -
There has also been a subs~antial change in the ra~io beCween the _
volumes of initial raw ma~erials ccnsumed (including agricultiur.al),
ancl energy resources on ~he one hand, and o� processed items of labor
on the oCher hand (as a result of using in produc~ion raw ma~erials
which were f'ormerly consumed i.n an unworked form). Accordin~ to our
approxima~e calculaCions, ~his ra~io was 2:3 in 1950 and 1:4 in 1975.
Changes o� ~his kind have been observed most clearly in ~he processi.ng
of agricultural raw materials~~ and in ~he fields of energy and construc-
tion. For example, the development of a number of branches of the
food industry (mixed feed, but~er and cheese maki.ng, mi1k~ fruit and
vegetable industry and o~hers).resulted in new-raw material resources
being brou~hC into production, and the fraction of agricultural
raw materials bein~ processed incrn~asedfrom 40 percent in 1959 to
55 percent in 1975. More than one-~hird of the total volume
of fuel and energy resources is used for the produc~ion of elec~~ieal
and ~hermal energy. Most of the coal and nearly all of the ore raw
ma~erials are subjected to an enrichi.ng process. A majori~y of the
mosC important non-ore raw materials are used to malce buildin~ materials,
while i.n Che early fifties these raw materials were sen~ directly to
construction sites where ~hey were used, as a rule, in tmprocessed form.
Improvements in the met:hods for processing raw materials and intermediate
products have manifested themselves in ~he broad utiiliza~ion of oil, wood
and other materials to procluce high-quality items based on ~ulti-
sta~e technology; in a significant increase in the proportion of
high-grade petroleum products; in the expansion of the fourth conversion
23
FOR OFFICIr,L USE ONLY
r
~
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
f~'~Ct U~~'tCIAL tJS~ dNLY
in metallur~y, ~ec. A~ Ch~ ~~tne tiime iC is, as b~fo~e, ~xtiremcly
imrorCant ~d improve tihe pr~~~ssrs fnr ~nrichin~ ~~w m~~~rials and
to mece ~11 of tihe demands of tihe eonswning industiries for tihe p~epar~d
r~r~r111C~.
Ar~~l, t'ir~~~1'ly, ~h~ ci'f~ceiv~n~ss of t;hc raw maCerf~ls stiru~~ure depends
~t~ i.n si.hni~ira.nti me~surc (and in ~ number of c~ses mainly) on Che qualitiy
~ nf tihe finished pr~ductis nbtiuined �rnm tih~ ~aw ma~~rials and on Ch~
de~;t'ec Co which ~h~ raw maC~rials a~e utiilized, For ~xampl~, Che ~~~aC
dcm,v~d for mce~l nre:,~ ~nd ~specially for non-m~tialli.f~rous raw maCerials
f:; r~us~ct by Che produeCion scai~ for me~al and precasti reinforced
concietie,by the in~d~quaC~ qualitiatiive eompositiion of Che lat~er ~nd
by the relatiiv~ly low utiilizatiion fa~Cor fo~ meCals, etc. In partiicular,
ehr. hi~her average c:onsumptiion of primary raw matierials per uniti of finish~d
rrodurC in our cnunCry as compar~d wiCh the USA can be explained tio a
sirnificanti de~~ec by dif�erences in tihe qualitiatiive composieion o� con-
strucei.on m~tierial~~ ~o~ example, U.S. outputi of for~sC~y producGs
inclt~des a hi~her proporCion of paper and cardboard, and U.S. produetion
of Cerrous mee~ls includes more sheet metial and economiaal sections, eCc.,
i,e., producCs which require more processing and a lower per uniC volume
af raw ma~erials.
Ovr ~srimaCes show t1~aC the use of non-metialliferous raw materials or
hindit~~; materi~ls of improved qualitiy provides a 10-20 percent savings
~f r.7w materials. Changing the type o� construction materials by
pra~iucin~; more ecor.omic~l fo~ms--those wiCh fmproved qualiCies of stren~th,
, d~ir.~bility, e~c. or light-weight types--make it possible to reduce
r.t~~ mass of initial raw matcrials for various types of inetals from
, l~-2U up r.o 40 percent, and to make a 2-fold Co 3-~old reduction for
rc~r~:;t:r~~ction parts based on non-meCallfferous raw materials. The mass
of raw m~terials consumed is lowered still further when metals or
pro~i~ir_r.s from non-metaliiferous raw materials (and the latter to a
t;reater dcPr.ce) are replaced by polymer materials and light metals.
~~i~niticant effecC can also be obCained from the complete utilizaCion
of raw naCerials, wastes, secondary resources and from a reduction in
chc raw-matierial consumption per uniC of ouCpuC of the desired quality.
As a ri~le, fuller utilizatiion of raw materials is more economical than
minin~; more of the material. With compleCe processin~ petrochemical raw
~1~rL'1~ZS can be 60-70 percent utilized (in terms of weight) instead of
_'0 percent utilized when only one componenC of this raw material is
~r.ocessed. The complete utilization of aluminum raw materials contribuCes
.n a reducCion in the mini.ng of a number of other raw mat~rials. The
of inetallureical slag and ashes from thermal power stations for
the m;inufacture of cor,strucCion maCerials makes it possible to save nat
- only natural raw matier~ials, but also fuel. Further, in comparison with the
production of goods from naCural raw maCerials, current expenditures are
reciuced by 10-20 percent and the volume of capital investment by 35-SO
percent.
21~
FOEi O~FICIAL L'SE UNLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
f~'tlEt U~~tC 1 AL U5~ ONLY
producGinn w~sties, which n~~en ambun~ ~d ~he ~~~a~~~ p~r~ ~~'eh~ C~tial masg nf'
r~w m~~eri~.l~ cdnsumed ar~ simil~~1~ imporC~n~. ~o~ ~xampl~, in maehine buiYdin~
~.nd meCal workin~ Chey ~~c~un~ for 25 p~rcen~ arid in produ~~inn unitg
which use ~'orese producti~ Che fi~ure i~ 20 p~~C~nti. In certiafn p~odue~idn
unir.~ ehe ii~;ure~ ~r~ mueh hf~hpr (f~~ example, in tihe ~u~niCur~ indu~Cry
Lhc~ !'iCu~c is more ~h~n 60 pe~c~nC). When rr~e w~sCes ~re used ~s
3ccdnd~ry resources in Ch~ ~o~~~tiry indusery and in r~ilw~y tir~nsp~rta~ion
tihe ~avin~s (ca7.culatied per cubic meter of wood) tiotalt 0.9 man/days
in i~bnr, 1G rubles in m~nufaceurin~ ~osCs ~d 62 xuble~ in capitial
invesem~ne.
'~he m~in metihnds tio ~urtih~r r~duce r~a-matierial intensiv~ness in
various produceion seceors nre noe identiical. Tn Che construc~ion m~Cerials
indusery, improvemenes in qualitiatiiv~ cdmposieion pl~y a decisive rola.
As tihe data show, tihe improved compo~itifon and qualiCativ~ characti~ris~ics
or rolled produc~s mldc from fe~~ous meCals hav~ ~esultied in savings
ovcr rhe past 20 y~ars which have ~~ach~d 20 million ~on~f ~his, is
equal ed ~ savings of approximatiely 120-140 million ~ons of v~rious r~w
matierials which are used in metiallurgy. Improv~menCs in the qualitative
charac~eristiics of ferrous metials provide approximaCely one-ehird o~ ~he
totial savin~s of m~tial in tihe machine buildin~ industiry. The ueilication
of e�fici~nti building desi~ns and materials provides more ehan
half af Che Cotial savings of matierial expendiCures (including savings
~rom Che use o~' wasCes and savings of fuel~raw material resources
as well as from other ~ac~ors) and provides approximaCely 90 percenC
of Che possible reducCion in Che KeighC of buildin~s and other faciliCies.
The impl~men~ation of ineasures to improve Che qualitaeive compositiion
of buildine materials will make iC possible Co r~duce ~he annual consumpCion
of r~w and processed m~terials for coriserucCion by ~prroxim~e~ly 80-100
million tions by tihe end of the current five-year plan.
In the near future Che bulk of tihe savings can be expecCed from
improvanen ts in the qualiCaCive characteristics (primarily strengCh
charac~eriseics) of Che hi~hest Conna~e traditional r~aterials (ferrous
meCals, precasti reinfore~d concrete structures and oChers) and especially
from Che expansion of Che output of economical, especially li~ht-weight
~roducCs. The use of polytr,ers and liphti-weight metal~ will make
iC possible tio substantially increase the production yield from a
uniC ~f raw rr~aterial. Nowevcr, the tioeal savin~s of raw materials here
will noC be as ~reaC as in the producCion of inetals ancl reinforced
concreCe structures duc eo the relatively small ouCput volumes for polymer
maCerials. An increase in the oupt~uC of the finished producti from
forestry maCerials requires primarily Che toCal processing of thc
wood, broad utilization of ehe wastics and a signific~t increase in
Che proportion of output derived from deep processing (paper, cardboard, eCe.).
In utilizing intermediat~ products from ore raw materials, one of the main
goals conCinues to be Che systematic reducCion in mer.al scraps on
Che basis of advanced methods of inetial Korking, and iC is especially important
2y
FOR O~PICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~dit c)~~tC~AL USw; tlNLY
ro brir~~ clr,gely itt~d line ~s pnssib~.e eh~ ~o~mg ~ttd ~mdunC~
in~ermediatie rrdduCG~ ~.nd ~hc fo~ms ~nd ~meun~s ~itti~h~d ~odds.
~'~~hnic~~. imp~?~vem~n~s in eh~ p~~~e~~ fo~ en~iGhin~ ~nd inGr~a~in~ t~he
vnlume o~ prim~ry c~a~king of eh~ r~w m~~~ri~lg a~~ o~' ~r~a~ ~i~ttifiGaa~c~
~'nr tih~ lnwerin~ df tihe ambun~ nf non-mc~~llif~rous raw ma~~ri~l~ uhfeh
,~re cdn~umed.
`The above-eriWnerate~dtne4n5 and me~hods ~o~ th~ in~ensi~ie~~ion o~ ~~w
maeerial ueilf~~Lion are pareieul~rly Cim~1y in~~mu~h ~g ~t~e
cnnsum~~ion b~ ~~w m~~~~i~]s t~~~' unit ar ~~p~cifi~ ~yp~ o~ ~ini~h~ed
m~ecrfal (fo~ ~nc ~on irnn, cet^,~n~, e~~. of ~h~ same quali~y)
wi11 r~m~in pr~~ei~~lly ~e ~he ~~me 1~v~1.. A substi~tt~fal r~ducCion in
rhe r~k m~~e~i~1 ~~nsump~ion p~r tu~i~ of any giv~n produce ~equir~s
f~ind~mcne~l ch~.n~es in ~he ~~chnolo~y of produetion. In r~c~nC y~ars
ehc hc~r ~m i~ ~onsumptiian of r~w maC~rials for many producCs has changed
litelc, while ehe consumpeien of iron ore h~s ~ven ine~~as~d.
The ~'ureher reduc~ion nf fuel-ineensivenes~ in produceinn, e~peci~lly
wi~h an ener~y resource struc~ur~ uhich is chariging lieele, will r~quir~
firse of ~11 an inr:~e~se in Ghe int~nsi~icaCion of tihe processes
of fuel conswnpCinn. In pr~vious y~ars acpendi~ures for fuel wer~
reduced in si~;nific~ttti measurc ~s a r~sulti of the rapid growth in
~he cdnsump~ion df oil ~nd esp~eially of gas. In th~ fu~ur~ an
inrrcase in thc economical forms af fuel--hydrar~sources, ~heap co~ls ~nd
aeomic ~uel--will exert a similar influ~nc~, buti Che effecC will obviously
be murh less.
~'nr r.his reason one af the ur~enti ga~ls in tihe field of fucl conservation
i.s ~he utilization of L�he reserves of ~he fuel-con$umin~ indus~ries, -
es~eciatly of Che Mase energy-inti~nsive industries, through intensifi-
C.1C1Ui1 of Chc tiechn~lo~y for reducing fuel consumptiion and fuller
utiliyation of energy resources. The further reduction in the
per unit consumption of fuel and tihe inclusion on a broad scale of
ser.on~lary encrgy resources in producCion processes are of substanCial
s'.~nifi.cance. For example, Che uCilization of sECOndary resources
(wirhouC flue gases and other fuel aastes) in meCallur~y makes it
rc,ssible tio obCain an addiCional 0.12-0.14 tons of comparison fuel
calculaCed ~er tion of smelted stieel, Hhile tihe total ad3usted exper~ditiures
are otte-half Co one-Chird of what tihcy are under mining conditions
in tihc F:urapean parC of ~he USSR. There is evidence of the significance
of secondary resource utilitzatiion in the fact ChaC at ehe enCerprises
certain industries (ferrous meCallurgy, petroleum refining and �
r~achine buildin~) tihese resources may ~over from 29.7 percent to
~2.3 percenC of Che Cotal fuel demand.
At ehe same time it is important Co make more rational use of energy
resources and primarily of oil and gas, which as raw materials should be
used nainly for chemical producCion and tec}r.iological fuel in specific
industries. The significance of the mosC economical types of coal
26
~OR OF~ICInL USE ONLY
~
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~dk d~'~~f;IAL USL dNLY
i'ar tt~e prnduC~i~ti n~ e1~C~rie~1 ene~~y ig ~~owing subs~~ntii~lly,
egpe~i~lly in ~~pion~ ~there ~he ~h~~p~~ ~r~de~ df ed~l ~~e mir?ed~ Cn~l
wi11 ~an~inue ~d be ug~ed ~s bn~h an op~~atiin~ fuel in me~~llu~~y
and ~~her branches nf indus~~i~~ ~.nd p~~tily a~hemi.c~l ~~w m~~erfai.
The reducri~n in exp~ndi~u~es fo~ ~riculeur~l r~w m~ti~~ia1~ a1~o
de~~nd~ la~~~ly ~n a ~ai~in~ ~f ~he ].~vel of ~quipmenC ~.nd ~h~
r~eion~l utiiliz~~i~n ~aw m~~~~~~~ in ehe p~d~essin~ sphe~e, How~ver,
in ~~n~rngti wi~h o~h~~ ~yp~s ~f ~aw ma~~~i~l~, ~h~ main s~ructiural ~es~~ves
fnr s~vin~s in tihc sph~~e of a~ricultiu~al p~oduc~ion itisclff Chi.s
is ~he resulC ef ~he spe~ifie f~~ti~~~s of Chis prod~t~tiibn ~ttd of
ehe si~nifi~~n~ly ~~e~e~r (in ~ompari.sott wi~h tih~ indus~~ial p~oc~s~ing
~f ~hi~ raw m~C~rial) l~bor ~nd c~pi~al in~ensivene~s of a~ricul~ural
werk (t~hich 5-fold and 6-fold ~r~aC~r resp~c~iv~ly).
'The ~~~ule~ of ~h~ analysi~ of sources �or savi.ngs on r~w maCerial
and fu~l con~umpCion matce iti possibl~ Co dr~a a numbe~ of conclu~ions -
abau~ ehe m~in ~rends in tihe s~~uc~ural dynamic~ of future ~ac~ m~~~rial
Gonsump~ion ~nd ~bouG Che necessary m~asures tio imp~ove iti ~nd inc~~asc
ies efficiency. 'I'he main ~eserv~s for Chc reduc~ion o~ tihe eo~al mass
(w~ighC) df r~w m~Ccri~l ~~50UTCe5 which ~rc consumed lies in tihe sphere
of indus~rial consumpCion of m3neral non-metiallif~~ous raw ma~er.ials for
~ons~ruc~ion and of fu~l �or power engineering. The mai.n ~eserve fbr
~hc r~duc~inn of tih~ total cos~s of all raw matierials lies in tihe
subsCanCial ~row~h of labor productiivitiy in agricultiure ar?d tihe resulCing,_
dcCre~S~ of ~h~ per unit expenditures for tihe producCion of raw maCerials.
'Che most impor~anti and mosti ef�crCive ways Co mobilize these r~serves
arc tihe followings in tihe extiracting sectiors--the conpleec ex~racCion
of. r~W maL�erials and fuller recovery of Chem; in the processin~ industries--
thc compleCc u~ilization of raW materials and especially the d~velopment
ot' Productiion ~or n~W and'beCtier lighC-weight goods; in Che producCion of
~riculCural ra~r maCcrials--Che intensification of tihis producCion pri-
rnarily on the basis of a substantial increase in the agrochemicat level
of agriculCure.
These direc~ions in sr.ienCifi~ and recle~ical px.,G..~s~ wlll ~;ive rise
to a comprchensive effect in all spheres of tihe economy~ including
producCion of the final product and in distribution (in tiransportiation,
seor~~, eCc.). For tihc raw maCerial sectors the comprehensive effect
is expressed in ~ rela~ive reductiion in the demand for raw maCerial
resources, as a resulC of which thern is to a significan~ degree
(althoueh noe prc,portionally) a relative decline in the demand on the part
of Che raW material sectors boCh in the number of thosc employed and
i.n fixed capiCal. In additiion, there is practically no limiC to Che
use of these metihods, and they can be used at every stage in the further
development of the economy. The data cited above show that Che main
reserves for a relative reducCion in Che necessary mass of minerals
and timber, as Well as a decline in the demands of the minin~ industry
for Korkers and fixed capital are located in the sphere of industrial
27
FOR O~FICI~,L UtiE ONLY
~
~
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
C+dV~ttNMCiVT T1S~ tlNLY '
consumpeion ~f ~~w m~~~ri~ls and �~~~1, ~ha~ i~~ in ~he p~o~agsin~
sphere. As ~ Lu~, p~iori~y shnuld b~ ~iv~n tio tihe impl~m~n~a~inn o~
tih~se me~gures in comp~rison w3.Ch m~asures whi~h ~provfd~ a limitied,
~~ni].~~trc�~~~l ef'�CC~,7
~o~ L�h~ achievetnenti o~ a comp~ehensive effecC in ~he atCractiion and
cnns~unp~ion of ~aw ma~er.ials i~ is essentiial ~o plan a~echnical policy
;~ystiems uf ~aw-ma~e~i~l ex~rac~ion and p~dc~ssing bas~d on Che
cnmra~~.~ivic ef~ectiiven~ss o~ 3.mpxovem~n~s in tihe ~eehnnlogy o� ~aw
maecrial ex~r~ct~ion ~s wall ~s in imp~ovem~n~s of tih~ qualitia~ive
cnmrnsi~36n of ~he produc~ ~b~a3.n~d f~om iti.
R~einnaliz~eion of tihe raw-matierial bas~ Will give ris~ ~o progressive
e~ndeneies in ~h~ sC~uceural dynamics of raw-matierial resource consumptifon.
The followi.n~ ~x~nds arc ch~~actieris~ic for a11 ~roups of raw maCe~fals: 1)
an inc~~~se i.n Che absolu~e dim~nsinns of raw matie~ial d~mands as a~esul~
of tihe fur~her developmenC of produc~iv~ forc~s; 2) i.mp~ov~mentis in
~hc seructurc of intierchangeable raw matierials; 3)reductiion in the p~r
uni~ consu~tiidn o~ raw ma~erials unde~ tihe influcnee of ~echnical pro~ress
and ~he imp~nved organizatiion of production. ~ The firsti of tihese facCors
will ~ive rise ~o ~row~h and Che otiher Cwo will give rise tio a reduction
in Che Cotial volumcs of ~aW mati~rial consumption. In general, however,
the tiotal mass of necess~ry raw ma~erials will grow more slowly ~han
Chc~ volumc of goods obCained from i~ (constiructiion matierials, petiroleum
products, enereYi etic.).
'i'hc distri bu~ion of individual groups of raw materials in Cheir entire
balance can be presen~ed in this way. There will be relatively greater
~;row~h in the demands for pcCrochemical and min3ng-and-chemical raw
maLcrials and for energy resources as a result of the probable rapid
ldvance in i:hc rroductiion of plastics, chemical ferCilizers and electric~l
enc~eY. In addition~ there wi.ll be relative increases in the demand
for ore raw maCerials as a resulti of the utilization of poorer ores and
ior fuel as a resulti of Che expansion in the open minin~ of low=grade
co;~is. And, on tihe other hand, wider use of atomic fuel and hydro-
enereY in place of coal~as well as g~owCh in~economical ~ypes of
fr_xrous meCals,will lowcr dn_mands for these raw matierials. Fi.nally,
it is obvious tihati there will be an increase in ~he consumpCion of
petrochemical raw matierials as they replace o~her raw matierials, especially
*.,roocf. In ~eneral, a noCiceable increase in the proportiion of peCro-
:hemical and mining=and-chemical raw materials, as well as a
reduction in the proportion of wood, can be expecCed in the totial volumes
~f raw maeerials and �uel. The volumes of non=metalliferous raw materials
will ~row at a relatively slower pace as a result of the slackened
~ro~rth in the volumes of constructiion projects (in comparison with
industiry); this will also be due to an increase in the output of
light-weight building structures.
28
GOVERI~L~IE\'T U5E ONLY ,
~
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
.
FOR OFFICIAL US~ ONLY ~ ,
~
r
Thc u~ilixatiion of ~~ee~vas ~or savin~ ~~aw matierial ~ostis A~.80 ~QQU~.~@9
tihnL� L�h~ appropxia~n organiza~ional conditione b~ provided ir? tihe
a~aa o~ produotiion planning and managem~nti.~~~ One of th~ reasons �or
~h~ low leve~. of comprehensi.ve u~ilix~tiion of raw matierials, fue7. and
secondary ma~eriais is, in a number of eases~ a depar~mential approaoh ?
tio tihe soluCion of problems of how,ro supply ~he ~oun~ry wi~h ~aw
matierials and hoW Co Qonserve tihem, Industrial res~rves ~re de~ermined,
~ as a rule, on ~he baa3.s o� one main aomponenti (o~ a li.mi~ed number of
componpr?tis), whioh is essentiial for ~he_ esL�ablishmenti oE a na~row'!.y ~
specialized produc~ion unit. In tihe planni,ng of specialized en~erprises ~
tihe sui~abi].i.tiy o� tihe locatiion is frequen~ly deti~~m3.ned unilate~cally,
w3.tihout tiaking inCo accounti tihe effee~ of tihe pro~essing o� o~her ~aw
ma~erials, as well as ~he pxoducCion wastes. This kind of approach
largely explains the wealc material intieres~ of ,departn?entis and enterprises
in the full utiiliza~ion of resources,
Increasing tihe scientiific level of planning and stirengtiha?ing tihe coat-
accountiing metihods of managemen~ ati en~Qrprises which ext~rac~ or produce '
raw ma~erials w3.11 contribu~e a greaC deal tio the total utilization of
raw matie~Cial resources and ~he effectiiva realization of ~heir structural
reserves. Firsti of all i~ is essentiial tio have a longrrange s~atie plan
for the effec~ive u~ilization of a11 raw-mater3al resources which speeifies :
tihe order in whieh ~hey wi.ll be b~ough~ in~o productiion, Further, tihe
principle of tihe comprehensive utiiliza~ion o� raw materials must serve as ~
one of tihe mosti im~ortiant starting pointis for planning ~he natiion's
raw matierial base. This plan may be worked out on the basis of theoretical ,
and prognostiic datia on the comparative effectiivenes in ~he exploitation
of major deposi~s of raw matierials, of interchangeable primary and
secondary raw materials and tiheir wastes, as well as data on the effective-
ness of specialized and comb:��.ed producti~n units to manufacture tinished
goods from raw ma~erials.
The long-range plans must be used to wnrk out concretie plazis for the
consCruction and operation of new raW maCerial bases, raw material
combines, individual deposits, e~c. They should specify tihe volumes
of all raw materials to be ext~cacted (without dividing them into
main and by-products)~ the necessary capi~al investment~ matexial
and labor resources. At the same ~ime the depa~tments in whose jurisdiction
the deposi~s of combined raw matierials are located must be fully responsi-
~ ble for the entire plan, and tihe resul ts of their activities must be
judged by tiaking into acco~mti fulfillment of the plan for the extraction
of both the primary as well as the secondary raw maCerials. A
centralized organization ~br the u~ilizatiion of raw-material resources
� and production wastes is of first=rank significance for the newly created
tierriCorial-production complexes, especially in tihe natiion's East.
Measures for the utilization of structural reserves must be carried out
at all levels of planning and management. At the same time, it should
be taken into account that many of the ways to save raw materials,
29
FOR OFFICI/~L USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
i
~Oit 0~'~ZC~AL US~ ONLY ~
i -
and ~sp~cially ~h~ u~ilizatiion o~ tihese ~~sourc~s in ~ compxehensiv~ manner, i
ar~ inCe~s~otioria~ and inti~~regional in natiure, They are re'1a~~d ~o tihe ~
solu~ion of ma3or qu~s~ions o� ~~ehnica7. pol3oy, ~he ~conomie advisabilitiy ,
nnd Che s~quenoe in which measu~es should be implemen~ed tio conserve raw
ma~erials in vAr3,ous sectiors and rayons, as we11 as tio ques~ions of tihe
appropria~e dis~ribuCion of ~api.~~l i.r?vestim~n~s~ e~c, Fo~ ~his reason
comp~eh~nsive planning for raw ma~e~i.a~. ~~sou~ces on tihe sQal~ o~ tihe
en~i~e natiional ~conomy is of decisiv~ significance for tihe affec~ive ~
mobilizatiion o� s~rucCural ~es~rv~s for saving raw matierials.
~OOTNOTES
Y. The discussion concern3 new, extremQly promising forms of fuel (nuclear
and hydrogen fuels and various �ue1 elements)j tihe utiilizaCion of
tiens of kinds o~ ores fo~ alloying metials and �or producin~ me~al
alioy$z Ch~ use o� nepheli.nes and alunites and otihers as raw matierials
for the alumi.num industiry, in addi~ion Co tiraditional ma~erials such as '
bauxities; fund~.men~al change in ~he raw matie~ial base of chemistiryf
tihe continuous expansion in tihe variety of ~he raw matierials used ~
for tihe producCion o� building materialsf the eno~mous new role of ~
indus~rial "wasties" and, fi.nally, artiifical parent substiances from '
naCural raw ma~erials, and the significance which tih ese subs~ances
are comin~ to have ~or the fu~ure. -
2. The applicatiion of advanced methods for extiractiing useful substiances `
from the raw maCerial mass which is being mined=-methods such as ~
ore fl.o~atiion, tihe extraction o� metials from log-grade ores or of ~
chemical compounds by means of chemical reagentis, the magnetic
separatiion method, etc.--make iti economical to use poor-quality �
raw materials which would not have been considered useable before,
3. The utilization of resources from the sea bottom and sea water;
sources such as energy from the sun, wind, tides,and the Earth's
heat; the organization of min ing for minerals at great depths
(up to 15-20 km), where enormous reserves of raw materials are
are concentraCed.
4. Savings of raw matierials and fuel during transportation and s~orage
are noC considered here or at any further point in the arCicle.
i. Differences in the functional structure of raw materials in terms of
cos~ and weigh~ are caused primarily by a significant gap in the
level of labor costs and correspondingly in the costs for the
various raw ma~erials.
6. See Krapchin, I.P. "Ekonomika ispol'zovaniya vtorichnylth energoresursov '
promyshlennosti" ~he Economics nf the Utilization of Secondary ~hergy
Resources from IndusCr~7, Izdatel'stvo Nauka, 1968, p 14.
30
� FOR OFFICItiL U5E ONLY
R
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3

APPR~VED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3
~OR 0~'FICIAL USC ONLY
7, This do~s no~ app].y tic~ tihosa cases 3n which i~ is ~ssen~i~1 ~o
a~hi~v~ subs~an~fal r~~gu7.Ys in a, ~p~ci�ic axea (for ~xompla, tihe
usQ of new aqt~~ipmenti tn sha~,ply ~educu labox in~ensiveness as a
r~9u1C o~ a labox shoi~~a~~, tio improv~ labox ~ondi~i.ons o~ ~o
inerQdso quiokly tihe yield nf some raw material,, eCe,).
COPYRIGHT: Izda~el'stvo "pravda", "Voprosy ekonomiki", 197g
8543
CSO= 1820 END
~
31
FOR OFFICIAI. USE ONLY
APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000100090008-3