JPRS ID: 8678 USSR REPORT TRADE AND SERVICES

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• Content Type: REPORTS

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24 SEPT~I~ER ilT9 ~~t~lO ~ iZl~9 ~ ~ i O!~ i

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JPRS L/8678
24 September 1979
~ USSR Re ort ~
p
TRADE AND SERVICES
cFOUO 12i7s~
FBIS FOREIGN BROADCAST INFORMATION ~ERVICE
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- JPRS L/8678
24 September 1979
USSR REPORT
TRADE AND SERVICES ~
(FOUO 12/7~)
-
CONTENTS PAGE F
INDUSTr'lAL ECONOrIIC RELATIONS
F
Industrial Structure in CEMA Countries
(Ye. Vorob'yev; VOPROSY EKONOMIKI, Jul 79) 1
CONSUMER GOODS AND DOMESTIC TRADE
Penalties for iVondeliveries to Retail Trade Little-Used
~Ya. Orlov; VOPROSY EizONOMIKI, Jun 79) 15
rfAIdPOWER: LABOR, EDUCATION, DEMOGRAPHY
Book Views Manpower Distribution Under Socialism
(PROBLEMY REGULIROVANIYA PERERASPREDELENIYA RABOCHEY
SILY, 1978)............ 27
TRANSPORTATION
Chemical Industry Urged To Use Rail Transport More Effectively
(N.S. Chernyshov; KHIMICHESKAYA PROMYSHLENNOST',
No 7, 1979) 34
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TNTERNATTCNAL ~~ONOMIC R~LATIONS
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INDUSTRTAL STRUCTURE IN CEMA COUNTRIES
Mos~.:ow VOPROSYI~EKONOMIKI in Russian N~ 7, Jul 79 pp 102-110
/Axt,i~le by Ye. Vorob'yev: "The Sectorial Structure of Industry in the
~ CEMA Countries' %
/Text/ During the 30-year period of activity of CEMA ma~or socio-economic,
transformations have taken place in the nakional economy of the fraternal
countxi~s; the structure af production nas changed substantially quantita-
tively and qual~tatively. As a result of industrialization and the struc-
tural reorganization of the national economies the proporti.on of industrial
producti~n in the gross national product and the national income has in-
creased, significantly, the ciifferences by countries in the structural indi-
cators of production for ma~or sectorial blocks have been decreased appre-
ciably. Thus, whereas in 1950 in the European CEMA countries the ~~ropor-
tion of the net production of industry in the produced national income
ranged from 37 to 63 percent, now the range o~ these differences is fixed
by the figures of 47-62 percent.l -
The proportion of the production of the leading sector of industry--machine
_ building and meta].working--in the total industrial production ~f the major-
ity of CEMA countries in 1950 did not exceed 10-15 percent; now it has in-
creased to 25-34 percent. According to this most important indicator of the
structure of industrial production they have reached the level of the most
developed capitalist countries, where this proportion ranges from 25 to 37
percent. The proportion in the total industrial production of the CEMA
countries of the products of the chemical industry and a number of other
modern sectors and subsectors, which are promoting the acceleration of
scientific and technical progress, has also increased considerably. Many
subsectors of industry and types of works were created anew in these coun-
tries. By the early 196Q's a generally quite ramified industrial structure
had been formed in the ma~ority of the European CEMA countries. Therefore,
in order to clarify the current trends of its development it is often neces-
sary to use as a basis for comparison the data for 1960.
The high rate of development of the economy of the CEMA countries and t1~~e
sharply increased scale of production require the greater and greater
C~~,
I,~..
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o~~rzcz~L u~,?~ o~n:~,
involvement'tii'the f~conomic turnover of n~w economic resources--fuel, power
and raw material resources, capital investments and manpower. In a number
of European C~MA countries these resourcpe are becoming relatively tewer,
and in some of chem a tendency.toward an absolute decrease is even;~Curning
up. For example, the'production of coal and anthraciCe in Bulgar;!!a and ~
Hungary, iron ore in the GDR, Czechoslovakia and Romania ancl so c;n is de-
creasing.2 In this connection the countries have to devel~p lESS effective
, mineral depoeits, which leads to an increase of production costs.
-'i~, The problem of finding ways to use resources more efficiently, above all
by expediting scientific and technical. progresa and improving on its basis
the secCorial structure of production and the interaction of all its sub-
. divisione is becoming especially urgent under the new conditions of economic
develogment of ehe CEMA countries. The successful development of the econ-
omy and the increase of its efficiency in mar~y respects depend on the proper
combination of these strucCural links.
~The need for the rational combination and interacCion of all the productfon
subdiviaions is inereasing more and more under the conditions of the scien-
tific and technical revolution. Under iCs influence new sectors, subsec-
tora and typea of worke are emerging, the product assortment is being rapid-
1~ updaCed and enlarged, production tias, the processing method and the very
process of product3.on are being complicatea;, its interrelation with sci~nce
is intensifying and so on. Under these cor:%iiCions t~e ob3ective need for
the further i~ntensification of the international socialist division of labor
and tihe syatematic implementation of socialist economic integration is ap-
pearing more and more intensely. Integration is making it possible to use
more rationally the economic resources available in the CEMA community~ to
change the sectorimi structure of production more effectively and purpose-
�u11y and Co improve the interaction of their national economies. At the
25th party congress L. I, Brezhnev noted that "the work on implementing the
Comprehensive Program has had the result that our economic 3.nteraction has
nour already been signi�icanrly inteneified, the complemertariness of the
ec~~omies o� our countries has increased--to the great advantage of each of
ti~:em."
A:. present the solution of the fuel and power problem is of great importarice
for ttie Eurther successful development of the economy of the CEMA countries.
Speakirig aC the 31st CEMA Session, A. N. Kosygin said concerning this:
"'I'he problem o~ fuel and power is one of the mose acute problems ot eco- �
nom~c development tihroughout the world. All counCr3es are seeking to solv~
~lt by means of ~he ~.ncrease of the efficiency of energy consumpt3on and the
aubstianL�i.g1 saving of power ~cesources. The United States, for example,
~lans a decrease o� the growCh rate of energy consumption from ~.5 percent
over the past 25 years to 2 percent or less."3
In the CEr1A cnuntiri~s power engineering is being developed more rapidly than
in Lhe capi~glisC countiries. During the period from 1950 to 1977 the valume
of e~.ectiric power ger?eratiott ~.n the GDR, for example, increased near~y
5~f.o~.d, ~,n Czechnelovakia more th~n 7-�o1d, in Hungary nearly 8-fold~ in
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Polan~l and Che USSR accordingly 12- and 13-fold, in Romania 29-fold, in
Bulgaria 37'-fold and in riongolia more than 50-fold, In Great Br~tain, the
United States, France, Italy and the FRG the volume of electric power gen-
eration increased during this period by 4- to 7-fold.
Generatiou of Electric Power in the CEMA Countries and Some Capitalist
Countries During 1950-1977 (billi~ns of kWh)
1977 to
1950 1960 1970 1977 1950
' (times)
CEMA Countries
Bugaria. . . . . . . . . . . 0.8 4.7 19.5 29.7 37.1
Hungary. . . . . . . . . . . 3.0 7.6 14.5 23.4 7.8
GDR . . . . . . . . . . . . . 19.5 40.3 67.7 92.0 4.7
Cuba . . . . . . . . . . . . 4.9 7.7 1.6'~
riongolia . . . . . . . . . . 0.02 0.11 0.55 1.1 55.0
Poland . . . . . . . . . . . 9.4 29.3 64.5 109.4 11.6
Romania. . . . . . . . . . . 2.1 7.7 35.1 59.9 28.6
~
USSR . . . . . . . . . . . . 91.2 292.3 740.9 1150.1 12.6
Czechoslovakia 9.3 24.5 45.2 66.5 7.1
Developed Capitalist Countries
Great Britain. 67.2 137.0 249 289.4 4.3
_ Ztaly. . . . . . . . . . . , 24.7 56.2 117 166.5 6.8
United States. 408.4 889.5 1731 2300 S.6
" FRG . . . . . . . . . . . . . 46.2 116.0 237 326.3 7.1
France . . . . . . . . . . . 34.5 75.1 147 213.2 6.2
Japan. . . . . . . . . . . . ~~'44.9 115.0 351 533 11.9
~1977 to 1970
Sources: "Statisticheskiy yezhegodnik stran-chlenov SEV, 1971" /Statistical
Yearbook of the CEMA Member Cour.tries, 1971/, Izdatel'stvo "Statistika",
1971, p 77; "Statisticheskiye yezhegodnik stran-chlenov SEV,';1978," Izda-
tel'stvo "Statistika", 1978, p 74;_"Narodnoye khozyaystvo S~S'R v 1977 g."
/The USSR National Economy in 1977/, Izdatel'stvo "Statistika", 1978,
pp 62-63, 73-76;-"SSSR i zarubezhnyye strany posle pobedy Velikoy Oktyabr'-
skoy sotsiali~;ticheskoy revolyutsii" /The USSR and Foreign Countries After
the Victory,;~f the Great October Socialist Revolution/, Izdatel'stvo "Sta-
,:tistika", 'i970, p 70.
Until recently the rate of development of power engineering in the majority
of CEMA countries was higher than the growth rate of industrial production
as a whole. And this is quite natural. The acceleration of scientific and
, technical progress, the increase of the level of the mechanization and
- automation of production, the growth of power-consuming works, the inerease
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in the consumption of electric power in transportation, agriculture and the
household require the anticipatory development of power engineering and
first of all the generation of electric power. This requirement is also
governed by the fact that the possibility of further increasing the level
~ of labor productivity in many respects depends on the increase of the out-
put, and at the same time of the consumption of electric power, while the
increase of the latter is, in turn, a decisive factor ~f the increase of
the production volume (especially under the conditions of a shortage of
manpower).
As is known, a close correlation exists between the indicators of labor pro-
ductivity and the electric power-worker ratio. In 1977 the industrial pro- I)
duction volume in the USSR with respect to the volume of U.S. industrial
production was, for example, 80 percent, while the volume of electric power _
consumption in industry ~aas about 82 percent.4 The close correlation of
these indicators is also observed when they are compared among the CEMA
countries. The correlation of the levels of the electric power-worker ratio
in the industry of these countries is shown in the table. I~
Electr-ic Power-Worker Ratio in the Industry of the CEMA Countries
~~,,During 1960-1977 (thousands of kWh per worker)
Industrial personnel engaged Industrial workers engaged
directly in production directly in production
1960 19/0 1977 . 1960 1970 1977
Bulgaria. 3.4 9.9 13.1 4.0 11.8 15.3
Hungary 4.7 7.2 10.0 6.4 10.0 12.8
GDR*. . . . . 8.6 13.8 16.1
Mongolia. 7.1 11.7 9.0 15.2
Poland. 6.6 10.5 14.9 8.5 13.9 19.8
ltomania 3.8 9.5 12.6 4.4 10.8 13.7
USSR. 9.2 15.5 20.1 11.0 19.0 25.0
C~echos"lovakia 7.6 12.2 15.1 9.6 15.9 20.1 �
In industry and construction. ~
Source: "Statisticheskiy yezhegodnik stran-chlenov SEV, 1978," pp 47, 120,
125, 166.
T'?e cited data attest to the; rapid increase of the level of the power-worker
~~tio in the industry of the~~countries in question ard, hence, the degree
of technical equipment of production. They accord with the requirements of
the scientific and technical revolution and the effect of the objective law
of the convergence and equalization of the levels of economic development of
the socialist countries. All this gives groundG t~ consider the anticipa-
tory development of electric power engineering an objective law.
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In the so~ution of the energy problem an important place be:Longs to the
successful development of the sectors of the fuel industry. This circum-
stance stems first of all from the fact that in the CEMA countries the
preponderance of all electric power is generated at thermal electric power
stations. In 1977 the proportion of thermal electric power stations in the
total generation of electric power in Romania, the USSR and Bulgaria
reached 84-88 percent, in Czechoslovakia 93 percent, in Poland, the GDR,
Hungary and Cuba from 98 to 99 percent and in Mongolia 100 percent.5
In all the enumerated countries the fuel industry is being developed, as a
rule, sYower than all industry. And during 1971-1977 in most o� them the _
gap in the growth rate of production of the sector in question and industry
as a whole as compared with the preceding decade increased appreciably.
This trend appeared especially cle,arly in Czechoslovakia and the GDR.
`lfie slight lag in the growth rate of the production of the fuel industry
behind all i~dustrial production is not by-chance. It is governed by scien-
tific and technical progress and the introduction in production of new scien-
tiEic and teclinical achievements, which make it possible to reduce the con-
sumption of fuel per unit of production. In the USSR, for examples the con-
sumption of conventional fuel per released kWh of electric power from 1950
to 1977 decreased from 590 to 334 g, that is, by more than 43 percent. And
by 1990 it will be reduced to 310 g.6 In Bulgaria from 1960 to 1977 this
indicator decreased from 613 to 445 g, in Hungary from 589 to 402 g, in
the GDR from SI7 (1970) to 446 g, in Poland from 526 to 392 g, in Romania
from 376 (1970) to 345 g and in Czechoslovat:ia from 564 to 435 g. Ow3ng to
this the countries saved tens of millions ot' tons of fuel.
In the developed capitalist countries the unit consumption of conventional
fuel for the generation of electric power decreased rapidly only until the
early 196~0's. In subsequent years this decrease slowed ~substantially, a
convergence of the absolute values of the unit consumptions of fuel by coun-
tries occurred. In 1975 the consumption of conventional fuel on the genera-
tion of 1 kWh of electric power in Japan was 328 g, in France 333 g, in the
FRG 340 g, in the United States 370 g and in England 374 g.~ -
Iluring the period in question the structure of the fuel balance also
changed substantially in the socialist and capitalist countries. The pro-
portion of petroleum in the world consumption of basic energy resources
(in conventional units) from 195G to 1976 increased from 23.8 to 41.5 per-
cent, natural gas from 8.9 to 20 percent, while the proportion of coal, on
the contrary, decreased from 5~f.0 to 28.1 percent.8 In the CEMA countries
the proportion of petroleum in the production of energy resources in~reased
From 25.8 percent in 1960 to 38.8 percent in 1977, natural and casing-head
gas From 7.0 to 20.9 percent, V~hile the proportion of coal decreased from
64.3 to 37.7 percent.
In recent years the pattern of fuel consumption in the world has changed
radically. To a certain extent this applies to the USSR and the other CEMA
countries. The decrease of coal production in a number of CEMA countries
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is leading, of course, to the increase of its import from other fraternal
countries, which substantially increases the workload on the corresponding
extractive sectors of the J.atter. Thus, the proportion of coal and anthra-
cite imports in the total consumption of these types of fuel from 1960 to
1977 in Bulgaria increased from 0 to 96 percent, in the GDR from 75 to 95
percent, in Czechoslovakia fr�om 9 to 19 percent. The proportion of petro-
leum imports in its consumption during this period in Bulgaria increased
- from 6 to 99 percent, in Hungary from 55 to 86 percent, in Poland from 79
to 98 percent, in Romania from 0 to 38 percent. In Czechoslovakia and the
GDR it has reached nearly I00 percent.~ An analogous trend is appearing
with respecC to gas consumption.
It is important to note that in those CEMA countries, in which the produc-
~ tion of petroleum and gas is practically absent, their consumption in re-
cent years has increased considerably more rapidly than the growth of the
overall industriai production. While in the countries, where they are pro-
duced (in this case it is a matter of petroleum), either an inverse depend-
ence of the indicators occurs (Romania) or these indicators move almost in
parallel (USSR). In all the European CEMA countries the consumption of
petroleum per unit of national income has increased in past years.
Tha tendency for the indicator being analyzed to decrease in Romania is
explained, on the one hand, by the quite high growth raCe of the national
income and, on the other, by L-he relati.vely slow increase of petroleum pro-
duction, as a result of which the country began even to import it. From
1960 to 1975 the national income of Romania increased 3.8-fold, while petro-
leum production increased only 27 percent. In the USSR these indicators
increased correspondingly by 2.6- and 3.3-fold. Romania's volume of petro-
leum imports increased from 0.76 million tons in 1968 to 2.3 million tons
in 1970, S.1 million tons in 1975 and 8.8 million tons in 1977.9
Ar_;~the 32d meeting of the CEr1A Session (June 1978) the appropriate long-
t'erm goal program of cooperation, which calls for the developmenC by ~oint
efforts of a number of new and important mineral deposits, was adopted for _
het'te?- meeting the demands of the CEMA countries for fuel, power and raw
material resources. In the program much attention is devoted to Che further
involvement in the economic turnover of internal fuel, power and raw mate-
rial resources, as well as to their economical and efficient use.
In connection with the worsening of the conditions of production pf tradi-
t-ional types of fuel the need and economic expediency to develop atomic
~.ower engineering are increasing appreciably. In the CEMA countries spe-
~.ial attention is presently being devoted to this. At the 32d CEMA Session
N. Kosygin said: "The Soviet Union is prepared to give assistance in
implementing the program of construction of AES's, which is being outlined
within CEMA. The fulfillment of this program requires from us all the ac-
celerated development of ma.jor production capacities for the production of
equipment for AES's, the precise organization of multilateral cooperat~:L~n
in the corresponding sectors of industry, the pooling of the efforts-cF~the
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scientific and design collectives of our countries."10 The accelerated de-
velopmeut of atomic power engineering is leading, of course, to changes both
in the structure of the fuel and power balance and in the structure of pro-
duction.
' Consumption of Petroleum Per Ruble of National Income
in the European CEMA Countries in 196~-1975 (g).
1975 to
1960 1970 1975 1970
(percent)
Bulgaria . . . . . . . . . . . . . . . . 53 722 868 120
Hungary . . . . . . . . . . . . . . 474 632 750 119
GDR . . . . . . . . . . . . . . . . . . 124 431 545 126
Poland. . . . . . . . . . . . . . . . 58 264 307 116
Romania . . . . . . . . . . . . . . . . 1600 980 718 73
US SR . . . . . . . . . . . . . . . . . . 9 20 1020 107 0 105
Czechoslovakia . . . . . . . . . . . . . 202 550 670 122
Sources: 0. K. Rybakov,_"Metodologiya sravneniya ekonomicheskikh pokazate-
ley stran sotsializmat1'``/The Methodology of Comparing the Economic Indicators
of Socialist Countries%, Izdatel'stvo "Mysl 1968, p 180; "Statisticheskiy
yezhegodnik stran-chlenov SEV, 1976," pp 78, 349-407.
In the improvement of the sectorial structure of industry the development
of ferrous metallurgy, which is the main supplier of raw materials and mate-
rials for the leading sectoz of the processing industry--machine building
and metalworking, for construction, transportatioii and other sectors, plays
3n important role.
In the majority of CEMA countries ferrous metallurgy is being developed
more slowly than all industry. Ttiis ~hows to a considerable extent the in-
- fluence of technical progress, which is manifested above all in the im-
provement of the~design of machinery, equipment and other large-tonnage
products made of inetal, in the increase of the quality and the 9_mprovement
of the grades of inetal products themselves, in the replacement of ferrous
metals with aluminum, pl;astics, technical-grade glass and other modern
materials and in the tendency noted in recent times toward an increase of
the proportion of small-scale equip~ent and less metal-consuming products
in the overall industrial productian.
The needs of ferrous metallurgy of a number of CEMA countries for fuel and
raw materials are being met both by domestic resouxces and by the increase
of their recip.rocal deliveries. The decrease o.f the production of iron ore
in some of them is being offset by an increase of its import (moreover, the
import of~iron pellets, pig iron and ferroalloys) from the USSR. In order
to maintain the high 1eve1 of provision of the CEM[~ coun~:ries with
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metallurgical r3w materials in the future, the corresponding goal program
of cooperation calls for the joint construction in the USSR of new major
enterprises for the working of iron ore deposits. And this will enable them
to successfully develop ferrous metallurgy in the years to come.
Uneil recently in the majority of foreign CEitA countries the development of
ferrous metallurgy with resp~ct to all industry has taken place somewhat more
' rapidly than in the USSR. In the per capita production of steel some of
~ them now already are not only not lagging behind the"most developed capital-
ist countries, but at times also significantly surpass them. Thus, the
GDR according to this indicator has considerably surpassed Great Britain,
- Poland and Romania have surpas~,ed Italy and France. In the USSR more steel
is being smelted on a per capita basis than in the United States, whi].e in
Czechoslovakia considerably more steel is being smelted than in Japan and
the FRG.11
The anticipatory development of machine building and metalworking, which
provide the national economy with highly productive modern equipment and
- create favorable conditions and the prerequisites for its successful devel-
opment, is of decisive importance for further structural transformations in
the economy of the CEMA countries. This sector reacts more rapidly than ~ ~
others to the achievements of ~scientific and technical progress and has the
greatest reaction to it. In many respects it predetermines the progressive
structural shifts in the entire economy and promotes the extensive introduc-
tion of scientific and technical progress in other sectors of physical pro-
duction and the nonproductive sphere.
Under the influence oi scientific and technical progress the output of new
means of the mechanization and automation of production, the products of
the electronics and electrical equipment industry, instrument making, equip-
ment for power engineering (including atomic power~en~ineering), the chemi-
cal industry and many other modern works is increasing rapidly in this
sector.
Th^ increase of the production volume of the new advanced subsectors and .
works and the intensive intrasectorial structural shifts in machine build-
in~ and metalworking, which are being caused by technical progress, are en-
suring their priority development as compared with other sectors aiid indus-
try as a whole. The need for such,development is also dictated by the
steady increase of the degree of technical equipment of production and by
the rapid increase in the machine-worker ratio. The efforts being made by
t?ie CEMA countries on expediting the modernization and reconstruction of
operating enterprises and on the timely updating of the machinery and equip-
rent in operation in connection with the occurring decrease (under the in-
iluence of technical progress) of the term of their obsolescence are con-
ducive to this.
At the same time practice attests that as production is satiated with modern
equipment the growth rates of the production volume of machine building and
metalworking, on the one hand, and all industry, on the other, in most CEMA
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countries are gradually c~nverging. Thus, during 1961-1970 for each percent
of increase of the production volume of all industry in Hungary there was
a 1.37 percent increase of the production volume of machine building and the
metalworking industry, in the GDR--1.43 percent, Poland--1.98 percent, in
Cz'echoslovakia--1.43 percent. In 1971-1977 these indicators were equal re-
spectively to ,1.23, 1.1, 1.56 and 1.35 percent. ~
The anticipatory development of machine building and metalworking is leading
to the corresponding increase uf their proportion in the overall industrial
production. The achieved gains in the development of this sector are enabl-
~ng the CEMA co~~ntries to set new taslcs. At present the problem consists
not so much in the further increase of the proportion of this sector in the
overall industrial production as in the improvement of its intrasectorial
structure and the increase of the quali.ty of the products being produced on `
the basis of the more extensive utilization of scientific and technical
achievements.
Under the conditions of the increase of the tightness of the manpower re-
sources balance in a number of countries of the community the urgent need is
also arising to inc-rease the production volume of machinery and equipment,
means of the mechanization and automation of production for the sector.s in
which manual and poorly mechanized labor is still used in a large amount.
Such a direction in the development of machine building and metalworking is
creating a firm basis for further progressive structural shifts in all the
sectors of the national economy. It is making possible the solution of ti.he
problem of manpower resources on the basis of the further increase of the
rechnical level of production and the reduction of the proportion ot those
employed in the sectors in which it sti7.l rema~ns comparatively high.
The anticipatory development of machine building and metalworking improves
Che indicators of the efficiency of all production.. This is governed above
all by the fact that it leads to an increase of the degree of technical
equipment of all the sectors of the national economy. Machine building and
metalwerking belong, moreover, to the less capital-intensive and m.aterials-
intensive sectors of industry. The average output-capital ratio in these
sectors in 1975 exceeded, for example, the correspondi.ng in:iicators of in-
dustry as a whole in Poland by 23 percent, in the USSR by 29 percent and in -
the other European CEMA countries by 51-67 percent.
, The total material expenditures per unit of gross production (excluding
amortization)~ in these sectors in Czechoslovakia, Bulgaria and Hungary were
5-10 percent lower than in all industry, in the USSR 18 percent lower, in
the GDR 28 percent lower and in Poland 3 percent lower (including amortiza-
tion, transportation and repair services). The expenditures per unit of
fuel and electric power are even lower in these sectors. However, the ex-
_ pendirures of living labor per unit of groduction in the sector in question
are sli~htly higher than in industry as a whole. :1nd its anticipatory de-
velopment requires the additional enlistment of. manpower.
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Correlation of the Levels of the 0utput-Capital Ratio -
in Some Sectors of Industry in the CEMA Countries in 1975
. (industry as a whole--100 percent)
~d ~ ~
Sectors of industry ~ o ~ o.x
`~~f . ~ ~ ~ A ~ ~ a~i o
a~ x ~ Pa ~ ci c'~n
~
Machine building and ~ -
, metalworking. 162 151 167 92 123 129 166
Fuel industry 37 38* 22*~` 59 46** 45 55
Chemical industry 56 104 75 54 80 73 109
, Light industry. 140*** 140 141**'~ 221*'~* 191 339 111***
Food industry 229 168 236 93 188 250 224''
* ~
Mining industry.
Fuel and power industry.
Textile industry.
Sources: "Narodnoye khozyaystvo SSSR v 1975 g." /The USSR National Economy
in 1975/, Izdatel'stvo "Statistika", 1976, pp 197, 'L23, and statistical
handbooks of the other countries.
The chemical industry is also among the sectors which are expediting techni-
cal progress. Its items are capable of replacing meCal and construction
materials, natural'fur and fabrics made from wool, cotton, silk and others,
diamonds and other ultrastrong materials. Chemistry makes it possible to
develop completely new materials (including with preset properties), which
are not encountered in nature.
Wichin this sector those subsectors and types of production of it; which
most Pully realize~scientific and technical achievements and serve as ve-
hicles of technical progress in the natienal economy: for example, the pro-
duction of plastics and synthetic resin.s, synthetic ammonia, chemical
fibers, chemicals for protecting plants, detergents and many other advanced ~
types of products, are being developed most rapidly. Some of them (for
example, plastics, synthetic resins, polyethylene and copolymers of ethylene
~nd others) in the ma~ority of CEMA countries began to be produced on a more
or less large scale only in the second half of the 1960~s. ~ -
The accelerated production of new types of chemical products created favor-
able conditions and the prerequisites for the anticipatory development of
this sector as compared with all industry. During 1961-1970, the period of
the most intensive development of the chemical industry, the increase of its
production volume in the GDR took place 1.2 times more rapidly than all
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industry, in ttie USSR 1.8 times more rapidly, in Poland, Czechoslovakia,
Bulgaria, Romania and Hungary 2-3 times more rapidly. In subsequent years
_ in most of the indicated countrl.es this lead decreased slightly. During
_ 1971-1977 i.t did not exceed 1.1-1.6 times.
The rapid growth of the chemical industry in the CEMA countries enabled ~
them to draw close to the developed capitalist countries in the proporCion
of Caese products in tt~e overall indusCrial production. The proportion of
those employed h'ere with respact to the total number of industrial personnel
engaged d�~.i~ectly;in production in the European CEMA countries in 1977 ranged
from S.l ti~ 8.4 percent.12 Here the increase of the former indi_cator took
place somewhat more rapidly than the latter, which attests to the more
rapid increase of labor producti.vity in this aector. Its anticipatory de-
velopment is having a positive influence on the overall growth rate uf
labor productivity in industry and, consequently, on its production volume.
At the same time, the influence of the indicatecl structural factor on the
dynamics and level ~f the outpu~-capital ratio in industry is not ~iW~~ys
so effective. Since the products of the chemical industry are the most
capital-intensive and power-consuming (in a number of CEMA countries 1.5-2 ~
~imes greater than in all industry), its accelerated developmen~ inereases
t}ie total demand per unit for fuel and power resources and capital i_nves~-
meit ts .
In the improvement of the sectorial structure of industry of the CL'MA coun-
trj.es the change of the proportion and structure of the sectors of light and
tEie food industries is also of great importance. This is conrier_e:ed, f:trst _
oL all, with the fact that in the European CEMA countries from one-foui~th
to more than one-third, and in M4ngolia and Cuba inore than one-hal.f, oi: the
total volume of industrial production falls to them and, second, the pro-
ducts of thPSe sectors are used primarily for the imme~iate satisfaction of
the constantly increasing demand of the population, whicii under the influ-
- ence of various objective and subjective factors (the incre~se oP wages,
= financial security and others) is rapidly changing quantitatively, qualita-
tively and structurally.
The development of the sectors of light and the food i.ndustries is taking
place somewhat more slowly th~n heavy and especially the cti~mical industry.

~ Owing to this their proportion in the overall industrial production is
gradually decreasing. This process is taking place especial.ly intensively
in the countries which previously had a lower level of economic development.
The decrease oF the proportion of these sectors is also predetermined by
the fact that under the conditions of th~a scientific and technical revolu-
tion the very :;tructure of co:~sumpti.on is changing radically. In personal
consumption, for example, t'~e praportion of durable goods (televisions,
radios, refrzgerators, washing machines an~3 so on), o~hich are produced in
machine building, the electric equipment, electronics and chemical indus- -
rries, is increasing considerably. Such structura7_shifts conform to the
-requirements of scientific and technical progress.
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At the same t:ime as the decrc~ase of the proportion of the products of light
and the food industries in the overall indusL-rial production a decline in
the proportion ~f the workers employed in them is taking place. The change

_ in the number oi those employed in the sectors and their proportion in the
total number of Chose employed in industry in many respects depends on the
correlation of the local and overall growth rates of labor productivity.
In the sectors in question these rates most often lag behind the analogous
average indicaCors of industry.
The proportion of those employed in light industry is usually higher than
rhe proportion ~P its products in the overall industrial production, which
attests to the lower level of output in it of the gross production falling
to one employee. The proportion of those employed in the food industry of
the CEMA countries, on the other hand, is substantially inferior to the pro-
portion of the products of this sector in the overall industrial production.
Consequently, the output of gross production per employee in it exceeds the
corresponding indicators of all industry (in m~st CEMA countries by 1.7-2.1
times).
The level of the output-capital ratio is higher in light and t~e food indus-
tries than in industry as a whole (in a number of cauntries 1.5-~2 times
higher and more). This makes it possible to ensure the uniform increase of -
the production volume in them (as compared with other sectors) with consider-
ably less capital investments.
Considerably less expenditures of electric power and fuel are required in
order to o'otain an increase of a unit of production in the indicated sec-
tors, which attests to the feasibility of their preferential development in
the countries in which fuel and power resources are limited. It is true
that here it is necessary to take into consideration the availability of
ra~v m.~terial resources in the countries. The development of the sectors of
the food indistry, for example, to a considerable extent depends on the do-
mestic raw m,aterial base, the local natural an.d climatic conditions and the
direct~ions of agricultural development. And this should be taken into ac-
count when planning sectorial structural shifts in the economy of the
countries.
The need to ensure the rapid increase af the standard of living of the
people requires the acceleration of the development of the sectors of light
and the food industries. However, the hi.gh materials-output ratio of the
products of these sectors is decreasing the economic interest of the coun-
tries in developing them.13 What is more, some of them often give prefer-
e-.~ice to the priority development of the sectors of heavy industry (to the
d:triment of light and the food industries) even when they are forced to
_*~port fuel and raw materials in large amounts.
Studies show that the relatively lower profitability of the sectors of
light and the food industries is caused, on the one hand, by their corre-
spondingly lower degree of technical equipment and, on the other, by the
inadequate provision with the necessary raw materials (especially high
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quality raw materials). The periodic revision of prices in favor of agri-
culture, the products of which are used as raw materials in the sectors of
industry in questi.on, also has a definite negative influence on,r.heir pro-
fitability.
In light and the food industries the increase of the growth rate of labor
productivity in these sectors and the reduction oP the expenditures or~ t~e
producCion of products are of great importance for maintaining price s~_~uil-
ity. The increase of the efficlency of the production of agricultural raw
materials for these sectors of industry and their supply at stable or even ~
decreasing prices is called upon to play a significant role. ~
On the basis of tYie conducted rese~.trch it can be stated that the improvemen~.
of the sectorial structure of industry is a qu3te broad and multilevel con-
c~pt. It embraces the change in the proportions and interrelations among
the sectors not only according to the end results of pr~duction (the produc-
tion volume), but also according to its expenditures (electric power, fuel, ~
raw materials, materials and so on), as well as according to the number of
employed workers, the amount of fixed production capital and capital invest-
ments. Therefore, it is possible to solve many national economy problems
by means of the structural factor.
The diversity of problems being solved by the countries and rhe differences in
the o~iecttve conditions and possibilities available to them for this are
creating additional favorable conditions and prerequisites for further suc-
cessful progrESS along the path of their economic integration. This, in
turn, provides extensive opportunities for the increase of the efficiency
of the interaction and the adaptation of the sectorial structures of their
national economies. T4~e rational utilization oF all these potentials is one
of the most important strategic tasks of the further improvement of the
sectorial structure of production in the CEMA countries at L�he gresent
stage. ,
FOOTTIOTES
1. See "Statisticheskiy yezhegodnl.k stran-chlenov SEV, 1971" /Statistical
Yearbook of the CErtA Member Countries, 1971/, Izdatel'stvo "StaCistika",
1971, p 46; 1978, p 41.
2. See "Statisticheskiy yezhegodnik stran-chlenov SEV, 1978" /Statistical
. Yearbook o.f the CEMA Member Countries, 1978/, Izdatel'stvo "Statistika",
1978, PP 75-77.
3. EKONOMICHESKOYE SOTRUDNIC:~FSTVO STRAN-CHLENOV SEV, No 4, 1977, p 46.
4. See "Narodnoye khozyaystvo SSSR v 1977 g." /Tf:e USSR National Economy
in 1977/, Izdatel'stvo "Statistika", 1.978, p 51.
5. See "Statisticheskiy yezhegodnik stran-chlenov SEV, 1978," p 74.
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6. See "Narodnoye khozyaystvo=SSSR v 1977 g.," p 147; EKONOMICHESKOYE SO-
TRUDNICHESTVO STRAN-CHLENOV SEV, No 4, 1977, p 47.
7. See L. Nochevkina, N. Chertko, "The Seventies: Peculiarities of th~e In-
vestment Process in Developed Capitalist Countries"'::(MIROVAYA EKONOMIKA I
riEZHDUNARODNYYE OTNOSHENIYA, No 9, 1973, p 54).
8. See "Narodnoye khozyaystvo SSSR za 60 let" /The USSR National Economy
Over 60 Years/, Izdatel'stvo "Statist.ika", 1977, p 121.
~9. See "Statisticheskiy yezhegodnilc stran-chlenov SEV, 1978", pp 2'+, 25, .
76, 374.
10. EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 4, 1978, p 6.
11. The per capiCa production of steel in 1977 was: Bulgaria--294 kg, Hun-
gary--350 kg, the GDR--409 kg, Poland--S1G kg, Romania--528, the USSR--
- 566 kg, the CSSR--1,002 kg; Great Britain--369 kg, Italy--412 kg, France--
419 kg, the United States--535 kg, the FRG--654 kg, Japan--399 kg (see
"Narodnoye khozyaystvo SSSR v 1977 g.," pp 66-67).
12. See "Statisticheskiy yezhegodnik stran-chlenov SEV, 1978," pp 120, 122.
;
13. Thus, the expenditures per~`unit of raw materials and materials in light
i.ndustry, for example, in the USSR are 60 percent higher than in all indus-
try; in the food industry of most CEMA countries they are 25-40 percent
highe.r.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1979 .
7807 .
CSO: 1823
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CONSTJI~R GOODS AND AOME~TIC TRADE
,i ~ ~ ,
i;
,
PENALTIES FOR NONDELIVERIES TO RETAIL TRADE LITTLE-USED
Moscow VOPROSY ERONO~l~Q1CI in Russian No 6, Jun 79 pp 66-75
[Article by Ya. Orlov: "Economic I.evers for Trade to Influence Production"]
[Text] Given the uninterrupted gro~th in the scope and rise in the qualita-
tive level of the econo~y and increasing complexity of interbranch and intra-
branch tiea, continued improvement in managemant and adminiatration aethode
and strengthening organization and coordination in the work of all sectors
of social production are taking on increasing impoxtance. Smooth, precise
work and unconditional plan fulfillment for all indicators and ~ceting all
delivery obligations must became laW for each link of the national economy,
. including branches of industry producing conswoer goods.
Over the first three years of the five-yesr plan, real per capita incoves
increased 10.5 percent, and retail trade turnover i.ncreased 13.5 percent
during the same period, in co~parable prices. With a vie~ taWards better
meeting the effecCive consumer demand for cawmodity resources, we anticipate
substantial acceleration of the grawth rate for group "B" industry (fron
four percent this past ye3r ta 5.4 percent in 1979). State and cooperative
~ retail trade turnover this year was aet at 251 billion rubles, based on the
anticipated consumer goods resources (G..8 percent growth over last year).
Moreover, in order to~better meet the needs of the Soviet people an addi-
~ional trade turnover assignment of two billion rnbles vas outlined.
" Improvemeut in economic ties and strengthening bnsiriess interrelationships
between industry and trade are fmportant Casks whose urgencq was stressed
in resolutions of the 25th CPSU Congress and subsequent CPSU Central Co~it-
tee plenums. The business partnership betWeen ~anufacturers and trade col-
lectives pursues the single goal of providing the people With more goods
corresponding to Che ever-growing exactingness of the consumer.
L. I. Brezhn~v stxessed at the November (1978) CPSA Central.Committee Plenum
that: "Increasing the production, expanding the assortment and improving ~
the quality of consumer goods remains one of the lcey national economic tasks."
Appreciable moveu~ent forward has been observed in reaulving this task: nore
than 62,000 items have been awarded the staCe Badge oE Quality. In late 1978,
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industry was r.eleasing over two-fold as much output with that badge than at "
the starC of the five-year plan. ~ood reaulta have been achieved by enter-
prises of elecCrical engineering industry, where more Chan two-Eifths of all
the output produced has received that high evaluation. ~iore than 3,000 of
the industry's enCerprises are using a comprehensive quality control eyatnm.
Much work has been done in light industry in recent years to improve the
quality and assortmenC of goods tn great demand. The production of new gooda
(with an H index) has been increased. In the garment and footwear indusCry
alone, about half the enCire assortment has been up-dated. Many enterpriaes
of light industry consistently produce well-made output in demand among the
~ popnlation. _
The collective of the Tiraspol' Garment Factory imeni 40th Anniversary of
the IComsomol has won first place in the all-union competition for 100 quar-
ters running and more than one-four.th of iCa output is items With the Badge
of Quality. And it was these same Tiraspol' workera who were firBt in the
branch to have developed and introduced a comprehensive quality control sys-
tem. The production of items with the Badge of Quality is 20-50 percent at
the Kupavinskiy Thin-Cloth Factory, the Ralinin Worsted Combine, the K,aunas
Silk Combine imeni P. Zibertas, the "Mayak" garment productiou as~ociation
in Gor'kiy, the "Progress" fooCwear producL�ion association in L'vov, the
"Sparta" knit hosi.ery factory in Vil'nyus, and a number of other enterprises.
At the same tfine, it should be noted that many assocfations and enterpriaea
of the USSR Ministry of Light Industry have been slow to improve product qua-
lity and to master the release new models of goods in demand. In turn, the
- trade organizations are not making adequate use of economic means of in-
fluencing ind~astrial enCerprises violating agreenenCs with them as to com-
wodity assortment and supplying the trade network with poor-quality products,
obsolete fashions and styles, resulting in the frequent accumulation of un-
popular goods in warehouses and stores. The CPSU Central Committee and USSR
Council of Ministers Decree "On Steps to Further Develop Trade" E1977) notes
that interruptions in supplies of particular goods to trade are also asao-
ciated in cvnsiderable measure with the fact that many industrial enCerprises
cnntinue to produce poor-quality goods and fail to meet assortment and deli-
very schedules anticipated by agreements, and trade organizations do not make
full use of their right to apply economic sanctions for suppliers` failures
to uaeet contractual obligations. Thus, it is necessary to strengthen econo-
mic ties bet~reen industrial enterprises and trade enterpxises, to improve de-
mand studies, Co improve the substantiatiota of orders, and also to strengthen
~he influence of wholesale trade enterprie;es on industrial enterprises with
~ view towards increasing consumer goods production, up-dating and expanding
~heir assortment, and improving their quality.
As we see, the reference is to increasing the exactingness of trade, the ba-
sis of the business partnership. However, this to our m.ind indisputable
point of vie~ has recently and unexpectedly found oppori;~:~~~s who assert that
it is to the advantage`of trade ~orkers to exact fines and return goods to
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i~ , 11
manufacturers. Zs that so? {~iholesale base checks to monitor goods quality
in 1917 resulted in downgrading or returning for corrections 9.$ percent of
the fabric, 8.1 percent of Che garments, 6.2 percent of the knitwear items,
8.6 percent of the leather footi+ear checked. In the first half of 1978, the
corresponding 'figures, in percent, w~re: fabric 8.8 percent, garm~ents
7.4 percent, knit~+ear S.7 percent and leather footwear 8.6 percent.
In this regard, it must be borna in mind that re are giving average indica-
tors. A numb:~r of enterprises produce larger amounts of aubatandard goods.
For example, 323 of the 450 items ready for marketing Which Were checked were
returned for corrections at the No 2 L'vov Garment Factory of the "l~ayak"
as~ociation, and all the qen's suits were defective in that they did not
~ correspond to the approveii model (standard) in terms of materials used and
had glaring production ~'e`fects. Some 42 percent of the it~ms checked at the
Zaporozh'ye garment production association's lead enterprise Were defective.
One could not say that the Wholesale organizations are being "extraordinarily
strict" in evaluating goods. Many trade bases must reproach them for ezactly -
the opgosite: they are still not a reliable barrier to poor-quality items .
reaching the ~ustomer, do little to influenc~ industry, and do not make sub-
stantiated claims against suppliers. Many wholesale organizationa are not
coping with the not aery high assignments set as to defects and sometimPS _
accept goods perfunctorily. Thus, at the Zhitomir Wholesale-retail asso-
ciation, an inspection oF garments already checked revealed 20-60 percent
defective clothing. As checks made at. tha Rhereon base showed, one-third
of the items accepted by wholesalers Were defective, and at the Donetsk base
one-quarter. This testifias to the liberalness, and not the extraordinary
strictness, of wholesalers; one must speak rather o� increasing their respon-
sfbility for goods quality, of increasing their sanctions against unconscien-
tious manufacturers and against wholesale bases accepting goods perfunctorily.
Goods quality is also checked bq state trade inspectorates of the republic
ministries'~~,;of trade. The state trade inspectoraCe statute anticipates that
its basic ;:ask will be to check the quality of consumer goods right at in-
duatrial enterprises, bases, warehouaes, and in the field. The staCe trade
inspectorate operates in both trade and industry simultaneQUSly.
Let us restrict ouz~selves t4 cases reflecting the most drastic aeasures ap-
plied against enterprises which systema.tically supply defective goods
transfer to a special goods acceptance procedure and temporary cessation of
acceptance of their goods. These steps are taken only when almost all the
items supplied ar~ defective. Thus, i~ 1977, state trade inspecCorate or-
gans of the republic ministri.~s of trade temporarily stopped accepting items
from 431 light industry enterprises and 153 enterprises were put under spe-
cial acceptance procedures. Even iteias with the Badge of Quality do not al-
- ways pass the quality chectc: 42 percent ~f t}~ women's light overcoats were
defective at the lead enterprise of the Zaporozh'ye garment production asso-
ciation, 44.4 percent of t~e wamen's krimplen drpssen at the Gorlovskiy gar-
ment �actory and 18 percent of the men's suits at the Berdichevskiy garment
Factory. -And~~ that given the fact that state trade inspectorate workers do
not and cann~t recei~~e bonuses for discovering defects, since they are not
enterprise ~orkers and have diffezent incentives cr~teria.
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Product qualiCy is also monitored by stats inspectorate laboratories, agen-
cies of the USSR State Committee for Standards. They cannot be suspected
of partiality or of try`ing to reject more ite;ms as defective. At tha same
time, each year they exclude from report datFi~ on output produced in viola-
tion of All-Union State 5tanda;.;d requirementli and specifications tens of
millions of rubles worth of marketed output,~~and the unlawfully obtained
profit is withdrawn to the state budget.
State Standards Committee and State Arbitration Committee materials testify
to the ~ac t that factories F:ce h~ld accountable not simply for producing
substandard goods, bnt only if to blame for doing so. Before sanctions are
imposed or fines levied, appropriate organizations carefully check if the
- factory was able to produce a good product, and in a majority of cases it
was.
As is known, claims against poor quality goods are examined cn the basis of
bilateral documents, or if the producer does not agree, of state expertise
documents. The subject of dispute is, one might say, material: deviations
from standards, specifications, references, modals. Consequently, there are
no grounds for maintaining that monitors might reject any item as defective.
The existing procedure provides objectiv~ conditions for bringing charges
only against negligent producers.
Sometimes a manufacCurer will recognize a claim as to quality, but will re-
quest thaC the i.tem be returned "as mistakenly shipped" or rejected due to
"labeling." If Che customer agrees, the red tape involved in shipping the
substandard iCem and in accounting calcvlations begins, Bases, trade organi-
zations and stores must send their recollectious about indebtedness and turn
to both the city's people's control office where the enterprise is located
and ~o its superior organization. Months and sometimea years pass before
the ~ndebtedness is recompensed. This is common, unfortunately. Let us
cite the debtors of just one trade organization, Che workers' supply depart-
ment of the "Rrasitel"' production association (Rubezhnoye, Voroshiloygrad-
skaya Oblast): the Kremenchug, Kiev imeni lOth Anniversary of the Ukraine,
iCrivoy Rog, Rovno and Pervomaysk footwear factories, the VorAShilovgrad Foot-
wPar Asaociation, and others.
There is no single procedure for exacting fines for the varioue trade linka.
Let's look at the fines dpnamic.and. the use of fines in the wholesale link
of the USSR Ministry of Trade system (in millions of rublea) [page following].
.~ttention is~-called to the fact that the total fines exacted by ~holesale
crade work~?cs for poor quality of goods delivered to it has decreased, ac- ~
.:ounting for less than 13 percent. More than four-fifths of the fines are
paid by industry for failure to deliver goods. That is What claima are pri-
marily against.
Trade pays fines primarily for failing .to select goods ordered, for trans- _
port idling during loading and unloading and for failing to meet other terme
of economic contracts. Wholesale bases pay retail trade considerable firins
j
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1
1975 1976 1971 '
Wholesale `trade
received, total 275.9 312.0 298.7
- including:
for undelivered goodg 205.7 245.k 243.6
for poor quality 48.3 47.7 37.5
other fines 21.9 18.9 17.4
paid, total 98.6 105.2 107.5
including:
for undelivered goorls (and commodity 83.2 94.5 99.6
allocations not received) -
for poor quality 1.9 1.9 1.8
other fines 13.5 8.8 6.1
amount by which fines received eaceeded
fines paid, total 177.3 206.8 191.2
to the budget 168.4 1~6.5 181.6
to incentives funds 8.9 10.3 9.6
for nondelivery, failing to ~eet delivery schedul.es, poor quality of goods
sent to stores, and so forth.
Since the ffrat year of [he Ninth Five-Year Plan, wholesale organizations
transfexred to the ne~r conditions of planning and economic incentives have
put 95 percent of the difference betWeen fines received and ~,a~1d (including
default interest and forfeits) into the union republic etat~~::~udgets; five
percent has remained at the diaposal of the bases and is released to rheir
funds; one-half of these funds are rel~ased to the trade develop~ent fund
and only one-fourth can be used for ~aterial incentives to workers.
In 1977, the wholesale organizations of the 15 union republics directed 4.12
million rubles ipto traale development funds through fines, 2.38 million into
material incentives fvnds, and 2.38 million into sociocultuzal and housing
construction funds. Some 96 kopecks of the iacentive fund is spent per
wholesale trade Worker per month. ~
It should be stressed that in evaluating profit plan fulfillm~nt for aWard-
ing bonuses to snpervisory workers and spec,talists, one condition for bonus
payment is Eulfillment of the profit glan (excluded is the difference be-
tween fines received and fines paid, since the indicated sums are not anti-
cipated in the profit plans for wholesale and retail enterprises). Certain
economists hold otherwise, considering it appropriate to put the enCire dif-
ference into the state budget (including default interest and forfeits).
The following considerations are adduced to substantiate that proposal. A
store now receives one ruble of profit for selling a pair of shoes costing
20 rubLes, but it receives four rubles for returning that same pair. An-
other calculation is added to this: if a customer acquires a coat for 200
rubles, the store gains a total of 10 rubles, but if the coat is returned
to the manufacturer, the store receives 40 rubles. In this connection, let
us note that trade discount is not to be confused with store profit. The
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'
former is issued to cover trade enterprise outlays, and only a small portion
of it generates profit.. Further, when it returns gooda, a base endangers
trade turnover plan fulfillment, the indicator on ~hich bonuses for its work-
ers depend. Moreover, it bears the expenses and does not receive a market-
ing discount. In brief, such operations in pracCice promise only lossea.
- But perhaps these operations are revenue-producing for Che store? Since
1976, retail trade and public catering enterprises have put into the budget
the total amount by uhich Fines received have exceeded fines paid. The data
presented below demonstrate how that has influenced fines dynamics (in mil-
lions of rables).
~ retail trade and public catering 1975 1976 1977
. .
- fines received, total 95.5 80.8 75.7
including:
�or undelivered goods 43.8 33.7 28.1
for poor quality 44.7 42,1 37.6
others 7.0 5.0 10.0
~ Eines paid 24.5 22.7 19.8
amount by Which fines received exceeded
Fines paid 71.0 58.1 55.9
The data of the table testify to the fact that, as compared with 1975, re-
tail trade enterprises exacted 15.4 percent less in fines from suppliers in
1976 and 20.7 percent less in 1977. Less was exacted not because the fac-
tories sharply improved the qualiCy of the goods produced or met delivery
plans better, but because interest in recompensing losses incurred dropped.
Convincing testimony to the fact thaC a qualitp control check is still ne-
cessary are data on first-half 1978 rejects at the "t~oskva" department store
in Moscow, which is operated basically in partnership with.leading industrial
enterprisea of the city (in 1,0~0 rubles):
goods percent defective including
received checked checked toCal percent (1) (2) (3)
garments 35,018 20,403 58.3 1,096 5.3 ~ 373 337 386
footwear 8,407 8,407 1.00 532 6.3 126 269 137
knitwear 16,315 8,814 54.0 188 � 2.1 117 28 43
haberdashery 11,133 5,899 53.0 72 1.2 41 25 6
souvenirs 962 505 52.5 14 2.8 7 7
::~y :
1. Downgraded
2. Returned
3. Corrected on the spot
- More than 60 percent of the 127.2 million rubles ~:�~rth of goods received by
"Moskva" department store in the first half of 1978 were checked. Of the
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amount checked, 3.85 percent were re,jected. Fifty-two co~odity inspectors
constantly check goods qualiCy at the department atore; their wages total
80,00~ rubles per year. The total amount of fines receivad by the store 1n
1977 (203,900 rubles) w~as all put into the budget.
It should be emphasized that the Wages of au~ervisory workers, engineering-
technical workers and other apecialists in trade organizations do not depend
on fines exacted for failure to meet deliverp teras. Thus retail enterprise
commodity researchers inspecCing goods and monitoring their quality are
awarded bonuses for meeting monthly retail trade turnover and profit plans,
for each percentage point of trade turnover plan overfulfillment, and for
prompt, cozrect campila*_ion of commodity acceptance documenta in the abaence
of substantiated customer complaints gbout poor-quality goods. If these
terms are not met, the bonuses are paid not at all or in reduced amounts.
Wholesale organization workers are awarded bonuses for meeting the plau for
deliveries of goods to market and direct-allocation cuatomers, for overful-
�illment of the wholesale trade turnover plan and for meeting the profit plan.
~ I,Et's examine in greater deCail haw a store return~s goods to a garment fac-
tory. A department store receiving a lot of coat~ from a factory (arbitrar-
ily, S00 aC 200 rubles each) accepts them under USSR State Arbitration Com- _
mittee instructions. ~f a sample check sha~s that the lot recaived contains
coats with production defects, the sCore calls in the supplier's representa-
tive to participate in the rest of the acceptance procadure and to draW `up
a bilateral doGwnenC. If it turns out that a coat has a production defect
whiGh can be cor:~cted ouly at the factory (~hich is stated in the inspec-
tion document signed by recipient and supplier representatives), the lot is
returned Co the supplier to correct or eliminate the defects. When the manu-
facturer's representative dces not agree With the evaluation of an article,
an expert from the couanodity expertise bureau is invited in; if he confirms
that there are production defects Which can be eliminazed only at the fac-
Cory, Che lot is returned to the supplier.
Having returned the lot tc the manufacturer, the ~rade organization receivea
less than a full diacount and makas all the expendiCu~es outlined bq the es-
timate of turnover outlays: transport exgpnses to ship the goods, etore
Worker wages, overheads, which do nat change as a function of trade turnover
. plan fu1fi11menC or nonfulfillraent, as ~ell as expenses for calling in expert
inspectors snd others. Onder siach conditions, the trade turnovex plan is
generally nat met and the cashier's office does not pay the atate Bank the _
- amount oE the rejected products. In this regard, the trade organization
will have iusuffici~nt circul.a~ing capital of its own and the budget will
receive feWer deductions fro~a profit. There will also be other losses: de-
ductions to economic incen;tivea funds will decrease due to nonfulfillment of
the trade turnover and profit plans. The bulk of the workers (wfth the ex-
ception of laborers and janitors) wi11 receive no bonuses from the economic
incentives fund that month. Under exi~timg statutes, the uncalculated por-
tion of economic incentives funds is paid to the budget. At the same tiwe,
when the trade turnaver plan is not met, the store inc~irs an extension on
State Bank loans (by the amaunt of plan nonfulfillment). All this creates
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financial difficulties and leads to complications in obtaining bank loans.
In this regard, the bank imposes higher intexest rates if loana are issuad
to meet Cemporary needs (above the 2-4 per.~cent annual rates) and d~mands a
guarantee from a superior organization that the ahortage of own circulating
capital Will be made up within a certain~time period. The system of inter-
relationships bet~een trade and the budget in terms of paymenta from profit
is such that overfulfillment of the commodity circulation and profiC plan in
subsequent months cannot lead to reimbursement of a shortage of own circulat-
. ing capital genera ted in preceding months.
Thus, a retail trade organization which does not permit the sale of goods
manufactured in violation of All-Union State Standard requirements incurs
considerable losse s without being able to cover them. The indicated lossea
can be recompensed only by obtaining additional goods from other suppliera
and thus meeCing the trade turnover plan and consequently the prof it plan.
Roughly the same situation has evolved for wholesale trade organizaCions.
But how does Che customer react to product quality? He attaches much im-
pnrtance, in the case of clothing, to innovation, stylishness, fabric design
and material, workmanship things which remain at a low level, unforCunately.
One of the most impor�tant causes of poor stitching quality is failure to fol-
low the technology anticipated by the standards. Many goods not in demand
accumulate in trade due to fai.lure of part of the assortment of goods being
supplied by industry to conform to trade orders and consumer demand or of
goods quality to customer demand, and items from enterprises of the USSR
Ministry of Light Industry account for a significant proportion of them.
Through the January-August 1978 period, Crade organizations reduced prices
by more than 1.5 billion rubles. Goods worCh more than 2.9 billion rublea
were disc~unted. The average di3count exceeded 60 percent. As of 1 Janu-
ary 1979, goods discounted by nearly 1.1 billion rubles had been sold. .
Insrructions on temporary prices tor new and improved consumer goods were
approved in 1977; they outline the creation of conditiona ro interest entar-
p*.ises in up-dating goods and improvfng their quality, as well as increasinp
the producer's material responsibility for the quality of the goods produced.
U-~dsr the instructions, the anaterial incentivea fund is reduced by three per-
cent for each parcentage of output returned for finishing or correction, and
workers to blame for releasing.such goods can be deprived in full or in part
of awards paid from the maCer.ial incentives fund. The effective use of this
~ever will unquestianably increase the producer's responsibility for product
quality. ,
Tiie amount of prof it withdrawn for supplying substandard output is often iu-
aignificanC and has no subst~ntial influence on the indicators of enterpriae
economic ackivity, including deductions to funds. State Standards Cammittee
labora.tories someti~es fail to demand, as the established procedure requires,
the exclusion of rejected goods from xeports on marketing plan fulfillment.
The methods instruc tions "On the procedure for enterprises and organizations
to introduce into budget revenues the profit obtained from marketing output
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manufactured with deviations from the de~ands of standards and specifica-
kions" need refinement, since it is not always poasible to check the exe~u-
tion of a factory's instructicns on WithdraWing profit.
Improping the system of enGarprise material responsibility under economic _
contracts is an effective means of increasing induetry's res~onsibility to
trade. After the USSR Co~ancil of Hinisters Decree "On the Material Respon-
sibility of Enterprises and Organizations for Failing to Meet Assignmenta
and Obligations" was adopted, intereat in applqing economic sanction~ in-
creased. However, this task is still far from having been resolved, and the
economic substantiation of the amount of penalty sanctiona and the procedure
f_or recompensing Iossea have not been determined. Increasing the producer's
responsibility for prompt delivery and product quality requires thae effec-
tive steps be taken to snpply industrial enterprises With modern equipn~ent,
good raw material, and so forth. No less important is the implementation
of a syatem of ineasures ai~aaed at improving production planning and stimula-
tion. -
At the same time, consideration must also be given to Ways of covering addi-
tional expenditures in the area of circulation which are connected with the
struggle for quality.- The experience of the socialist countries testify to ~
this approach. Thus, in the German Democratic xepublic, trade has created
special funds, deductions to vhich depend on the cost of defective and re-
turned output. Steps have also been outlined for encouraging Workers to
sell goods withouC defects. Discounts on items charged to industrial enter-
prises have been inst~:tuted in the GDR and Poland, Which have also developed
~ a scale of increased penaltq sanctions for violating particular points of
delivery cantract obligations. Under our conditions, such a flexible sys-
tem of incentives is also needed for inspectors, quality checkera and salea-
persons for keeping off the shelves ite~ns Which do not meet standards or
apecifications.
~usiness relations between industry and trade need improvement, of course.
It has long since been proposed that the system of fines be made more ef-
fective, that fines be paid from enterprise funds when collectivea have
failed to meet contract terms. The press has discussed the problem of ex- _
tending the results of a sample quality control check to the entire lot of
a commodity.
It would be expedient, in our view, to discount the wholesale prices of
goods in the second quality category, that is, obsolescent output, if indus-
trial enterprisas deliver such goods to trade. These discounts could be
used by trade enterprises to recompense losses fro~ discounting obaolescent
- items.
There are thus no grounds for referring to "excessive" fines. Today, both
Wholesale and retail organizations are interested mora in well-made items
than in obtaining fines, which often da not even cover part of the losses
associ~ted ~rith disclosing defects and returniug rejects to the manufacturar.
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Given the fact that fines do not generally have an e�fective impact yet and
do not arouse indusCry and trade to unswervingly m,eet all obligations under
economic agreements, their role and importance are small. The opinion that
the receipt and payment of penalty sanctions are esaentially the shifting
of funds from one sCaCe pockeC to another is, we think, deluded. Analyais
af relations at the "garment factory - department atore" level shaws thaC -
not only industry and trade, but the population and the state as well are
concerned here. This ia why it is important to strengChen, using economic
, and legal measures, coat-accounting ruble control not only over production, "
� but also over markeCing, to increase cost-accounting responsibility to cus-
Comers both by industry and by trade. The fine is an important lever of
such control, but it cannot and must not be to anyone's advantage. Society
is concerned that the needs of the population and the national economy be
met more fully and that economic and legal means facilitate this,
The question of whether to exact fines has long been resolvQd. Collectives
whose legal interesCs have been violated have not only the right, but also
the duty to make claims (including for the payment of finea) against Chose
to blame. One would Chink that, given this, the profit not obtained, in-
centive funds not deducted, funds for supplementing circulating capital not
deducted, and other items not obtained bq the injured party would be reim-
bursed withouC fail. Fines must be reflected in rhe results of economic
acCivity and in material incentives.
The deprivation of retail trade enterprises of revenues generated from �inea
received eYCeeding fines paid contradicts the principles of cost accounting
and the nature of these sanctions. Fines are a definite source for covering
Xo~ses for a party injured due to the failure of another party Co meet con-
lractual obligations. WiChdrawal of these funds from state retail trade and
public catering enterprises, as Chree years of experience shows, deprives
them of interest in applying sancCions and weakens cost-accounting relations
between industry and trade. The conclusion: it is appropriate to reinstate
the procedure whereby the enrire amount by which Fines received exceed finea
rnid remains at the disposal of stores and trsde organizations, di~ing halls
and restaurants. In wholesale trade, we need to increase the amount by which
fines received exceed fines paid remain:Lng at its disposal from five to 20
percent. These funda could be used to create a fund for discovnCing goods
in wholesale organizations (which have heretofore had no such fund), to ea-
tablish it in a certain percentage of warehouse circulation, or to sCimulate
the production of new and lc,w-profitability items.
Recently, there has been increasing support for a procedure of trade and in- ~
dustry interrelationships whereby the manufacturing enterprise bears all re-
sponsibility for the quality of ouCput marketed. By stressing the neceasity
of high demandingness as to the quality of goods being produced, it is pro-
posed that a procedure be instituted whereby enterprises wauld be answerable
for the quality oF their own output directly to the customer. The folloWing
clarificati.on usually accompanies this: if an enterprise delivers its items
Co a store, the store is only an intermediary, since it sells the commodity
at the instrucCion of the textile combine or garment factory. 1`he effort to
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increase the responaibili~y of direct producers to the populaCion ia under-
standable, but is iC realistic and feasible?
The Moscow Footwear Trade Organization alone has upwards o� 100,000 paira of
shoes a year returned by cuatoaers. Of course it would be morc prop~r for
industry to assu~e rhese exFensea and eatablish direct h~es With custo~era,
rather than with an intermediary which far from always aefenda the interests
of the consumer in `he pursuit of tr.ade turnover plan fulfillment.
~ It should be said, however, that trade does noC sell goods "on instructions,"
as is the case with only commission shops. The resC of the trade net~rork, '
first of all, buys goods fron producers and then sells them ro the popula-
^ tion; second, in socialist society, trade cannot and muaC not be simply an
' inCern~ediary indifferent ta whom it tradea with. It is an important link
- in implementing party socioeconomic policy aimed at increasing the wall-being
of the Soviet people.
Tn order to meet cuatomer demand and effectively influence industry, it ia
appropriate that product qualitq be monitored in Crade from the production
position as~well tconforudty to standards rPquirements, specificatioma, oo- ~
dels, and so forth) and from the custamer's position. Tha saturation of the
market with many goods makes just such an approach eapecially critical.
The bulk of the goods returned for correction or downgraded bq quality con-
trol workers are a result of production defects and poor raw material qua-
lity. Trade need not monitor the quality of iCems from those enterprises
which value the honor of their brand and supply vell-made goods. ~ovever,
industrial enterprise quality control departments ofCen carry out their func-
tions poorly and bear no material responsibiliCy wh~tsoever for it; they shift
~ their functions to inspecCors in other departments. Aside fram inspectors of
trade enterprises, inspectorates and the State Standards Coummittee, the bank,
people's control, State Arbitration CommiCtee, deputy commissions and various
other public commissions, among others, are also concerned With theae quea-
tions. The existing system of product quality control is expensive and not
very effective. It would be appropriate to concemtrate this control right
at the production sites and to reveal defects without fail, before output is
shipped and accounts are paid.
The regulaCion on delivering consumer goods anticipates that "special deli-
very Cerms" can anticipate the righ~ of appropr:iate wholesale organizationa
(enterprises) and union republi.c ministries of trade to monitor the quality
of goods ready for shipment {release) at industry enCerprises, as Well as �
the procedure and inCervals for such checks.
However, haberdashery trade wholesal.e bases, for example, have thua far been
deprived of the right to make quality conrrol checks at industry enterprises,
since "apecial delivery terms" have not been ~orked out. The aituation is
similar for certain cultural, personaZ and household items. It apparently
makes sense to supplement the regulatian on delivering consumer goods with
checka when they have been anticipated in a contract se well. ~
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Since 1978, tt�?e activity of induatrial enterprises producing consumer goods
has been evaluated,on the basis of amount of goods marketed, with conaidera-
tion of contract fulfillment. IncenCives funds and the amountg of bonuaess
to induatrial enterprise leaders depend on this. The new systcm is oriented
toWarde sCrict plan and contract diecipline. Practir.e has confirmed the ef-
fecrivenesa of this innovation and of its influenca on betCer fulfillment
of conCracts for delivering goods to Crade. The number of enterprises not
meeting contr~~ctual obligati~ns has dropped sharply, At the same time,
ehere are sCill quite a few factories which are not coping with trade or-
ders, alChough nearly all are overfulfilling assignments in terms of amount
of output sold. Violations of contracCual obligations are comparatively
small, but on a national economic scale, failures to deliver goods needed
by the populaCion run to the hundreds of millions of rubles.
COPYRIGHT: Izdatel'stvo PRAVDA, VOPROSY EKONOMIRI, 1979
11052
CSO: 1823
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~
MANPOWER: LABOR, EDUCATION, DEMOGRAI~HY
BOOK VIEWS MANPG'vJER DISTRIBUTION UNDER SOCIALISM
PROBLEMY REGULIIZOVANIYA PERERASPREDELENIYA RABOCHEY SILY
(Problems of Re~~ulating Manpower Redistribution) in Russian
1978 signed to press 10 Nov 78 pp 1, 168, 3-5
[Arinotation, Table of Contents, Introduction and Conclusion
From Book by A. E. Kotlyar and V. V. Trubin, "Ekonomika" Pub-
lishers, 10,000 copies, 168 pages]
[Text] This book analyzes the problems of reproduction of man-
power under socialism: the essential nature and socio-economic
- scope of manpower distribution and redistribution, criteria for
their rationalization, modern organizational forms of planning
manpower distribution, Ptc. The work generalizes the work of
special labor services, and offers recommendations for improv-
ing the organization of labor transfer and population informa-
tion.
The book is intended for planning organ workers, labor organiza-
tions, specialists involved with problems of labor resources,
and for party and administrative aktivs. .
~
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Table of contents
Chapter I. The place of organized job placement in manpower
distribution processes in a socialist society 6
1. Scope of manpower distribution processes 6
2. Organized job placement in labor resource distribution
management system 23
Chapter II. General Nature ~f Organized Job Placement Services
38
1. Development of organized job placement services 38 .
2. Bureau functions 1~p
3. GBTIN (City Bureau for the Job Placement and Population
Information) Labor Agency Forms
General description of labor groups served by the
bureau ~.9
5. Analysis of factors influencing population applications
to the bureau 66
6. Regarding the question of centralizing manpower
distribution in the city ~2
Chapter III. Bases for the organization of job placement
services 79
1. The place of organized job placement in the labor
organization system ~9
2. Informational support of GBTIN 82
3. GBTIN financial support 114~
Organizing and planning labor intervention (agency) 123
Chapter IV. Indicators characterizing the effectiveness of
organized job placement 1~2
1. Economic indicators resulting from reduced interruptions
in work related to job placement processes (E~) 11~5
2. Economic indicator resulting from the optimization
of retraining procedures for job placement citizens 150
3. Economic indicator resulting from increased cadre
stability ~ 152
4~. Comparative ecanomic effectiveness indicator 15~
5. Indicators characterizing the organizational level of
labor intervention 155
~onclusions 161
Appendix 165
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The decisions of the 25th CPSU Congress have envisaged the
necessity for the further improvement in the level of planning
management for the national economy suitable for the modern
developmental stage of our socialist society. The Leninist
principles of unity in a political and organizational (adminis-
trativp) approach toward the resolution of economic tasks con-
stitutes th~ basis of those decisions.
Under conditions of exacerbated labor res~urce problems, partic-
ular significance accrues to the development of ways to effective-
ly distributp and utilize manpower in the national economy. "The
more dynamic the national economy is," stated A.N. Kosygin at the
25th CPSU Congress, "the more rapidly its sectorial and territorial
structure changes, and the more acute the task of coordinating the
development of material production and the nori-production s~?here
with existing labor resources becomes."1 This explains the neces-
sity for the further improvement of a systematic method of distrib-
uting manpower. Elements of this system such as occupational
orientation and job placement envisaged by the new USSR Constitu-
tion are guarantees of the right to work for USSR citizens.
Article 40 of the USSR Constitution states that the right to work
"is provided for by the socialist system of economics, a contin-
uous rise 'in producti~re forces, free occupational training, im-
proved work qualifications and training of new specialists~ and
the development of a system of occupational orientation and job
placement".
The organization of manpower distribution as one of the most import-
ant spheres of economic policy for the socialist state is built
upon a foundation of Marxist-Leninist economic theory.
Socialist exgansion of manpower reproduction is the unity of its
production, distribution, and utilization1. Research of the
problems of theory and practice of manpower reproduction--is an
important condition for the further improzrement of work in the
area of organizing and training, distribution and utilization of
cadre in the national economy.
At present~ sufficient in-depthy study has been made of economic
bases for the reproduction of manpower, the mechanism of organizing
occ.upational--qualifica-tion structur. e for cadre, and of demographic
bases of the reproduction process. Many aspects of the utilization
of manpower have been devel_oped to a considerable degree, including
i:heoretical problems of employment, the organization of labor (the
structure of work time, labor intensity, work and rest regimens),
etc.
In characterizing the current state of scientific studies made of
prablems deal.ing with the distribution of manpower, it should be
noted that in recent years, a notice~.ble shift has been noted
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from predominantly empirical to fundamental studies. Those in-
clude primarily the works of Ye.G. Antosenkov, B.D. Breyev, L.M.
Danilov, T.I. Zaslavskaya, V.S. Nemchenko, V.A. Pavlenkov2, et al.
The content of manpower distribution processes is detailed in those
works--their mechanisms, forms, and regulation methods. The object
of a series of special research studies (I,S. Maslovaya~ Ye.A.
Yankovskaya)3~was organizational forms of manpower distribution and
redistribu-~ioiz and their prospective development. At the same time,
, many questions of theory and practice in the distribution of man-
. power remain insufficiently developed, which impedes planning
management of those processes.
This monograph reviews certain theoretical problems regarding the
improvement of planned distribution and redistribution of manpower
under conditions of a developed socialist society and generalizes
the results of studies made of the trial of organized job place-
ment. The authors of the monograph defined their goal as defining
the role manpower distribution during the course of its reproduc-
tion, to establish its economic scope and implementation forms~
to determine criteria for rationalization and using this basis, to
demonstrate the place of organized job placement in a planned
distribution of manpower in a socialist economy.
Chapter I of the monograph was written by Doctor, Economic Sciences,
A.E. Kotlyar, professor. The remaining chapters were mutually
authored by A.E. Kotlyar and V.V. Trubin.
The authors express their gratitude to Z.A. Khotkina, L.K.
Alekperovaya, N.A. Ivanovna, and Ye.B. Furmanovaya, who partici-
pated in the collection and processing of materials.
1 Materials of the25th CPSU Con;ress, Moscow, Politizdat, 1976,
p. 126. .
1 See Kotlyar, A.E. Manpower in the USSR (Problems Relating to ~
the Theory of Reproduction). Moscow, "Mysl 1967, pp 5__21y~
K~tlyar A.E. Reproduction of Manpower Under Socialism.--Economic
Sciences ~konomicheskiye Nauk~, 1972, No 4; Kotlyar A.E. Re-
garding Categories of Manpower Reproduction. "Economic Sciences",
1976, 1vo 7.
2 Movement of working cadre in industrial enterprises. Editor,
Ye.G. Antosenkov. Moscow, "Economy", 197~; Breyev, B.D. Mobility
~f the population and labor resources. Moscow, "Statistics"~
i977; Movement of working cadre in industry. Editor, L.M.
.~anilov. Moscow, "Statistics", i973; Methodological problems
of sociological research in labor resource mobility. Editors,
T.I. Zaslavskaya and R.V. Ryvkinaya. Novosibirsk, "Science",
1~74; Socio-economic problems of labor organization. Editor~
V.S. Nemchenko. Moscow. Moscow State University Publishers,
� 197~; V.A. Pavlenkov. Manpower movement under conditions of
developed socialism. Moscow, 1976.
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- 3 See I.S. Maslov, Economic Questions Regarding Manpower Re-
Distribution Under Socialism. Moscow, "Science", 1976; Yankovskaya
Ye.A. Redistribution of labor resources. Kiev, "Naukova dumka",
1978�
In determining the long range prospects for future improvement in
the redistribution mechanism for manpower~ it must be taken into
consideration that the current tension of labor competition under
conditions of a developing socialist economy is a temporary or
transient situation. Realization of the program advanced by the
25th CPSU Congress to achieve further growth in labor productivity,
accelerated scientific-technological progress, and improved
mana~ement of the national economy will enable the disproportions
in the area of providing the national economy with labor resources.
Therefore, when speaking of long-term prospects, it is necessary
to bear in mind the development of the channel examined for the
redistribution of manpower under conditions of a balance of the
material and personal factors of production. There are bases
for proposing that under such conditions, the development of an
organized job placement system would be oriented primarily toward
a procedure for the use of bureau services at the individual
initiative of citizens and administrative organs. It follows that
~th~ expansion of the scales of organized job placement is ~ossible
only when founded upon a clear conviction of the masses regarding
the advantages offered by the intervention bureau. For this~
a substantial improvement in the quality of the bureau operations
is necessary, which in turn requires that at least two conditions
" be provided for.
First, it must follow that rendering assistance to citizens in
searching for suitable work and to administrative organs in the
selection of cadre is the primary function of the bureau. All
aspects of the bureau's activities must be. subordinated precisely
to the execution of that function. It is therefore, impermis-
sible to charge the bureau with any sort of control function~ and
to transfer alik~~?the responsibility for staffing national econ-
omic projects1. The sole responsibility which the bureau must
bear is the responsibility for providing high quality service to
the citizens and administrative organs. ~
Secondly, it is important to create organizational prerequisites
providing for the qualitative improvement of the bureau's work.
Such prerequisites might be the establishment of a complete
system of i~iformation, financial, material-technical and scientific-
methodological support. For this purpose, a series of tasks must
be resolved.
1. In the area of information support:
to insure the completeness, validity, and currency of informa-
tion receipt regarding the existence of free (unoccupied) working
places in enterprises and in city organizations. For this, it is
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necessary to establish a procedure for mandatory monthly informa-
tion to be provided the bureau regarding all vacancies existing
in enterprises and in city organizations;
to provide for the efficiency of reporting information to the
bureau regarding the results of directing citizens to work. It
is necessary here to establish a procedure for the mandatory re-
turn within a five-day period of the form "Directed to work" with
results indicated (job placement or no job placement):
to introduce into practice improved documentation forms:
"Notification of existing free work places" (see form 1" and the
"Registration Card" (see form 2~, as they~satisfy the requirement
for maximum correspondence of the work position description and
the candidates for appointment;
to serve not only unemployed, but also workers currently
employed, and those wishing to chan~e their place of work. For
this, it is expeditious to create a special card file and to
use the new form of the registration card;
to improve the organization of information transmitted to the
population through arti~icial channels: by radio, television,
newspapers, on benches, and advertising displays. It is necessary
first of all, to convert to advertising the bureau's services,
its advantages, and in this respect, a significant increase in
resources is necessary, those allocations directed for advertis-
ing and information; secondly, to develop vivid and substantive
texts for articles and radio broadcasts, posters, phamplets,
and advertisements pu'blicizing the services of the bureau;
thirdly, to organize the transmittal of information by the most
effective channels, considering the peculiarities of their use
by various categories of the population; and fourthly, to expand
~he limits of inf'ormation dissemination beyond the city, using
oblast and rayon newspapers for this purpose.
2. In the area of financial support:
< to develope a system .for financing bureau services. Undoubt-
edly, the best form of financial support for the bureau would be
-the conversion of the GBTIN system to budgetary financing. How-
ever, considering the complexity of resolving this problem,,as
- an experiment, it would efficient to establish a procedure for
financing the bureau by all enterprises and city organizations.
To do this, it would be necessary to establish a system of fees,
w?th due consideration given the share of administrative organs
with differing populations of workers in the total number of
cadre received by the enterprises themselves; .
to establish optimum estimates for income and expenses of the
bureau, considering the necessity for a significant inerease or
expansion of staff, increased salary scales for workers, increased
resources allocated for advertising and information, maintenance
of facilities, and the acquisition of organizational-technological
resources. Here it is efficient to utilize existing data on the
bureau's expenses, correcting or adjusting them for the necessary
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growth for the appropriate items.
to develop a system of material incentive for bureau employees~
considering not only quantitative but qualitative indicators for
bureau work (scale of circulation, circulation results, and
efficiency of job placement). In this instance, it is considered
expeditious to utilize data from systematic (quarterly) analysis
of the bureau's economic efficiency in its work.
3. In the area of material-technical support:
to allocate to the bureau facilities designed for the influx
of significant masses of the population and considering the
peculiarities of work with transients. Here it is expedient
to incorporate the experience of Ufa and Kaluga (one structure
for the simultaneous accomodation of 20-30 visitors and individ-
, ual offices for talking to them, etc.);
to equip the bureau with the necessary communications equip-
ment--telephones, teletypes in the requisite numbers, it would
be efficient here to establish direct communications channels
with enterprises and city organizations;
to equip the bureau with auto vehicular transportation. Ex-
perience has demonstrated that the existence and availibil.ity
of transportation not only expands the oppor~tunities for adver-
tising and informational work, but also enables the employees '
of the bureau to systematically visit the enterprises and city
organizations.
4. In the area of scientific-methodological support:
to develop the necessary methodological recommendations (for
improving procedures for selection of vacanciES, ir~ organizing
and conducting occupational selections, for the study of basic
tendencies in the processes of labor migrations, to evaluate
labor competition in the city, etc.). For this, it is necessary
to attract specialists of various specializations (economists,
psychologists, programmers, sociologists, advertising specialists,
mathematicians, etc.).
~
The resolution of ~these tasks will enable, in our view, in
sufficiently short time periods to increase the role of city
bureaus in the job placement af a greater segment of urban
populations and on this foundation to substantially increase
the planned nature of laUor migrations or movements and the
effectiveness of utilizing manpower in the public economy.
COPYRIGHT: Izdatel'stvo "Ekonomika", 1978
88~1
cso: 18z3
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~
TRANSPORTATION
CHEMICAL INDUSTRY URGED TO USE RAIL TRANSPORT MORE EFF'ECTIVELY
Moscow KHIMICHESKAYA PROMYSHLENNOST' in Russian No 7, 7.979 pp 3-6
~Article by N. S. Chern,yshov, deputy chief of a division of the Main Freight
Adminiatration of the USSR Miniatry of Railways: "Utilize Rail Transport More
� Effectively~~] ~
~Tex't] The high rate of development of our country'e economic ayatem during
the lOth Five-Year Plan is placing new and more etepped-up demanda upon trans-
port and, first and foremost, on rail transport in terms of the shipment of
freight. As we know, railroads are handling this task under great streee.
The eale of fini.shed output is frequently delayed at individual enterprigee
owing to the lack of prompt delivery of railroad cars. But the difficulties
in transporting freight are not always caueed by a ahortage of rolling stock.
There are shortcomings whose elimination would ena,ble one to guaxantee more
fully the fulfillment of the demands of the national economy in terme of ahip-
ments. It is a queation of a radical improvement in the utilization of rail-
road cars on sidings at industrial enterprises and conatruction pro3ecta.
A reduction in the time that railroad cars are enga.g+ed in loading and unloading
is a large internal resource for the means of transport. Just as in induatry,
where a reduction in the production cycle leads to a growth in the output of
production, so a18o in transport an acceleration in the railroad car turn-
around time, i.e., a reduction in time from the beginning of loading of the
car to the subsequent loading~is a powerful means to increase the volume of
shipments. The campaign for an improvement in the use of railroad cars and
for an elimination of their nonproductive layovers during freight operations
is a moat important state task not only of collectives at the atation and on � .
b::anches of the railroads, but also of industrial enterprises and conetruction
p~~ojects, which are the shippers and consigneea of freight.
However, far from all mana,g~era of enterprisee in the chemioal industry axe re-
acting in the proper manner to their duty in terms of utilization of railway
cars in a rationa,l manner and ase tolerating the delay of cars during loading
and unloading beyond any established norms whataoever. During the paet yeax,
i978, the layover of railroad cars for the sector as a whole was 11 hours, as
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opposed to a norm of 8 hours, and thie led to a loes of loading reeourcea
amounting to more than 67~000 railroad care~ of which the chemical induetry it-
' self was very much in need.
Examples of the work of the foremoet collectiveg of i~ndustrial. enterpriaee and
traneport ehow that such lossea in the use of the meana of tranaport could be
avoided. The practices of the induetrial enterpriaes o.f Chelyabinakaya Oblast
~nd the branches of the South Ural9 RR in reducing layovers of x~.ilroa.d cara
during freight operations and in their eafekeeping, which were approved by the
CPSU Central Committee, open up great opportunities. The largest enterprisee
of the oblaet have adopted pledgea to reduce the layover of railroad care ae
against the eetablished norins and, as a:~ule, to ehip above-plan output in the
xolling stock th~,t had been economized. The repair of railroad caxs hae been
~et up on the industrial aidings of enterprises. The peoplE; of Chelyabinek
are auccessflxl.ly fulfilling their pledg~ea.
They are actively engaged here with the pxoblems of improvement of the railway
facilities of their own enterprises and with heightening the extent of their
equipment with techniaal means. Progressive types of traction, diesel locomo-
tives and electric locomotives~ as well as automatic control of switches, are
being introduced, wooden ties are being replaced by reinforced concrete ties,
materials handling operations are being mechanized, etc. Not only the alloca-
tions called for in plans for capital investments, but aleo assets from the
production development fund are being utilized for this purpose.
The practices of the people of Chelyabinak a.re finding followers at mar~y enter-
prises, including those in the chemical industry a~ well. The transport workers
on the industrial sidings of the following roduction associations--"Korund"
~~CorundumJ (Dzerzhinsk), "5era" ~Sulf~r~ (Rozdol , "Karatau" (Karatau)
Minudobreniya ~Mineral FertilizergJ (Voskresenak~, "Soda" (Sterlitamak~
and the Chemical Plant imeni Ya. M. Svei~dlov (Vinnitea)--are displaying a pro-
prietary interest when it comea to the use of railroad carg.
A reduction in the layover of railroad cara at these enterpriaes ha.s been
achieved by virtue of the implementation of ineasures for the development of
transport facilitie9 on induetri.al sidings, as well as by virtue of introduc-
tion of a unified system for work by ~he collectives of enterpriaes and rail-
Way etations.
Unfortunately, one must talk about other facts as well and cite examples of
negligent treatment of railroad cars. Ihzring the three yeaxs of the current
five-year plan, the layover of railroad cars on the industrial sidings of
enterprises has not, in practical terms, been reduced for the sector as a ,
whoJ.e, and has even grown at ce~tain enterprisea. If the layover of railroad
cars in 1978 was overstated for all ministries and departmente as a whole by
1.6 hours a:~ against the norm, then a.t enterpriqey oi ~~~emical industry
this excess conaisted of 3 hours.
'~Jhat then are the reasons for such an unfavorable situa,tion in respect to the
use of railroad cars at enterprises of the chemical indusi;ry? The chief of
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theae reasons, in our opinion, is the lack of balance which has emerged in the
development of basic production and tra.nsport facilitiea. '~Ihile expanding
production shops and increasing the output of production~ certain manag+ere
of enterprises and associations are extremely inadequate when it comes to pay-
ing attention to the development of the transport facilities on the industrial
eicli,ngg. They begin to take an interest in these facilities only when baeic
production has already been delayed by them.
Take, for instance the Balakovo Chemical Plant. A production complex for the
output of double ~binary?~ superphosphate has been put into operation, while
the construction of many objects for the transport facilities has still not
~ been comnleted at this time. Coneiderable unfinished work is to be found at
the devices for the unloading of pyrite and apatite. The laying of railway
tracks has not been completed in the plant's industrial park. Intraplant ship-
ments at the enterprise increased when the complex was put into operation, but
at the same time the locomotive fleet wae not brought into line with the plan.
Instead of aix locomotives, only three are operating, of which two are 1ow-
powered. Very in?portant.work on the development of the Balakovo and Yul'yevka
stations has not been performed. Without a doubt, all this has ma,de for a
deterioration in the use of the rolling etock. The layover of railroad cara
at the plant wag overstated by an amount that was more than triple the eeta-
' blished norm and reached 50.4 hour,s in 1978.
A great lag ha,s been permitted in the development of transport facilities at
the Uvarovo Chemical Plant. They obviously do not correspond to the level of
basic production and to the gxowing volume of freight shipmenta. And what is
more, the construction of the plant's railway station has not been completed,
a schematic of storage hoppers at the waxehouses for candle-ends from sulfuric
acid production ha.s not been put into operation, a transport system for the
transfer of pyrite from the car dumper to the sulf~ric acid shop is miseing
and the installation of many other objects has not been completed. Railroad
cars arriving at the plant with raw material and other freight are not unloaded
oy the deadline. During the pa~t two years the layover of railroad caxs on
industrial sidings was actually 33.7 hours, whereas the established norm was
7 hours,
Work is proceeding extremely slowly on the development of the railway ehop at
tlie Crimean Titanium Dioxide Plant. Production capacities for the second line
of conatruction at the enterprise are already being put into operation and the
output of production ie increasing, whereas object9 relating to transport con-
struc~tion, including even those for the first line, remain unfinished. The
trestl.e built two and a half years ago for the unloading of ilmenite from
r~.ilroad ca,rs is not in operation owing to the abaence of a railroad track.
Tl:e installation of a car dumper was not envieaged in the project planning for
~i..~e plant. Pyrite ig now being unloaded by low-yield equipment at a rate of
two caxs an hour. Often hundreda of railroad cara loaded with pyrite pile up
while awaiting their place at the unloading front. The construction of units
for the defrosting of cargoes that freeze was also not planned. The froet
protection houeing installed by the plant does not meet the minimum requirements.
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Its capacities can be calculated only in terms of ni.ne railway cars and it~s
tempera.ture is not sufficiently high. During the winter up to 18 railroad cars
ase defrosted over a 24-hour period, which ia several times lesa than actually
required.
There is no facility at the plant for the repair of diesel locomotives, the
point for washing tank cars has not been built and devices for the mechanized
closing of the hatches on gondola cars are absent. It is not aurprising that
the layover of railroad caxa at the enterprise exceeds the norm by almoat 10
houre.
There are also other cases where the frontages for loading and unloading rail-
road cars are not expanded, but, on the contr~axy, reduced during the moderniza-
tion of enterprisea. Thus, at the Konstantinovskiy Chemical plant, the front-
~ ag~s for unloading railroad cars containing pyr3.te and apatite concentrate Were
reduced to almost half their previous length during the consi.~uction of new
shops for the production of fertilizera. And this was all done without any
agreement with �the railroad. ~lork on heightening the level of inechaniz~.tion
of freight unloading and on conatruction of an independent railway outlet to
the Kondra.t'yevka station is being performed alowly. Over six years only 60
percent of the fun~is earma.tked for this purpose have been assimilated.
It is very important that the principle of comprehenaive develo~ment of the
objects of industry and external. rail transport not be violated during the con-
struction of new and modernization of existing enterprises. One muet think
beforehand about how to haul raw material, fuQl and va:rious cargoea to the
future enterprise in a more rationa.l manner as well ae haw to digpatch finished
products promptly. Unfortunately, managera of enterpxiaee are doing a poor
job of taking up theae agsnda iiems. Here a several examples.
~1 plan for the modernization of the Rosso9h' station of the Southeastern RR,
to which the railway siding of the new enterprise is joined, was dr~fted in
connection with the construction of the Pridonekoy rlineral F'ertilizers Plant
upon the order of the Ministry of the Checnical Industry. Argumente continued
for two yeare as to xho was to perform the function of customer, while agenciee
of higher instance failed to make it incumbent upon the Ministry of the Chemi-
cal Industry to start construction work on the modernization of the station.
During the current year the production capa.cities of the first line are being
put into operation and they are faced with the output of finished products;
however, the plant's industrial eiding is sti1Z "aant~.ated" to the Rossoah'
station alon~ a temporary circuit with a cross--section of the main railroad
tracks on one level. This is now already hampering the delivery to and pick-
up of ra,ilroad caxs from the glant. ~
Work is proceeding slowly on the installation of other objects at railroad
and plant atations. Thus, difficulties are being created with the tra_nsporting
of freight and the processing of rai.lroad cars even prior to the time when an
enterprise ie put into operation. The principle of comprehenaive development
has been violated in the construction of the Togliatti Nitrogen Plant of the
Kuybyshevazot ~Kuybyshev Nitrogen~ Production As9ociation. The construction
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of t}iis enterpri:~e will occasion a substantial increase in freight turnover.
The development nf the Zhigu.levskoye More etation of the Kt~ybyshev RH, to which
the plant's indut3trial siding ia joined, has been envigaged for ite assinula-
tion by a plan for external ra.~l transport drafted by the FromtraneNIIproyekt
~5cientific Hesearch Inetitute for the Planning of Induetrial Trtineport,.,~.
~ But this plan is still far from being implemented. All thia oan lead to eeri-
ous difficul.ties in the dispatch of finiohed producte.
The freight turnover of the Kokurino station of the Volga RR will gxow substan-
tially when new objects for the production of nitrile-acrylic acid are put i:~~~
operation at the Saratov Nitron Production Association. The laying of addi- '
tional 9tation tracks with the work attendin~ this ia required. However~ the
engineering plan for the objecte for the production of nitrile-acrylic acid
was drafted without taking the development of the Kokurino station into account.
Now the miscalculation that was allowed is being corrected. By order of the
Minigtry of the Chemical Industry, the drafting of the engineering plan is
being concluded this year. But the deadline for the start of construction work
hae still not been determined. It is totally evident that this is being done
with great delay. The production complex has been put into operation~ while
the external rail transport has turned out to be anything but ready. Already
this is making for difficulties in the shipment of output and is slowing down
the turn-around time of railroad cars.
One would thi.nk that the necessary conclusions would be drawn from these er.am-
plee. And wha.t is more, it is necessary not only to put production capacities
and objects for transport facilities into operation in a c~~mprehensive and
prompt manner, but also to ensure that the development of industrial rail trans- ~
port nutstrip construction of production capacities somewha.t. Then it would i
cease to limit the operations of enterpxisea when it comes to shipment of fin-
ished output and a reeerve would be created to satisfy the dema.nds that arige
for additional shipments, in particular, of above-plan production, as well as
, for better utilization of the rolling stock.
sreat layovers of railroad cara are permitted at enterprises owing to the un-
~atisfactory organization of loading and unloading operationa, particu].arly at
nig:it and on days off. The unloading of railroad cars is being provided for
in an extremely poor manner. Daily, more than 850 railroad care containing
ra.~:r material, fuel and other materials remain for 18 hour.~ at enterprises of
the chemical industry unloaded 'oy the appointed deadline. Mar~y of them are,
in eesence, converi;ed into warehouses on wheels. The measures to reduce the
layovers of railroad cars that are specified during the conclusion of agreements
on the operation of industrial sidings remain unimplemented in the majority of
ir,~tance3. Above-norm layovers of caxs are very great on industrial sidings
o:~' the Sumgaitkhimprom ~Sumgait Chemical Ir.dustryJ Production Agsociation,
t'e NovochPrkassk Synthetic Froducts Plant, the Novgaxod Azot ~Nitrogen~
Production Asaociation, the Jonava Nitrate Fertilizers Plant, the Odeasa Super-
phosphatE Plant, the Chirchik Elektrokhimprom ~Electrochemical Zndustry~ Pro-
duction Association, the Cherepovets Chemical Plant and some other enterpriaes.
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A ma~or regexve for the f~lfillment of the plnn for ehipmenta is a fl,ill-value
load in railroad cars. Under conditione marked by a ehortfall in the fleet of
railror~d cars, it is eepecially important to utilize flilly the caxrying capa--
city and tonnag~ of the rolling stock. Instances are not infrequent where
railroad cars are dispatched on lon~-distance runa with a great degree of under-
loading. Railway workers do not have tha opportunity to ~upervxse che level
~ of the load in each railroad car, eince they would be required to maintain an
entire service of controlers for this. The freight ghipper himeelf muat strive
to ship more freight with a smaller number of railroad cars. However~ the
control checks being made by the ra.ilroads in a selected eampling show tha.t
thio rule is not being observed everywhere. Laet year more th~.n 62,000 rail-
road. cars loaded at enterprises of the chemical induatry were inepected, of
which 12.4 percent were underloaded on the average by 1.3 tone when compared
with the weight indicated by the freight shipper in the shipping documents.
La,rge underloada are being permitted by the Stur~y Khimprom ~Chemical Industry~
Production Associatian. An underload of more than 152 tons was obeerved in 3
railroad car.s loaded with scrap metal at the eriterpriee, while in two railroad
cars the underload was 10 to 17 tons, while in ~ne car loaded with phospYiogyp--
sum, the weight turned out to be 19.5 tons less that wha,t was indicated in tre
documenta. Eight cars dispatched by the Voskresensk Minudobren.iya ~Mineral.
FertilizersJ Production Association were underloaded by 12.8 tons of m.ineral
fertilizera, and four cars loaded with superphosphate at tr.a Odessa Superphos-
phate Plant were underloaded by 15 tons, while one cax o~ these aforementioned
four was undPrloaded by eix tons. i
Such great losees in the means of shipment can be explained neglect of
the weighing facilities and by the caxeles~ attitu~.e of certain empioyeee of
the enterprises toward determining the wei~t of freight being dispatched. It
is necessary to eliminate in a decisive manner ahortcomings in the u~e of the
carrying capacity and tonnage of railroad car9. It is neceasary in the short-
est period of time pos9ible to carry out the replacement of obsolete beam
balance scales with new systems of automa.ti~ electronic scales. One must not
~ determine the weight of freight in a railraad car "by eye." Fbr this will '
lead not only to excess occupation of s~ace in the railroad car fleet, but
also to a distortion in the reporting of output snipped, overpayment of the
tariff and an overstatement of the actual value of the shipments.
Serious anxiety is also being c;rea-t;ed by the ma,tter of the safekeeping of
railroad cars on industrial sidings. During last year alone, 1,103 railroad
cars were put out of order at Pnterprises of the chemical iadustry. The great- ~
est number of raa.lroad cars were dama.ged on industriaJ. aidin~s at the Yerevan
Nairit Production Association, the Konstantinovskiy Chemical Plant, the Kingi-
sepp Fosforit ~Phosphorite] Product:ion Association, the Rovno Azot ~Nitro-
gen~ production Association, the Cherepovets Chemical Plant, the Rubezhanekiy
Krasitel' ~ Dye'_~7 Production As9ociation z,nd. the Dneprodzerzhinsk Azot Produc-
tion Associatior,
The basic cause of the damage to rolling stock is the groes violation at a
nwnber of enterprises of GOST ~All-Union State StandardJ 22235-76 ori the
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genera7. requirement for ensurin~ the eafekeeping of railroad cars during the
perfor.mance of mctiteriale handling and switching operations. .~ailroad care are
damaged chiefly by clamshell cranee and there ie no small num:~er. of cases where
the rolling etoclt is derailed owing to unsatiafactory maintenance of the rail-
road tr~,cke at enterprisea resulting from the uee of railg of a light variety
and the presence of defective ties. Returnin~ to the practices of the people
of Chelyabinsk, one must note their zealou.9 attitude toward the railroad car.
_ They have done much not only to ensure the safekeeping of railroad cara, but
have also created facilities at enterprises for the repair of railroad cars.
The Magnitogorek Metallurgical Combine and the Chelyabinsk pipe-rolling and
metallurgical plants were the first to equip repair points with the neceasary
equipment, to organize supervi~ion of the safekeeping of railroad cars and the _
quality of repairs and to determine measures for the financial liability of
partiee guilty of d~,maging railroad cars. Other enterpriees eshould arm *hem-
selvee with all these practicea.
The railroad car is an expensive ~tructure and great manpar,aer, monetary and
pY~ysical means are expended on its repair. The removal f~:om circulation of a
railroad car damaged during freight and switching operationa substantially re-
ducea loading resources.
At the present time, and even in terms of prospects for the near future, de-
spite the reatocking of the railroads' frei~ht car fleet~ the acceleration of
turn-around time and an improvement in the utilization of the carrying capacity
and tonnage of railroad cara, ae r~ell as practicea ensurin~ their safekeeping
will remain the basic eources for satisfying the national economy's demandr~
for ehipments, which will have grown.
The drafting by ministries and departments of ineasures to raise the effective-
ne~s of the uge of railroad cars and to reduce their layovers durin~ loadin~
and unloading for 1979-1980 is now being completed. It ig planned to carry
nut the modernization a.nd retooling of points for the loading and unloading of
railroad car~ on indusirial. rail sidingg and the construction of freight and
container pla-tforms, trestles and other objects at the cost of a portion of
the depreciation deductions destined for the major repair of the fixed capital
oi industria,l enterprises. Thig will to a large extent promote an improvement
in the condition of the traneport facilities at enterprises and promote a ri~e
in the level of inechanization of loading and unloading operationa.
The co].lectives of enterprises of the chemical induetry and transport must to- -
gether realize the immense reserves available to speed up the turn-around time
o.~ railroad cars on industrial ~idinga in order to provide for the sector's
d~:mand~ in terms of shipments. Thi~ requirement ensuea from the decree of the
C?SU Centxal Committee, "On the Organizational Work of the Chelyabinskaya Ob-
~~,3t CFSU Committee in Reducing the Layover of Railroad Cars During Frei~t
Operationa and Ensuring Their Safekeeping at Industrial and Ra,ilway Enterprises
of the Oblast," which is the program of action for employeeg of enterprisea
and railway workera.
COPYRIGF~T: Izdatel'stvo "Khimiya", "Khimicheakaya promyshlennoet 1979
- END
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