JPRS ID: 9291 USSR REPORT ECONOMIC AFFAIRS

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JP'R~ L%9291
- 8 Soptember 1980
IJSSR Re ort -
p
ECONOMIC AFFAIRS -
cFauo 1 aiso~
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JFRS L/9291
8 September 1980
USSR REPORT
ECONOMIC AF~AIRS
- (FOUO 14/80~
CONTENT~
ECONOMIC POLICY, ORGANIZATION AND MANAGEMENT
Vikent'yev on Priority Development of Producer Gooda
(A. Vikent'yev; VOPROSY EKONOMIKI, Jul 80) 1 �
~ Selected Reports From USSR Academy of Sciences Session
(VESTNIK AKADEMII NAIJK SSSR, May 80) 13
Baybakov Views Eightiea, by N. K. Baybakov
Fedoseyev on Socioeconomic Development,
by P. N. Fedoseyev
Selected Reports From USSR Academy of Sciencea Session
(`IESTNIK AKADEMII NAiTK SSSR, May 80) 42
Kotel'nikov on Scientific-Technical Progresa,
by V. A. Rotel'nikov
Marchuk on Siberia's Resourcea,
by G. I. Marchuk _
Vonsovskiy Reviews Urals, by S. V. Vonsovskiy
- a - [III - US;;'R - 3 FOUO]
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_ ECONOMIC POLICY, ORGANIZATION AND MANAGEI~NT
VIKENT'YEV ON PRIORIT.Y DEVELOPMENT OF FRODUCER GOODS ~
Moscow VOPROSY EKONOMIKI in Russian No 7, Jul 80 pp 17-26
[Article by A. Vikent'yev: "The Effect of the Law of Preferential Growth of
the Production of Producer Goods Under Developed Socialism"J
[Text] The law of preferent.ial growth of the production of producer goods
plays an important part in the, system of the economic laws of socialism.
Its effect 3s characterized by certain singularities in all aectors of the
economy. It is manifested most ful~y in industry. This is explained by the
fact that all types of producer goods, including the3~ decisive portion--
in~plementa of labor--are created here. An investigation of the law of pre-
ferential growth of the production of producer gooda under the conditions of
developed socialism is highly pertinent. Consideration of ita requirements
ia important for the accomplishment.of the tasks advanced in the CPSU Cen-
tral Committee and USSR Council of.Miniaters decree "An Improvement in Plan-
ning and an Intensification of the Impact of t?ie Economic Mechanism on an
Increase in Production Efficiency and Work Quality."
The law of preferential grawth of tl:e production of producer goods operates -
' in interconnection and interaction with a11 the economic laws of socialism.
There is great significance in this 1aw's relations with the basic economic
law of socialism and the law of the planned, proportional development cf -
the economy. The requirements of the law of preferential growth are vivldly
manifested in the most important economic proportian--between social produc-
tion subdivisions I and Il--and in the correlation between industry grot~ps �
"A" and "B." '
~ Obaerv~e of the optimum proportion between subdivision I and II serves as
the basis of the entirF system of proportionality in socialist economics. =
The formation of this proporLion and, consequently, the mechanism of the ef- -
fect of the law of preferential growth are determined by the operation of the
basic economic law of socialism in the unity of its two aspects--the end and
the means. For the fullest accomplishment of. the end and, consequently,
an increase in the people's living standard the achievement of fihe speediest
rar_a of growth of the physical basis of this process--production of producer
goods--is ob~ectively necessary.
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I
1'VA Vl'i'ivlt?L vJU v~~a+~
The preferential development of aubdivision I is th~ ob~ective basis of ex-
panded reproduction on the basis of ma~hine technology. Marxist-Leninist
economic theory has shcwn t:~iat the expanaion of production always presupposes
the accumulation of additional producer goods, thanks to which it becomes pos-
sible to also increase the production of consumer goods. The latter are pro-
duced from the raw material produced in the sectors of subdivision I with
the help of the machinery, machine tools and equipment created therein. Con-
sequently, the development of subdivision II depends on subdivision I, which
represents the industrial basis of all socia]. production. All types of
equipment are created in subdivision I and subsequently "spread" over the
se~tors of both subdivisions. For this reason the preferential growth of
subdivision I is a most important regularity of expanded socialist reproduc-
tion.
The effect of the law of preferential growth of the production of producer
goods under developed socialism is characterized by the data adduced belaw.l
Table 1. Subdivisions I and II's Share of the Socisl Product (percentage of
total)
Actual Prices Comparable Prices for 1972
1960 1965 1970 1973 1959 1966 1972 1973
Subdivision I 59.5 61 62 63.6 60.3 63.2 63.4 63.6
Subdiizis~on~. II 40.5 39 38 36.4 39.7 36.8 36.6 36.4
The negligible difference in the indicators computed in actual and current
pricea testifies, we believe, to the absolute nature of the effect of the law
of preferential growth of the production of producer goods. Yet certain
economists believe that it manifests itself inerely as a trend ina~much as
"different correlations could take ehape between both subdivisions at all -
stages of the development of the socialist society depending on the specific
conditions of the plan period."2 Different issues ar~ confused here.
The effect of the law of preferential growth of subdivision I signifies that
it is realized always, regardleae of the specific aingularities of this period
or the other of the development of the socialist society. Different quanti-
tative correlations, on the other hand, between the subdivisions of aocial
production do not c:.isturb the absolute nature of the effect of the law as
- such but mere~y show the specifics of its manifestation in this time segmpnt _
or the other.
The 38th Lenin Collection appeared in 1974 and it published new mat~rial show-
ing that V. I. Lenin fully recognized the effect of this law under socialism.
Scientific planning of the economy has always proceeded from a consideration
of the requirements of this law.
We believe thar a distinction of two aspects in the operation of the law of
the preferential growth of production of producer goods ~ould contribute to
an extenaion of its scientific analysis. The main aspect of the law refJ.ects
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the development of technical progress and the formation on this basis of
the optimum economic proportions promoting an increase in the people's liv-
ing standard. The other aspect expresacs the production of producer goods'
quantitative preferential developimient of the production of consumer goods. _
V. I. Lenin showed thst the lav of preferentisl growth of the. production of
producer goods is rooted in technical prog~~esa. "The entfre meaning snd en-
tire significance of this law on the speediest increase in producer $ooda,"
he wrote, "is solely that the repla~ement of man~ial labor by machine labor-
and the progress of technology in machine industr; in general--demands the
persistent development of production in the extraction of coal and iron--
these real 'producer goods for the producer goods'."4
Lenin's formula---"the progress of technology in machine industry"--is an
exceptionally precise and c~.nprehensive deflnition of the deep-seated es-
aence of the law of pref.erential grawth. ~J. I. Lenin's proposition concern-
ing this law's inseparable conne~ction with the law of an increase in the
ozganic composition of capital (the orgaaic structure of social production
under socialism) is excremely important here. But the growth of the organic
composition of capital ~xpresses in value form an increase in its technical ~
composition. "This chang~ in the technical structure of capital," K. Marx
wrote, "and the increase in the mass of producer gooda compared with the
mass of manpawez animating them is, in turn, reflected in the value struc-
ture of capital and an increaae in the constant component of capital value
gt the expense of its variable component."5
Lenin's proposition concerning the interconnection of the said two ecanomic
lawa is of great metl:odologicaY significance for an analyais of the operation
o� the law of preferential growth in general and the singularities of its
manifestation in developed socialiam in particular. An increase in the
organic composition of capital is expressed in the more rapid growth of the
mass of producer g,a~1s relative to the mass of live labor employing these _
goods. F. Engels pointed to the increase in the overall mass of the value
of the social product of the proportion of embodied labor compared with live
labor. T'rze growth of the organic composition signifies that there is a more
rapid increase in society in the production of prodiicts of subdivision I com-
pared with products of subdivision II, which are used for personal consump-
tian.
Having revealed the need �or the increasing preferential growth of subdivi-
sion I, ~J. I. Leniii provided a profound description of the inseparable con-
nection of tr.is phenomenon with the development of subdivision II. ble em-
phasized that "it by no means fo].iows" trom the preferential grawth of swb-
division I"that the manufacture of producer goods maq be developed entire- `
ly independently of the manufacture of consumer goc~ds and beyond any con-
nection with them."6
T`,ie law of preferen*_ial development operates, it stands to reason, in the -
unity of both its aspecta, However, it needs to be taken into ac~ount here
~ that not only the increasing preferential development of subdivision I bur
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also its sectors' production of progressive, highly productive producer
goods is of decisive significance for the socialist economy. Under the con-
ditions of developed socialism this makea it posaible, while maintaining the
- preferential growth of subdivision I, to relatively reduce the expenditure
of social labor therein, correspoadingly increasing it in aubdivision II and
in the nonproduction infrastructure.
A large nu~bbr of factors influences the correlation of subdivisions I and
II.
The acceleration of the grawth of subdivision I is primarily influenced by
the large-scale introducfton of new equipment and its accelerated obsolescence,
the increase in the organic strLCture of production and its capital- and
materialR-intensiveness and the increase in the induatrial accnmulation
norm. An increase in the qualitq and working life of producer goods (which
' permits a relative reduction in the volume of their manuS'acture), an improve-
ment in the use of production capital, a reduction in materials- and capital-
intensiveness and a diminution in industrial accumulation with an increase
in its efficiency are among the factors acceler~tting the grawth of subdivi-
sion II.
- The intensiveness of the effect of each factor is unequal at individ~al
stages of the development of the social~st society.. We believe that, 8s a
~ whole, ~he effect of the factors eventuates in the direction of an accelera-
tion of the growth of subdivision I. The data of Table 1 adduced above
and also the indicators of the growth rate of industrial output and fixed
capital testify to this.
Table 2
1978 as a percentage of 1940
Total industrial output 1,966
Including:
_ Group "A" 2,716
Group "B'' 1,012
Total fixed capital (including livestock) 1,113
Including:
Production fir.ed capital 1,395
Nonproduction fixed capital 806
The advantages of socialism make it possible to achieve optimum proportion-
- ality between subdivisions I and II. But it is not achieved right away.
By virtue of certain historical circumstances, at the early stages of the �
develop~ent of socialism subdivision I"worked" mainly for itself. Under
these conditions a big diacrepancy in the growth rates of both subdivisions
and groupe "A" and "B" was inevitable.
The follawing variants of the correlations of subdivision I and II and,
within them, of groups "A" and "B" could take shape in individual time
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segments: the increasing preferential growth rate of eubdivision I and group
"A"; the equal growth rate of subdivisions I and II; and the increasing pre- _
ferential growth rate of subdiviaion II and group "B.~" Hawever, as a whole,
the development of the economy is characterized by the increasing preferen- ~
- tial grawth rate o~ subdivision I. GIe shall illustrate thia in the example
of groups "A" and "B" (see Table 3).
- ' Table 3
Coefficier.t of increasing preferential
increase of group "A" (calculated from
average annual rates of increase)
Planned Actual
First 5-Year Plan 1.63 2.42
Second 5-Year Plan 0.79 1.29
Third 5-Year Plan (3 peaceful years) 1.37* 1.52
Fifth 5-Year Plan 1.18 1.16
Sixth 5-Year Pl~n 1.13 1.32
Seventh 5-Year Plan 1.27** 1.5
Eighth 5-Year Plan 1.11 1.01
Ninth 5-Ye~r Plan 0.�6 1.21 -
*For the entire Third S-Year Plan (1938-1942)
_ **For the 7-year period (1959-19b5). _
The increasing preferential grawth rate of subdivision I serves as the op-
timum variant for planning the development of aubdivisions I and II and
groups "A" and "B" inasmuch as this corresponds, as a whole, to the require-
ments of the law of preferential growth. But it is important to stress -
that there is not nor can there be an identical optimum correlation of both
subdivisions and groups "A" and "B" for all historical perfods. The law of
preferential growth does not indicate specific correlations of the rate of
growth. These correlations take shape on each occasion with reference to
the singularities of the definite stage of development of the socialist
economy. The task of planning is to find for each stage the optimum
_ quantitative correlations in accordance with Lenin's requirements of a
concrete analysis of the concrete situation.
As can be seen from Table 3, the prewar 5-year plans (except the aecond)
~~utline a sharp preferential growth rate ~f group "A." In reality it was
even greater (including the period of the Second Five-Year Plan). But even
under these conditions the operation of the law of preferential growth did
not amou~t solely to the production of producer goods' quantitative prefer-
ential development over the productien of consu~er goods. This law's
" organic connection witH~.technical progress was always manifested together
with this. True, this was of a more or less latent nature, this being con- -
nected with the still insufficiently high technical level of production.
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The diacrepancies and disproportions inherent in the early periods of social-
ist building are removed, the advantages of the planned socialist syetem of
the economy are manifested more fu1Zy and the inner content of the law of the
preferential growth of subdivision I is revealed more extensively under the
conditione of ~~veloped socialism. There is also a change in the quantitative
- correlation of produc$ion in subdivisions I and II insofar as there is a
rapprochement in their growth rates and thosa of groups "A" and "B." The
equal and even incr~asing preferential growth of the producttion of consumer
goods is planned in industry in certain cases. ThuB L. I. Brezhnev observed
at the CPSU Central Committee (1965) Plenum that the national economic plan
for 1966 provided for a further rapprochement of the growth rate of both
groups of the production of industrial products and the speedier development
of the production of consumer gooda. The law on the state plan of economic
and social development in 1980 provides for an equal rate of increase in .
_ the products of groups "A" and "B" (4.5 percent).
The act~sal increases in the products of groups "A" and "B" in recent years
have drawn considerably closer together, and in certain cases the gro~wth of '
group "B " has been preferential. But if the increases in the products of both
groups of industry are viewed over a long period, one is perauaded as to the
increasing preferential development of group "A" (see Table 4).
The party's policy of an accelerated increase in the people's living stand- -
ard, which deXermines its economic strategy under the conditions of developed
socialism, presupposes a more profoimd turn of all social production than
_ even toward the manufacture of consumer goods. As the 25th CPSU Congsesa
observed, currently there is not a single sector of the economy which is not -
participating in the accomplishmei~t of this task.
Table 4. Development of Industry Groupa "A" and "B" in the Period 1968-
- 1977 _
Percentage of previous year Percentag~ of ].940
_ 1968 1969 1970 1971 1977 1968 }.969 ~~,1970 1971 1977
Group "A" 108.3 107 108.3 107.8 105.8 1,311 1,467 1,589 1,713 2,585
Group "B" 108.5 107.3 108.9 107.7 105.2 560 601 654 705 972
The profound reorganization of social production in the direction of the
accelerated growth of subdiviaion II is the result of the effect of those
most important new oujective processes which chargcterize the economy of the
mature socialist saciety. It is primarilq a question of the considerable
increase in the country's economic improvement and of the increased effi-
ciency of their use. The role of machine building,~idh is developing
rapidly and in which a profound reorganization of the internal structure is
_ under way, is particularlp important here. Thus in the period 1940-1978
group "A" output increased by a factor of 27.2, and that of machine building
by a factor of 89. There has been an appreciable change in ~he structure `
of the entire industrial product in this connection. In 1960 the proportion
of light and food industrq was far in excess of ~hat of machine building,
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but since the end of the 1960's and the start of the 1970's machine building
has oc~upied first place in industrial output. In 1978 the proportion of
machine building and metal working in total industrial output constituted
26.8 percent compared with 16.7 percent',in 1965.
As mentioned above, a number of factors influenc:es the correlation of social
production's subdivisions. But technical progress plays the main part in
the effect of the law of preferential growth. In increasing the organic -
structure of production technical progreas contributes to an increase in ita
efficieney also, which makes possible a rapprochement of the growth rates of
subdivisions I and II and groups "A" and "B." The materials- and capital-
intensiveness of production are the most importan t indicators of efficiency
reflecting this process. Price-forming nlso exerts a big influence on the
dpnamics of materials-inteasiveness. For this reason it is essential t.-
compute material expendit:ire in both current and comparable prices.~
The socialist society is concerned for the resource- and material-conserving
development of the economy. This makes corresponding demands of planning,
- which directs the entire course of expanded reproduction and the action of
the entire economic mechanism. L. I. Brezhnev particularly noted the im- -
portance of economizing on fuel, energy and metal at the CPSU Central Com-
mittee November (1979) Plenum. "...At whatever pace we d~velop pawer engi-
~ neering," he pointed out, "the conservati.on of heat and energy will remain
a most important all-state task.... In the llth Five-Year Plan the Gosplan
and the appropriate ministries must insure a decisive tumabout toward metal
quality and economies in or~.ier to eatiafy the economy's requirements. There
is no other way."
_ Economizing on material and al~ other resaurces contributes to the increas-
ing preferential grawth of the national income compared with the growth of _
the social product. The gradual transition to planning the growth rate of
the production of sectors of industry in accordance with normative net outpvt
which is envisaged for the llth Five-Year Plan also corresponds to this.
The increasing preferential grdwth of the national income compared with the
grosa social ~r~duct is insured chiefly to the extent to which scientific-
technical progress creates the conditiona for a reduction in social produc-
tion's materials-intensiveness. The social product had �increased by a
factor of 12.73 in 1978 compar~d with 1940, but derived national income had
increased by a facLOr of 13.25. Computation of the structure of the social
produ~t tn current pricas shows an increase in the proportion of compensa-
tion (this proportion was 52.3 percent in 1970 and 56.68 percent in 19'74)
and in comparable pricES a reduc$ion (54.07 percent and 53.93 percent re-
spectivPlq).
The lessening of the extent of preferential development of subdivision I,
- that is, the rapprochement of the grawth rates of subdivisions I and IIs is -
contributing to optimization of the proportions in the development of the
economy and acceleration in the rise in the people's living standard. The r!,~
date adduced beluw testify to this. -
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Tab 1e 5 -
Seventh 5- Eighth 5- Ninth 5- lOth 5-
Year Plan Yesr Plan Year Plan Year Plan
(planned)
Retail commodity turnover ~
of state and cooperative
trade (in comparable pricea)8 26 50 56 60
Payments aad benefits from
the social conswttption f~ds
(in the actual prices in _
effect)8 14.6 22 26.2 26.9
A relatively small extent of the increasing preferential growth of subdivi-
sion I specifically determined in the plan is characteristic of the economy
of developed socialism. A partj.cularly i+uportant part here is played by
the further optimization of the propor~ton between industry groups "A"
and "B." Whi1e consistently pursuing the policy of the preferential de-
velopment of group "A" the party is at the same time adopting all measures
to accelerate the development of group "B" and bring its grawth rate closer
to that of the production of preduc~r goods in industry.
Addressing the CPSU Central Committee November (1979) Plenum, L. I. Brezh-
nev said: "The volimme of the productioa of consumer gooda is, of course,
growing. But the demaads made on quaYity and assortment clearly outdistance
~hat industry proposes.
"Recently the CPSU Cent.ral Committee and newspaper editorial offices have
been receiving letters and complaints about interruptiona.in the trade in .
com~modities which for some reason or other have come to be called 'odds and
ends'.... This, comrades, is unforgiveable." For an increase in the produc-
tion of consumer goods there is gxeat significance in an improvement in the ~
division of labor between the sectors of light and food industry producing
these commodities and enterprisea of heavq industry and local and coopera-
tive industry.
The rapprochement of the development of subdivisions I and II and groups
"A" and "B" affords no grounds, however, for concluding that there is a
weakening of the effect of the law of preferential growth of the production
of producer goods under the conditions of mature socialism. We believe
that the effect of this law becomes, on the contrary, more intensive in-
asmuch as there is a strengthening of the principal feature of this law.
Technical progress exerts an~li~creasingly grzat influence on the mechanism
of expanded reproduction. Precisely this and not th~ mere fact of the in-
creasing preferential growth of aubdivision I is its inner essence.
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Under developed socialism the formation bo~h of a general national economic
proportion (between subdivisions I and IIQ and of all other proportions as a
whole occurs on a continuously riaing technical basie. The deep-seated
easence of the law of preferential grawth, whose effect actively contributes
to the c~mbination of the advantages of the socialist syatem with the sci-
entific-technical revolution, is revealed increasingly here. Ttiis makea pos-
aible the optimum combinatinn of the accomplishment of two most important
interconnected tasks--accelerating the building of communism's material-
technical base in every gossible way and enhancing the people's living stand-
ard on a r.sr greater seale than ever before. An expression of this process
is heavy industrq's increasingly full satisfaction of subdiviaion II's
producer good requirements and at the same time this sector's expansion of
the production of consumer goods. This is vividly manifested in the change
in the structure of group "B" (aee Table 6; as a percentag~ of the total).
Table 6
1970 1975 1978
Light industry output 28.8 27.0 21.8 -
Food and milling-groats industry output 48.6 46.a 44.9
Heavy industrq sectors' output 22.6 26.2 27.3
The adduced figures show that th~ proportion of heavy industry output in _
group "B" is almost on a par with the proportion of light industry output.9
Particular mention should be made of the rapid growth ~.f the production of
aultural-social and household commodities, which are chiefly manufactured
by heavy industry enterprises. Some R24.2 billion of these commodities
were manufactured in 1978 compared with R13.7 billion in 1970. The glan
for 1980 outlines a 10-percent growth in the production of these c4mmodities
with an overall increase in group "B" pro~lucts of 4.5 percent.
The reorganization of the proportions between groups "A" and "B" and with-
in the latter is alsn favoiably influencing such a global national economic
proportion as the correlation between accumulation and consumption in the
national income. Acceleration of the growth rate of the consumption fund -
is of the greatest importance for an increase in the working people's
living standarl (group "B" accounts for approximately three-fourths of the
consumption fund).
Under developed socialism optimum proportions take shape along the entirp
chair. linking production and popular conaumption: the satisfaction by sub-
division I, particularly group "A," of the production requirements of group
"B"--production of consumer goods--the working people`s real income. The
basis of the optmization of all these processes is the acceleration of sci-
entific-technical progress. The balance that has now been achieved beween
subdivisions I and II is enabling us to successfully solve the problem of
the further development of scientific-technical progress. Striking evidence
of this ia the development of Soviet cosmonautics, which marks not an
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rux urrl~,t~u. u~~ uNLr
_ isolated "breakthrough" to the pinnacles of science and technology but is
the synthesized result of scientific-technical progresa.
At the same time the development of subdivision I a.zd, correspondingly, group
"A" is attended by a number of difficulties . The USSR has a very powerful
_ fuel-energy complex. Howeve~ the economy's requirements are not being fully
satisfied. 1'he task of a conaiderable improvement in the structure of the
fuel-energy balance sheet by way of a reduc~ion in the proportion of oil as
the fuel for power stations, the extensive substitution of gas for mazut and
.*_he accelerated development of nuclear powQr ~ngineering is very pertinent .
Despite the vr~lumes of the production of inetal whict~ have been reached,
there is a shortag~ of it. This ie caused primaril~? by the slow qual~.ta-
tive reorganization of inetallurgy itself , the lagging in the introduction of
new production processes in tlie.metal-consuming ser_cors and inadequate savings
of inetal.
Not all problems have been solved in machine building. The economy's need
- for a n~ber of modern machines is not being met ful~y. Many new machines'
metal consumptio:i is high, and the proportion of wastE~. in metal working is
great. To accelerate the development of machine building it is esaential
to not only assimilate more rapidly individual, highl, efficient models of ~
new equipment but also saturate entire sectors therrwith. For this reaeon ~
the new equipment assimilation and introduction quot,as ehould ~e an organic
part of all sections of tHe+production and capital cc�aetruction plan.
_ A considerable improvement in p].anning in machine building is essential. It _
is important within group "A" to plan the growth of the production of the
implements of labor by calculating it directly according to a speci~l.ly
formulated classifier, in accordance with which group "A" output is di~~ided
~ into three parts: implemente of labor, means of labor which are not imple-
ments of labor and sub j ects of labor .
Maintenance work is also in need of improvement. Currently it is scattered.
- Measures are being adopted in a number of sectors to increase the epecializa-
tion and concentr.ation of maintenance work. But these individual measures
are not ena~gh. We believe that it is essential to implement a unified
maintenan~e policy on the acale of all industry and the entire economy.
The further strengthening of the balance within subdivision I is of great
significance. The socialisC society does not need just any increasing pre- _
ferential development of subdivision I. The increasing preferential growth
of subdivision I should contribute to ~ha forma.tion of proportions on a
- new technical basis. This presupposes an increase in the efficiency of
subdivision I, primarily machine building. It is esaential for this purpose
to secure the increasing preferential growth of tHe manufacture of the
implements of labor. Yet in th~period 1971-1978 the volume of machine-
building output increased 133 percent and the means of labor 107 percent.
This correlation needs to be improved insofar as it is precisely the imple-
ments of labor which determine technical progress to the greatest extent. _
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The problems of the further development of subdiviaion I and of an improve-
ment in its structure and, on this basis, of the entire economy are problems
of securing the further progress of the USSR economy by way of the maximum
. utilization of intensive factors. The development of machine building on a
- new technical basis is the d.ecisive condition of an increase in the degree
of balance of subdivisions I and II, primarily groups "A" and "B," inaiiring,
in turn, a strengthening of ~roportionality throughout the economy. Among
other things, this factor forms the l~asis of the optimization of such an
exceptionally important proportian as the correlation between industry and
agriculture. The further upsurge of agriculture is a nationwide problem
toward whose solution the party's agrarian policy is directed. A redistri-
bution of accumulations in its favor is currently under way, and producer
good supplies to the kolkhozes and aovkhozes are being increased.
- L. I. Brezhnevr emphasized the significance of the development of agricultural
= production's industrial bfase in the report at the CPSU Central Committee
Julq (1978) Plenum. He made particular mention here ~f the need for the de-
velopment of such specialized indepeudent large-acale sectora as water re-
sources and reclamation, machine building for animal husbandry and fodder
production, rural construction and the mixed-fee d anid microbiological in- -
dustry.
The balance of subdivisions I and II ie also helping solve the problem of the
further upsurge of transport, primarily railroad transport. Railroad trans-
port has become a"bottleneck" in recent years in the development of the
economy. As the CPSU Central Committee November (1979) Plenum observed, the _
plans for the shipment of most important freight (fuel, timber, grain) are
being flagrantly disrupted. To eliminate this disporportion measures are -
being adopted to increase transport's supply with rolling stock and ita
productivity, mechdnize handling operations and build new railroad tracks.
Equipment supplies from group "A" aectors will play a decisive part in all
these proceases. The plan for 1980 provides for measures to increase the
_ productivity of the engines and freightcars, their traffic speed and the
weight of the trains. Additional capital investments have been allocated
for this purpose. ~
Thus the achievement of the balance of su~3ivisions I and II is a most im-
_ portant result ~f the effect of the law of preferential growth of the -
production of producer goods which under the conditions of developed social-
ism is characterized by an essential modification contributing to the opti-
mization of the entire mechansim of the proportionality of social production.
FOOTNOT~S
= 1. Several other indicators of sutdivision I and II's share with their
calculation in actual prices are also adduced in literature (see, for
example, "Planovyy balans narodnogo khozyaystva" [Planned Balance of the -
Economy], Izd-vo Ekonomika, 1977, p 267). But the difference in the
corresponding indicators ~is negligible, which does not influence the
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r'ox or�rlc;tx~. us~ uNLx
fi~d,am4enCaJ. conclusions concerning the preferential growth of subdivi-
sion I. As G. Sorokin correctly observea, for an evaluation nf thr.
dynamics of the subdiviaions' shares it ia essent{al to compute the
structure of the social product in current and constant prices (see
- VOPROSY EKONOMIKI No 1, 1979, p 35).
2. "Planned Balance of the National Economy," p 181.
3. In this respect the law of preferential growth is in no way different
, from other economic law~, from the law of value, for example. After
all, as Mar~ noted, the possibility of its deviation from a value is
contai.ned in the mere form of the~price. But this does not mean that the
law of value ia realized ae ~ trend. Lenin's description of a law in
general ae a lasting, permanent interconnection of phenomena is fully -
app~icable to the law of preferential grawth of the production of pro-
ducer goods.
4. V. I. Lenin, "Poln. sobr. soch." [CompleCe Worka], vol 1, p 100.
~ S. K. Marx and F. Engels, "Soch." [Works], vol 23, p 636. ~
6. V. I. Lenin, "Complete Works," vol 4, p 48.
7. Certain economists believe that employing comparable prices here ie the
equivalent of telling the time by a atopped clock. There is no analogy
here. Comparable prices make it possible to analy ~ the structure of the
social product according to physical volume. Current prices, on the
other hand, are also neceasary for they afford an opportuni.ty of eatab-
lishing this structure's conr~ection with the real proportiona of the
production of a given period.
8. Abolute increase in billions of rubles.
9. It is a question of that part of light industry output which is for
personal conaumption (clothiag, footwear, knitwear and others). The
other part (yarn and so forth) is for industrial processing and is
therefore included in group "A."
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekon~miki", 1980
8850
CSO: 1820
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ECONOI~C POLICY, ORGANIZATION AND MANAGEMENT
SELECTED REPORTS FROM USSR ACADEMY OF SCTENCES SESSION
UDC 338.98
Baybakov Views Eighties
Moscow VESTNIK AKADEMII NAUK SSSR in Rusaiaai No 5, Ma~ 80 pp 13-22
_ [Paper delivered by N. K. Baybakov, deputy chairman of the USSR Counc.il of
- Ministers and chairman of USSR Gosplan: "On Improvement of the Plauaiing
and Management of the Economy"]
[Text] The decree of the CPSU Central Co~ittee snd USSR Council of Minis- -
tera entitled "Qn Improving Planning and Strengtbening the Influence of the
Economic Mechanism on Increasing Production Efficiency and Work Quality,"
adopted in July 1979, is postulated on the main directions for improvement
of management of the economy in the present etage as defined by the 25th
party congress and subsequent ple~ums of the CPSU Central Committee aad on
the groviaions of the new Soviet Constitution. The dec:ee summarizes the
results of a number of ma~or experiments carried out both at individual ea-
tergrises and also on the scale of particular industries and regions of the
country concerning improvement of the planaing, concentration and special- -
ization of production and the nse of economic instruments and inceatives. _
The decree ca11s for a uumber of timely measures aimed at improving the
planning and management of the economy by virtue of their further central-
ization, along with development of democratic principles. These measures
should direct a11 managerial and planning activities toward raising produc-
tion eff iciency and the qc~ality of performance, toward attainment of high
_ final results from the standpoiat of the national economy, and toF~ard
fuller satisfaction of the growing social and personal needs of the Soviet
people.
At the November (1979) Plenum of the CPSU Central Committee a long speech
was delivered by Comrade L. I. Brezhnev, general secretary of our party's
central comm~ittee and chairman of the Presidium of the USSR Supreme Soviet.
He furnished a profound and truly scientific analysis of development of the
_ country's economic system, defined in clear terms the tasks confronting the
party and people in the current period and the future, pointed once again
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to the need ~to raise i:he level of management in the broadest sense of the
word and stressed that restructuring the economic mechanism is a ma~or eco-
nomic and political task. Speaking about progress in fulfillment of the
plan of the lOth Five-Year Plan, about the draft of the state plan for eco-
nomic and social development of the USSR in 1980 and about the ilth Five-
- Year Plan, L. I. Brezhnev pointed out that steady growth of the ~conomy and
a rise in the proEperity of the Soviet people can no longer be guara~tteed
on the basis ot the tendencies and factors of extenaive development that
have formed in the past. The on;.y correct and reliable course is to deter-
, minedly switch the entire econo~uy onto the track of intensive development
and toward raising efficiency and quality. At the November (1979) Plenum
of the CPSU Central Committee L. I. Brezhnev noted that there is no alter-
native to this course, and it must be unswervingly followed in the llth
Five-Year Plan.
It is accordingly necessary that application of scientific-technical
achievements to production be provided for in plans and guaranteed in prac-
tice, that the organizational and material-technical prerequisites be cre-
ated for increasing rates of econflmic development and the growth of labor -
productivity and that a substantial saving on raw materiale, aupplies and
fuel-and-energy resourcea be achieved in all parts of the economy. There
is convincing evidence of the importance of all this in the fact that no~a
that we have a huge production potential, now when metal and fuel are being
produced in considerably larger amounta, and when we have an army o� ,
skilled workers, engineering and t~~hnical personnel and scientiste number-
ing many millions, we are feelin~ an acute shortage of a number of physical
resnurces, a shortage of manpawer, as well as a shortage of production ca-
pacities in certain sectors and regions of the country.
In this connection w~e should bear in mind that ~he coming decxde of the
eighties has a number of p~culiarities which make the work of shaping a
multiaunual plan in that period coneiderably more difficult. I will enu-
- merate the most important of these peculiarities.
First, there is the greater complexity af the demo~raphic situation. The
growth of labor resources in the eighties will be one-fourth as large.
This necessitates the drafting and adoption of effective measures both for
improved utilization of labor resources and also for optimum location of
the productive forces, and, above all, for creation of better organiza-
tional, technical and economic conditions for the steady rise of labor pra-
ductivitv.
Second, there is the further enhancement of the role of Sfberia, the North
and the Far East as a source of energy resources and most raw materials for
development of the country's economy and operations in foreign trade. This
circumstance involves augmenting the state's expenditures to extract all
those resourcea and transport them to.points of consumption. The moat ex-
pedient ways of solving this very aerious problem have yet to be found.
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Third, there is the worsening of the mining-geological conditions for ex-
traction of raw materials and fuel, which is necessitating ever higher out-
lays for simple reproduction, that is, to maintain the level of production
already attained.
~en now these tendenciea in economic development are cauaing difficulties
in balancing plans of production and capital construction and in building
up the necessary reserves to es~sure the requisite stability of plana and
, steadiness in the growth of production. These difficulties are appreciably
compounded by the att~chment of certain ministries, dapartme.-:~s and maa-
agers in the economy to extensive methods and to feeble use of intenaive
methods of economic management, ao that as a result the ratea and absolute .
size of the growth of the national income and the output of induatry and
agriculture for 4 years of the present 5-year period will be less thaa we
intended. To a considerable exLent this situation is explained ~y the fact
that we have been unable to achieve an abrupt ch~age of direction in raie-
ing the efficiency of social production. -
Labor productivity in our industry has risen 14.2 percent over the last 4
years, as against the intended 21.8 percent. Because targets for raieing
labor productivity have not been fuffilled in industry, the country was de-
prived of approximately 33 billion rublea nf output over that pariod. In
construction and in transportation, rail transportation particularly, there
is a large lag behind the targets of the S-year period in the domain ot la-
bor productivity. Hor is tha aituation Sood with utilization of fixed cap-
ital: in the years of the 5-year period which have passed the actual drop
of the output-capital ratio in induatry was greater than called for in the _
' plan. Nonf.ulfillment of planning targeta for economizing on phyeical re-
sources ie chronic. We are expeading 1.5-2-fold more physiral resourcea -
per uuit of finished output than the advanced capitalist cQUntries.
That is why it is so urg2ntly necessary to r.aise the level of glanning work
_ at all levels of management and to enhance the effectivenesa of the eco-
nomic mechaniam so that they meet the present-day requirements of the coun-
try's economic and social development by virtue of higher production effi-
ciency and qu.~~lity of performance and the most effective utilization of all
the factors ~of economic development. ~ -
Higher efficiency is expected to offset the effect of adverae factors and
to create co~ditions for dynami~c economic development.
In coming years a decisive change of direction needs to be accompliahed to-
ward more efficient conduct of economic activity, and in this area, as
noted in the July (1979) decree of the CPSU Central Comm.ittee and USSR
Council of Ministera, the atate plan hae paramount significance ss an im-
portant instrument for carrying out the party's economic policy.
Much attention is paid in the decree adopted by the party and goverriment to
improving the planning system and planning methods and to a aubstantial
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enhancement of the role of the 5-year plan in ensuring proportionate and
balanced economic growth and also optimum combination of the sectoral and
regional aspec~s of the econnmy's development. It is very important to
guarantee through planning that effective use is made of everything already
created and that will be available to the nation$1 economy in coming years.
Only improvement of multiannual planning, improvement of the proportione of
the national economj and the amounts and composition of capital irrveatments,
- and optimum location of the productive forcea over the regions of the coun-
try make it possible to accomplish major economic and scientific-technical
maneuvers toward optimum distribution--and in the necessary cases even re-
distribution--of resources among sectors.and industries and economic re-
_ gions and to effectively solve tre ma~or problems of the national economy.
The 5-year plan must truly become the work program governing the activity
of every enterprise, association and miniatry and must become the basis for
establishing long-term r~lations anu concluaion of contracts, for adoption
of the system of stable economic norms and standards, and for making eco-
nomic incentives more effective. This w~l make it poasible to evaluate
fulfillment of the 5-year plan on a cumulative basis from the beginning of
the 5-year period and to eva~~aate fulfillment of the aiinual plan on a cixmu-
lative basis from the beginning of the year. This kind of evaluation will
_ have great importance in intensifying the motivation and responsibility of
ministries and enterprisea for fulfillment of assignments for each year of
the 5-year period and the assignments of the 5-year plan as a whole.
Enhancement of the organizing function of the targets of the 5-year plan
~akes it feasible to draft annual plans of associations and assignmenta
from below, which will help to increase the effectiveness of aocialist com-
petition in th~ form of cc~unterplans.
'I'he new procedure for drafting 5-year and annual plans and expansion of the _
rights of associations and enterprises to use the saving on the wage f~ind -
and also economic incentive funds are a mc~st important means of develaping
economic initiative and a further step in development of democratic princi-
ples in the management of production.
It is indispensable to the improvement of planning to step up development
of the system of scientifically sound technical-and-economic norms and
standarde pertaining to jobs and operations, ~xpenditures df labor, raw ma-
- terials, ~upplies and fuel-energy resources, and to the utilization of pro-
duction capacities so as to take int~ acrount a rise in the shift coeffi-
cient of the operation of equipmeut and apecific capital investments.
Adoption of progressive standards governing utiilization of production ca-
_ pacities will have particularly great importance in that aystem. One can
see from the example of juet the chemical industry how we utilize the~ to-
day. In recent years production capacities for the manufscture of such
highly important products as manufactured fertilizers, sulfuric acid, ayn-
thetic fibers and filament, plastics, and so on, are being utilized within '
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the range of 83-95 percent. This underutilization of capacity for final
output results to a considerable degree from nonfulfillment of the assign-
ment of the 5-year plan for activation of production capacities to manufac-
ture raw materials and intermediate products, which has brought about seri-
ous disproportions within the industry. Moreover, the state of affaira in
this industry is deteriorating from year to year.
The question of the intemal conaistency of plans was put in no uncertain
terms at the 25th CPSU Congress. In the July (1979) decree of the CPSU
Central Committee and USSR Council of Ministera provision is made for
drafting within the 5-year plan balances of physical and labor resources
and of production capacities, a financial balance and a balance of personal
money income and expenditures. This adds to the responsibility of USSR
Gosplan, USSR ~vossnab and miniatries and departments for the internal con-
sistency of plans pzrtaininR to autput. All of this presupposes a thorough
revamping of the work of campiling balances and plans, of distributing
p'~ysic~l resources and of devising a progressive and scientif ically sound
system of norms and standards.
Unfortunately, the question of creating a single system of technical-and-
economic norms and standards has not yet been fully resolved, nor has an
effective organizational form been found for administering this most impo=-
tant task. To be specific, it is very important to find methods whereby
norms and standards will appropriately register the benefit from applica-
tion of new technology, new manufacturing methods and other similar meas-
ures, so that it is evident what scientific-technical progress is yielding
in terms of specific reduction of inputs of labor, materials and financial
resources. But we must, of course, first achieve that progrese of technol-
ogy and manufacturing methods for anything to be reflected in the norms,
atandr~rda and efficiency indicators.
' It is uite clear that withour
q good progressive norms and standards re-
flecting the advances of science and technology and succeas in organization
of management, of work and of production as a~hole it is not poasible to
' draft plans nor their very important component--the balances--at the level
of present-day requirements.
This decree of the CPSU Central Co~ittee and USSR Council of Ministers
states that one of tha principal tasks of planning authoritiQS is to ensure
integrated solution of economic and social pr~blems and concentration of
energies and resources on fulfillment of the most important nationwide pro-
grams. USSR Gosplan has s~ccordingly been assigned a specific and crucial
_ ,job--to draft special-purpose comprehensive programs as a very important
component of multiannual state plans.
Three groups of such programs, which are to be drafted together with the
drafts of multiannual plans, have been defined. These are social and eco-
nomic programs, scientific-teehnical programs and programs for development
- of particular regions and regional industrial complexes. Ta a certain
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extent this is a new ~ob for Goaplan, since this is the first *_ime the task
has been set of drafting such programa as a system within the present plan-
ning system and by the dates set for compiling national economic plans.
This requires of planning authorities an approach that ie not atandard, but
creative. In solving any particular problem we must above all have a clear
idea of what we want to achieve and by what date, and only then decide w�hat
means and methods are necessary to fu11 attainment of the goal that has
been set regardless of departmental subordination of the organizational
_ component that will carry it out.
Priority has been given to five programs. The~e are the programs for con-
servation of inetal, fuel conservation, construction of the BAM [Baykal-Amur
_ Main Rail Lina] and economic development of the BAM zone, reduction of man-
ual labor and increased production of new consumer goods. It is important
to ensure a very straightforward organization of the work on these programs
- from the very first step. And I would like to note the following. A cer-
tain amount of spadework has already been done oa the first four programs,
and a considerable effort is under way. As for the fifth program--consumer
goods, here, as they say, we are still at the level of formulating the
problem. The idea is to work out a package of ineasures that will ensure
the creation and production of new industrial consumer goods related to
meeting the needs of the public fox worthwhile rest and leisure and to
equipping and furnishing dwellings and making work easier in the household
and private farming. It is not a matter of increasing the prflduction of
traditional goods, but of creating a range of new goods that meet the high
demands of the Soviet people.
It is up tio the Presidium of the USSR Academy of Sciences to ~oin Goaplan
" in defining procedure for systematic participation of scientific organiza-
tiona and scientific councils of the USSR Academy of Sciences in drafting
and carrying out the ma~or special-purpose programs of the national econ-
omy .
We gain quite a bit of experience in drafting scientific-technical programa
in the plan for the lOth Five-Year Plan. But we n;ist bear in mind that the
decree calls for the technica~ ideas to be developed within the framework `
of the program to be brought to the stage of series production, whereas up
to now fulfillment of scientific-technical progress has ended with the pro-
- duction model and first full-scala run.
The decree which has been adopted pays pa~rticular attentior? to improving
the planning of science and technology and to enhancing science's role in
raising production efficiency.
We have achieved considerable success in development of science and tech-
nology under the leadership of the CPSU Central Com~ittee and Soviet Gov-
ernment. The ma~or advances of Soviet sciences are well known in using the
energq of the atomic nucleus, in creating rocket, space and aviation equip-
ment, in creation of man-~made crystals, in development of radioelectronics,
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and in expanding the country's mineral and raw materials base. Research in
the fields of theoret~cal and applied mathematics and efforts to refine
computer hardware and sof tware and the like will undergo further develop-
ment.
Effective performance of the whole range of very important tasks confront-
ing the national economy in the increasingly complicated context of ita
management requires effective aid from the scientists of the USSR Academy
of Sciences, the academies of the rQpublics and sectors, and all scientific
research organization~. We have the capability for this. The Soviet Union
is first in many fields of science and technology. We have created large
scientific research and design organizations. In ~ust the last 8 years the
number of scientists in the country has increased 1.4-foid and has sur-
passed 1.3 million; moreover, the number of doctors of science has in-
creased 55 percent and the number of candidates of science 65 percent. Ex-
penditurea for science over that period increased 65 percent (while the na-
tional income incressed 4 6 percent) and smounted to 19.3 billioa rubles in
1978, or 4.5 percent of the coun*ry's national income.
At the same time we cannot but note that the state of affairs in develop-
ment and especially the application of new technolo,gy and manufacturiag
methods in the economq is not meeting the demanda of life. There is unjus-
tified parallelism in the activity of scientific research institutes, work
is not uncomnonly done on second-rate topics, and this makes it more diffi-
cult to concentrate energies and resources on the most important lines of
development of science and scientific-technical progrese.
Many USSR ministries are not ft~,lfilling plans for developmeat of science
_ and technology, nor are they iarnishing the necessary spadework for cre-
atinn of new machines and equipment and also new manufacturing processes -
which have the greatest impact on the saving of live labor, higher effi-
ciency in use of raw materials and fuel, and improvement of product qual-
ity. In the 4 years of the 5-year plan the plan approved for scientific-
technical progress will b e fulfilled at a level of 80-85 percent. In ci-
vilian machinebuilding--the leading industry accounting for technical prog-
ress in the national ecouosny,_the number of new models of machines, equip-
ment, apparatus and instrumenra created is dropping. Whereas in 1975, ac-
cording to figures of the USSR Central Statistical Administration, 4,170
different items were created, the figure in 1976 was 3,795, in 1977 it was
3,477- and in 1978 it was 3,500.
The products manufactured by machinebuilding are being renewed at a slower
pace. The rPlative share of products first put into production in the USSR
in the total volume of conm~dity output has dropped from 4.3 percent in .
1970 ro 3 percent in 1977 and 2.5 percent in 1978. In the development of
new machines and equipment due attention is not being paid to improvement
of their quality characteristics, nor to reduction ot materials intensive-
ness and energy intensiveness. With respect to these indicatora they fall
short of the best world exemplars in a number of cases. Because insuffi-
cient attention is paid to the problems of scientific-technical progress
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- and because of shortcomings in the organization of work average annual
growth rates of labor productivity in the industrial sector, stated in per-
worker terms, have dropped to 3.4 percent in the first 4 years as against
the 4.7 percent called for in the current 5-year plan and 6 percent in the
Ninth Five-Year Plan. As we have already said, matters are still worae
with fulfillment of assign~nents for the rise of labor productivity in con-
struction and transportation.
It is, of course, not possible to explain this situation entire'y in terms
of shortcomings in the caork of ministries and departments, the USSR Academy
of Sciences and their scientific research organizations. In large part
this is related to the low level of work being done within USSR Gosplan to
speed up application of scientific-technical advances in the economy, to
plan the development of science, to carry out scientific research and to
_ monitor its performance. The problems of speeding up scientif ic-technicsl
progress have not yet been emphasized in the activity of sectoral anci sum-
mary divisions of Gosplan; sometimes when they are shaping multiannual and
annual plans they do not have the neceesarq w~orking contacts with the sci-
entific research organizations of the Academy of Sciences and ministries
and departments.
It is particularly clear to us workers of USSR Gosplan who are shaping the
main lines of the USSR's economic and social development up to 1990 that .
without a radical improvement of affairs in the field of scientific-techni-
cal progress it will not be possible to perform those large tasks which the -
party and government are setting. At the same time we see the enorm~ous po-
tential for growth of our economy and for raising the standard of living of
the people by speeding up scientific-technical progress.
Gosplan attributes great importance to a close union of planning and sci-
ence through fuller use of the advances of science and technolagy in the
drsfting of national economic plans. We have a high opinion of the impor~
tant work done by the USSR Academy of Sciences to compose the Comprehensive
Program of Scientific-Technical Progress and Its Socioeconomic Consequences
_ up to the Year 2000. Most sections of USSR Gosplan feel that the main
lines for prospective development of the sectors of the economy outlined in
that program coincide with their own pro~ections, and for that reason these
materials are being used in defining the main lines of the country's eco-
nomic and social development up to the year 1990. But a number of propos-
als are in need of additional substantiation. This specifically applies to
development of the �uel and energy complex, to the optimum size of capaci-
ties in the chemical and petrochemical iadustries and to certain other sec-
tors. We must also note that the proposals of the scientific commissions
of the USSR Academy of Sciences and the USSR State Committee for Science
and Technology (GRNT) have not been stated in sufficiently concrete terms.
Nor have dates and possible acales of application of the results of scien-
~ tific research been indicated, and no assessment is made of the economic _
efficiency of advances in science and technology. For a number of sectors
(the coal industry and certain others) there is no estimate of the techni-
cal level up to the end of the forecasting period.
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I will give an example. The GRNT Co~ission for Retooling the Country's
Productive Plant and Development of Machinebuilding (ditector--A. I. Tseli-
kov, member of the academy) recommends as one of the main lines of develop-
ment of machinebuilding e~cpanded use of detailing (rolling) mills, of which
there are today more than 60 in our industry. Gosplan has a high opinion
of the results of work to use this method in manufacturing pins for convey-
ors used in livestock-raising e~peratione, railroad car axles and a number
of other parts. But the caamiission's recommendations do not state where or
on what scale this highly effective equipment could be applied, nor the
kind of saving of labor, metal aad capital investments it would yield.
There is a need to speed up the drafting of specific proposals ior deter-
mination of the main lines of future scientific-technical progress in our
country, including substantiation of the technical-and-~economic indicators
- for development of particular production operations and induatries. There
ia also a need to speed up the drafting of procedural guidelinea for prepa-
ration of the Comprehensive Program of Scientific-Technical Progreas.
- USSR Gosplan, which attributes great importance to ecientific-technical
progress, regularly examines ;.he proposals of scientists and specialists
concerning new manufacturing processes and proposed technologiea, selecting
and acknowledging in its drafting of state plans thdse proposals which are
on the largest scale, that is, those whose realization could make it pos-
sible to substantially raise production efficiency. In this connection I
would like to present certain information which is of considerabte inter-
est.
_ We are all quite aware of the importance of developing the country's fuel
and energy complex: The proportions in which the various fuels are used
will determine the effectiveness of developing the entire fuel and energy
complex and consequently the development of the national economy as a
whole. That is why it is so important to concentrate on development of nu-
clear power and also the gas industry, and finally the petroleum industry,
in order to obtain motor fuel and raw materials for the chemical industry.
There are very many specific problems in this area which I would like to
call upon scientists to solve. I will dwell upon one important and large-
scale measure which is being carried out at the present time on recom~en-
dation of the Ukrainian Academy of Sciences.
It has to do with introducing into the economy multiply pine which with- r
stands pressures up to 120 atmospheres or higher and makes it posaible to
pump approximately twice as much gas as the same diameter pipe k�e have at
the present time. Construction of gas pipelines of multiply pipe for a _
pressure raised only to 100 atmospheres would make it possible to obtain
45-47 ~illion cubic meters of co~ercial gas as against 30 billion cubic
meters at a pressure of 75 atmospheres and at the same time to considerably
reduce capital inves bnents. B. Ye. Paton, member of the academy, has been
paying very close attention to this problem, and we are doing averything to
promote its solution.
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r�ux u~r�lc:t~u. us~ orn.Y
The testing of the new pipe under e-~perimental conditions has shown that it ~
is very promiaing from the standpoint of increasing gas delivery from the
- eastern regions to the Center and beyond--to the western borders of the So-
v iet Union. It affords the possibility of pumping 180 billion cubic meters
_ of gas a year from w'estern Siberia and of reducing by one-third the number '
of gas pipelines required for thia purpose. This measure will make it gos-
sible to save not millions, but billions of rubles.
A plant is already being built to manufacture the new pipe, and the first
_ gas pipeline using it will be laid in the llth Five-Year Plan.
We should also note the very worthwhile work being done by VNIlmetmash
[Al1-Union Scientific Research, Planning and Design Institute of Metallur-
- gical Machinery] under the direction of A. I. Tselikov, member of the acad-
emy. As a result of that work a proposal has been submitted to Gosplan for
production of contact-welded thin wall pipe. Adoption of this proposal
~ will yield a large economic benef it in industry and agriculture. We are
grateful to Aleksandr Ivanovich foz the work he and hie team have done. A
decision has been made to build a plant to manufacture thin-wall pipe, -
which will make it possible to save 600,000 tons of inetal per year. The
plant is already in operation and is yielding the state a good return.
The Institute of Chemical Physics of the USSR Academy of Sciences has also
done quite a bit to render asaistance to the economy. I have had occasion
to visit this institute and become acqusinted with research to create new
f illed polymer materials. This work is very promising. The institute's
staff, under the directioa of N. S.~Yenikolopov, member of the academy, is
now working energetically with people from industry to organize industrial
production of pipe from Chese materials.
If the production of this pipe is increased to 1.5 million tons and the
production of thermal insulating materials up to 10 million cubic meters
per year, the consumption of petrochemical raw materials and also consump- -
tion of petroleum fuel for energy purposes could be reduced by 12-13 mil-
lion tons of petroleum per year, which would mean a saving of at least _
2-2.5 billion rubles on capital outlays. Moreover, it would reduce by 6-7
million tons per year the need for steel pipe, which increases the econo~ic
benefit still more.
We would like to see this work in the Academy of Sciences put under apecial
supervision, whi3.e we for our part will provide aid to the relevant organi-
zations in building these installation8. The first pilot plant for manu~
facture of pipe from plastic iuaterials with various fillers will be put
into operation in 1980 at the Mytishciii Stroyperlit Combine.
Much work is being done in the field of powder metallurgy. The maaufacture
~ of parts by this method makes it possible to double labor productivity at
the least and reduce capital investments to one-third.
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In speaking about large-scale techni:.al measures; we cannot pass over the
question of u~ing nuclear reactors to obta-!n not only power, but also heat.
Every such nuclear boiler installat~an is capable of heating a city with a
_ population up to 400,000, thereby saving the national economy about 800,000
, tons of standard fuel per year. In the national economic plans for the llth
and 12th 5-year periods we intend to provide for the manufacture of as many
installations as we will be able to erect with the capabilities of our ma-
chinebuilding enterprises. There are very high guarantees that the nuclear
boiler inatallations will establ~sh themselves not only in our own cour.try,
but also in the other socialist countries.
' All of this demonstrates that many development projects being conducted in
scientific organizations can and must be made available to the national
economy. That is why Gosplan has made a practice of hearing in its ex-
- panded sessions the reports of scientific organizations and of making deci-
sions concerning them. To be specific, last year the problems of introduc-
ing multiply pipe into the national economy and of combating losses of ag-
ricultural products were diacusaed in a session of Gosplan.
Not long ago we discussed pro,jects of the Siberian Department of the USSR _
Academy of Sciences. Papers were presented by G. I. Marchuk, member of the
academy, and directors of those institutes of the department which have
scientific developments that might be applied in practice at present or in
~ the near future. We have examined many projects, and some of them need to
be mentioned here, since they require the cloae attention of a number of
organizations, above all the ministries to which a number of developmeats _
will be turned over.
- More than 20 years ago scientists of the USSR Academy of Sciences developed
the growth substance gibberellin, which has a great future in the economy.
That is, experiments using gibberellin over the last several year~ show
amazing results. In 9amarkandskaya Oblast spraying gibberellin in micro-
scopic doses (25 grams per hectare in a water solution) during the flower-
ing period of grapes made it possible to increase the yield at least 1.5-
fold in 3 years. Use of gibberellin in Moldavia is yielding extremely good
results. The increase in the yield of tomatoes on plots treated with the
preparation was 150-200 quintals per hectare over the 3-year period, that
is, 50-70 percent. The M~oldavian comrades are asking to be allocated 1.5
tons of the preparationq but the plant is producing only 80 kg per year.
The question, of course, arises why the practical application of gibberel-
lin is going very slowly, and at times has been forgotten altogether, when
there are these extremely interesting results?
A broad road needs to be opened to the new preparation, and we need to use
it to obtain higher yields than those which can be obtained under other
equal conditions.
Without touching upon other aspects of the activity of the Siberian Depart- -
ment of the Academy of Sciences, I will note that along with the pro~ects I ~
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have mentioned, much attent~on should be paid to the radiation devices
built in the institutes of the departmeaC for combating grain lossea and to
improve the strength and thermal characteristics of plastics. The same ap-
plies to the new catalysts developed in the laboratory of G. K. Boreskov,
member of the academy, in the Catalysis Institute of the Siberian Depart-
ment of the USSR Academy of Sciences. They are very promising and deserve
the most aerious attention from the Ministry of Chemical Industry and the
Ministry of Petrol eum Ref ining and Petrochemical Industry.
Many new things have been done in the field of r.~achinebuilding. `
The All-Union Scientif ic Research and Pro~ ect Planning and Design Instirute
of Electric Welding Equipm~nt, collaborating with the Izhorskiy Plant in
Leningrad, has succeeded in organizing prior plasma treatment of cutting
tools, which has made iC possible to increase the cutting rate 4-5-fold.
A8 a result billets weighing as much as 50 tone, which previously took an
entire month to be machined on ~~uatom-made machine tools, a~:e now machined
in considerably shorter periods of time because there is less need for the
custom-made machine tools. If we really tackle the job of applying plasma
treatment of inetal in the llth Five-Year Plan, this will yield a consider-
able economic benefit.
Much work has also been done to create auch new types of transportation as
pulp lines, container pipelines, magnetic cushion transport, etc. A deci-
sion has been made to co~ence constructicn of a pulp line from ~he Kuzbass
- to Novosibirsk over a distance of 250 km 3.n order to deliver coal directly
to a power p1anC. Later this pulp line will be extended to the Urals and
will make it possible to deliver 25 million tons of coal for the Perm'
Power StaCion, which has a capacity of 4-5 million kwh. The saving on the _
basis of imputed costs will be 2.5 billion rubles over rail transport.
I have given all these examples in order td demonstrate that USSR Gosplan
is at present trying to do everything possible so that maximum advantage is
taken of the advances of science and techrology in the interests of the na-
tiona~. economy. Quite a few new problems are arising in the light of all
this, probl~~ms which in our view need individual examination and adoption _
appropx'~ate decisions .
It must be said that the organization of the scientific-production associa-
tions, in which sc~ence is combined with production, is yielding the great-
est benefit from the standpoint of speeding up practical application of the
- developments proposed by the scientists.
Production facilities need to be built in the institutes of the USSR Acad-
emy of Sciences so as to enaure the fastest work on technical problems and
the apeediest application of the reaults of scientific research.
I would like to express the hope that today's session of the General Assem-
bly of the USSR Academy of Sciences will furnish effective sid in drafting
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those plans for the socioeconomic development of our country which are in-
dispensable to the further dynamic development of the national economy and
a rise in the prosperity of the Soviet people.
COPY'RIGHT: Izdatel'stvo "Nauka," "Vestnik Akademii nauk "SSR," 1980 ~
UDC 300.455
Fedoseyev on Sccioeconomic Development
Moscow VESTNIK AKADEMII NAUK SSSR in Russian No 5, May 80 pp 23-36
[Paper delivered by P. N. Fedoseyev, member and vice president of the USSR
~ Academy of Sciences: "Theoretical Problema of Socioeconomic Development in
the Present Stage"j
[TextJ In his address at the November (1919) Plenum of the CPSU Central
Co~ittee Leonid I1'ich Brezhnev emphasized that in solving the urgent
tasks facing the national economy the party is putting gxeat hopes on the
effective aid of our scientista--especially those of the USSR Academy of
Sciences, the republic and sectoral academies, and all scientific reaearch -
- institutes.
The entire organization of Soviet science and ecientific research must be-
come more vigorous and effective.
Optimum interaction between scientific-technical progress and socioeconomic
development have paramount importance in the continued strong upsurge of
the national economy. To a considerable extent the solving of economic and
social problema depends on how effectively the advances of science and
technology are applied to speeding up the rise of labor productivity and
the growth of the entire economp?. The ratea of scientif ic-technical prog-
ress are in turn determined not only by its internal logic, but to a deci-
sive degree by socioeconomic conditions.
This interaction is vividly manifested in the Comprehensive Program of Sci-
entific-Technical Progress which is being drafted by order o� the governing
bodies by the USSR Academy of Sciences, the USSR State Committee for Sci- -
ence and Technology and USSR Gosstroy. -
The problem of the proportions and rates of socialist production has become
the key problem of economic and social development. The planned develop-
ment of the socialisr_ economy in conformity with the Marxist-Leninist the-
- ory of reproduction makes it possible to consciously regulate and ad~ust
structural changes in the economy to confortn to different historical
stages. -
In all the stages of C.he construction af socialism the questions of struc-
tural policy have been a topic of constant attention by the party and
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government. The point of departure of the party has been and is that �
the rates of ecunomic growth and the potential for capital formation neces-
sary to economic development and to raising the prosper~ty of the people
depend in large part on proper solution of structural problems."*
In the f irst years of the construction of socialiam the problem of improv-
ing the structure of the national economy was solved unambiguously--to the
advantage of uccelerated development of heavy industry. The large-scale
economic maneuver, which required that a strain be put on all the resources
and energies of the people, made it passible in the shortest historica'1
time to put the national economy on the footing of an up-to-date industry -
and to accomplish radical changes in the structure of the economy. Whereas
in the initial period of the construction of socialism the predominant por-
tion of the national income was produced in agriculture, now more than 60
percent of the national income is produced in the sphere of industry and _
construction.
The co~mtry has taken on an up-to-date industrial appearance, a network of
power stations has covered it, new cities and industrial centers have been
built, and large new production and regional complexes have taken shape.
Comparisons with the most advanced capitalist country--the United States--
can give an idea of the i~ense and rapid growth of the country's indus-
trial might. Whereas once our country's steel smelting repreaented one-
seventh of that of the United States, it now aurpasses it by more than 20
- percent. We mined".half as much coal, but now 11 percent more. The level
of petroleum production was one-seventh, but now it is 36 percent more than
in the UniCed States. Cement production was one-eighth of the United
States level, and now it exceeds it by 65 percent. Our country producea
2.3-fold more tractors than the t~nited States. -
Particularly aubstantial changes have occurred in the atructure of heavy
_ industry thanks to the accelerated growth of the machinebuilding complex
and the fuel and power industry. Between 1940 and 1978 the output of ma-
- chinebuilding and metal manufacturing increased 63-fold, and the generation
- of electric power increased 25-fold. Thia made it possible to guarantee
_ multiple growth of the capital-worker and power-worker ratios. Betwe~n
1940 and 1978 the power per worker incre~sed almost sevenfold in the indus-
trial sector and more than 14-fold in agriculture.
As a result of progressive processes in the economy, the material and tech-
ni~al base appropriate to advanced socialism was built. A certain change
in national economic proportions toward a higher share uf resources allo-
cated to consumer neede became possible on that basis. Whereas the ahare -
- of the national #.ncome allocated to the consumption fund in 1970 (on the -
_ basis of a calculation in current prices) was 70.5 percent, in 1978 it was
73.7 percent. The growth of the conaumption fund represented 64 percent of
*"Materi.aly XXIV s"yezda KPSS" [Materials of the 25th CPSU Congress],
Moacow, 1971, p 58.
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the total size of the absolute growth of the national income in the period
of the Eighth Five-Year Plan, and more than 80 percent in the period of the
ninth and rhe first 3 years of the lOth Five-Year Plan.
A definite com~ergence of the growth rates of production of Groupa A and B
- and also a~ubstantial increase in the share of products of heavy industry
in the output of consumer goods have been constructive.
The results of the party's coneistent policy of a substantial redistribu-
tion of accumulation to the advantage of the agricultural sector of the
economy have been vividly manifested in recent years. Whereas before the
beginning of the Ninth Five-Year Plan the growth rates of fixed productive -
capital of agriculture were lagging behind the same average indicator for
the national economy, they have exc~eded that indicator in receat yeare.
Substantial shifts have taken place in the social compoeition of society.
The size of the working class has grown sevenfold with the growth of indus-
try. The needs of scientific-technical progresa, of education and of
health care have resulted in a huge numerical growth of the intelligentsia.
The number of workers employed predominaatly at mental labor hae increased
_ from 3 million in 1926 to 27.5 million, that ie, I2.5-fold. ~
The size of the farm population hae decreased aubstantially. In the years
of Soviet power the ahare of the urban population has iacreased from 18 to
62 percent, and its abeolute growth has been 135.9 million persona.
At the same time the scale of a number of social problems has grown, espe-
cially such problems as housing and food. It is sufficient to say that the
growth of the USSR's urban population alone is equal to the entire present
ps~pulatioa of the cities of England, France, Italy, Sweden and Denmark to
give an idea of the scale of housing constructioa to ~eet the greater needa
for housing in the cities.... Though houeing in the amount of 3;300 mil-
- lion square meters of floor space has been built in the USSR, the need for
we11-equipped housing has not yet been fully met by any means.
The food problem is being posed in a new wav. Though the growth output of ~
- agriculture has increased '3.6-fo1d, providing uninterrupted supply of high-
quality food to the public remains one of the most important problems. We
must take into account that the ehare of the population employed in agri-
culture dropped from 75 to 21 percent between 1913 and 1978. Whereas in
the past one farmworker had to produce for two persons, now he has to pro-
duce for 11, which has necessitated a eharp increase in the capital-worker
ratio and labor productivity in agriculture. And it is natural that the
CPSU Central Committee is paying particular attention to the reinforcement
_ and further development of the material and technical base of agriculture
attd to its more effective utilization.
Thus the shifts that have taken place in the atructure of the economy have
radically altered the character of production, have become the baeis for
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r~n ~rrt~lew ua~ vi~l,a
strengthening the social unity of society, and have broadened the scale and
possibilities for solving current and future socioeconomic problems.
At the same time the present atructure of the economy doea not fu11y meet
the requirements of economic strategy and social welfare policy in the .
present stage, and this has become a matter of constant concern of the
party and goverument.
While there has been a sizable growth of machinebuilding, it must be said
that it ie lagging to some extent behind the needs of the economy, espe-
cially in solving the problem of cutting back on manual labor with low pro-
ductivity. The production of energq is lagging behind the larger tasks of
raising the power-worker ratio and of ineeting the neede of the population
for social, cultural and consumer services.
The tasks of technical improvemeat of production necessitate accelerated
development of those industries which predetermine the destinies of techni-
cal progreas. But by contrast with the past period, rapid growth rates of
new technology and manufacturing equipment must be accomplished without
slowing down the growth rates of industries prvducing consumPr goods.
The problem of the relationship between the growth rates of these two de-
partments of social production in the present stage, if we translate it
into the language of economic practice, consists of ineeting the growing
needs for means of production on an intensive rather than extensive basis.
This problem has become acute becauae production of uaeconomical means of
production has resulted in the continuous rise of apecific inputs of ini-
tial products to manufacture the products for final consumption, and that
meana a decline of econo~ic efficiencq. The growth rates,of..the Soviet -
economy are actually being limited more and more by the growth rates of the
extractive industries.
In 1977 capital investments in the USSR per unit national income were
nearly 1.5-fold greater than in the United States, the amount of eteel was
almpst 1.9-fold greater, the amount of electric power 1.2-fold greater, the
amount of petroleum twofold, and the amount of cemeat 1.8-foYd greater.
Per unit of agricultural output the USSR produces 1.4-fold more manufac-
tured fertilizers and 2.6-fold more tractors than the United States.*
The predominance of extensive factors of growth and of the hfgh materials
intenaiveness of production is one of the principal reasons for the lower
growth rates aad drop in qualitative indicators of economic development.
The drop in the growth rates of the national income ia occurring simultane- -
ous~y with a aubstantial growth in the volume of fixed productive c3pital
and physical workin~ capital employed in the nattonal economy, which is es-
pecially noticeable when we compare the incremental magnitudes of theae
* PLANOV~OYE KHOZYAYSTVO, No 2, 1979, p 42.
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indicators. Whereas the growth of the national income employed and of
fixed productive capital was 1:2 in the period of th~ Eighth Five-Yea.r
Plan, in the ninth it was 1:3.4, and in the firat 3 years of the lOth--even
1:4.2. Th3.s shows that the output-capitsl ratio is dropgrng. _
Though in the last three 5-year perioda there has been a certain conver-
_ gence of growth rates of the first and second departments of the economy,
because of dropping production efficiency the gap it~ widening between the
growth of production and the rise of ~onsumption. Tt~is disproportion is
the principal cause of the ever larger imbalance between personal income -
and the comnodities to caver it. .
The experience of recent years has demonstrated that a growth increase in
the volume of production of fuel, raw materials, and supplies, which ap-
pears the simplest and most accessible method of providing producer goods
' to the national economy, wi~~: in actuality tend to aggravate the shortage.
The reason is that the extractive industries are the most capital-intensive
and labor-intensive industries. Their expansion requires large amouats of
eaergy, machinery, machinea and materials. A greater load is put ou trans-
portation.
Thus the national economy finds itself in the face of a very complicated
problem. The needs for producer goods are growing, but attempts to meet
them on an extensive basis are not yielding the requisite benefit. The
ehortage of rolled metal products is growiag, in ~pite of the aizable
growth of steel production. There is a great strain on the fuel and eaergy
balance though there is a constaat growth in the volume of fuel production.
_ All this confirms the urgency of the proposition expressed by L. I. Brezh-
nev back at the 24th party congrese that extensive factors of growth have -
become exhausted, that everyth3ng must be done to enhance the role of in-
tensive factors.
The difficulties of a strategic change of direction toward the intensive
mode of development lie in the fact that current needa put pressure on fu-
ture undertakings. An effective new system of machines and improved manu-
facturin~ processes may emerge in a few years, but raw materials, fuel and .
energy are needed today.
- The principal task of scientific development work and the art of planning
now lie itt reetructuring the e~onomy on the run, so to speak. Aaving re-
solved to put its reliance on the faster retooling and inteasification of
production and on conservation of energy, fuel, metal and all types of raw
materials, the party deems it necessary at the same time to gua:antee the
_ further development of the fuel and raw materials base and metallurgy, as
well as that of other induetries. The general course of raising effic~.ency
and the quality of performance and of introducing intensive methods of eco-
nomic development should in this context determine the prospects for the
rates and proportiona of socialist reproduction and correapottding changes
in proportiona among and within sectors and industries.
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It would, of course, be simplest to postpone the planning and commencement
of the radical change of direction in planning from one year to the next,
from the current 5-year period to the new one on the pretext that all pro-
portions and resources are already "bound up." But this would only amount
to gostponing the problems which have come to a head and would make them
mnre complicated.
That is why we are now talkin~; about developing and immediately carrying
out a new conception of economic growth in which deciaive emphasis is put
on intensive development.
But what do we mean by intensification?
An. unambiguous idea of the nature and criteria of the intensive type of
growth hae not yet taken shape in science or in economic practice. Not un-
c~mmonly the term "intensification" is used to refer to any growth of out-
put by virtue of additional inveatments in fixed productive capital, re-
gardless of the relationship between the funds inveated and the end result.
For e~sample, raising the productivity of live labor, achieved by virtue of
increasing the capital-worker ratio, is often interpreted as a factor of
intensification even when the saving on live labor does not cover the out-
lays to equip it, that is, when the total costs per unit of the finished
product are rising. On that basis it ie thought that a growth of the na-
tional income achieved without increasing the labor force is an expression
of the interasification of production, though this growth is achieved at the
price of overexpenditure of past labvr, that is, at the price of labor ex-
penditures to create the mea.na of production.
In actuality intensification of the economy is manifested not only in re-
duction of expenditures of live labor combined with a rise in the capital-
worker ratio, buC it also presupposes a eimultaneous reduction of cagital
intensiveness and materials intensiveness of production. Following the
methodology of K. Marx, we can speak of intensification of the produciion
process only in the case when the gross product increases not by virtue of -
expansion of the "field of production," but primarily by virtue of applica-
tion of efficient {.nstruments of labor.
- Taking into account that a drop in the costs of machines per unit of their
productivity, which is equivalent to reduction of the capital intensiveness
of production, Marx explicitly pointed out that under the conditions of
technical progress there is no need whatsoever for this to be accom-
_ panied by an absolute growth in the scale of functioning capital values."*
The opinion can sometimes be heard that a rise in capital intensiveness is
an unavoidable concomitant of technical progress. This notion runs counter
to the principles of Marxist theory and historical experience.
* K. Marx and F. Engels, "Sochineniya" [Works~, Vol 24, p 400.
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Marx indeed noted in "Das Kapital" that with the progress of science
and technnlogy the old machines, tools and devices come to be replaced by
those which are more efficient and /comparatively cheaper/ [italics] in
view of their output."* This propoeition has been confirmed by the 100-
year history of development of material production.
In the present stage tecr.aical improvement of production and rapid r8tes of
economic growth are possible only if the rates of developnient of new indus-
tries--electric power, electronics, the most efficient types of machine-
building, instrumentmaking and other industries which predetermine the dea-
tinies of technical progreas--exceed the average considerably. As for the
traditional industries--extraction and procesaing of the primary producta
of nature, production of building materials--the needs of the economy for
the products of these induatries can and must be met by reducing their epe-
cific r3tes of consumption.
As we know, at the present time the ahare of past, embodied labor exceeds -
60 percent of the gross social product, aad in the manufacturing induetries
it runs to 80 percent or higher. Iti is important, then, to reduce the ma-
_ terials intensiveness and capital intensiveness of the produ~t for other
reasons than just improving the current coet-accounting indicators of pro-
duction. It is equally important that reduction of specific inputa of fuel,
raw naterials, and supplies and raising the output-capital ratio represent
the most ef.fective way of optimizing proportions and of enhancing the role
of intensive growth factors, aud at the same time is a realistic way of
overcoming the shortage of manpower.
Under present conditions reduction of materials intensiveness of output
shauld become one of the criteria for evaluating the scientif ic-technical
level of production in any industry and at every enterprise.
Comrade L. I~ Brezhnev has noted: saving on raw materials by improv-
ing production in the manufacturing industry is far more beneficial than
augmenting production of the raw material by the same amount. Reduction of
the materials intensiveness of the country's output by just i percent is
equivalent to adding 3-4 billion rubles of growth to the national income."**
In the past the orientation toward reduction of materials intensiveness was
hampered because enterprise and industry performance was assessed in terms
of gross volumes of output, a large portion of which consisted of raw mate-
~ rials, supplies and intermediate products used in production and obtained
- from outside. The new economic mechanism, adopted in the decree of the
CPSU Central Committee and USSR Council of Ministers dated 12 July 1979,
eliminates this adverse factor in cost accounting.
- * K. Marx and F. Engels, "Sochineniya," Vol 23, p 401.
L. I. Brezhnev, "Voprosy upravleniya ekonomikoy razvitogo sotsialisti-
cheskogo obshchestva" [Problema in Managing the Economy of an Advanced So-
cialist Society], Moscow, 1976, p 297.
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_ Given a situation in which the possibilities for economic growth through -
extensive factors (above all by virtue of additional manpower) are greatly
reduced, the proportionality and balance of the natioaal econoury must en-
sure comprehensive intensification of praduction and, above all, a faster
rise of labor productivity.
The principal directions for improving the proportionality of social pro-
duction are clearly defined in the decisions of the party. They conaist of
improving proportions between consumption and accumulation in the national
economy, of guaranteeing mutual alignment of all the cQmponents of the ag-
roindustrial complex, of further development of auch industries as fuel and
, power, metallurgy, and machinebuilding, ~f improv~ng the operation of trans-
portation and the production and social infrastructure, and of reorienting
capital investments in scientific-technical progress toward fuller utiliza-
tion of existing potential so as to direct them toward augmenting produc-
tion of consumer goods. .
It is obvious, however, that raising the level of conscious and planned
management of the proportions of social production neceasitates not only
prompt correction of th~ discrepancies that have been discovered, but above .
all creation of conditions that make it pos~ible to anticipate and prevent
the emergence of new disproportions. At preaent economic theory and plan-
ning practice have not been coping with it succeasfully enough.
This raises a ma~or national economic task for the science af economics--to
guarantee improved reliability and realism in the linkage among the propor-
tions of social reproduction in plans for the country's economic social de-
velopment.
Improved development of the methods of the special-purpose program in plan-
- ning is taking on particular importance for the restructuring of propor-
tions determined ~y the ob~ective necessity of intensificat3.~n of produc-
tion. Use of these methods makes it poasible to put on a scientific basis
the entire system of ineasures necessary to attain the goals set in multian-
nual plans, to correlate these measures in time, to "link" them with the
_ necessary resources, to discover the more immediate and reaate conaequences
of theae measures, and to desigaate those responsible for performance of
the program as a whole and also for performance of its individual compo-
nents and stages. The planning methods associated with the apecial-purpose
- program constiture one of the effective forms of planned management, a form
that is helping to subordinate current management to solut~.on of the prob-
lems 6f th~ long-range development of social production.
Yet at the same time cor.crete theoretical development of the programs of ~
planning with special-purpose programs is needed. After all, socialist
planning has always been purpoaefully aimed at key problems and has envis-
aged such programs on a grand acale as the plan for electrification of the
country, the building of heavy industry (in parti~ular the second and third -
coal-and-metallurgy centers and the enterprises of the Kurak Magnetic Anom-
aly), development of virgin land, transformation of the Central Nonchemozem
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Zone, construction of the BAM [Baykal-Amur Main Rail Line], and so on.
Now, when the country's economy has attained huge proportions, and the
scale of planning has grown tremendously, it has become an ob~ective and,
one might say, vital necessity to expand the planning methods associated
with the epecial-purpose program thanks to the use of computers. The ~ob,
of course, consists not only of increasing the number of programs, but of
a qualitative change in the approach to planning. But this neceasitates a
thorough revamping of the methodology and methods of planning and manage-
ment.
The guiding principle in the conduct of economic activity has been and re-
mains Lenin's idea of the single state economic plan. W~ich means that the
plan cannot be an arithmetic sum of individual and separate programs. ~o
sum up individual programs would not be socialist planning, but what is
called programming, a practice that is more and more widespread in the West
in government regulation of the economy. In socialist economic practice
special-purpose programs must arise out of the needs of planned development
of the economy and must be components of a single state plan.
The problem of balance in developmeat of the entire national econ~my is be-
coming very important as the practice of planning with special-purpose pro-
grams becomes more widespread. We know that the problem of combining ~he
assignment of priorities with overall balance has always been an acute one.
Now the problem of balance is taking on still more urgent importance. The
accomplishment of large-scale programs as a rule requires large capital in-
vestments over long periods of time, and the return from them ia forthcom-
ing only several years later. It is clear that overloading the plan with
costly programs could make it more difficult to achieve overall balance and
could slow down economic growth. Marx in his time cautioned that proper
distribution of investments among projects with long-term a~d short-term
rates of economic turnover must be one of the main principles of planning
under socialism.
Utilizing the opportunities and advantages of planning by meane of special-
purpose programs depends not only on the level of soundness of the special- `
purpose programs themselves, but also on their close linkage and synchro-
nization with all the sectiona of the national economic plan.
If that linkage is not accompliahed thoroughly enough, then use of the
method of the special-purpose program could be a vehicle for voluntarigm -
tn planning and could have adverse consequences. That is why the problem
of correlating programs with all the sectiona of the plan for economic and
social development is taking on particular importance. It is important at
the same time to ensure optimum selection of the programs to be included in
the plan and also to identify, when they are being compiled, the intermedi-
ate goals and intermediate stages of their accomplishment, which ~rill also
make it easier to link these programs with other sections of the plan.
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The comprehensive special-purpose program is supposed to subordinate the
activity of the many organizations achieving its fulfillment to a single
goal. That is why success depeada largely on refinement of the forms and
methods of managing the performance of programs and above all on identify-
ing the bodies which are to coordinate the work and bear the entire extent
of responsibility for the end results. Sound scientific recommendations
are also necessary in this area. At the 25th CPSU Congress Comrade L. I.
Brezhnev remarked: "It is important that in every case specif ic agenciea
and specific people bear the entire extent of responsibility and coordinate
all efforts within the framework of the particular program."*
In connection with development of socialist economic integration cloaer
linkage of the comprehensive programs of our state plan with the long-raage
~ special-purpose cooperative programs of the fraternal countries is indis-
pensable both on a bilateral basis and also on a multilateral baais within
the CEMA framework.
The participation of scientists in developing the methods and in shaping
and carrying out the comprehensive special-purpose national economic pro-
grams stands among the main directions for development of scientific re-
search and for bolstering its practical return.
~ Particular attention should be paid to the following problems, which need
thorough scientif ic treatment. First of aZl, proportionality and balance
will be ensured only if all planning decisions are talcen atrictly within .
the limits of the financial reaourcea euvisaged in the plan, which reflect
in summary form the sum total of productive resources for distribution and
use. That makes it necessary to perfect the methods of drafting the multi-
annual f inancial plan and of linking it to all the planned proportions of
reproduction. Second, there is a need for thorough atudy of the ob,jec-
- tively necessary relations in proportions and rates of development of the
individual intersector blocks and branches of the national econ,omic complex
so as to take into account experience in the development of our country and
other industrially advanced countries. Discovery of normative relations
which take into accouat the specific conditions for development of produc-
tion and can be used in planning and in mon-!toring the soundness of the _
proportionality envisaged in plans ought to be the practical outcome of
that research. Third, there is a need to develop a system of economic in-
dicators that makes it possible Co detect diaproportions in the earliest
stages of their occurrence and to take prompt measures so that they can be
nipped in the bud. Finally, scientific compari.son of the different ma~or -
directions of scientif ic-technical progress, of utilization of capital in
vestments, and of the development of proportionality is in nee3 of more
thorough work. For instance, at the present time particular attention
should be paid to the so-called infrastructural direction in development of
proportionality, which im~olves accelerated expansion of the production and
social infrastructure.
*"Materialy RXV s"yezda KPSS," Moscow, 1976, p 61.
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It is evident from what we have said that solving the problem of maintain-
ing and improving planned proportionality depends to a considerable extent
on the level of economic analysis of the condition and the development of
our economy and on discovering new possibilities and potential for inten-
sive growth of production.
A large potential for economizing on one-time outlays and current costa
lies in improving the efficiency of inethods of developing new regions. It
is the fault of the current predomina~t method of putting new economic re-
sources into economic circulation that the rates and scale of investment of
resources in regions for new industrial development greatly exceed the
rates and scale of the growth of output.
It ie no secret that departmental divergence in development of the produc-
tive forces, especially in regions of new industrial development--Siberia
and the Far East--gives riae to many unproductive costs and hae an adverse
effect on the indicators of production efficiency at the scale of the en-
tire country. A survey of certain newly built enterprises in the eastern
regions shows that although they are located in the immediate vicinity of
economical natural resources, their eff iciency proves to be considerably
below that of similar enterprises located far from sources of fuel and raw
materials. The main reason for this is the high specific one-time outlays.
It is usually assumed that an increase of outlays for capital construction
is a consequence of the remoteness of the eastern regions from lines of com-
munication and also of the harshnese of the climate. And there is, of
course, a certain truth in this. But it ~s equally important that in orga-
nizing construction each department is on its own not only in building the
principal production facility, but also carries out the entire set of oper-
ations to equip the area and to build the production and nonproductive in-
frastructure independently and without cooperation with other departments.
The low efficiency of the one-time outlays and current costs and difficul-
ties of staff ing the production operations with steady personnel are de-
tracting from rates of development of the productive forces in the eastern
regions. It is thereby becoming more difficult to solve the problem of
furnishing fuel and raw materials to the economy of the country and the
commonwealth of socialist countries.
These adverse tendencies can be overcome only if the organizational and
ecoao~ic cond itions for development of production facilities in regions of
new itadustrial development are improved.
Development of the rights and initiative of local government agencies and
administrative authorities in managing the economy within the area of their
jurisdiction and overcoming departmental barriers will make it possible not
only to develop the economy of the union republics and economic regions
more harmoniously, but it will also strengthen relations among them, which
will result in a further social solidarity of our people.
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There is still reason to point up the potential~ that exists in the area of
- intensification. It is above all a question of the need to sharply red+ice
the share of minerals left in the ground when they are extracted. 10Re-
mainders" of thie kind exceed 40-50 percent or more of the total volume of
balaace-sheet reserves.
For the extractive industry as a whole, assuming total extraction of min-
erals of more than 6.5 billion tons, the size of total losses is 2.5 bil-
- lion tons, including 500 million tons, worth 5-7 billion rubles, that could
be eliminated at the present level of technology. Even now science has
proposed many new nethods of comprehensive use of resources which need to -
be introduced.
Timely and regular renewal of productive plant is an exceedingly important
potential for raising the retum on capital in the manufacturing industry.
The accumulation of outdated and worn-r~ut capital assets in various indus-
tries stands in the way of improvement of economic indicatora, is tying up
sizable labor resources, requires disproportionate outlays for repair, and
the repair is often done at a low technical level. At the same time re-
_ newal of the technalagy used yields rapid and effective results.
Radical structural improvement and a higher technical level of machinebuild-
ing and of its products have become an urgent problem. Tha fragmented na-
ture of inechinebuilding needs to be overcome; because of it 45 percent of
_ all the country`s metalworking equipment and at least 5 millioa workers are
employed in large and small machine shops ~f plants in other industries
where they are used mainly to repair equipment and gear or to ~uild non-
standard equipment and gear, which is uaually primitive. According to f ig-
ures of economists, the level of labor productivity in these shops is 20
percent lower than in specialized machinebuilding enterprises, and the out-
put-capital ratio is 25 percent lower.
There haa l~ng been a need for more thorough specialization, industrial co-
operation and concentration of machinebuilding and for adoption of warranty
servicing and repair of al.l types of production equipment.
It would be wise to give a aeparate place to a factor like the use time of
equipment, which is now so very important. The cost of equipment is riaing
steadily, and in that context its use on one ahift and only 5 days a week
(as is often encountered at many enterprises) is becomi~g an outright
waste. It is evident that more apecific ~ustif ication ie required and the
question should be raised of organizing the planning of production and
work, the workday and the workweek so as to yield the maximum possible use
of f ixed productive capital. The operation of machine toole with program
control, for example, for only a few hours a day cannot.be allowed. There
is no society so rich that it can afford that.
Strengthening the internal consistency of the economy is a principal cond i-
tion for ensuring the regular pace of production, on which efficient
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utilization of labor and all other resources ultimately depends. At many
enterprises as much as SO or even 75 percent of the entire monthly output
is produced in the last 10 days. The reason for this is that the size of
the work force at enterprises is deterained on the basis of those last 10
days of the month, which means that highly inefficient employment of labor
is envisaged in advrince, or overtime work is used, which also make8 the
product more expensive.
Worktime losses within the shift are still large. According to the data of
time studies of the workday conducted at a number of enterprises in differ-
ent tndustries, the average time the worker spends performing the assign- -
ment of his shift constitutes only 50-70 percent of the time he ia on the
~ob.
Eberything needs to be done to speed up the transition to progressive forms
of organization of work, team methods above all, so that maximum use is
~nade of labor resources and productive ~capital. As a rule the transition
to team forms of organization of work makes it possible to raise labor ~ro-
ductivity 8-20 percent and to reduce personnel turnoQer between one-third
and one-half.
Important potential for raising the output-capital ratio lies in faster as-
similation of new capital. Addition of new capital constitutes a formida-
figure every year, running as high as 10-12 percent of the total volume of
existing capital. On the basis of allowances now in effect, the period for
attainment of rated capacity runs from 1 to 3 years from one groupiag to
another. The actual period for attainment of rated capacity exceeds the
standards 1.5-2-fold. According to the available computations, the short-
fall of output at new enterprises in the first years of their operation is -
45 percent or more. This in turn tends to sharply reduce the output-capi-
tal ratio and to lower rates of economic growth.
The sluggishness of thinking in terms of the categories of extensive growth
is manifested at the present time even in the organization of scientific
research and in the planning and f inancing of scientific institutions. In
recent years the number of scientists has increased approximately tenfold,
but the amount of equipment furnished them (what we might call the capital-
scientist ratio) has lagged greatly, and this is an obstacle to the neces-
sary improvement of the eff ectiveness of the work done by scientific insti-
tutions. This unfortunately applies above F.11 to basic science.
In connection with preparation of the session which was recently held, com-
missions of the USSR Supreme Soviet recommended that the USSR Academy of
Sciences join USSR Gosplan and the USSR State Committee for Science and
Technology in drafting a comprehensiue system of ineasures to speed up scien-
tif ic-technical progress. It is important that these measures make provi-
sion for organizing basic scient:Cfic research in every possible way.
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A unified system of economic and social planning, encompassing not only the
pro3uction process, but indeed all aspects of social life, has been estab-
lished in advanced socialist socieCy.
- The content of social relations is enriched as socialist production becomes
more socialized. The concentration, centralization and specialization of
_ production, together with the growth of intersector relations in the na~
tional economy, is having a direct impact toward developing socialist in-
dustrial cooperation and presupposes development of the most effective
forms of involving the workers in mana~ement and consequently of enhancing
the role of work collectives and public organizations in performing the
socioeconomic tasks that confront the entire society.
The natural process of the development of socialist production relations is
manifested in the major social shifts taking place in the direction of con-
vergence of the two forms of s~cialist ownership and establiahmeut of the _
complete social homogeneity of our society.
Unfortunately scientific institutions have not yet provided precise instru-
ments for determining the quantitatiue and qualitative parameters of manq
social phenomena taking place in our society. There is no need to prove
that without euch measuring rods it is difficult to detect the real tenden-
cies in social development and to influence them in a planned way.
O.f course, this does not mean that the indicators of social development
_ which are now established in planning practice (improvement of worker qual-
ificatione and occupational skills, the rise of the general educational and
- cultural level of the population, improving of housing conditions and cul-
tural and conaumer services, improvement of inedical services, and much
_ else) do not reflect thoae procesaes which are being carried out in a plan-
ned way in society as a whole (in republica, oblasts and krays, in cities
and rural areas, in different sectors, and so on) . But it is obvious that
the task consi~ts above all of representing all these indicators in an in-
- terrelated way, and the main thing, as pointed out in the decree of the
CPSU Central Committee and USSR Council of Ministers adopted 12 July 1979,
is that it consists of the requisite linkage with the assign;:~nts for
development of production, for capital construction and for making them
more efficient.
- The role o� social factors, which are to be reflected more and more fully
in the syatem of planning, is evident if we ta~Ce as an example a social ~
problem of such a large scale as overcoming essential differences between
mental and physical labor. One of the decisive prerequisites of solving
that problem, as we know, consista of overcoming the remnants of the old
division of labor, above all of eliminating heavy manual labor, which still =
has a relatf.vely sizable share of the surn total of social labor in our
economy. We can compute the economic benefit from replacing manual labor
- * PxaVDA, 29 July 1979.
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by machine labor with a greater or lesser degree of confidence. But after
~ all, the social effect of changes in labor, which is a decisive sphere of
social activity, one that determines changes in all other spherea, has
equal importance. -
Another exceedingly important task which needs to be performed effectively
in our society is the gradual elimination of easential differences between
urban and rural areas. As everyone knows, the decisions of the July (1978)
Plenum of the CPSU Central Co~ittee provided an elaborate program in this
respect. It envisages ma~or steps to increase the real income of farmwork-
ers, to organize construction of housing and coneumer-service faCilities, -
to develop cultural services to farmwnrkers, to improve their general edu-
cational and vocational and technical training, and other measures to im-
prove living and working conditions in rural areas.
An innportanr ,~apect of this process is transforming farmwork into a variety _
of industrial labor on the basis of ma,jor shifts in material and technical
_ supply to farmwork and improvement of the socialized form of agricultural
production in fihe direction of agroindustrial integration~
Establishment of quantitative and qualitative criteria in accomplishing so- _
cial changes in an advanced socialist society wou].d make it possible to
work out a more concrete and purposive program of social development in
each stage. The main thing is that we would be able to accomplish consid-
erable progress in the purposive management of these processes.
All pf this requires that we examine socioeconomic processes in movement,
in their development, and reveal their interaction with maximum complete-
ness. This also applies to the problem of the relationship between proauc-
tion and consumption and, to be specific, the task of developing and incul-
cating the truly sensible needs of the people.
In recent yeare the flow of literature on this problem has been growing.
But these writings do not provide a convincing answer to the most urgent
question for the theory and practice of social management: What are the
criteria of reasonable needs and how are they to be formed in socialist so-
ciety?
Under present conditions, now that the scale of the conduct of economic ac-
tivity has grown tremendously and now that the network of economic inter-
connection has become more and more complicated, dense and ramifieda auch
aspects of productive activity as work discipline, a sense of organization,
order and the smooth pace of the work process have gained tremendously in
impo:.�tance. These elements of workmanship and workplace adequacy are now
b ecoming a permanent conditian for successful economic development. Con-
versely, an absence of scientific management, work efforts that do not en- ~
- tail responsibility, idleness of machines and equipment, and late and short
deliveries inevitably undermine work discipline. Such phenomena as exces-
sively h�gh personnel turnover, low work discipline, shirking, drunkenness,
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r~x ~rri~tHt,, ua~ udLz
imposed idleness of m~npower, which alternate with crash efforta which are
equally unjustified, seem to nourish and support one another.
The main thing is that now we need an immediate solution--and that aolution
is to iiicrease the requirements (at all levels) concerning the condition of
work discip~ine and state discipline. The need hae arisen to provide the-
oretical ~ustification of the rights, tasks and duties of production collec-
tives in the sphere of relations related to work discipline.
As L. I. Brezhnev noted in his address at the November (1979) Plenum of the
CPSU Central Committee, a~socialist economy is unthinkable without re-
inforcement of the p~inciple of centralization. At the same time, in both
politics and the economy we need a centralism that is democratic, one that
opens up broad room for initiative from below--the initiative of kolkhozes
and sovkhozes, enterprisea and associations, and local organizations. This
arises not only from our outlook, but indeed eve~.from economic necessity."*
L. I. Brezhnev'~ speech emphasized the need to expand the righte of work
collectives in combating violations of work discipline, sloppiness and lax-
ity. Th~ drafting of organizational and legal measurea that will guarantee
the growing role of work collectives in managing prc+duction is an important
task of our economists, sociologists and legal scholars.~
Not uncoffinonly we note in scientific writinga devoted to the problems of
labor a~umping ahead, the drawing of premature conclusions to the effect
that even under present conditions labor should~be transformed into ~he
first vital need of the overwhelming majority (if not all) of the Soviet
peoplE.
Yet this is still a large social problem. There is still a category of
people who work any old way or altogether avoid socially useful work. The -
reinforcement of socialist work discipline has been and remains an exceed-
ingly important task. There are also import_ant psychological aspecta here.
We need to study the principles of inental regulation of work activity, the
problems of vocacional guidance, selection and training, and various prob-
- lems in creating a wholesame and normal psychological atmosphere in work
collectives.
- The improvement of planning and management unfailingly presupposes further
development of socialist competition, which is in turn an important factor
for making the entire economic mechanism more effective,
_ The new procedure for compiling the annual plan from below--from pr~duction -
associations (enterprises)--has become fundamentally important. It is here
that expansion of the ri~hts and initiative of work collectives is to be
manif ested to the greatest degree, especially in the form of adoption of
counterplans. At the same time this gives rise to the need for more thor-
, ough subetantiation of obligations assumed in the organization of
* PRAVDA, 20 November 1979
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competition and for more thorough work on the economic foundations of the
counterplans. Integration of competition and coat accounting ahould become
~ most important condition for the stimulation of work collectives in their
endeavor for end results, for product quality.
In the years of the 9th and lOth 5-year plans the sphere of competition
among related enterprises, organizations and production operations was ex-
panded. This competition is an effective form for closer unification of -
_ scientific and design organizations with induatry and agriculture and for
utilization of the initiative of the masses in the struggle to apply the
advances of science to producti.on.
The November (1979) Plenum of the CPSU Central Committee appealed for a
broad acale of socialist competition on behalf of a worthy celebration of
the 110th anniversary of the birth of V. I. Lenin and for successful com-
_ pletion of the 5-year period, so that 1980 becomes a year of shockwork, a
year of work in the Leninist way. 'I:iere ie no doubt tha.t Soviet scientiata
will make a solid creative contribution to the conatructive activity of the -
Soviet people and to the building of co~unist society.
COPYRIGHT: Izdatel'stvo "Nauka," "Vestnik Akademii nauk SSSR," 1980
7045
CSO: 1820
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!~'Uli U!''!''1t~lAL UJL' U1VLY
ECONOMIC POLICY, ORGANIZATION ANI~SMANAGII~'NT
' UDC 62.001.6
SELECTED REPORTS FROM USSR ACADEMY OF SCIENCES SES3ION
Kotel'nikov on Scien~i,fic-Technical Progress
Moscow VESTNIK AKADEMII NAUK SSSR in Ruasian No 5, May 80 pp 37-43
[Paper delivered by V. A. Kotel'nikov, member and vice president of the
USSR Academy of Sciences]
[Text] The decree of the CPSU Central Co~omnittee and USSR Council of Minis-
ters dated 12 July 1979 and entitled "Oa Improving Planning and Strengthea- -
ing the Influence of the Economic Mechanism on Increasing Production Effi-
ciency and Work Quality," the decree which has already been spoken about
today, calls for eatablishing the following p~ocedure in compiling multian-
nual plans of the country's economic and social development:
a) the USSR Academy of Sciencea, the USSR State Committee for Science and
Technology, and USSR Gosstroy are to dxaft the 20-Year Compreh~eaeive Pro-
gram of Scientific-Technical Progress (by 5-year periods) ~nd to submit -
this program to the USSR Council of Miniaters and USSR Goaplan no later
thaa 2 years before each successive 5-year period; every 5 years the aecea- `
sary revisioas will be made in the comprehensive program, and it will be "
compiled for a new 5-year period; -
b) on the basis of the long-range socioeconomic tasks defined by the party
and by the Comprehensive Progreai of Scientific-Technical Progresa USSR Gos-
plan shall ~oin USSR minietries and departments and the councils of minis-
~ ters of union republics in preparing the draft of the Main Lines of USSR
Economic and Social Development over the 10-year period (by 5-year seg-
ments) . ~
Thus the comprehensive program, which will pro~ect the country's develop- F
- ment 20 yeara in advance is to become the basis for further long-range
planning and for compiling 5-year plans.
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Is there a need for such a long period of time as 20 years? Abaolutely.
If we want to correctly plan the etrategy governing utilization of our na-
tural reaources, then we, of course, need to glimpse the country's develop-
ment not ~uat over 5, nor ~ust 10, but over at least 20 years.
And then the industrial sector must be developed and large-scale industrial
enterprises built so as to take into account long-range prospects, since
these enterprises will be operating many years after construction is com-
pleted. Transportation facilities, railroads, courts and highways also
. serve for many decades, and, of course, we need to foresee what will be
happening in that period if we are to plan their construction correctly.
The problems of land-use planning, reclamation, construc:ion of cities, lo-
cation of the productive forces throughout the country, and the training of
personnel--all these problema require a long-range evaluation of future de-
velopment.
If we are to plan properly over a 20-year period, we also need to outline
our society's social development so as to take into account the needa of
the population which will arise in that time and to make provision for ap-
propriate measures.
- In working ot~.t rlternatives for the country's long-range development, we
must, of course, also make approximate economic computations that make it -
poseible to ensure a balanced economic development and to adhere to optimum
proportions.
In long-ratige planning it is eapecially necessary to take into account the
future progress of science and technology. In Ruch a period many new
things will arise in technology, new manufacturing procesaes will emerge,
and production conditions will change. It is therefore very important to
have good forecasts of technical development and forecasta of the progress
of science, which are supposed to provide that technical development.
One great difficulty here is the need to prepare no~ only a qualitative
forecast of development, but also a quantitative forecast; this is indis-
pensable in ordsr to correctly evaluate the effectivenesa of the speciric
measures and to plan economic development in quantitative terms.
N. K. Baybakov has stated here that in a number of cases the necessar~ eco- -
nomic indicators were absent from the ComprehErisive Program of Scientific-
Technical Progress. The reason is *hat at present we are not always able
to evaluate the benefit of a particular economic measure until it has been
sufficiently tried out in practice. We obviously need to work on develop-
ing methods of making such an assessment, even methods based on statistical
probability, so that our technical forecasts might be totaled up more com-
pletaly in economic terms.
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r'UK UP'r'll;lAL U5~ UNLY
Aside from a long-range idea of the country's development, the comprehen-
- sive program should also provide recommendations for compiling plans cover-
ing the next 5-year period. That is why it is to contain proposals of sci-
- entists and specialists on those technical and scientific measures which
should be carried out in the very next years in order to ensure the fastest
economic development and to malce provisione for solving problems which will
~ri.ae as the economy develops further.
The comprehensive program was drafted for the first time under a 1Q72 de-
cree of the CPSU Central Com~ittee and USSR Council of Minister~. This was
a variant of the program covering the period 1976-1990, a~nd it was used in
compiling the lOth Five-Year Plan.
At the 25th congress of our party it wa~c stated in the report address that
"work on the program must be continued--it constitutes an organic component
of current an;i long-range planning, it provides refer~nce points we aeed to
be familiar with if we are to guard the economy effectively."
The Academy of Sciences, the State Committee for Science and Technalogy and
USSR Gosstroy was then ordered in February 1979 to complete the work on the
comprehenaive program this time covering the period up to the year 2000.
In the course of that work corrections were made in the program up to the
year 1990, which had already been compiled, and the period covered by the
program was extended by 10 years. By contraet with the first variant of _
the comprehensive program, staff inembers of Gosplan took an acti.ve part in -
its drafting; they parti.;ipated in t?~e discussion both of the program as a
whole and also of its sections, which unqueationably enhanced the quality
of the material. This program is now being used by Gosplan and ministries
in compiling the Main Lines of Economic and Social Development of the USSR
Over the Period 1980-1990.
I, of course, cannot present tY,e content of the comprehensive program up to _
_ the year 2000 in detail at this point--my report on the comprehensive pro-
gram in the Presidium of the Academy of Sciencea and the collPgium of the
State Committee for Science and Technology took 2 hours. I will only try
to descrtbe its contents very briefly with illustrations. ~
Machinebuilding. This section ia being drafted by a commission headed by
A. I. Tselikov, member of the academy. Machinebuilding is to ensure the
technical level and basis for improvement of our national economy and for
raising labor productivity in the coming period.
This section of the comprehensive program contaip.s the following ma~or meas~
ures.
- First--the specialization of plants. We now have specialized plants in the
ball-bearing industry and certain others. It has been proposed that this
be extendPd more broadly, that specialized plants be created for production
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of gear wheels, worm gears, hydraulic drive, and so on. As shown by calcu-
lations and experience, this should greatly raise labor productivity and
the quality of the products produced.
T'he second ma~or measure which is to be carried out is the automation of
production, the manufacture of industrial robots. As has already been said
here today, our machinebuilding plants are operating little more than one
shift, and their equipm~nt is being used inefficiently. Robots and automa- ~
tion should make it possible for the plants to operate around the clock, to
greatly raise labor productivity and to make better use of those limited
human resources that wi11 be available in the future.
Third, the comprehensive program calls for creation of pilot facilities and
shops in scientific-research institutea and in industry. This will uadoubt-
= edly make it possible to apply new advances of ecience and technology to
productioa more r~pidly. -
Measures are envisaged to ensure mechanization of labor. According to the
calculations which were made, if the necessary measures are carried out, by
the year 2000 this will free 20-25 million persons from manual labor. Of
course, this is not so simple, since it is aecessary to develop and orga-
nize the production of the necessary mechanisms and to prepare work sta-
tions and train the personnel so that they can work with those mechanisms.
We have already been talking about this for many years now, but still the
number of our workers employed at manual labor has not decreased.
An i~portant task in machinebuilding ia to increase the reliability and
life of machines. Our potential in this area is very large.
Another ma~or problem which needs to be solved is the organization of re-
pairs by manufacturers. At present we are losing a very great deal on re-
pairs, since they are frequently done incompetently and primitively. Re-
pairs by manufacturers, on the model of what is now being set up for re-
pairing the Zhiguli automobiles, will unquestionably yield a large national
econrnnic benef it .
A large problem for machinebuilding is the problem of conserving on metal.
This has already been mentioned here. This economy is to take place by
producing metal that is qualitatively better, that has better strength
characteristics, in an assortment that is satisfactory to production. By
replacing metal with plastics, by changing the designs of machines, making
those designs more lightweight, and by changing manufacturing methode. As
" has already been remarked today, a great deal of inetal is now going into
shavings and ather waste.
The questi.on of inetal conservation in machinebuilding is a complicated and
comprehensive problem-�-we need to change even the design of productive ma-
chines and to set up production of new types of inetals and plastics, to
prepare equipment for proceasing thsm and to do all of this in a
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synchronized and coordinated way, so thaG we do not have large losses in
the process of restructuring.
A calculation shoWS that the deve3.opmeat of machinebuilding envisaged in
the program will make it possible to more than double labor productivity in
the national economy by the year 2000.
A large task factng the country is a very substantial expansion of the
scale of production and use of electronic computers of all types. I will
not enumerate in detail on this occasion what they will provide tn the most
diverse sectors of the economy: in production, in pro~ect planning, in
management, in scientific work--this is well known. The forecasts which we
have made and comparisons with other countries demonstrate that the progrr~m
that now exists for development of electronic computers will not provide
the necessary develepment of our national economy, and we need to compile -
it again in the very near future, enauring more rapid development in the
field of electronic machines. The u~used potential here is large.
The measures which have~been~outlined in the comprehensive program in the ~
field of construction (this poriion of the compreheasive program was com- _
piled by Goastroy under the supervisi~~n of N. N. Kachalov) should make it
J posaible to greatly improve indicatora in this sector. It has been shown
that by the year 1990 it is possible to reduce average construction time to
five-ninths of what it is by the year 1990 and to five-twelfths of what it
is by the year 2000 ttianks to technical innovations and improvement in plan-
ning and the organization af work.
Important measures are envisaged for materials. The division of the pro-
gram on ferrous metals was compiled under the supervision of B. Ye. Paton,
member of the academy. It points out that ferrous metals will remain a ba- -
s~.c structural material. But the amount of ferrous metals produced is not
to increase greatly; by th~ year 2000 this increase will be on the order of _
- several tens of percentage points, but the qsality of the metal produced
and its assortment are to undergo ianportant changes. -
Powder metallurgy will have great importance. ,
A large increase in the output of nonfe~rous metals is proposed, since de-
velopment of many industries depends on them. The section on nonferrous
metals was compiled under aupervision of A. F. Belov, member of th~ academy.
An entire series of ineasures to protect metals against corrosion is envis-
aged. A. P. Aleksandrov has already spoken about the importance of this in
his in:roductory speech. The section on this topic was prepared under su-
pervision of Ya. M. Kolotyrkin, member of the academy.
The question of plastics. Measures to increase their output need to be
taken over the next sevetal years. In many cas.es they are more effective
and ciieaper than metals. But this is not a si~aple matter. This measure
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needs to be planned thoroughly. The program contains a specific section
devot ed to plastics, which was compiled under the supervision of S. M.
Tikhomirov .
The section on wood materials was prepared under supervision of N. P.
Anuchin, member of VASKhNIL [All-Union Order of Lenin Academy of A.gricul-
tural Sciences imeni V. I. Lenin].
We have large timber reserves. This is one of our valuable resources. Un-
like o ther raw material resources, timber resources are renewable. But at
present we are using them very inefficiently. The output we obtain from
each cubic meter of timber felled is only a fraction of what is produced at
advanced enterprises atiroad.
_ If we are to set up this industry efficiently, we need to improve the qual-
ity of forest-harvesting machines. Timber has to be processed without
losses, which up-to-date technology makes possible.
On fuel and energy. This section was compiled by the Council for the Fuel
and Energy Complex, which has been working under t~he supervision of A. P.
Aleksandrov, member of the academy. It outlines the following measures.
Increasing the use of cheap Siberian coal and atomic fuel and reduction of
the us e of residual fuel oil to generate electric power. Rapid development
of nuclear power production in the European part of the USSR and in the
North. A larger share for electric power. More rapid development of sur-
- face d eposita of petroleum and gas, increased refining of petroleum and gas
for chemistry and a corresponding reduction of their consumption as fuels.
Development of economical methoda of processing cheap coal to make gas and
liquid fuel. We have reserves of this kind of coal to last hundreds of
years, whereas petroleum reserves are considerably smaller. Development of
energy-intensive production facilities mainly in Siberia, where there are
fuel reserves.
And another question without which it is difficult to solve the energy prob-
lem is the drafting and accomplishment of a aet of energy conservation meas-
ures, especially through use of processes that use less energy. Our scien-
tif ic research organizations face large tasks in this area.
On the agroindustrial complex. This covers agriculture itself, the supply
of fer tilizere and machines to agriculture, and the processing of farm prod-
ucts. This section was compiled under the supervision of 'Ye. N. Mishuatin,
member of the academy, and V. P. Mozhin, corresponding member of VASKhNIL.
We have a great deal of unuaed potential in the agroindustrial com~lex. _
One suc h reserve whose use is called for by the com~rehensive program is
_ reduct ion of the losses which we have in al~ost all branches of agriculture,
~ losses which result from poor use of equipment, losses related to improper
- use of fertilizers, and losses in storage, processing and shiptinent of farm
produc ts. Calculations show that the outlays necessary to reduce losses
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are considerably smaller than the losses which would be required to obtain
the same volume of o~tput by expaading production.
Another aspect of the potential is utilizing more productive animals and
better plant varieties. Without sizable outlays this strategy could aug-
ment the gro~wth of p~oduction of agricultural products 15-20 percent.
Third--better use of land already developed and reclaimed by allocating to
it Lhe necessary machines, fertilizers and other materials on a priority
basis.
In order to supply manpower to the agroindustrial complex it has been rec-
ommended t~at the size of the work force ir. agriculture itself be reduced,
but that the work force be enlarged in those branches of the complex which
supply r~gricul.ture and which process its products.
_ It is also reco~ended that there be a certain redistribution Af capital
investments in the complex by increaeing the share going to building eater-
, prises for supplying agriculture aad for processing its products.
Calculations show that implementing these measures will make it possible to
meet the country's needs for farm products at minimum cost, without iacreas-
ing the area planted or the number of livestock, thanks to their more effi-
cient utilization.
The comprehensive program also examines the problems of the country's water
supply, which even now are putting us at times in a difficult situation and
in future must absolutely be taken iato account; the problems of transpor-
tation, which has become a bottleneck in a number of cases and which need~
to be developed so as to take into account prospects for development of the
econoary; and problems of communications, where there is a very great deal
to be done.
Attention is paid to the development of science. It is assumed that the ~
following policy is n~cessary in this area: there does not need to be such
a large increase in the number of those w~orking in scientific institutions
, as took place in previous 5-year periods. If we compare our number of sci-
entists at present, say, with the United States, it is approximately the
same as there. The program calls for a 1.5-2-percent annual increase in
the number of scientists. On the other hand a great increase in the sup- -
port of acientific work is envisaged in order to raise labor productivity
in this sector. Rapid expaneion of instrumentmaking is provided for. In
quantitative terms, whatever capital investments are needed for this pur-
pose. By comparison with other expenditures they are relatively small, but
they should make it possible for our science to take advanced poeitions.
Provision has been made for identifying priority lines in the development
of science. Here we take into accouat that our country accounts for only
20 percent of the total number of acientific developments in the world,
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and, of course, we cannot occupy the most advanced positions everywhere and
- move forWard equally in all fields of science. For that reason we obvi-
ously need this kind of policy: in developing all sciences, ~e ~~st pay
particular attention to those which are decisiae to the country's develop-
ment. Along the decisive lines we should take the most advanced poaitions.
We know quite well that as soon as it appeara that we do not occupq ad-
vanced positions in some decisive line of development, the que9tion is im-
_ mediately raised in the capitalist countries of curtailing exchange of in-
formation along those lines so as to hold back our growth. We have seen
this repeatedly.
- I will not enumerate all the decisive lines of development. One of the
principal ones, it would seem, is fuel and energy, whose development is im-
possible w~Lthout the contribution of science; and then electronics, which
determines the development of the computerization of management, the rise
of labor productivity and quality of performance, and a number of other
areas.
The program examines the problems of personnel training. These problems
are very important to us, and at present they are developing somewhat cha-
otically. The distribution by specialties of our personnel undergoing
training differs greatly from that of other countries, and no one can ex-
plain whether this is right or not. This question needs to be thoroughly
analyzed.
The retraining of personnel is a very important question which faces us.
Calculations have shown that in the eighties approximately 2-3 million per-
sons will be changing their specialty every year. The reason for this lies
in the requirements of technical progress. It is indispensable that theae
personnel be retrained so that they can work productively at new ~obs.
The measures I have been speaking about have been evaluated in economic
terms in the program both on the basis of their benefit.and also on the ba-
sis of the outlays which must be made to accomplish them. We have striven
to ad~ust them to one another and to obtain the necessary balance. Other-
wise, of course, these proposals would be unrealistic.
A number of proposals to improve management of the economy have been formu-
lated in the comprehensive program, because otherwise the progreas which
technology and science could provide cannot be realized. Many of the pro-
posals have already been incorporated in the decree of the CPSU Central
Committee and USSR Council of Ministers which we are discussing today, but
- yet not all of them, and we need to continue work on their development and
their translation into legislative enactments. -
In addi~ion to the topics we have already enumerated, the comprehensive ~
program has also taken up the questions of urban construction, utilization
of natural resources, environmental protection, problems in development of
light industry and the food industry, health care, the overall problems of
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economic development, improvement of
production relations, the social com-
position of the population and the way of life. Consideration was given to
regional problems, which have very great importance to our country: our
population is growing mainly in Central Asia, energy resources are in Si-
beria, but industry is mainly located in the European part. The problems
of international relationa were also taken up.
Many measures proposed in the comprehensive program are not altogether n~w
in every respect and have been already proposed earlier. The comprehensive
program brings them together, organizes them into a system, correlates and
links them to one another and to the capabilities offered in the national
eco.nomy.
L. I. Brezhnev's remarkable speech at the last plenum of the CPSU Central
Co~ittee mentions a number of propositions which are contained in the com-
prehensive program.
In accordance with the July (1979) decree of the CPSU Central Committee and
USSR Council of Ministers, the Comprehensive Program of Scientific-Techni-
cal Progress is now becoming an inseparable part of multiannual plans of
the economic and social development of the Soviet Union. Thia puta great
responsibility on the Academy of Sciences, the State Committee for Science
and Technology and all other participants in the drafting of the comprehen-
sive program. That is why adequate organizational and material conditions
- should be created for the systematic and competent drafting and revision of
the program. Up to now this work has been done mainly on a voluntary basis
- and in a number of cases has not been included in the plans of scientif ic
research institutes. We have had 27 co~issions at work, and more than
2,000 leading scientists and specialists participated in their proceedings.
The Presidium of the Academy of Sciences and the leadership of the State
Cc~mmittee for Science and Technology, with thP collaboration of Gosplan,
Gosstroy and other intereated departments, are at present jointly drafting
appropriate measures which will make it possable to do the future w~ork in a
more organized and competent fashion. These measures include, firat, the
creation, aside from the Forecasting Council which already exists in the
Academy of Sciences and State Committee for Science and Technology, a spe-
cialized scientific organization which is to coordinate and stand behind
all the work on the comprehensive program, an3 it is also to act on its own '
in doing the necessary work on the gen~ral problens of the national econ- -
_ omy. Proposals to this effect have been included in the draft of the de-
cree.
Then it is necessary to include in the plans of a number of scientific re-
search institutes for the next 5-year period a number of long-range fore-
casting projecta which are indispensable to substantiating the measures of
the comprehensive program.
And third, something that needs to be done in the future is to ensure that
republic academies of sciences participate extensively in drafting ~he
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comprehensive program along with personnel of scientific research organiza-
tions of~the system of republic goaplans. The regional aspects of scien-
- tific-technical progress cannot be taken fully enough intn account without
that kind of effort.
In conclusion I would like to call upon our scientists to participate even
more extensively in work on the Comprehensive Program of Scientific-TechYli-
cal Progress, which is very important to our country and which is to be the
basis for the scientifically sound development of our country in the future.
COPYRIGHT: Izdatel`stvo "Nauka," "Vestnik Akademii nauk SSSR," 1980
UDC 001.83(571)
Marchuk on Siberia's Resources
M~oscow VESTNIK AKADEMII NAUK SSSR in Russian No 5, May so pp 44-4g
[Paper delivered 3y G. I. Marchuk, member and vice president of the USSR
Academy of Sciences and president of its Siberian Department: "Scientific
Program for Comprehensive Development of Siberia's Resources"] _
[Text] The Siberian Department has been working on the problems of develop-
ing Siberia's natural resources since practically the first years of its ex-
istence. This research has been especially intense since the decree of the
CPSU Central Committee on the activity of the Siberian Department, which
pointed up the need to intensify work on comprehenaive and efficient uti-
lization of the natural resources of Siberia and on development of its pro- -
- ductive forces.
The decision of the Politburo of the CPSU Central Co~ittee, the Presidium
_ of the Supreme Soviet and the USSR Council of Ministers on the results of
L. I. Brezhnev's trip to the regiotis of Siberia and the Far East emphasized
the role of the country's eastern regions in augmenting the extraction of
coal, petroleum and gas and takes n~re of the need for fuller use of the
region's energy resources to develop the aluminum, petrochemical and ather -
industries.
- The Presidium of the Siberian Department of the USSR Academy of Sciences
has prepared a scientif ic report entitled "Economic and Social Problems of
Development of Siberia's Productive Forces Over the Period to the Year
1990." The report also furnishes an analysis and evaluation of the raw ma-
ter~als base for development of Siberia's productive forces and materials
of the Comprehensive Program of Scientific-Technical Progress and Its So-
cioeconomic Consequences up to the Year 1990. The report relies on the re-
sults of research done over many years by the institutes of the SO AN SSSR
[Si.berian Department of the USSR Academy of Sciences], and ministries and
departments. The Institute of the Economics and Organization of Industrial
Production synthesized the materials of the r.eport. This is probably the
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most important document of a comprehensive nature written in the Siberian
Department. It has been taken up in the Presidium of the USSR Academy of
Sciences and h~s received approval and support; its discussion in a session
of the Presidium of the RSFSR Council of Ministers i~ being proposed. We
hope that the figures and conclusions in the report will become points of
origin or multiannual planning of Siberia's development.
The calculations of our economista on the basis of an interre~iona~ and in-
tersector mathemstical-economic optiff?ization model ahowed that to maintain
optimum rates of development of the co untry Siberia must develop at faster
rates; moreover, the "Siberian" rates must be approximately 30 percent
higher than those for the nation as a whole. If Siberia's rates of devel-
- opment are lower, then the country's development will slow down because of
a shortage of resources, and if they are higher--an inactivation of capital
wiZl occur. Among other things, the role of mathematical models has proven
to be exceptional in this area: mere common sense cannat provide a quanti-
tative assesament of such indicaCore as rates of economic growth.
- An All-Union Conference on Development of Siberia's Productive Forces will
be held at the Academic Campus in Novosib irsk in June 1980 by decision of
the Presidium of the USSR Academy of Sciences. T'he conference`s principal
- purpose is to discuss the comprehensive repart on 5iberia's economic and
social development. Interrelated and coordinated recommendations on the
problems of Siberia's development in the 11th Five-Year Plan and beyond are
to be worked out. The decree of the CPSU Central Co~ittee and USSR Coun-
cil of MinisCers on improvement of pJ.anning places particular responsibil-
ity on ue for working out those recommendations in a thoroughly scientific
way.
Every major national economic pro~ect und er the conditions of Siberia rep- -
resents a huge coraplex of new tasks for science and technology. The ob~ec-
tive conditions for development of the northern territories necessitate
fundamentally new approaches and solutions possible only if there is an
essential intensif ication of basic research. (Incidentally, in recent
years SO AN SSSR has been assigning 70 percent of its resources to develop-
ment of basic research, and has been spending 30 percent on applied pro~-
ects, which have been yielding a large benefit to the :iational economy.)
Gradual transition to the principle of the special-purpnse program in plan-
ning, organization and management ia b ecoising the basic line of policy in
the queations of guidance of basic and applied research in the department.
This is the effective way for basic science to have a direct impact on the
development of production, a method of shortening the time required for the
results of research to reach the national economy and to improve the effi-
ciency of investments in science.
The long-range program entitled "Siberia," which is aimed at solving the
scientific problems of comprehensive development of natural resources and "
at building the largest national economic complexes, is pivotal to the ac-
tivity of the Siberian Department in the llth and 12th 5-year plans. It -
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incorporates more than 30 regional programs, which have to do with solving -
resource and raw materials problems, with the strategy for location and de-
velopment of regional industrial complexes, with solving problems of par- ~
ticular complexity, environmental protection for one, with th~ :AM [Baykal-
Amur Main Rail LineJ and "Baykal" programs, and certain otf,~ ~c,. Fifty in- _
stitution~ of the SO AN SSSR and about 200 institutions of other depart-
ments have been participating in work on the comprehen.~,ive program. _
_ The program entitled "Siberia" has helped to properly determine the place
of basic research in developing Siberia's science and has made it possible
to f ind principles for management of the development of that research.
Each of the subprograms included in it has been conceived from the atand-
_ pnint of the basic scientific problems that lie at its basis, and these
problems are l~eing distributed among the various scientific centers of Si-
beria, wh~ch is helping to develop those centera.
Pro~ects on problems of the fuel and energy complex ar^ being conduczed
- with particular intensity. At the present time the raster-than-average de-
velopment of the fuel and power industxies is becoming Siberia's main prob-
lem. In the lOth Five-Year Plan nearly the entire growth of petr.oleum pro-
duction in the country will be achieved in Siberia, along with 90 percent
of the growth in gas production and 80 percent of the growth of cosl pro-
duction. 1'tie complicated and interrelated set of scientific problems r.e-
lated to the fuel and power complex is being researched an an ongoing basis
~ in the institutes of the department, which are working ~ointly with organi-
zations of the various sectors and induetries.
' More complete study and development of the resources of petroleum, conden-
sate and gas of Western Siberia and a correct estimate of geological re-
serves constitute an exceedingly important task for scientists and practi-
_ ca1 experts. Siberian geologista and geophysicists are effectively devel-
_ oping their exploration, increasing the scale and elaborateaess of their
explorations for perroleum and gas in Western Siberia.
- Scientists of the Siberian Department, in close collaboration with geolo-
gists and geophysicists of the geology ministries of the USSR and the RSFSR
and other departments have demonstrated that reserves of petroleum and gas
can be augmented both by intensification of production in old fields and by
discovery of pools of a new type in known petroleum and gas provinces, as
well as by exploring new fields. -
- Large-scale projects require new methods of prospecting petroleum and gas
fields. The Siberian Department has developed and proposed new vibroseis-
mic methods of prospe~ting, which are oriented toward studying large areas
and great depths. An important feature of these methods is the use of a
two-dimensional system of observation on the surface with a large number of -
observation points and wave-eac.itation points. Drafts of an organizational
system for pro~ects usiag the method of large-scale [ob"yemnaya] dynamic
seismic prospecting have been prepared in the department.
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Under present conditions the importance of Siberian reserves of bituminous -
coal has been increasing greatly. Jointly with the Ministry of C~al Indus-
try the Siberian Department has formulated scientific progra~a for problems
of the Kuzbass and RATEK [Kuybyshev Plant of Automotive and TracL:.r Elec-
trical Equipment and Carburetorsl. Methods of geomechanical substantiation
and optimization of new flow charts for underground coal mining in the Kua- ~
bass have been worked out and delivered to industry. Computer programs
that make it possible to calculate optimum stripping and development pat-
terns and the parameters of cuts have been developed for the pro~ect plan-
ning of open-cut coal mines. This is raising the labor productivity of
pro,ject planners 5-6-fold and is reducing outlays for capital construction
and operating costs.
Development of the Kansk-Achinsk brown-coal basin has begun in the current
5-year period. The proposed creation of open-cut coal mines here which
would be unique in their productivity and the building of thermal electric
powPr plants of high unit cagacity alongside them confronts science with
the acute problem of utilizing the waste from the burnin~ of the coal as
well as the problem of preventing air pollution. Recently a program for
obtaining liquid fuel from the Kansk-Achinsk coals has begun to develop -
vigorously. The decision of the Presidium of the USSR Academy of Sci~nces
- to set up the Institute of Chemistry and Chemical Technology of the SO AN
SSSR is a specific step toward development of the academy's research in
thar direction.
- Development and efficient use of Siiberia's hydropower resources as a rule
require the building of TPK's [regional industrial complexJ. This is dem-
onstrated by experience in shaping the new power-and-in~lustrial compleaes:
Brat~k, Ust'-Ilimsk and Sayan. Scientific research or ~he various problems
of the TPK's has been ongoing in the Siberian Department ~~r ~~^e than 10
years now. The department's economists have done a great deal of work
- ~ointly with the Commission for Study of the Productive Forces and Natural
Resources of the Presidium of the USSR Academy of Sciences to determine the
prospects for development of TPK's in the Angara-Yenisey region. Research
ia being done on supplemental development of new aluminum complexes, energy-
intensive chemical production operations and a number of other industries
in S{beria in the llth Five-Year Plan.
Under the impact of scientific-technicaL progress the problem of developing
nonferrous metallurgy has recently ~oined the group of most important eco-
nomic problems. Within the framework of scientific-technical programs for
the nonferrous metalg the department's scientists are conducting inta~dis-
ciplinary reaearch on the problems of the Noril'sk Mining and Metallurgical -
. Combine, the Udokan copper depoait, and the Gorevskoye and Ozernoye poly- _
_ metallic deposits. The Noril's Combine has been given reco~endations on
selection of schemes for stripping deep levels of the Oktyabr'skiy and Tay-
myrskiy mines, where the conditions of mining engineering are problemati-
cal. The mining specialiets have developed a system of mining machines
whose application at the mines of Noril'sk is making it possible to create `
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a new method of mining the ore in which lab~r productivity is 2-3-fold
higher.
Discovery of a large deposit of potasaium salt in northern Irkutskaya Ob- ~
last this year is an important result of the ~oint pro~ects of the Siberian ~
Department of the USSR Academy of Sciences and the USSR Ministry of Geology
to develop the mineral resources of the country's eastern regions. I would
like to emphasize especially that the idea of ~the exiatence of such depos-
its was scientifically substantiated more than 10 years ago by A. L. Yan- -
shin, member of the academy.
The comprehensive scientific program for biological resources of agricul- -
tural production is aimed above all at raising highly productive new vari-
eties of plants and new breeds of animals, at raising their productivity
and resistance to adverse factors, and at creating new technologies in the
growing of plants and in animal husbandry. By combining new genetic meth-
ods of controlling genetic mutation with conventional methods of aelection
and hybridization, the department's biologists, together with selection ex-
perts of VASKhNIL [All-Union Order of Lenin Academy of Agriculture imeni
V. I. Lenin] have obtained a number of highly productive varieties and hy-
brids of whea~, rice, soybeans and sugar beets. -
The large-acale interdepartmental program DIAS [expansion unknown] is being
carried out. The testing of 105 wheat hybzids in accordance with a single
- program at various geographic paints in Siberia and Kazakhstan has made it
possible t4 set up a data bank and analyze with computers the dominant ge-
netic characteristics of the productivity of each of the hybrids. This
work is an exceedingly important step toward creating controlled selection.
At the present time an atlas of the dominant characteriatica of all wheat
varieties is being prepared; it will be offered for use to selection ex-
perts of Siberia. We hope that it will substantially improve the use of
varieties adapted to Siberian conditions.
Biologists regard use of the gene pool of native Siberian breeds and also
of wild animals as an important potential for obtaining highly productive
and resistant new animal breeds. But unfortunately this gene pool is dis-
appearing. Iinless care is taken to preserve it, in a short time a gene
complex tha.t has come about hisCorically will disappear, and it will be
difficult for us to carry on the work. That is why a large genetic center
- similar to the center at Askaniya-Nova is being set up in the foothills of
the Altay. Ite ac*ivity will make it possible not only to preserve the
unique gene pool of Siberia, but also to create new animal species.
Finally, A. P. Aleksandrov is right th~t today we need to substantially in- _
tensify the work of srudying the pattern of use of Siberia's land resources.
But in doing this work we cannot do without the integrative efforts of all
the biologists of the Academy of Sciences.
~
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The program of the Baykal-Amur Main Rail Line is the largest-scale national
economic program within Siberia, and Siberian scientists have been involved
in carrying it out from the very beginning. An extensive and comprehensive
report has been prepared on the probleme of the rail line, and three na-
tionwide conferences have been held in recent years. On the basis of the
network model of BAM construction, which was worked out by our economists
and mathematicians, calculations have been made of alt~rnative solutions
for completion of various sections of the line and for distribution of capi-
tal investments among sections. These calculations are being uaed by the
Commission of the USSR Cauncil of Miaister~ for Construction of ths BAM.
Proposals have been made for holding construction workers within the BAM
zone.
Serious attention needs to be paid to the problems of optimum development
and location of Siberian machinebuilding. The reference point in aolving
this problem is predominant development of machinebuilding in~ustriea re-
late~. to development of Siberia's productive forces. This is a fundamental
issue in the future strategy of Siberia's development. Resolving it will
mean a sizable saving on transportation costs and will make it possible to
reduce cross hauls and to bring manufacturing plants closer to consumers.
Scientists of the Siberian Department have already made relevant recommen-
dations.
_ ~
We need to say something separately about deliveries of models of equipmenC .
specifically designed for northern conditions. At the present time only 3 -
percent of the ma.chines and machinery are being delivered to the North in =
such versions. According to the data of a survey of trucks, bulldozers and
other machines and machinery conducted by the Yakutsk Affiliate of the Si- -
berian Department of the USSR Academy of Sciences, in the trucking industry
alone losses because of the unsuitability of inetal for operation at low
temperatures and the inadequate assortment of replacement parts run to im- -
pressive figures. The situation is also similar in other branches of our
induatrial sector.
Policy in the field of transportation equipment has particular importanc~
in Siberia. Exploration for more efficient deposits is taking geologists
into areas with increasingly extreme conditions, where transportation prob-
lems are becoming decisive. But very few cross-country vehicles are being
manufactured, and such economical types of transport as pneumatic container -
aad hydraulic transport are hardly being developed in Siberia at all. The
special conditions of environmental protection necessitate creation of air-
cushion transport.
The expanded aession of USSR Gosplan has heard the report presented by
RSFSR Gosplan on development! of Siberia's productive forces and the recom-
mendationa of the Stberian ~epartment of the Academy of Sciences on indus-
" trial application of the results of large-scale sci~~ntific developmenta,
above all in Siberia and the Far East. This was an important event for
academy acience as a whole. The institutes of the Siberian Department
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- prepared 20 technical-and-economic reports for consideration in th~t ses-
sion; they set forth the basic principles of new development pro~ects, de-
scribed experience in their practical application, and furnished recommen-
dations for their further use in the national economy.
In the years of the 9th and lOth 5-year plana as a whole, the Siberian De-
partment delivered to ministries and departments the results of more than
900 large-scale scientific developments. I will briefly discuss the cY?gr-
acteristics of some of them. As a result of joint work done by scientists
of the Mining Institute and specialiate of the Kuznetsk Metallurgical Com-
bine of the USSR Ministry of Ferrous Metallurgy a new technology was cre-
ated for underground working of large iron ore dPposits. Its application
at the Tashtagol mine raised labor productivity 2.5-fold and improved work-
ing conditions. This technology has been made the basis of the design of
new high-producrivity underground mines in the Kuzbass, the Urals and Kri-
voy Rog.
A fundamentally new technology for applying metal to through holes in the
production of printed circuit boards, eliminating the stage of chemical
copper coating, has been created at the Institute of Physicochemical Bases
of Working of Mineral Raw Materials of the Siberian Department. The new
process makes it possible to save on many expensive materials and has re-
duced the cost of the process to a fraction of what it was. It is now be- _
ing introduced in a number of sectors of the economy.
Under present conditions it is very urgent to create catalytic heat genera- -
tors and to introduce manufacturing processes based on them. The Catalysis
Inatitute has proposed a development aimed at comprehensive solution of the
principal problems in combustion of various fuels, at increasing the effi-
ciency of utilization of the fuel's potential energy and at sharp reduction
of toxic emissions into the atmosphere. With the support of Gosplan it
_ will be possible to put fundamentally new catalytic generators into produc-
tion quickly, especially for amall-si~e units suitable for household appli-
ances.
It has now become obvious as never before that ensuring high rates of de-
_ velopment of the productive forces and solving the large-scale new problems -
of economic development of the regions of Siberia urgently necessitate
thorough scientific analysis and preparation of long-range government deci-
sions. The entire program for comprehensive development of Siberia's pro- ~
ductive forces will ultimately be based on the advances of the basic fields
of science: mathematics, physics, chemistry, biology, the earth sciences
and the soc3al sciences. Certainly I will make no mistake if I say that
the program entitled "Siberia" is a kirid of summary expression of the Si-
berian Department's activity. It has taken the scientists of the Siberian
Department 20 years to develop basic research before a program of such
. great significance became possible.
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r~UK ONI~i(:IAL U5S UNLY
The decrees of the Central Committee of the Communist Party and the USSR
Council of Ministers and also Che November (1979) Plenum of the party's
Central Committee compel us to look in a new way at our work and to make it
� still more purposive and socially significant.
COPYRIGHT: Izdatel'stvo "Nauka," "Vestnik ~kademii nauk SSSR," 1980
UDC 001.83(470.5)
Vonsovskiy Reviews Urals
Moscow VESTNIK AKADEMII NAUK SSSR in Russian No 5, May 80 pp 58-64
_ [Paper delivered by S. V. Vonsovskiy, member of the academy and chairman of
the Presidium of the Ural Scientific Center of the USSR Academy of Sci-
ences: "Comprehensive Development of the Productive Forces of the Urals"]
[Text] In my statement I will discuss the principal problems facing sci-
ence in the Urals and the comgrehensive programs for development of our
economic region which have been drafted by the Ural Scientific Center of
- the USSR Academy of Sciences.
In recent years scientists of the UNTs [Ural Scientific Center] have con-
ducted a number of basic research pro3ects in the fields of mathematics Rnd
mechanical engineering, solid physics and chemietry, high-temperature elec-
trochemistry, the theory of population ecology, the study o� materials, and .
the theory of inetallurgical processes; a great deal of work has been done
on geological and geophysical study of the Ural geological province and on
problems of increasing the efficiency of social production and optimum lo-
cation of the productive forcea of the Urals.
While increasing the effectiveness and scientific level of research, the
staffs of the scientific institutions of the Ural Scientific Center of the
- USSR Academy of Sciences has strivea to combine harmpniously the perfor-
mance of basi~; research with expanaion of relations between acience and
production, and they have directed their efforts toward work on the rsa~or
national~economic problems of the Urals. The orientation toward a substan-
tial practical end result and toward uae of effective forms of cooperation
on behalf of the speediest application of developm~nts to production have
considerably increased the return from academy science in the Urals. In
the Ninth Five-Year Plan the economic benefit from utilizing tne results of
scientif ic research amounted to 44.3 million rubles solely on the basis of
direct application, and over the last 3 years it has been threefold as -
great--150 million rubles.
The center has considerably expanded ita relations with sectors and indus-
tries. Today it has relations based on long-term contract-programs with
seven ministries, including the USSR Ministry of Nonferrous Metallurgy, the
RSFSR Ministry of Geology, and the RSFSR Ministry of Higher and Secondary
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Specialized Education. These programs define the main lines of development
of long-range cc~operation between institutes of the UNTs and enterpriees of
the relevant sectors and industries.
The contract with the RSFSR Ministry of Geology has made it posaible to co-
ordinate the activity of seven regional geological administrations, five
institutes of the academy, and a number of WZ's and scientif ic research
institutes of specific sectors and industriea. The contract with the USSR
Ministry of Nonferrous Metallurgy, in which the industry side is repre-
sented by 25 entergrises and sciantific organizations, affords the poesi-
bility of applying the results of ~oint development pro,jects both with the
participation of scientific research institutes of particular sectors and
industries and also on the basis of direct relations between the institutPe
of the academy and industrial enterprises. The following fresh example il-
lustratea how effective this latter type of relation is.
On the initiative of A. P. Aleksandrov, president of the USSR Academy of
Sciences, the Institute of the Physics of Metals of the UNTs was given re-
sponsibility for developing a specific magnetic systen to stop the flow of
the roving when the thread breaks in a spinning frame (the absence of such
a device is one of the most esaential shortcomings in present-day spinning
technology, causing machines to break, large losses of yarn, and high ex-
penditures of physical labor by apinning frame tenders). Under a contract
~ between UNTs and the RSFSR Ministry of Textile Industry a great deal of
work has been done, work in which the participants were the Institute of
, the Physics of Metals, the Yalcovlevo Flax Combine, and the apecial deaign
bureau for textile machinebuilding. Special magnetic systems were devel-
oped and built in which magnets with very high energy, developed previously -
in the Institute of the Physice of Metals, wer~ used. These systems have
been installed on the combine's spinning frames.
Experiments and then extensive industrial trials have shown the high effi-
~ ciency and reliability of the devices which were developed. During 1979
the institute manufactured about 30,000 of the magnetic systems, which were
delivered to the Yakovlevo Flax Combine to be installed on the spinntng
frames already in operation. Once these devices had been put into opera-
tion, labor productivity of frame tenders increased 30 percent, and, ac-
cording ta aseurances of the combine's management, thia increase will ap-
' proach 100 percent in time. The saving on the raw material is more than 10
percent. The annual economic benefit on the scale of the combine is more
than 1 million rubles, the payoff period for the magnetic devices is 7
months. Equally important is the social benefit--the work of the spinning
frame tenders has become much easier. An urgent need has arisen to dissem-
inate this method throughout the USSR's entire textile industry.
- The July (1979) decree of the CPSU Central Com~~.ttee and USSR Council of
Ministers has once again emphasized the need to concentrate energies and
~ rssources on drafting and implementing the most important nationwide tech-
nical, economic and social programs as well as programs for development of
specific regions and regional industrial complexes.
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I
l~UK UKK1(:lAL U~~ UNLY
The UNTs of the USSR Academy of Sciencea has worked out a long-range pra-
gram aimed at comprehensive and efficient use of the natural resources of
the Urals. This program is the result of a large-scale study embodied in
the forecast-report of the UNTs entitled "Development of the Productive
Forces of the Ural Economic Region Qver the Period up to 1990-2Q00 (and
Neighboring Regions)." It reflects the principal scientific results of the
research done by Ural scientists and aummarizea proposals for development
of the productive forces of the Urals.
In the forecasting period the Ural economic region must develop as before
as an important national economic complex comprising the fuel-and-energy
industries and raw materials industr9.es, industries producing the means of
production and consumer goods, and also an advanced agriculture. Aa shown -
by the scientific research, the future economic development of the Urals
~ depends to a considerable degree on solving a number of major prACtical
problems. T'hey include, for example, improvement of the base of the raw
materials industries and development of fuel-and-power and water resources.
To be specific, the Urals are experiencing an acute shortage of solid fuel.
There is a need, then, to work on the question of the possibility of deliv- ~
ering high-quality coking coal from the Pechora Basin here.
One of the most important scieati.fic problems in our economic and social
development is the problem of the reproduction and regional use of labor
resources. For the Urals this is an especially ramified and complicated
prob~em. For instance, whereas in the period from 1966 to 1970 the coun-
try's population increased 5.2 percent, the population of the Ural:s dropped
more than 0.5 percent. And t:iis trend is persisting.
The further rise in the efficiency of all branches of social prc~duction
should also be included among the urgent scientific and practical problems.
On each of the problems in the report mentioned an economic analysis is
given, and a rationale is presented on the main lines of development, the
priority problems aiid the order of the stages in solving them.
The most substantial cnntribution to suramary of the materials of the report
and to aubstantiation of the proposals for the economic and cultural devel-
opment of the Urals was made by the Economics Institute of the UNTs of the
USSR Academy of Sciences, under the auperviaion of its director M. A. Ser-
geyev, correaponding member of the USSR Academy of Sciences.
The All-Union Scientific-Practical Conference on Development of the Produc-
tive Forces of the Urals, which was he].d in Sverdlovsk 21-23 November 1979
by the UNTs, the Ca~ission for Study a.f the Productive Forces and Natural
Resources of the presidium of the USSR Academy of Sciencea, the Council for
the Study of the Producti~e Forces of USSR ~osplan, and the Central Fco-
nomic Scientific Research Institute of RSFSg Gosplan was an important land-
mark in scienCific substantiation of the economic and social problems of
the Ural region and in drafting the program entitled "The Urals."
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What are the prin.:ipal problems reflected in the program entitled "The
Urals?"
First of all we should discuss the problem of intensification of industrial
production in the Urals: the recons~ruction of existing enterprises, in-
_ dustrial parks and settlements. In the Ural region this problem is perhaps
more acute than in other regions of the country, since the Urals have besa
developing as an industrial region for more than 250 years. Old plants
with outdated equipment stand alongside modern giants of industry, and old
cities and settlements of the urban type stand alongside up-to-date indus-
trial centers.
This circumstance makes it one of the most important lines of scientific-
technical progress in the Ur~ls to develop basic and applied research and
development here related to creation of fundamentally new technological
proceFSes for comprehensive reconstruction of enterprises, including mecha-
nization and aut~mation. The solution of the social problems of the future
Ural region is also closely bound up with the reconstruction.
The problem of supplying mineral resources to the industry of the Urals is
anothe*- leading component of our regional programs. Mining has been inten-
- sive here for more than 2.5 centuries. Manufacturing capacities have been
growing uni--.terruptedly, but the mining of ores is declining. For instance,
between 1965 and 1975 pig iron production increased 1.5-fold, while the
mining of commercial are dropped 5 percent. At the present tirae the metal-
lurgical enterprises of the Urals are mainly operating with raw materials
brought in from outside. The com~rehensive scientific research program of
the UNTs entitled "Mineral I'.esources of the Urals" calls for large-scale
joint geological-and-geophysical and economic rese.~irch aimed at making ex- _
plorations more effective and at augmenting reserves of the ores of ferrous
and nonferrous metals and other minerals in the Urals. A geological-and-
economic evaluar.ion of the mineral raw materials base of the Urals will be
the basis for development of the mining induatry and for defining the main
lines of geological prospecting up to the year 2000. Geophysicists of the
center are developing the scientific foundations and technical means for
detecting deposits at depths of more than 1 km, since the ore deposits of
the Urals have been worked only from the surface or to a depth not exceed-
ing 500 meters. _
Particular attention is paid in the program entitled "Mineral Resources of
the Urals" to industrial development of the minerals of the Northern Urals,
a little-developed region that is quite close to the industrial part of the
Urals and has diverse natural resources. In recent years the amount of re-
search work done by the UNTs and other scientific institutions of the re-
gion for the North has increased aharply and will increase still more. The
center's geophysicists have found there very large anomalies that promise
to yield rich deposits of iron ore if their metalliferous nature is con-
firmed. Geologists have discovered a very important barite deposit (Khoy-
vinekoye). We deem it advisable to raise the question of setting up an
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Arctic regional industrial complex to work the coking and power-plant coals
of Vorkuta, the iron ore of the Shchuchinskiy Syncline, to develop the wa-
ter r2souri:es of the Ob', and so on.
The scientists of the UNTs feel that the resourcea of this enormous region
are a new glory of the Urals equal to the glory of the ore reserves of the
Cen~ral and Southern Urals. A program entitled "The North," which cg11e
~ for planned economic development of the Northern Urals, has been drawa up
accordingly.
_ As before the Urals are still an extremely rich source of minerals, includ-
ing iron ore. But these are complex ores, along with iron they contain
other co~onents as well, components which on the one hand make the ore
more valuable, but on the other make it more complicated to use with tra-
ditional methods. Billions of tons of iron-titanium ores of the Medvedev-
skoye and Kopanskoye depoaits are lying untouched since none of the present
technologies makes it feaeible to process them. Only the titanium-~mange- _
tites of the Kachkanarskiy type are being used, but in this process several
hvndreds of thousands of tone of titanium are annually being Ioat with the
tailings and slag.
Resilient departmental barriers still stand in the way of combined process-
ing of mineralogical raw materials. For instance, the ores of the Vysoko- _
gorskiy mine, which is under ,jurisdict ion of the USSR Ministry of Ferrous
Metallurgy, contains a great deal of copper. It could be extracted at the -
same time, which would be cheaper than extracting it at existing enter-
prises in the nonferrous metallurgical industry. But they dump it on the
waete t?eap. The owners themselves do not extract the ~opper from the tail-
ings.
During the existence of the Severoural'ekiy Bauxite Mine many tens of mil-
liona of tons of iron have been mined along with the bauxites. Where is
it? In the slurries from the production of alumina. Yet the iron content _
- is as high as in commercial ores.
Workers in industrial enterprises understand perfectly: it is unprofitable
to confine oneself to extractiag the principal components from ores when
there are ].arge losses of accompanying c~mponents. They are in favor of _
waste-free production. But they need for that purpose manufacturing pro- -
cessea that have been competently worked out, finished designs and appro-
priations to carry them out. Perhaps the necessary development work has
not been done? Yes, it has. At the Metallurgic Institute of the UNTs of
the USSR Academy of Sciences alone more than 10 new processes have been ~e-
veloped along with apparatus for virtually complete grocessing of orea
without waste. But all of this requires pilot and full-scale trials. The -
enterprises do not have pilot facilities, and the ministries are in no
hurry to build them.
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We know the opinion of party and soviet workers of the Urals: they all
concur in the opinion that the solving of problems is held back by inertia,
sometimes even by deep-seated reaistance of ministries to attempts to orga-
nize integrated production operations of intersector importance. But the
composition of the ores of the Urals is such that they do not fit into the
framework of any one industry; their processing must be approached from ex-
tradepartmental positions. The way out should be found by boldly trsne-
forming enterprises processing multicomponent raw materials into intersec-
tor waste-free complexes. In the Urals this applies to the overwhelming
ma~ority of plants in nonferrous and ferrous metallurgy. Ministries re-
sponaible for their scientific-technical progress must energetically pro-
mote this so they do not divide the output into "their own" and "the other
fellow's," so that they display true state concern about the processing of
the raw materials.
In all of this a large role belongs to USSR Goaplan and the USSR State Com-
_ mittee for Science and Technology. There has long been a need to plan de-
velopment of all production facilities neceasary for full waste-free utili-
zation of raw materials for the enterprises processing multicomponent ores.
It is also very important to give economic motivation to collectives for _
obtaining a larger numbEr of the elements and for increasing the degree of
their extraction. It is extremely desirable to speed up development of ex- -
perimental facilities for pilot and full-scale trial of the recommeadations
of the scientists.
An accounting needs to be made of the reserves of the Urals. And if that
accounting is sound and production fully conforms to it, it will unfail-
ingly yield great benefit both to enterprises and also the state. ~
The Urals has become a region of large-scale machinebuilding. That is why
we are paying a great deal of attention to the overall ~iroblems of ita de-
velopment. The program entitled "Machinebuilding of the Urals," which was
drafted in the UNTs, is aimed at optimizing the process of creation of sin-
gle-unit pieces of machinery, machines and integrated sets of machines for
the leading sectors and industries of the country's economy. An example of
a large-scale scien~ific-technical problem being solved ~ointly within the
framework of this program is the development of a fundamentally new metal-
lurgical production line in which smelting, teeming and rolling of the
metal are combined. The Division of Machinebuilding, which was recently
aet up in the UNTs and which is headed by G. L. Khimich, corresponding mem-
ber of the USSR Academy of Sciences, was the organizer of this work. Sci-
entists of the Metallurgy Institute, the Institute of the Physics of Met-
- als, the Institute of Mathematics and Mectianical Engineering, as we11 as
specialists of a number of inetallurgical and machinebuilding enterprises
were involved in solving the problem. The idea that is the basis of the
new metallurgical complex is radically altering the present technology and
promises a huge economic benefit on the scale of the entire country. It is
sufficient to eay that the yield of usable rolled products increases 1.5-
fold. We need serious help in reinforcing this machinebuilding unit, which
is at present the only one in the system of the USSR Academy of Sciences.
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At present, unfortunately, there are not many such examples of academy sci-
ence participating from the very beginning in solving a major practical
prob~em shoulder-to-shoulder with the production specialists. I think I
will not start an argument if I say that the initiative here should in
large part come from the industrial apecialists. It is the responsibility
of enterprise direc~ors to have a detailed knowledge of the situation in
their industry and to react quiclcly to the demands of the economy.
This requirement of technical progress has still not become an organic ne-
cessity for many enterprises. Tt is obvious tha.t the economic mechanism is -
still not effective enough from the standpoint of industrial assimilation
of scientific-technical innovations, and therefore the destiny of innova-
tive work frequently depends on the personal attributes of the business ex-
ecutive, on his willingness or reluctance to take upon himself "unneces-
sary" troubles. Unfortunately, this is not a rare phenomenon. Here is a
typical example. In contact with practical metallurgical experts we in-
tended to tackle the solution of a number of problems of powder metallurgy
and to develop a. technology for production of iron without a blast furnace
at the Alapayevo Metallurgical Combine. To t'zat end we proposed that a pi-
lot scientific-technical production operation be set up at the enterprise.
But unfortunately we did not win support from the directors of the assoc ia-
tion Uralchermet. Not that they re3ected it. No, the importance of the
problem aroused no doubt on their part, and they were all in favor as far
as words go. It was ~ust that no sort of practical steps ensued. Yet the
Alapayevo Metallurgical Combine is in acute need of renewal--the participa-
tion of the scientists in this work would undoubtedly be of great benefit. -
And the UNTs would itself then have a good scientific-produc[ion facility.
Enormous attention has been paid in the program entitled "'Tt?e Urals" to the
problems of use, conservation and reproduction of natural resources. For
instance, the comprehensive scientific research program entitled "The
Urals--Ttie Bioaphere" is devoted to the drafti.ng of the ecological founda-
tion.g of rational natural resource conservation in the Urals and is one of
the most important regional research programs. `The results of pro~ects
done under the program have great importance both to fulfillment of other
programs devoted to the problema of the Ural region and also to the draf t-
iag of plans and preparation of forecasts of development of the productive
forces of the Ural economic region.
A study of natural resource conservation in the Urals is of tremendous in-
tereat both from the scientific standpoint (since we are dealing with a
complicatedaand unique combination of raatural conditions and human actions)
as well as from the practical standpoint, since the Urals is one of the
- country's prfncipal industrial regions. The high level of urbanization and
concentration of industry, the high degree of use of natural resources, the
enviro~ental pollution, and the net loss of able-bodied population through
migration make studies of nature, the environment and natural resource con-
servation in the Urals especially urgent, not only because of their bearing
on the regional problems of the Urals, but also in the framework of the in-
teraction of man and the bioaphere as a whole.
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Unfortunately, there is not the time for me to discuss a number of other
programs drafte3 by the scientigts of the Urals, such as "New Materials,"
"The Physics and Chemistry of the Condensed State of Matter," "The Physico-
chemistry of the Surface," "The Material and Intellectual Culture of the
Urals," and so on. The latter, incidentally, is a joint program of the
UNTs and the RSFSR Ministry of Higher and Secondary Specialized Education,
with which we recently concluded a general contract on joint scientific re-
search and training of personnel.
It is obvious that effecti.ve fulfillment of such a large-scale program as
the program entitled "The Urals," depends to a decisive degree on fulfill-
ment of an entire set of ineasures envisaged in recent decrees of the party
and government concerning further improvement of planning and management.
To be specific, we also need new forms for coordinating the actions of all
m:Lr.istries and departments and an ~ptimum combination of sectoral and re-
oional management so as to preclude departmental divergence.
Another question concerns the status of the coordinating council, which
heads the program. At the present time this council is a prestigious pub-
lic body. This in itself is a great deal, but it is still manifestly in-
adequate for supervision of such a complicated and large-scale matter. The
council should be granted all the necessary rights, including the right to
manage finances. Thought must be given to the sources of financing there
might be and to the manner in whicl-. resources are to be pooled. There is
an absolute necessity of f inding possibilities of overcoming departmental
barriers on this issue as well. After all, those operational forms con-
tain the key to the future. -
In conclusion I would like to emphasize onze again that no science exists
"in pure form" today, there is no science for the sake of science, nor can
there be. Scientific worl~ is closely intertwined with organizational work.
~!nd developing science means improving all the mechanisms of its relations
~ith practice, with production. This is in fact the principle that deter-
mines the entire activity of the Ural Scientific Center of the USSR A~cademy
of Sciences.
COPYRIGHT: Izdatel'stvo "Nauka," "Vestnik Akademii nauk SSSR," 1980
7045
CSO: 1820 ~D
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