JPRS ID: 10219 USSR REPORT HUMAN RESOURCES

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• Content Type: REPORTS

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JPRS L/ 10219
28 December 1981
USSR Re ~rt
p
HUMAN RESOURCES
CFOUO 8/$1)
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~
JPRS Z/10219
28 December 1981
= USSR REPORT
HUMAN RESOURCES
(FOUO 8/81)
CONTENTS
LABOR
Ziir~yanin's Address to Institute of USSR Acade~y of Sciences
(VOPROSY EKONOMIKI, Ju7. 81) 1
Labor Produc~tivity Discussed in Relation to Economic Growth
(P. Khromov; VOPROSY IICONONI2KI, Oct 81) 9
' Ma.npower Management in a Large City
(A. Kosayev, S. I1'in; VOPROSY EKONOMIKI, Oct 81} 19
Division of Labor Between Urban and Rural Areas
~
(T. Kuznetsova; VJPROSY EKONOMIKT, Aug 81) 29
- a - [III - USSR - 38c FOUO]
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LABOR
ZIMYANIN' S ADDRESS TU INSTITiTTE OF USSR ACADF~lC OF SCIENG'ES
Moscow VOPROS't EKONOMIKI in Russian No 7, Jul 81 pp 3-8
[Text] For achievements in the develepi.Eient of economic science
and the training of scientific personneY the Institut~ of Eco-
nomics of the USSR Academy of Sciences was awarded the Order of
the Red Banner of Labor. On 25 May a festive session took place
in the House of Schalars, dedicated to the presentation of the
high decoration to the collective of the institute. Comrade M. V.
Zimyanin, secretary of the CC CPSU, gave a speech. The text of
comrade M. V. Zimyanin's speech is printed below.
Comrades!
Today a high award, the Order of the Red Banner of Labor, is presented to the col-
lective of the Institute of Economics of the USSR Academy of Sciences. .
The institute is 50 years old. We are observing this anniversary at a portentous
time--the year of the 26th Party Congress, a congress of world-historical signifi-
cance.
The entire social life of our great Hom~land is developing under the influence of
the decisions and ideas of the congress. They exert a positive influence on the
entire international situation.
- The congress summed up the gigantic revoluti.onary-creative activity of the Leninist
party and the Soviet ccople, worked out an inspiring program for the further advance
~ of our country along the road to communism, for the struggle for peace and social
progress.
Comrade L. I. Brezhnev, general secretary of the CC CPSU, in tlie Report of the Cen-
~ tral Committee to the congress, showed, in the most profuound scientifically-valid
manner, the magnitude of the l~istoric. aceomplishments of the party and the people,
formulated the cardinal tasks of communist conatruction, advanced new constzuctive
suggestions aimed at weakening the !:hreat of war, curbing the arms race and
strengthening the peace. ~hey repr.�esent the consistent continuation and development
- of the Soviet Program of Peace, me.et the vital interests of all the nations of the
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planet and are therefore found in the center of attention of the international con-
munity.
The report of comrade L. I. Brezhnev brings a new creative contribution to the de-
velopment of the Mar.~ist-Leninist doctrine. It enriches the theory and practice
of scientific communism with basic ideas which open up new perspecti~ves for our
social development, the further growth of the prosperity of the Soviet people, the
- strengthening of the economic and defensive power of our Homeland, the positions of
peace and socialism.
The party and the people unanimously approved and supported the decisions of the
26th Congress ~if our party. They are rallying still closer around the CPSU Central
Committee wir~? the outstandiaig continuer of the great Leninist cause, the passionate
champion of the triumph of peace and communism, comrade L. I. Brezhnev, at its head.
Amidst tt~e great political and labor advance the fulfillment of the plan for the
- economic and social development of the ccuntry for 1981 and the tasks of the five-
year-plan as a whole has begun. Nationwide socialist competition i~ unfolding for
the conquest of new frontiers in the development of industry, agriculture, science
a~d technology, determined by the strategic policy of the party with regard to the
intensification of national prodLCtion, the acceleration of scientific-technical
progress by all possible means in the conditions of developed socialism.
We have entered a new important period in the development of our Homeland.
In the realization of the tasks advanced by the 26th Congress, the Communist Party
allots a special place to science, which exerts an ever-growing influence on the
~ development of the material and spiritual potential of socialist society.
In the system of scientific institutions of the social sciences the Institute of
� Economics of the USSR ~cademy of Sciences, organized in 1930, is an important link.
During the half-century of its existence, it has become *.ransformed into a large
theoretical center of research in the sphere of political economy, one of the com-
- ponent parts of Marxism-Leninism. The road traversed by the irestituee is an integral
and significant part of the history of Soviet economic science. It trained many out-
stariding sch~lars in the field of economics, the scientific ~aorks of the collective
of the institute laid thE~ foundation for a series of main directions in basic and
applied research, and promoted the development of economic education in the country.
And the present decoration of the institute with a high award of the Fatherland is
testimony of the recognition of its services in the development of economic science,
in the training of scientific personnel.
The work of economists in our country is honorable and reaponsible. Its significance
_ in contemporary conditions is growing sharply. Life itself, scientific-technical
progress, the tasks of intensifying national production require that the results of
production grow faster than the expenditures paid out for it and make special claims
on economic science.
The Institute of Economics of the USSR Academy of Sciences has made significant ac-
complishments. However, against the background of the high demands made by the
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- practice of communist construction, its work still does not correspond in everything
- to the needs of today. As comrade L. I. Brezhnev emphasized at the congress of the
party, "there are quite a few problems awaiting their solution that have accumulated
in the political econ4my of socialism." The leading institute is giv~n a great deal,
but a great deal is demanded of it.
We hope that the highly-qualified collective of the Institute of Economics of the
USSR Academy of ~ciences will apply all of its effort, knowledge and experience to
take active par~ in the soluticn of the problems dicta~ed by the course of natianal
. development, that it will approach the fulfillment of the scientific and ideological
- and ~olitical tasks before it with a high degree of party spirit and respon~ibility.
The highest goal of the Communist Party is the welfare and happiness of the Soviet
people. Its social and economic policy is simed at the further growth of national
prosperity, the perfection ~f the socialist mode ef life, the all-round and harmo-
nious development of Soviet people. The main condition for the achievement of this
- goal is the efficient, stable and pr~gressive development of the national economy,
the transference of the economy to the road of intensification, the development of
scierice--the foundation of foundations of scientific-technical progress, the utiliza-
tion of its achievements in practice. "The tasks that life moves to the fore," L. I.
Brezhnev underscored at the congress, "require the development of theory, economic
science, its approximation r,o the needs of economic practice."
Soviet scholars and economists and above all the collective of the Institute of
Economics of the USSR Academy of Sciences are called upon to guarantee the elabora-
tion of the urgent problems of political econumy, to raise the quality and the re-
sults of the investigations of key national economic problems, to strengthen the
cooperation with the planning and economic organa.
Our economic science must actively participate in the further elaboration of the
theory of developed socialism, the ways of constructing the material-technical base
of communism, the perfection of the entire system of productive relations. Socio-
, economic problems of the scientific-technical revolution and questions of the eftec-
tive reali~ation of the achie~vements of science and technology in the national eco-
non~y have acquired the greatest significance at present. The direction of national
_ development requires profound prediction of socio-economic and scientific-technical
progress. This, in turn, determines the necessity of closer collaboratian of the
social, natural and technical sciences. The high duty of our scholars is the direct
participation in the elaboration and realization of a comprehensive program of
scientific-technical progress, in the elaboration of the national economic structure
with which the cour.try strides into the twenty-first century. Figuratively apeaka.ng,
already now we are entering its threshold.
Questions dealing with increasing the efficiency of national production, the more
rational use of the gigantic economic and scientific-technical potential of the
' country, and'economizing the use of natural econ~omic resources in every conceivable
way are now being put in the forefront. We must clearly acknowledge that our succes-
ses in cocmnunist construction, the defenaive capacity of the Fatherland, the strength
- of our positions in the struggle for peace and social progress depend directly on
the results of our activity in all these directions, on the economic power of the
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co~intry. iae expect from the scholars a new, still more ponderable contribution tc
the solution of the questions of economic and scientific-technical policy, the
mobilizntion of reserves in the intensification of production, in the securing of
high growth rates of national labor productivity.
- Increasing the efficiency of the utilization of the productive potential of the
country presupposes strengthening research in the economy of the sectors of the
_ national economy and, above all, the basic aectora of heavy industry--the fuel-
enPrgy, extracting and metallurgy sectors, but also those sectors through which,
first of all, scientific-technical nrogress--machine building, instriunent building,
chemistry--are materializeu. ~
The activation of the participation of scientists and economists is necessary in the
s~lution of questions of the optimization of the disLribution and use of productive
forces, in the elaboration of programs of develc*pment for the large economic dis-
tricts of the :ountry and above all the Nor.chernozem Region, the North, Siberia, and
the Far East, including the zones af the Baykal-Amur Trunk Line, as is the more
systematic investigation of regional problems.
One of the most urgent tasks of ~he llth Five-Year-Plan is the increase in the effi- ~
ciency of agricultural production. With ri view to the radical solution of the prob-
. lem of supplying the population with the products of agriculture, the elaboration of
a food program for.the country has begun. In the future, too, we will continue the
planned transference of agricultural production to an industrial basis, to strengthen
its material-technical base. However, now the center of gravity is transferred to
the return from capital investments, the productivity growth of agriculture, to the
extension and perfection of its links with all sectors of the agro-industrial com-
plex, to the accelerated solution of the socio-economic problems of the village.
All this places new responsible tasks before agrarian theory.
The scientific elaboration of the problems of administering the national economy,
built upon the principle of demucratic centralism and developing in conformity with
the economic policy of the party, acquires exceptionally great significance. Our
economy, which no~a represents a single national economic complex, functions on the
basis of objective laws, through whose operation the indisputable advantages of the
socialist social order over capitalism are increasingly fully revealed. These ad-
vantages must be systematically realized in the practice of p~~nning and the direc-
tion of the natiunal economy. The nature of the socialist economy requires its
central administration and the coordinated operation of all socio-economic factors
and organized structures of administration. Reating on the creative energy of the
popular masses, the active participation of the workers in the solution of prodsction
_ tasks, highly-qualified personnel of specialista, the ateady observation of plan and
labor discipline, the broad utilization of the achievements of science and technology,
we are confidently moving along the road of the creation of the material-technical
base of communism.
The party and the government have determined a complex of ineasures with respect to
the perfection of the economic mechanism and the improvement of planning. We are
confronted with the serious tasks of consistently carryi:.g them out in practice.
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!1 matter of increasinfily great importance is the concentra~ion of the activity of
the leading scientific institutions on questions of increasing the coordiiiation of
the plans of production and scientific progress, the physical and cost, territo-
rial and sector indicators; perfecting cost accounting; strengthening the role of
the financial and credit lEVers, material an~? moral stimulation with a view to in-
creasing the efficiency of producton; strengthening the regime of economy and
_ thrift. There are many still unresolved tasks in the sphere of the perfection of
tr~e organizational structures of administration. It is also necessary to attain
acceleration in the elaboration of more effective economic-mathematical modPls of
planning and administering the national economy. The scientists and economists must
to a greater extent pron,ot~ the overcoming of the force of inertia, old, inert
habits, the development of new socio-economic thinking which corresp4nds to.the re-
organization, the psychology of a certain part of the eGOnomic executives, if one
can express it that way.
, A powerful accelerator of our forward movemenc is socialist competition. It has
been and remains an active means for linking the economic policy of the party with
the creativeness and iniriative of the popular masses. A powerful impulse to its
further development was given by the 26th Congress of the party, which has set forth
the main directions for the development of national production and at the same time
the urgent task.s of the further development of socialist competition. Together with
the other social sciences, economic science must help in the elucidation and propa-
ganda of the most rational and effec~ive forms of socialist competition, promote the
strengthening of their influence on the execution of the tasks of the llth Five-Year-
Plan.
~ It is necessary to increase the role of economic education in the solution of produc-
tion tasks, in the development, in every worker, of a thrifty attitude toward the
public good, a rational,economie approach to the utilizatio~z of national economic re-
sources, an aspiration to achieve high labor productivity.
- In contemporary~conditions, the perfection of the organization of labor and the
problem of a cautious attitude toward labor resources play a special role. Its solu-
tion demands from science profound demographic research, the elaboration of socio-
- economic problems of the population, including in the territorial plan. Investiga-
tions of questions of the perfection of wages and the whole system of distributive
relations must be more closely coordinated with all this. Labor, its quantity and
= quality, constitute the main criterion for distrnbution under socialism.l:Thia most
important principle of socialist social relations has been consolidated in the USSR
- Constitution and must be strictly carried out in practice.
A characteristic feature of the contemporary stage of development of our society is
the constantly growing interrelationship between progress of the economy and socio-
political and spiritual progress. Economic investigations must in a c Mnprehensive
way take into account the essence of social changes in the composition of the working
class, the peasantry and the intelligentsia. Of especially great significance for
the solution of the tasks of the further soc~o-economic development of the country
:.s the theoretical proposition advanced at the 26th Congress of the party by.comrade
L. i. Brezhnev to the effect that "the formation of the claesless structure of soci-
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- ety will mainly and basically take place within the histcrical bounds of mature
socialism."
In connection with the steady expansion of the foreign economic relations of the
- USSR, it is demanded that economic science devote increased atten-'tion to questions
of the further development of economic cooperation among the countries ~f the
. socialist coamonwealth and undertake a profound study of rhe problems of socialist
- economic integration. It is necessary to expand the analysis and generalization of
_ the experience of the countries un3er socialism, espQCially in the increase uf the
- efficiency and intensification of production, to extend the elaboration of produc-
ti've and scientific-technical cooperation, the approximation of the structures o~
economic mechanisms, and the perfection of the forms af joint planning activity.
~Scientists and economists must continue and extend their research into the econamics
- aad politics of the developing countriea and, above all, countries having entered
the path uf a socialist orientation. It is necessary to study actively the new
phe~omena and contradictions in the world of capital, the aggravation of the general
_ crisis of capitalism, to aaalyze more profoundly the basic eendencies of interna-
tional relations, the global problems of our time.
~ Economic science and political economy in particular is a class science, a party
science, it is directly connected with the ideological struggle.
The intensification of international tension that has taken place lately, called
forth by the aggressive, militaristic circles of the U.S.A., by its hegemonic and
- expansionist aspirations that have intensified the threat of war, has even imparted
a special sharpness to the ideological s~ruggle in the world arena. The politicians
and ideologists of i.mperialism and their Peking accomplices are waging a frantic
slanderous campaign against socialism, against our Fatherland, against all revolu-
tionary and progressive forces in the world, o~.re unleashing a veritable psycholog-
ical war. Oeir party and people decisively rebuff the intrigues of the forces of
reaction and war. The imperialist lie and slande~c is opp~sed by our great truth--the
justice, nobleness and humanism of the ideas of M~.-rxism-Leninism, the world-wide and
historic achievemer.ts of the socialist social orde:r. In this struggle we are sup-
ported by the unshakable unity of our party and peaple, rhe indestruc*ible defensive
power of our Fatherland, by the solidarity of the world socialist commonwealth, the
support of all progr~essive and peace-lovir~g forces of the planet.
A[ the same time we must fully take into accaunt that xt would be an unforgivable
mistake to underestimate the influence of the ideoiogy and prcpaganda of imperialism,
including in questions of economic theory and practice, where our class enemies act
_ especially cynically and maliciously.
The scsle and heat cf the contemporary ideological struggle present ever-growing
demands to our ideological work, which was pointed out at the 26th Congress of the
party in the well-known CC CPSU decree "On the Further Improvement of Ideological
and Political-Educational Work". This requires every conceivable increase in the
- level of scientific research, works and all publications in the sphere of economic
science. Together with all ttie workQrs in the social sciences, scientists in the
field of economics must demonstrate the exploitative character of the capitalist
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c~conomy mor~~ broudly, an econoc~iy which is in the grips of a deep crisis; they must
more actively unmask the policy and ideology of imperialism, its predatory, para-
sitic, antipopular essence; through argumentation they must discl~se the incon-
sistency of the various reform schemes and at tihe same time devote still greater
attention to the propaganda of the advantages and achievements of socia.lism, to the
education of. the Soviet people in the spirit of communist conviction, socialist
_ patriotism and proletarian intErnationalism.
\
= Comrades! At the 26th Party Congress comrade L. I. Brezhnev indicated that the
Central Comani*_tee of the CPSU is in favor of further increasing the role and the
~ responsibility af the USSR Academy of Sciences, ~f improving the entire system of
scientific research. The country has the need for the efforts of "big scienc:e",
along with the elaboration of theoretical problems, to be concentrated to a greater
extent on the solution of key national economic questions, on discoveries capable of
introducting really revolutionary changes in production.
_ It was further ernphasized that sci,ence must be the constant "disturber of calm",
- showing in what sectors stagnation and lagging have been noted, where the contempo-
rary level of knowledge~provides the possibility of moving ahead quickly and success-
fully.
These propositions also fully apply to economic ~cience.
All scientiFic and ideological-political work of our economists must be directed to
the further development of Marxist-Leninist economic theory, to the increasingly more
profound a~d ~uller discovery and utilization of the possibilities of the economy of
developed socialism, to the commurist education of Soviet people.
The Central Committee expresses the firm coneriction that the collective of the In-
stitute of I:conomics of the iJSSR Academy of Sciences and all Soviet economic scien-
tists will successfully cope with the responsible tasks set forth by the 26th CPSU
Congress.
Allow me on behalf of the Presidium of the USSR Supreme Soviet to award your insti-
tute the Order of the Red Banner of Labor.
In conclusion, allow me, on behalf of the CPSU Central Committee, the Presidium of
the USSR Supreme Soviet and th~ Soviet Government, to extend hearty congratulations
- to the collective of the institute ~n the occasion of the portentous anniversary and
the high award, to wisi~ you, dear comrades, new successes in your work for the wel-
~ fare of our great socialist Fatherland.
After the presentation of the order, the director of the institute, corresponcling
member of the USSR Academy of Sciences, E. I. Kapustin, vice-president of the USSR
_ Academy of Sciences Academician P. N. Fedoseyev, first secretary of the Leninist
raykom of the CPSU, 1i. A. Protopopov, deputy chairman of US~R Gosplan, A. V. Bach-
urin, deputy ItSSR :nini.ster ~o~ higher and .special .education, N. I. Mokhov, vice-
- president of the Ukrainian Academy of Sciences, I. I. Lukinov, academician-secretary
' of the Department of Economics of VASKHNIL (All-Uni~n Academy of Agricultural
Sciences i.m. V. I. Lenina), A. A. Nikonov, senior scientific associate of the In-
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atitute of Economics, 0. V. Katikhin, gave addresses.
The participants of the session accepted with great enthusiasm a s2lutatory letter
to the CC CPSU, the Presidium of the USSR Supreme Soviet, the USSR Council of
Ministers, and comrade L. I. Brezhnev.
COPYnIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981 .
8970
G:4t ~928/3
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LABOR
LABOR PRODUCTIVITY DISCUSSED Ih RELATION TO ECQNOMIC GROWTH
Moscow VOPROSY EKONOMIKI in Russian Na 10, Oct 81 pp 15-23
(Article by P. Khromov: "Labor Productivi~y and Economic Growth"]
jText] One of the most important aspects of the economir_ competition between the
two world systems is the growth of labor productivity. The cyclical development of
the capitalist countries has been accompanied by inflation, a high rate of unemploy-
ment, an energy crisis, the slower growth of labor productivity, and so forth.
Foreign economists who have studied the prosgects for production development and
labor productivity have expressed different views on this matter. Some believe
that slower economic development, as that witnesse.d in the capitalist countries
during certain periods, is the result of excessively rapid economic growth during
preceding years, and others find the cause in the limited quantity of free land and
reduced population growth, although it is a well-known fact that there is no direct
- connection between economic development and population growth in the capitalist
- society, even if we discount unemployment. Some have also said that production
growth rates are influenced by technical innovations, the use of new resources and
.territories, the state of monetary circulation, the state of agriculturel and so
forth. The views now being expressed by bourgeois economists in regard to future
- economic development range from the extremely optimistic (speed "at any price"--
- Japan) to the extremely pessimistic (the concept of "zero growth"--the Club of Rome).
Several studies of economic growth rates and prospects have been printed in foreign
economic publications.2
When we investigate the economic development of the capitalist countries in the
1980's, we must remember that production growth rates were lower in the 1970's than
in the previous decade, although the rate of decline was different in different
- countries {from 40 percent to 50-65 percent). The long-term dynamics of production
- in the capitallst countries depend primarily on the level of labor productivity,
but given the circumstances of cyclical development, a high rate of unemployment
and so forth, the dynamics of production volumes and labor productivity in the
capitalist countrie5 do not always coincide. During the severe crisis of 1974-1975,
- for example, labor productivity decreased along with production volumes in some
capitalist countries while it increased in others, although more slowly than in
pre-crisis years.
A lower rate of increase in labor productivity has recently been characteristic of
the ma~ority of developed capitalist countries. The dynamics of the change in labor
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_ productivity rates in the leading capitalist countries in recent years were the
- following.
Labor Pr~ductivity Dynamics .
- (annual growth ratesl in %
- Countries 1974 1975 1976 1977 1978 1979 1980*7.<
United States* -3.6 -0.5 -2.7 1.3 0.1 -U.4 -1.0
Canada* -1.4 -0.8 2:6 0.7 0.1 -1.2 -3.0
~ Japan* -0.7 2.6 5.1 3.9 4.7 4.5 4.0
_ FRG* 2.5 Q.1 6.7 2.9 3.3 3.2 1.0
Great Britain** -0.5 -1.2 2.8 0.3 2.3 0.8 -1.5
France** 3.2 1.2 4.4 3.0 3.0 3.4 1.7
Italy** 1.2 -4.0 5.0 0.6 2.1 3.8 2.5
* Labor productivity calculated as the gross national product per worker through-
_ out the economy.
Labor productivity calculated as gross domestic product per worker throughout
- the economy.
Estimated.
- Lower growth rates of labor productivity limit accumulation potential by complicat-
ing the entire process of reproduction in the capitalist economy. The data in the
table below indicate the dynamics of labor productivity over 5-year periods.
Average for Period
Countries '
1971-1975 1976-1980
- United States 1.2 -0.6
Canada 3.0 0.4
Japan 5.1 4.5
FRG 2.7 3.6
Great Britain 1.4 0.9
France 8.8 3.2
Italy 2.2 2.8
Therefore, labor product~vity was lowEr during the 1976-1980 period than during the ~
preceding S years in five of these seven capitalist states. Furthermore, we must
remember that labor productivity statistics in the capitalist countries, especially
the United States, suffer from methodological defects. The indicator of labor
productivity throughout the economy is calculated b~ dividi�ng the gross domestic
product by the number of persons employed in the country (including civil servants
and the personnel of the trade network and of banks and other f inancial institu-
tions). It is a well-known fact, however, that labor productivity is lower in the
- non-production sphere than in branches of physical production even when this sphere
has a higher growth rate. As a result of this, the rate of increase in labor prod-
uctivity throughout the economy is lower than in the main branches of physical
production.
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The growth rate of labor productivity in the capitalist countries is influenced by
various factors, but the main reasons for its decline are the generally antagonis-
tic nature of the process of reproduction, the deceleration of equipment renewal and
technical progress, the growth of already huge expenditures on weapons, inflation,
etc.
In the socialist society, production growth is governed by other Iaws, stemming from
the nature of socialist production relations: a planned economy, the absence of
' cyclic.^1 crises, full employment and so forth. Nevertheless, rates of production
growth have varied during different stages of socialist construction. The period
of the Civil and Patrioti^_ Wars, the perlod of reconstruction, the period of indus-
trialization and other periods were marked by economic developmental peculiarities
for a number of ob,jective reasons. To one degree or another, a decrease in the
_ annual work-time figure, a lower rate nf manpower growth, a change in the produc-
tion structure, the ad~ustment of accumulation norms and other factors have influ-
enced production growth considerably.
Production growth rates in the USSR are now affected by the priority assigned to
economic intensification (the augmentation of labor productivity and the reduction
- of capital, material, energy and monetary requirements in combination with the
- improvement of product quality), rather than to factors of an extensive nature
_ (the growth of labor expenditures, capital investments, natural resources and farm-
- land), which once played an important part in economic development. Problems in
' production growth are now being solved through the enhancement of pro~luction
efficiency, the use of the latest equipment, the improvement of the sectorial
structure commensurate with public needs, ths comprehensive use of crude resources
and other materials, the improvement of personnel skills and of production manage-
ment and the better coordination of groduction with public deman.d.
_ The rate of increase in national income (used for consumption and accumulati.on),
which rose annually in the USSR by 5.7 percent in 1961-1965, 7.1 percent in 1.966-
= 1970, 5.1 percent in 1971-1975 and 3.9 percent in 1976-1980, provides a general idea
of economic develQpment. The.rates of increase in national income, national product
and labor productivity during the Nint:~ and lOth Five-Year Plans were lower than,
for example, during the Eighth and Seventh; in absolute terms, however, national
income in the lOth Five-Year Plan exr_eeded the f igure for the Ninth by 24 percent
(or 400 billion rubles).
An increase of 3.4-3.7 percent in national income is expected during the llth Five-
- Year Plan. It is sig~ificant that the growth of national income during the llth
Five-Year Plan (1$-20 percent) is expected to exceed the growth of capital invest-
_ ments in [he national economy (12-15 percent), in contrast to the,preceding three
5-year periods. In other words, we want to reduce the capital requirements of
national income. ~We must not forget that the annual absolute increase in production
will be measured in huge quantities,even if the rate of increase is low,because the
present scales of production are so great. Under pre~ent conditions, the strained
_ labor balance is the main factor determining the growth of national income; or, in
other words, labor productivity. The growth rate of national income will naturally
be higher than the growth rate of public labor productivity because the first is .
- achieved by means of an increase in total labor and a savings in embodied labor.
The anticipated increase of 17-20 percent in labor productivity in the llth Five-
Year Plan must be achieved primarily through the mechanization and automation of
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~ production, the reduction of the number of persons engaged in manual labor, the
- coordination of new jobs with total labor resources and the improvement of economic
management and organization. The more quickly labor productivity grows, the more
opportunities will be created for accumulation and consumption, but a decrease in
_ accumulations and a slower rate of technical progress complicate the enhancement
- of efficiency; this circle is "broken" by the growth of labor productivity, by the
_ most highly concentY�ated indicator of production efficiency, as it was defined in
= the accountability report of the CPSU Central Committee to the 26th party congress.
Average Annual Rates of Labor Productivity Growth
in Physical Production and Its Main Branches in the USSR
Categories 1961-6( 1~66-70 1971-75 1976-80 1981-85 ~
- (plan)
Public labor productivity
(national income per worker
in physical production) 5.6 6.8 4.6 3.2 3.2-3.7
Labor productivity in industry
(product per worker) 4.6 5.7 6.0 3.2 4.2-4.6
Labor productivit;~ in agriculture
(kolkhozes, sovkhozes, subsidi-
ary and other productive
agricultural enterprises) 4.8 5.4 4.1 2.8 4.1-4.4
The growth rate of labor productivity was lower during the lOth Five-Year Plan than
during preceding S-year periods. The main reason was the low rate of technical prog-
ress, shortcomings in the organization of labor and wages and in material and tech-
nical supply operations, the slow growth of agriculture, structural changes, the
low level of labor discipline, the higher rate of personnel turnover, the shortage .
of manpower at some enterprises and the surplus at others, shortcomings in management
and planning, and so forth. �
Rates of production growth and labor productivity are influenced by social and
_ natural �actors and by objective and sub~ective causes. Various factors interact
closely with one another and it is quite difficult to determine the exact role of
- each.3 Economic growth must be viewed as the result of public labor productivity,
the dynamics of which reflect the impact of technical progress, capital investments
and all measures to improve organi~zation and management in the national economy.
Some writers have expressed the view tha*_ the rate of economic growth is dependent
only on the rate of increase in capital investments and on their effectiveness. Of
course, there is a direct connection between rates of economic growth and scales of
productive accumulation, but their dynamics are not identical: The growth rate of
national income does not always correspond to the dynamics of capital investments
and accumulations.
Public labor productivity influences E~onomic growth not only directly, but also
throu~h capital-output dynamics, which depend on a number of factors, particularly
the dynamics of labor productivity in investment branches, which can inerease or
decrease the value of fixed assets. Labor productivity plays the key role in the
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enhancement of production efficiency and the acceleration o.f production growttt.
Higher labor productivity is particularly important in the developed socialist
society under the conditions of technological revolution ar,d redu~ed manpower
reserves. The accelerated growth of labor productivity by means of technological
progress is the main factor in the elevation of the public's mater3al and cultural
standard of living, the construction of a material and technical 'oase for communism
and the improvement of social relat~ions and a condition for the resolution 9f the
manpower problem.
During the llth Five-Year Plan an increase of 17-20 percent is anticipated for ~
public labor productivity, of 23-25 percent for labor productivity in industry, of
22-24 percent in agriculture (public sector), of 15-17 percent in construction and
_ of 10-12 percent in railway transport. Fiere the increasingly difficult cond~tions
of work in a number of branches of the extr4ctive industry must be taken into
accoi~iit. Ti~e development of extractive branches in Siberia, the Far East and the
North will require additional capital investments due to rising cons~truction costs.
- Capital investments for ecological purposes must be increased.
The utilization of the potential of technological progress under the conditions of
the socialist organization of production must overcome the effects of some negative
factors on labor productivity in a number of branches in the 1980's. International
factors will also continue to have a significant effect on the growth rares of
labor productivity, such as, for example, the improvement of socialist integration
and the more extensive use of international division of labor and favorable world
market conditions.
T'he use of working time, the qualifications of personnel, the standard of living,
the organization of incentives and labor discipline are important aspects of pro-
duction intensification. The efficient distribution and use of labor resources and
the disclos~lre of internal reserves for heightened labor productivity are now of
primary significance. The labor shortage is inhibiting the use of production
capacities, and the presence of job vacancies is intensifying labor turnover and
undesirable migration processes. Regions with surplus labor are generally dis-
tinguished by lower growth rates of labor productivity, while a labor shortage
. reduces the output of equipment despite the rising power-worker ratio. A labor
shortage in some regions and a surplus ir~ others can seriously inhibit the growth
of national labor productivity. In regions and republics with a high rate of popu-
- lation increase and surplus manpower, we must not underestimate the possibility of
increasing national income not only by means of heightened labor productivity, but
also by means of the involvement of unemployed labor in public production. The
materials of the 26th CPSU Congress and the decree of the CPSU Central Committee
and USSR Council of Ministers "On the Improvement of Planning and the Enhancement
_ of the Economic Mechanism's Effect on Production Efficiency and the Quality of Work"
- raise an entire series of questions about the improvement of working conditions and
the organization of labor, particularly the question of reducing the rate of per-
sonnel turnover in the national economy.
In the 1970's labor turnover in industry decreaGed somewhat, but it is still having
a negative effect on the dynamics of labor productivity. The rate of personnel
turnaver is particul.arly high in the country's eastern regions, among youth and in
several branches with relatively difficult working conditions, such as the coal and
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lumber industries. As a result of personnel turnover, many enterprises are only
- working one shift and new enterprises can only master projected capacities after
long delays. The rate of turnover is affected by many factors. In particular, the
- labor balance has not been taken into account when new iobs have been created in a
numb~r of regions. In industry, the labor of around 80Jpercent of all workers is
- normed at the present time. Shortcomings in the norming process, however, are o-?~~
- one of the reasons for personnel turnover and the disruption of the correct balan~.~
between labor productivity growth and the growth of wages at enterprises and
organizations. The labor norming process at industrial enterprises is affected
negatively by, in addition to other factors, interruptions in material and techni-
cal supply operations, delays in the approval of plans and the frequent revision of
plans by superior organizations.
Sometimes "extra" workers are kept on the staff and overtime work is authorized.
During some months of the last five-year plan, for example, the Moscow Plant imeni
S. Ordzhonikidze produced 16.9 percent of its output duriilg the first 10 days,
21.9 percent duri.ng the second 10 days and 61.2 percent during the la.st third of
the month. An output equal to almost two-thirds or even three-fourths of the
_ monthly plan total can only be produced within 10 days if the plant has surplus
manpower. Despite the fact that a manpower limit is now stipulated in the plan for
associations and enterprises, a staff in excess of the plan is still maintained by
many. Tne ablast offices of Gosbank, which are authorized to reduce total ~v~ges
commensurate with the output produced by surplus manpower, do not always exercise
this right.
Considerable reserves for heightened labor productivity also exist in the sphere of
the better use of working time. Industry suffers many losses as a result of
unauthorized absences, whole-day and intrashift breakdowns and so forth. These
losses have generally been covered largely by overtime work on days off. The
improvement of labor discipline and the reduction of personnel turnover are pro-
moted by the transition to the collective organization of wages, the authorization
of workers in some branches to take extra vacations, the augmen~ation of pension
increments for uninterrupted work at a single enterprise, the cancellation of
seniorlty after more than one resignation irom a job during a single calendar year
without a good excuse, nonrefundable assistance and the partial cancellation of
debts �or cooper.ative and individual housing construction. The brigade form of
labor organization is becoming a factor of great economic and social importance.
The members of a brigade are interested in the results of their collective labor and
can combine professions and replace other workers more easily. The brigade form
assists in the indoctrination of young workers and should eventually guarantee
production that is highly effective in the social and economic sense.
The improvement of the organization of labor and production also promises consider-
able reserves. When enterprises are remodeled the size of the staff is often not
reduced. A sample survey of 17 remodeled enterprises in Moscow showed that the
- remodeling plans for 10 of them actually envisaged an average increase of 16 percent
in manpower, the plans for 3 enterprises did not even mention the size of the staff
and only the plans for 4 envisaged a reduction. Remodeling plans must envisage
higher labor productivity and a reduced staff as a result of this remodeling work.
There are also great reserves for heightened labor productivity in agriculture.
The growth rates of agricultural production will soon have an increasingly
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significant effect on the development of the entire economy. At present, however,
product losses in agriculture are sizeablet both in farming and in animal husbandry:
- Large quantities of fertilizer are lost, the annual repair of tractors and combines
costs too much, water is not always used efficiently in irrigated areas, losses
resulting from soil erosion are substantial, the incorporation of highly productive
strains of plants and new productive breeds of livestock has been unsatisfac.tory,
and sa forth.
When measures are pl.anned for the improvement of agricultural productinn, we must
~ remember that it differs from industry in terms of the manFower balance and labor
~ productivity. The highest priority in agriculture is the efficient use of the most
important means of production--the land; natural conditions have a significant
- effect on the reproduction process. The efficient use of land and the improvement
of organization, management and socioeconomic relatioils in rural arQas are essential
condltions for heightened labor productivity in agriculture. One of the greatest
problems now facing our national economy is the problem of increasing the agricul-
tural product and heightening the material intere~t of its immediate producers in
production growth, in the better use of assets, in the reduction of losses ~nd in
the introduction of comprehensive mechanization. A rise in the level of labor
productivity must be accompanied by a corresponding iner~ase in the yield of crops
and the productivity of livestock.
To heighten labor productivity in agriculture, it will be important to reduce the
length of the harvest season by mechanizing these processes intensively. If grain
is harvested 2U days after it has reached full maturity, for example, 33-37 percent
of the harvest will be lost. But after all, it is no secret that many kolkhozes
and sovkhozes let the harvesting season drag on for a month or a month and a half.
The improvement of the labor balance in agriculture could augment labor productivity
_ considerably. In this connection, the resolution of seasonal problems will play an
important part. Full employment must be guaranteed during the winter, particularly
employment for the sovkhoz population when there is no work in the fields. The
private farming sector must be developed. The disruption of the employment struc-
ture and the migration away from regions of agricultural production with a labor
shortage are inhibiting the growth of labor productivity.
When the gr4wth rate of labor productivity in agriculture does not keep up with the
growth of fixed productive assets per worker, the capital-output ratio rises and
it is clear that c~ 31 expenditures are not effective enough. The growth of labor
productivity is als 5~owed down by the absence of the optimal balance between
accumulation and consumption on kolkhozes in a number of rayons and republics. When
the accumulation fund is formed on kolkhozes, the guiding principle should be labor
productivity that grows more quickly than wages. The institution of the measures
for agricultural d~velopment envisaged in the decisions of the 26th CPSU Congress
must also guarantee a rise of 22-24 percent in labor productivity in public farming
_ in the llth Five-Year Plan.
Everyone knows that technological progress affects production efficiency. In the
llth Five-Year Plan the development of science and technology should be geared more
toward the resolution of economic and social problems in the Soviet society, the
~ quicker redirecti4n of the economy into the channel of intensive development and the
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- enhancement of production efficiency. This will depend largely on the level of
research and experimental design work, the closer~ess of the ties between science
and produ.~tion, the capital-labor ratio, the amount of technical equipment in lab- ~
ot'atories and institutes, the existence of promising scientific ideas, the quality
of the *raining of scientists, engineers and designers, and so forth.
Economic growth rates are definitely related to the capital investment volume.
But the dependence of thes~ rates on increased capital investments can be disrupted.
Not all capital expenditures produce an impact during the year of their investment;
there is a temporary lag and many expenditures only have an impact after a certain
delay.
- Analysis has proved that th e re are great reserves in the national economy for the
augmentation of production volumes and labor productivity by means of technical
progress. However, there is not enough of the new technical equipment. Despite the
fact that obsolete machines and items are being withdrawn from the production
sphere, the percentage of " young" products in the total output of some machine-
building ministries is even decreasing. The discrepancy between the estimated impact
specified in technical plans and the actual impact of new equipment must be erased.
To intensify economic growth and heighten labor productivity and production
effici.ency, it will be extremely important to reduce the percentage of workers
engaged in manual labor through the technical re-equipping of existing enterprises
and the comprehensive mechan ization and automation of main production units and, in
particular, auxiliary units. In the last 15 years the percentage of workers labor-
' ing without the aid of mach ines and mechanisms dropped from 40.6 percent to 32.8
percent in industry, but the proportion accounted for by manual labor is still
- decreasing too slowly, and a t some enterprises it is even increasing because there
is a higher percentage of auxiliary personnel.
Economic growth rates have a lways been affected by capital-output dynamics. A
higher capital-output ratio reduced the rise in public labor productivity per
1 percent of rise in the cap ital-labor ratio in 1976-1980 to almost half of the
figure for 1966-1970.
- Labor Pr oductivity and Capital-Labor Ratio
GrQath Rates in I966-1980
Categc~ries 1966-70 1971-75 1976-80
Public labor productivity 39.0 24.0 17.0
Capital-labor rati~ through out the national
economy 40.5 42.0 37.0 �
Increase in labor productiv ity per 1-percent ~
rise in capital-labor ratio over 5 years 0.96 0.57 0.46
During the Ninth and lOth F ive-Year Plans, the relationship between the growth
- rates of labor productivity and the output-capital ratio was negative in comparison
_ to the preceding period for certain reasons, particularly the inadequacy of capital
investments in the remodelin g of enterprises and the development of capital-intensive
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branches (the extractive industry and agriculture), the slow incorporation of pro-
duction capacities, the low level of production organization at many enterprises
and the need to work less productive and less accessible deposits. In the last 5
years, for example, tf.e cost of extracting a ton of oil in the USSR was 2.5 tim~s as
- high as prior to 1~7~; proportional capital im~estments in iron ore extraction
almost tripled within 15 years. All of this affected the capital-output ratio; to
some degree, it was also affected by the relatively rapid rise in the prices of many
types of equipment in comparison to the augmentation of their productivity.
The growth of labor productivity can surpass the growth of the capital-labor rati.o
if the capital-output ratio is reduced. An increase in capital, material an~ finan-
- cial requirements, on the other hand, raises the productive accumulation norm,
reduces consumption and, under certain circumstances, can reduce the productivity of
all public labor for a year or for an entire productive asset circulation cycle. An
intense rise in the productivity of live labor and a drop.in the capital-output
- ratio are accompanied by less need to accumulate national income for a specific
increment in the national product.
Quicker economic growth will require the use of existing reserves for heightened
labor productivity in capital construction as well. These include the concentration
of labor and material resources in priority pro~ects, the reduction of the number of
simultaneous construction ~rojects, the quicker use of production capacities, the
expansion of planned remodeling, the technical re-equipping of existing enterprises,
the closer coordination of material and technical resources with the plans of con-
struction organizations and so forth. The dissipation of resources among many con-
structiQn pro~ects, the practice of writing off fixed assets before they have been
fully depreciated (as a result of which a large share of capital investments must be
used for the replacement of discarded equipment and not simply the augmentation of
total equipment) and unsatisfactory capital-output dynamics slow down the enhancement
of production efficiency, the growth of labor prc�ductivity and the rate of produc-
tion development.
The improvement of national economic planning, the compilation of more effective
plans, the elimination of imbalances within economic regions and branches, the
abandonment, in particular, of the practice of making numerous changes in the plan
during the year and the balancing of consumption and accumulation, of the volume of
capital construction and the output of construction materials and equipment, and of
effective demand and total commodity turnover, and other measures will accelerate
the growth of public labor productivity and,.consequently, economic growth in
general.
_ The most important condition for economic growth is production intensification and
the conservation of all production elements: manpower, the means and tools of labor,
energy and natural resources per unit of social product. Our cou~itry has tremendous
economic potential; our fixed productive assets are valued at over 1 trillion rubles
and our working capital is valued at 323 billion rubles. We must strive for higher
rates of economic growth and greater final results with minimal expenditures of live
and embodied labor and the conservation of natural resources.
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FOOTNOTES
1. See A. Hansen, "Business Cycles and National Income," Izdatel'stvo
inostrannoy literatury, 1959, p 116. Some foreign economists associate rates
of economic growth with the proportion accounted for by savings in national
income and the dynamics of the "capital-product" coefficient. Swedish econom;st
- G. Cassel was already saying at the beginning of the 20th century that the
annual rate of production growth in the developed capitalist country should be
3.3 percent. Keynes believed that intensive economic growth could be promoted
by moderate inflation. Now the majority of bourgeois economists believe, how-
ever, that inflation has a serious negative effect on the rate of economic
growth and, in particular, on labor productivity.
2. For example, "The Future of the World Economy," a report by a group of UN
experts headed by W. Leontief, was published. The authors conclude in general
that rates of economic development in the developed capitalist countries might
be lower in the 1980's than in the 1970's. "The hypothesis regarding the
gradual deceleration of economic growth in the developed countries is more
realistic than the simple extrapolation of their past development" (see "The
Future of the World Economy," Izdatel'stvo mezhdunarodnyye otnosheniya, 1979,
P 29)� "
3. Various data have appeared in our press regarding the role of individual factors
in the augmentation of labor productivity. In discussions of the effect of
technical progress on labor productivity, some authors have distinguished it .
from capital-labor dynamics.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981
8588 .
CSO: 1828/23 ~
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LABdR
~ MANPOWER MANAGEMENT IN A LARGE CITY
: Moscow VOPROSY EKONOMIKI in Russian No 10, Oct 81 pp 73-80
/Article by A. Kosayev and S. I1'in: "Problems of the Management of Manpower Re-
sources in a Large City"/
/Text/ The economy of a large city is a unified complex system, all the units of
which are closely interconnected. A small oversight in one of them can upset the
entire balance. In most instances any disproportion is explained by the imperfec-
tion of individual units and levers of the economic mechanism, particularly the
planning of the production volume of products (operations, services), the distribu-
tion of capital investments and new equipment, the use of manpower and so forth.
In the past decade the growth of the size of the population of such cities as
M~oscow, Leningrad, Kiev and sa forth to a certain extent has been regulated by the
restriction of registration.
The regulation of the size of the pop~slation by administrative methods presumes a
strict conformity of the total of.the plans of enterprises and organizations with
respect to Che number of workers with the plan which is established by the city
planning commission for each ministry, department and the enterprises and organiza-
tions subordinate to them. At the same time the regulation of the size of the
population directs the enterprise toward the fulfillment of the approved plan on
labor, sinc~ its nonfulfillment at some enterprises and organizations will adverse-
= ly affect the others. If we examine the system of planning of the distribution of
manpower resources by sectors and types of production on the macrolevel (the city
planni.ng commission), the impression is created that there exists the objective
possibility of achieving a balance between the needs of the sectors of the natj.onal
economy of the city and the available manpower resources. The city planning com-
mission can compare the need of the national economy for manpower (it is composed
on the generalized indicators of the planned need of workers, which is submitted by
all the ministries and departments, main administrations and administrations of the
Moscow City Soviet Executive Committee) with the available manpower resources of
the city.
The balance of manpower resources, including the balances of workers, specialists,
young people and so on, which are drawn up by the appropriate subdivisions of the
city planning commission~and are coordinated with the needs of the national economy
of the city, serves as a means of such a comparison. However, although the dis-
~ tribution of manpower resources depends on the distribution and structure of pro-
duction, it is nevertheless carried out under the influence of factors which stem
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fr.om the personal inotives and interests of the workers. This introduces certain
elements of spontaneity in the distribution of manpower resources and affects the
level of supply of individual enterprises with manpower. It must also be noted
that the occurring inadequate balance between the number of workrlaces and the man-
power resources of the city increases the influence of social factors on the dis-
tribution of manpower among sectors of production, since the opportunities to cho~e
a place for exerting labor increase. The presence within a large city of variou~
enterprises, which differ in the level of concentxation, the degree of provision
wieh new equipment, the nature of the technological cycle, the work schedule and so
on, is responsible for the influx of workers at enterprises with relatively better
working conditions. The fact that a some enterprises there are vacant workplaces,
which often are unnecessary and are in excess of the needs of specific production,
is also conducive to this. The keeping of above-plan manpower, which exceeds the
real need of production at some enterprises, in the case of an overall balance in
the national economy of ~workplaces and manpower resources leads to a shortage of
workers at other enterprises.l In this connection the solution of the problem of
the shortage of manpower creates the need to attract manpower resources from other
economic regions of the country, which complicates the implementation of the Master
Plan of the Development of Moscow with respect to the regulation of the growth of
the population. ~
The system of planning in the area of manpower resources should orient the develop-
ment of the economy of a large city in the case of the limitation of the increase
of employed people (first of all in the sectors of physical production) toward the
- redistribution of manpower to promising sectors which are characteristic for the
economy of the city and to services. Here the measures aimed at decreasing the
differences between enterprises in working conditions, first of all by increasing
the level of inechanization and automation of labor processes, are acquir,ing particu-
lar importance.
It should be noted that the intensification of production for the national economy
as a whole does not rule out the development of individual sectors with the enlist-
ment of additional manpower, particularly those sectors which ensure the accelera-
tion of scientific and technical progress, as well as the nonproductive sectorsr
which meet the increasing spiritual and socioeconomic needs of thE workers. In this
~onnection the demands on the mechanism of planning are increasing sharply. Such
principles of planning as the obligatoriness of the plan for the pPrformers, the
effectiveness of the plan and the comprehensiveness of its indicators and sections
are increasing; the demands on the scientific soundness of the plans and their
stability on the macro- and microlevels are also increasing.
_ Meanwhile, as statistical data show, during ttie years of the Ninth and lOth Five-
Year Plans the number of workers and employees engaged in work in the national econ-
omy of Moscow, which was established by the enterprises and organizations them-
selves, as a rule, exceeded the possibilities of enlisting manpower resources.
- Thus, in 1970 the number of workers according to the total of the plans of enter-
prises exceeded the actual number by 2.9 percent, in 1975--by 1.8 percent and in
_ 1980--by 1.6 percent. For some ministries these deviations were even larger: in
1980 at the enterprises and organizations of the USSR Ministry of the Machine Tool
and Tool Building Industry this figure was 2.1 percent, at those of the USSR Minis-
try of Tractor and Agricultural Machine Building--4.7 percent and so on.
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'ch~� c~nn1y~15 uf ~h~� ~~um~~rciw~~~:Ivc boal programs of the increase of labor efficiency,
wtilcti were drawn up by the labor collectives of Moscow for the llth Five-Year Plan,
showed that, as in the past, the tendency for the estimated number of workers and
employees to exceed the established limits of the Moscow City Planning Commission
remains. Thus, in the USSR Ministry of Power ar~d Electrification the estimated
number of industrial personnel engaged directly in production for the llth Five-
Year Plan exceeds the limit of the Moscow City Planning Commission by 4.7 percent,
in the USSR Ministry of Ferrous Metallurgy--by 5.1 percent, in the USSR Ministry of
Nonferrous Metallurgy--by 1.3 percent, in the Ministry of the Petroleum Refining
and Petrochemical Industry--by 3.9 percent. For 28 industrial ministries in 1985
alone the estimated number of workers and employees will exceed the approved limit
of the Moscow City Plannin.g Coimnission by 5 percent.
At first glance the impression is created that there exists an acute shortage of
manpower. If we proceed, for example, from the total of the plans of enterprises,
in 1980 at the enterprises of the USSR Ministry of Machine Building for Light and
Food Industry and Household Appliances che shortage of workers, which is defined as
the ratio of the actual level of supply witn respect to the number and the total of
the plans of enterprises, was 1.6 percent, the USSR Ministry of Nonferrous Metallur-
gy--1.1 percent and the USSR Ministry Qf the Electrical Equipment Industry--1.3 per-
cent. However, these data do not charact~rize the actual level of the provision of
enterprises with manpower. Suffice it to say that the production program at the
- enterprises of the indicated ministries was exceeded respectively by 0.9 percent,
2.0 percent and 8.2 percent with the actual number of workers.
It is quite difficult to establish the criterion of the soundness of plan indicators
due to the lack of the necessary statistical base. On the basis of some data it is
possible to establish that the actual deviatio:l of the indicators of the work of
Moscow enterprises from the plan indicators was the result of the inadequate sound-
ness of the calculations of the effectiveness of the measures on the increase of the
technical level of production, the improvement of management, the organization of
production and labor and others.2 .
Thus, at Bread-Baking Plant No 28 the economy of manpower, which was envisaged by
the plan of organizational and technical measures for 1980, was not provided, as a
result of which the exceeding of the plan on the output of products by 0.8 percent
was achieved by the exceeding by 0.5 percent of the planned number of industrial
personnel engaged directly in production. At the printing house of the All-Union
Chemical Society imeni D. I. Mendeleyev, on the other hand, an economy of the labor
- of workers was nut envisaged in 1980 by the plans of organizational and technical
measures; meanwhile as a result of the introduction of new equipment and the im-
provement of the scientific organization of labor more than 2 percent of the indus-
trial personnel engaged directly in production were conditionally released.
A similar situation is also observed at the Perovskiy Plant of Trade Machine Build-
ing--the plan of organizational and technical measures on the conditional release
of manpower was fulfilled by 142 percent; with an invariable number of workers the
- growth rate of labor productivity at the enterprise in 1979 was 119 percent with a
plan of 117 percent. At the combine of ring-shaped rolls in 1980 the achieved
economy of labor exceeded the economy stipulated by the plan by 80 percent.
From the cited examples it is evident that any change of the output affects the
actual ~mount of manpower: the *~onfulfillment of the planned measures on the
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increase of labor productivity leads to an increase of the number of workers and,
on the contrary, the identification and utilization of intraworks reserves of the
increase of labor productivity, which were not stipulated in the initially adopte~
plans, are responsible for the decrease of the actual number of workers and the ex-
_ ceeding of the plans of labor productivity.
L. I. Brezhnev, while emphasizing the need for the unconditional fulfillment of a:_1
the assignments stipulat2d by the plan, noted that often the indicators of econom.-~c
activity are divided into "main" and "secondary" indicators. Some managers striv2
to fulfill the plan according to the "main" indicators and devote little attention
to the ostensibly "secondary" indicators. Meanwhile the plan should be considered
fulfilled only if the assignments on all the approved indicators are fulfilled. The
managers of enterprises, unfortunately, frequently consider only the fulfillment of
the production program to be the main thing.
It is well known that the indicator of the number of workers is interconnected with
the indicators of the production volume and labor productivity. Therefore the ex-
~ ceeding of the plan on the production of the gross output without the corresponding
increase of the indicator of labor productivity or the nonfulfillment of the plan
on the increase of labor productivity leads to an increase of the actual number of
workers.
In the practice of management, changes of the plans during the year are possible,
but they should encompass all the production indicators of the enterprise. However,
as was shown by the survey conducted by the Labor Administration of the Moscow City
Soviet Executive Committee and the IEP of Moscow /Institute of Economic Problems of
the Comprehensive Development of the National Economy of Moscow/, many ministries,
when changing the assignments on the production volume (downward, but at times up-
ward), do not adjust the assignments on labor. As a result, as a rule, an increase
of the number ~f workers and a decrease of labor productivity are observed. For
- example, at the Mostrikotazhprom Production Association the plan for 1978 (which was
submitted to the ministry for approval) envisaged an increase of the volume of the
gross output by 105.3 percent with a constant number of workers, that is, the entire
increase of the production volume should have been provided by the increase of labor
productivity. Meanwhile the initially adopted plan on ~he production volume in No-
vember 1978 had already been reduced by 6 percent. But since it was impossible to
decrease accordingly the number of workers by the indicated date, this led to a de-
crease of labor productivity. The main reason is the nonfulfillment of the assign-
ments outlined by the enterprise on the increase of the technical level of produc-
tion and the improvement of the organization of labor (by 10 pPrcent) and on the in-
- crease of the output norms and norms of service (by 11.5 percen~). At Moscow Experi-
mental Plant No 2 with a constant indicator of the gross outp~st the plan on the
number of workers in October 1980 was increased by 1.7 percent; at the same time �
- the plan on labor productivi.ty was decreased by 1.8 percent. At the Mostochlegmash
Association with a constant volume of gross output the downward ad~ustment of the
- initially approved plan on the number of workers for Y980 was responsible for a de-
crease of labor productivity during the first half of the year by 1.2 percent.
Frequent adjustments of the production indicators at individual enterprises of
Moscow, which are not submitted to the city planning commission for approval, lead
to the formation of a shortage af manpower in the national economy of the city,
sincc the increase of the number of employed people occurs owing not to the "inter-
nal" reserves of labor of the given ministry, but to the manpower resources of the
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city. Therefore it seems expedient to make adjustments of the indicators which
are planned by way of directive with the approval of the city planning commission.
The analysis of the planned an~ actual number of workers shows that the existing
- disproportions in the distribution of manpower among individual enterpris~s within
the region are the consequence of the nonfulfillment of the assignments on the in-
crease of labor productivity, the inadequate substantiation of the plan assignments
- themselves, as well as the inadequate consideration of the regional peculiaritiPs
of the formation of manpower resources in the plans of the distribution of produc-
tion.
During the llth Five-Year Plan it is planned by means ~f the comprehensive use of
the system of the improvement of planning and material stimulation to ensure the
balance of manpower resources and the need for them. However, is it possible to
believe that in itself the establishment for industrial ministries, associations
and enterprises of assignments on labor and social development--the increase of
labor productivity, the limit of the number of workers and employees, the wage fund
(in the sectors f~~r which a standard of the wage per ruble of output is not ap-
proved) and the assignment on the decrease of the use of manual labor--will make it
possible to eliminate the existing shortcomings in the mechanism of the planning
and distribution of manpower resources? The experience of Moscow and Leningrad
attests that the effectiveness of the indicated measures to a decisive extent de-
~ pends on the coordinated functioning of the other elements of the economic mecha-
nism, which are aimed at the stimulation of enterprises to use manpower efficiently.
- In recent years economics scholars, who have been elaborating problems of manpower
resources, have advanced a number of proposals on the improvement of the mechanism
of the stimulation of the efficient use of manpower. Given the different approach
to the idea of establishing the appropriate economic levers, in the end one thing .
unites the authors--the need to establish for enterprises a fee for manpower re-
_ sources. In the opinion of L. Danilov and V. Korchagin, the assets for the repro-
ducti4n of manpower are not reflected completely in the costs of the enterprise,
which "understates the proportion of living labor and overstates the amounts of the
profit of the enterprise."3 In this case "the increase of the contributions of
enterprises for the formation of public consumption funds and the establishment of
a direct dependence of the amounts of these contributions on the quantity and qual-
ity of the manpower resources being used by the enterprises are one of the means
of increasing the interest of production collectives in the maximum eco~omy of
living labor."4
Some scholars propose to establish cost accounting principles in the interrela-
tions of the enterprise and the city which has objects of the social infrastruc-
ture--citywide underground mains, available housing, a power and water main system,
institutions of culture, science, health, educ~ition and so on. In their opinion,
a fee for additional resources of the city should be introduced for enterprises in
the form of "regular payments to the city budget, which are proportionate, on the
one hand, to the amount of resources being used by each enterprise and, on the
other, to the needs of tl~e city economy, the intensity of housing, municipal, ~
social and cultural construction. The latter form must also be regarded as a fee
for the resources of the city, and first of all for manpower resources."5
V. Bitunov ar~d A. Zholkov take a similar stand on this question. In their opinion,
the development of the socioecor.omic infrastructure in the city to a certain extent
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is compllc~ited by the fact that the sectorial enterprises of republic, union repub-
lIc ancl union subordinaCion are inadequately participating in the formation of the
local budget. In this connection "the principle of the free use of objects of the
social sphere by sectorial enterprises is hardly expedient. Every enterprise lo-
cated on the territory of a city," they write, "should obviously contribute the
necessary assets to the city budget for each newly created workplac e."6
For the clarification of the essence of the fee fqr manpower resourc es the contenc
of the concept "manpower resources" and its relationship with the category "man-
- power" should be examined. K. Marx indicated that "by manoower, or the capacity
- for work, we understand the set of physical and spiritual features, which the body,
the living personality of a person has and which are set into motion by him every
time he produces some use values."~ From this formulation it follows that manpower
has a specific ~ualitative content, but is void of quantitative characteristics.
The category "manpower resources," which is the amount of potential and functioning
- manpower, was put into use in the practice of planning and in economic literature
f~r establishing the quantitative characteristics of manpower.
- Consequently, those who propose to establish a fee for manpower resources, appar-
ently, have in mind the people employed in the national economy, that is, th? man-
- power included in the process of national labor (otherwise it would make no sense
to "pay" for manpower resources which are not yet employed in socia 1 production,
_ and especially for workplaces which, let us say, are vacant). In the case of such
- an ;~pproach to the problem in question the raising of a numbeX of questions is quite
legitimate: Who should pay whom for the manpower being used, what should the
amounts of the fee be and so on?
The thorough examination of the raised questions makes it possible to detect some
contradiction when defining the concept "fee for manpower resources " or, more pre-
cisely, for "manpower." If we proceed on the assumption that labor is the only
form of the manifestation of manpower, the revelation of the essenc e of the "fee
for manpower" can be achieved by the study of the relations which arise between the
worker and the enterprise, the worker and society in connection wit h and with re-
gard to his involvement in the production process.
. The relations which arise between the enterprise and society, the enterprise and the
- individual worker, are not property relations--they are relations with regar~ to the
involvement of the worker in the process of production and the use of his manpower
in the interests of both the worker himself and society. In accept ing the assump-
tion about the need to establish a fee for manpower, we thereby rec ognize that man-
power is:m object of property relations.
fiowever, under the conditions of socialism, as I. A. Yagodkina correctly notes in
this regard, "while entering the social process of production as co -owner of the
means of production, the bearer of manpower does not transfer it to the ownership
- of all of society, to public property and does :~ot transform it int o an object of
public ownership, since the conditions for such a transformation d~ not exist."8
It is obvious that the proposal on establishing "a fee for manpower resources"
(workplaces) is scientifically not sound. The proposal on the coo r dination of the
assets,�which are paid into the state budget for the development of the sociocul-
tural. infrastructure, with the number of those employed at the enterprises, as wall
as on the coordination of these payments with the assets "which ens ure the training
of manpower resources"9 is not sufficiently well reasoned. In connection with such
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a suggestjun of the "solution" of the problem a number of other questions arise. In
particular, it is not clear how to differentiate the fee with allowance made for the
skill characteristics of manpower, the territorial migration of manpower resou .:es
and so on. For example, in Leningrad on the average during the years of the Ninth
Five-Year Plan the migratory increase of the population in the total increase raas
- 74.2 percent (moreover, 85 percent of them are people of able-bodied age).10
_ cording to the estimates of the IEP of Moscow, during 1970-1980 the increase of the
- manpower resources in the city occurred primarily due to the migratory increase of
- the population (more than 80 percent are people of able-bodied age).
~ It is important here to note that far from all workers received vocational training
ar the expense of the budget of the above-indicated cities. The conducted sample
survey of the qualitative composition of the manpower being attracted to the enfer-
- prises and construction organizations of Moscow from other cities and regions showed
that during the period from 1976 to 1980 about 60 percent of them previously had
vocational training, while at the enterprises of the Main Administration of Motor
Vehicle Transport of the Moscow City Soviet Executive Committee more than 90 per-
cent of the workers from other cities received vocational training in the regions
they left. Consequently, the raising of the question of connecting the assets,
which are allocated for the training of workers, with the budget of the city is il-
legitimate.
Even if we presume the possibility of establishing a fee for manpower, the role of
this indicator in limiting the gro~ath of the number at the enterprise will be neg-
ligible. Suffice it to trace the changes which are occurring in the structure of
employment in the sectors of the natlonal economy of Moscow. During 1965-1980 the
number of those employed in the sectors of the nonproductive sphere increased ab-
solutely and relatively: from 39.1 percent in 1965 to 41.2 percent in 1980, while
in the sectors of physical production it decreased accordingly. During the period
~ being analyzed the proportion of those employed in science and scientific service
incre~sed by 2.4 points, accordingly in public health, physical cultural and social
security--by 0.9 point and in public education--0.5 point. It can be assumed that
ttie tendency for their leading growth will also be observed in the future. It
~ should be added to what has been said that the development of the sectors of the
nonproductive sphere is being carried out at the expense of the state budget, while
within the city it is being carried out at the expense of the city budget, and
- therefore the establishment for institutions of a"fee for manpower resourcesy" in
essence, will not influence the increase of the efficiency of their use.
- The eYisting experience of introducing a fee for manpower in a number of CEMA coun-
tries also attests that the mechanism of levying it does not have a significant in-
fluence on the release of surplus manpower and the increase of labor productivity,
since the inclusion of these payments in the production costs acts as a price-
forming factor.
- The analysis of the sectorial structure of industry and the trends of its develop-
ment revealed an increase of the proportion of machine building; at the same time
instrument making, the electrical equipment and machine tool building industries
are developing most rapidly. The increase of the proportion of machine building is
~ ~ responsible for the relative increase of the need for manpower, since the labor-
- output ratio here is nearly twice as high as on the average for industry.li It is
necessary to note that electrical engineering, instrument making and the machine
tool industry are the characteristic sectors for the city. The specific needs for
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resources at them:ire cluse to the average needs for industry, and a highly skilled
regular labor force is used at these enterprises, while the development of these
sectors to a considerable extent meets the needs of production for many types of
equipment for the country and the city.
Thus, the establishment of the so-called fee for manpower at the enterprises here
will not provide the necessary impact. The question arises: The use of what eco-
, nomic levers and stimuli is most expedient for the increase of the efficiency of
_ the use of manpower and the increase of the interest of enterprises in the fulfill-
ment of the production program on an intensive basis?
The decree of the CPSU Central Committee and the USSR Council of Ministers on the
- improvement of the economic mechanism starting with the llth Five-Year Plan envis-
ages a statute, in accordance with which the executives of ministries, departments
and other organs of administration, who adjust the plans downward as against the
actually achieved level of its fulfillment, are held disciplinarily and materially
accountable, while the managerial personnel of associatians, enterprises and organ-
i~ations are deprived of not less than 50 percent of the bonuses. In our opinion,
the mechanism of the influence of economic levers, which promote the limitation of
the increase of the number of those employed in the sectors of the urban development
sphere and stimulaCe a more efficient use of manpower in the sectors of the national
economy of Mnscow, should be strengthened. This could be pronioted by: the with-
drawal by USSR Gosbank from enterprises and organizations of the assets for the in-
crease of the wage fund, which resulted from the excEeding of the established plans
due to an above-plan numY,er;~2 the irrecoverable contribution to the state budget
of the profit received due to the above-plan number of workers; the increase of the
amount of the contributions from the assets of enterprises to the state budget for
social insurance, since they affect the production cost of the output of the enter-
prise (an increase of the number of workers would lead to the corresponding decrease
of the profit and, consequently, of the amount of incentive funds).
Having analyzed the problem of the shortage of workers at enterprises of industry,
it is possible to be convinced that it stemmed for the most part from subjective
~ factors: the lack of stability in the annual plans approved for production associa-
tions and enterprises and of the frequent ad~ustments of the plan of labor produc-
tivity downward as against the actually achieved level of its fulfillment. At the
2bth CPSU Congress L. I. Brezhnev noted that "the plan is a law, since only its ob-
servance ensures the coordinated functioning of the national economy. We will say
frankly: this obvious truism has begun to be forgotten. The practice of adjusting
plans in *he direction o� their decrease has acquired an extensive scale.... Obvi-
ously, tiie time has come to tighten up the demands on both planning discipline and
ttie quality of the plans themselves. The plan, to be sure, should be practicable,
balanced. But it should also be fulfilled just as surely."
_ The conducted research shows that the shortage of manpower is being observed first
oE all at enterprises with difficult working conditions, where the proportion of
manual jobs is high. In order to use efficiently the manpower resources which a
region has, partictilar attention must be devoted to the mechanization and automa-
tion of labor-consuming processes and to the increase of the attractiveness of
labor, wl~icli will be conducive to the uniform distribution of workers among the
sectors and sph?res of productioi'i.
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- 'Cl~e c.~r~~ful conslcleraLlon ot the territorial peculiarities of settl~ment is neces-
sary when drawing up the plan of the development of each sector of a large city.
The comprehensive approach to the problem of the distribution of productive farces
will ensure the balance of the plan within the sector and its coordination with the
development of the entire national economy of the city.
FOOTNOTES
- 1. As thz results of the survey of the use of workers from other cities, which was
_ conducted by the Institute of Economic Problems of the Comprehensive Development
of the National Economy of Moscow jointly with the Labor Administration of the
Moscow City So~tet Executive Committee, showed, annually 1.1 percent of those
employed in industry transfer to the sectors of the nonproductive sphere.
Here the proportion of Muscovites is decreasing most rapidly at enterprises
with working conditions which are difficult and harmful to the health, which is
responsible for the need to enlist workers from other cities. For example,
the difficulties in attracting Muscoyites to the First State Bearing Plant had
the result that the proportion of workers from other cities in the annual hiring
during 1976-19E0 amounted to 40.6 percent. For some occupations tl~e hiring of
workers from other cities is the main source of the recruiting of manpower.
2. Here and below the data of the survey, which was conducted in 1979-1980 by th~
~ Labor Administration of the Moscow City Soviet Executive Committee jointly with
tt~e Institute of Economic Prob]_ems of the Comprehen5ive Development of the Na-
tional Economy of Moscow at a number of Moscow industrial enterprises, are used~
3. L. Danilov, V. Korchagin, "The Improvement of the Management of Manpower Re-
sources" (PLANOVO~fE KHOZYAYSTVO, No 11, 1976, p 29).
4. Ibid., P 29.
S. B. Khorev, R. Musiyevskiy, "The Development of Large Cities, the i3se of Manpower
Resosrces and Comprehensive Socioeconomic Planning" "Krupneyshiye goroda--ikh
nastoyashcheye i budushcheye" /The Largest Cities--Their Present and Future/,
Izdatel'stvo "Statistika", 1979, pp 37-38).
6. See V. Bitunov, A. Zhoklov, "The Planning of the Comprehensive Development of
the Soviet Capital" (EKONOMICHESKIYE NAUKI, No 8, 1979, p 48).
7. K. Marx and F. Engels, "Soch." /Works/, Vol 23, p 178.
8. I. A. Yagodkina, "Vosproizvodstvo rabochey sily pri sotsializme" /The Reproduc-
tion of Manpower Under Socialism/, Izdatel'stvo "Mysl 1979, pp 25-26.
9. See "Krupneyshiye goroda--ikh nastoyashcheye i budushcheye," p 39.
10. See A. P. Solov'y~v, G. M. Romanenkova, "Ekonomicheskaya i sotsial'naya effek-
tivnost' trudovykh resursov" /The Economic and Social Efficiency of Manpower
Resources/, Leningrad, 1979, pp 66, 69.
27 .
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11. See VOPROSY EKONOMIKI, No 6, 1981, p 28.
12. See "Trudovyye resursy SSSR" /USSR Manpower Resources/, Izdatel'stvo "Ekono-
mika", 1979, p 152. '
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981
7807
CSO: 1828/19
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LABOR
DIVISION OF LABOR BETWEEN URBAN AND RURAL AREAS
Mascow VOPROSY EKONOMIKI in Russian No 8, Aug 81 pp 55-63
[Article by T. Kuznetsova: "Social Division of L~abor Between Urban and Rural Areas"]
[Text] One form of social division of labor is that between urban and rural areas.
In the structure of the social division of labor, this form is viewed as a branch
- division of labor between industry and agriculture. It evolved historicaily that
urban development was associated with the development of various branches of indus-
try, but agriculture was the doininant branc: of the production sphere ia rural areas.
According to 1926 census data, 93.6 percenfi of all workers living in rural areas were
employed in agricultural production. That proportion subsequently decreased, to 70
percent in 1965, b3 percent in 1975 and about 60 percent in 1978.
Nonagricultural branches came to be developed intensively in rural areas with the
growth in agricultural production mechanization and freeing of workers emploqed in
it for other work, with th~ increase in the number of.branches associated with ser-
_ vicing agriculture and processing its output, wifih development of the road-transport
network, and with the increase in incomes of the rural population and improvement in
their living conditions. As the agricultural production industrial{zation begut. in
the mid-1960's intensified, along with agriculCure, branches of the production and
nonproduction sphere began to be developed, primarily in the form of subsidiary kol-
khoz and sovkhoz enterprises and businesses.
The development of branches of the production sph~re connected with agriculture on a
national economic scale led to a gradual reduction in their proportion on kolkhoaes
and sovkhozes. Thus, by 1970, the proporfiion of workers employed at enterprises of
this sphere on kolkhozes and sovkhozes was 22 percent of the total number of workers
in material production living in rural areas. By 1975, that proportion had decreased
to 20.9 percent, and by 1978 to 18 percent. The nonprQduction sphere is basically
represented in rural areas by inst~.tutions of agricultur~l enterprises.
The proportion of the populat~on etnployed in nonagricultural types of activity is
adopted as the criterion determining the urban settlements ~n an administrative re-
gard. The administrative division reflects the existing d3.vision of labor between
urban and rural areas and strengtheas the idea that this division is a division of
labor between ~tndustry and agri~ulCure. ~
As soon as a rural settlement receives mult3branch developmen~, it becomes an urban
settlemenC. The process whereby a rural area is trans�ormed into an urban territory
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is continuous. It was most intensive during the 1926-1970 period. Now, about 200
thousand rural residents annually become urbanites as a result of the administra-
tive transformation of rural settlements into urban ones.
As new territories are utilized, the level of productive forces rises, the distribu-
tion of various branches is perfected, individual regions are comprehensively de-~
veloped and socioeconomic processes occurring in agricultural production and indus-
try, in branches of the infrastructure and nonproduction sphere, in rural settlements
and cities, develop, that is, as the processes of production and labor collectiviza-
tion intensify, both the content of the concept of division of labor between rural
and urban areas as a division of labor between industry and agriculture and the con-
cept itself of a division of labor between urban and rural areas gradually change.
The most important process determining moderning agricultural production is its in-
dustrialization, the changing character of this production and the structure of la-
bor in it. Agrarian labor is gradually being transformed intfl a variety of indus-
trial labor. The social conditions of labor in agriculture are changing under th~a
impact of these factors and production conditions in the state and cooperative-
kolkhoz sectors are being equalized.
Table 1. Dynamics of the Basic Indicators Describing Agricultural Social Production
Conditions (1965 = 100 percent)
1970 1975 1979
number of agricultural workers 93 92 90
- number of machine operators 113 132 144
availability of capital per agricultural worker 159 247 346
on kolkhozes 176 305 433
on sovkhozes 156 246 310 .
availability of energy per agricultural worker 145 218 297
on kolkhozes 153 228 323
on sovkhozes 131 184 249
availability of el.ectricity per agricultural worker 212 449 661
wages:
on kolkhozes 146 169 200
on sovkhozes 13$ 172 198
labor productivity in agriculture 137 146 169
The industrialization of agriculture creates conditions for raising the level of
collectivization of a~ricultural production and overcoming elements of its clo~ed-
branch nature, which have over a long period of time determined the technical and
social features of agriculture. Tndustrialization leads ro expansion of the scope
~ of a~ricultural production through the use of output of nonagricultural branches in
the agrarian sector. The interbrancb, ties of agriculture grow, praduction relations
within it broaden, the proportion of expenditures of live labor decreases and the
proportion of expenditures of embodied ?abor grows, prod+uction marketability is in-
creased, and so forth (see Tab1e 2, following page). This facilitates the develop-
ment of agricultural production specialization and concentration on a base of inter-
farm cooperation and agroindustrial integration. This process changes the structur~
of the soci~l and organizational forms of production characteristic of rural areas.
The process of transforming kolkhozes and sovkhozes into enterprises whose character
is industrial is.accelerated. Tt becomes increasingly difficul~ to delineate the
- social forms previously characteristic of rural areas in t'heir pure form.
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Table 2. Dynamics of Individual Indicators of a Number of Branches of Industry Asso-
ciated with Producing Agricultural Output (in percent of 1970)
1975 1979
total food industry volume 129 139
including:
sugar 107 111
fruit and vegetables 138 153
meat 141 146
dairy, butter- and cheese-making 129 141
fixed production assets of food industry 143 177
production of mineral fertilizers 150 170
production of microbiological feed protein 258 330
mixed feed production 176 254
production of agricultural machinery 177 221
In the process of industrializing agriculture, there is a branch division of labor
in it and the simultaneous delineation of a number of branches of its production ser-
vir_ing, processing agricultural output, and so on. T'hese branches are formed in pro-
~ duction with a higher material-technical level than subsidiary shops and entergrises
of kolkhozes and sovkhozes. For example, from 1970 through 1979, the number of in-
terfarm mixed feed enterprises increased 6.7-fold, the number of enterprises to pro-
cess agricultural output more than 2.6-fold, and the number of artificial insemi-
nation stations for agricultural livestock G.4-fold.
At the present stage, production facilities are being formed whose activity has un-
til recently been considered purely agricultural. They include, for example, feed
production. In 1978, some 86 percent of the mixed feed consumed on kolkhozes and
sovkhozes was purchased and was basically produced at enterprises of the mixed feed
industry. Branches of agricultural chemistry, microbiology and others (see Table 2)
are being developed as independent branches. Industrial processing is inereasing,
including the primary processing of agricultural products. Within the agricultural
framework, the branch division of labor and the derivation of a number of industrial
branches from it presuppose the creation of more developed, intensive forms of col- .
lectivization of agricultural and industrial branches and enterprises.
Growth in the technical level of agricultural production and, on the one hand, change
in its structure and, on the other, the developman~ of branches servicing agriculture
and processing its output create the conditions an+ prerequisites necessary for mak-
ing the combining of agricultural branches and enterprises in various zones of the
country, for zonal specialization and for improving the d3stribution of production
and processing of agricultural output within a regional iramework on the basis of a
comprehensive approach to the development of agriculture an~i associated branches
more efficient. 'Lonal concentration and specialization permi~ a closer linking of
_ the production and pr~cessing of agricultural output and change ~n the nature of the
distribution of enterprises on the basis of the production servicin~ of agriculture,
storing and processing its output, through their gradual concentration ~n rural areas.
Su..h enterprises must be formed on a base of their cooperation with agricult!iral en-
terprises or on the basis of d~eveloping interfarm cooperation among kolkh.oz~s attd
sovkhozes for storing and processing agricultural output, which creates prerequisites
for concentrating the praduction and processing of the basic types of agricultural
output in specialized zones.
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The advances occurring in agricultural production and in branches of industry asso-
ciated with it lead to qualitative changes in the social division of labor, to the
formation of a new type of social division and consolidation of labar, to agroindus-
trial integration. These changes, in turn, transform the social division of labor
between urban and rural areas. On the one hand, agricultural production goes consi-
derably beyond the framework of agricultural enterprises ~ind rural areas, and on t.ie
other, conditions are created for developing industrial bxanches, and foremost those.
associated with servicing agriculture. This is borne out by changes in the distribu-
tion of workers by sphere of labor application (using a consolidated classification)
- in USSR urban and rural areas from 1965 through 1978, as well as in the dynamics of
the countryside's prop~rtion of the total number of workers employed in the national
economy (see Table 3, following page).
At present, the proportion of workers employed in agriculture among all workers is
decreasing. This is associated with the transfer of rural settlements to urban ones,
with the migration of the rural population to the cities, where the sphere of appli-
cation of labur is considerably broader, and with the pendulum migration with a pri-
mary "village-to-city" direction. Development of spheres of labor application in
rural areas must create conditions to compensate for the reduction in the number of
workers employed in agriculture. There is already an increment in the absolute num-
ber of workers in a number of nonagricultural branches in rural areas. Thus, from
1965 through 1978, the number of workers living in rural areas employed outside ag-
ricult~lral production has increased by 18 percent, and the proportion of these work-
ers gre~~ from 30 to 38 percent of the total number of rural workers. For example,
the proportion of nonagricultural workers in rural areas increased 1.5-fold in the
Georgian SSR, 1.9-fold in the Uzbek SSR and 2.1-fold in the Moldavian SSR.
Rural socioeconomic development programs must anticipate a complex of ineasures which
take into account its current features. This concerns first of a11 the choice of
types of housing, organizing public services for the population and the road-trans-
port network, which creates conditions for securing both agricultural and other work-
ers in rural areas.
On a national economic scale, the specific economic form in which the process of
agroindustrial integration is actualized is the national economic agroindustrial
complex. Its interaction with other national economic complexes leads to change in
tk~e structure of the social div3sion of labor between urban and rural areas. This
also results from specializing branches of industry now associated witli the agroin-
- dustrial ~omplex, automating production and perfecting production organization,
- which alter the forms of production concentration by including territorially sepa-
rated production subdivisions in a unified production-rechnological process. This
permits a more efficient combinat3.on and unification of large production facilities,
associations and enterprises with auxiliary production subdivisions, shops and sub-
sidiary enterprises, including territorially isolated ones. Tn so doing, conditions
are created for the fuller use of labor and material resources, foremost those it is
impossible or inexpedient to concentrate in large production units. The siting of a
number of industrial enterprises not connected witlt agriculturai production (enter-
prises of 1oca1 industry, light industry, packaging, and so forth) in rural areas
should be anticipated first of a11 in regians with a labor surplus, in which all
the able-bodied population cannot be employed in agriculture.
The volume of agricultural production determines the neceasary scope of development
of servicing and processing branches for agriculture, including those in rural areas.
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The relatively limited scope of agricuicural production leads to a situation in which
the resources potential of rural areas in certain regions cannot be used just within
an agricultural framework. Therefore, the siting of enterprises not associated with
agriculture in rural areas, small cities and urban-type settlements becomes increas-
ingly urgent.
' The development of nonagricultural branches in rural areas, along with industriali_~-
ing agricultural production, facilitates the resolution of a number of socioeconomic
tasks of rural areas. First, the limited sphere of application of labor is overcome
and the rural production structure draws closer to that of urban areas. This is im-
portant, since one of the basic reasons for the outflow of population from rural
areas to the large cities is the difficulty of ineeting the demand for labor. Given
partial mechanization of production, each of the agricultural branches creates a de-
mand basically for stockraising workers, generally employed at manual labor, for
seasonal manual labor in plant growing, for machine operators and specialists. Gi-
ven incomplete industrialization of agriculture, the demand for manual laborers de-
creases slowly, leading to the necessity of using a large number of people employed
at manual labor in agricultural production. At the same time, as the level of edu-
cation rises and the demands of the rural populatior. grow, it is increasingly less-
satisfied by those types of labor offered by modern agricultural production.
SPcond, the comprehensive development of the production sphere in rural areas creates
- conditions for securing a permanent staff of workers in rural areas, foremost thrAUgh
the industrialization of agricultural production, as a measure of whose tmplementa-
tion the need to enlist temporary workers in seasonal jobs must decrease. It is ap-
propriate to enlist in seasonal agricultural work foremost workers at nonagricultural
enterprises situated in rural areas. Production at nonagricultural enterprises should
be planned and run with consideration of diverting their workers into agriculture.
The use of kolkhoz and sovkY~oz workers not employed the year around could be insti-
tuted at these same enterprises. The Estonian SSR already has experience in organiz-
ing this kind of enterprise in rural areas.
Third, the siting of nonagricultural production facilities, enterprises and organiza-
tions in rural areas permits the enlistmen:: of material and financial resources above
those allocated to agriculture. In so doing, the opportunity opens up for r~solving
the task of redistributing additional resources in favor of rural areas. Rural areas
are being developed primarily through the activity, means and resources of agricul-
tural enterprises, as distinct from the cities, for whose development special invest-
ments and resources are used. Solving the socioeconomic problems of rural areas
therefore depends on the economic status of the kolkhozes and sovkhozes.
The July (1978) and November (1979) CPSU Central Committee Plenums emphasized the
importance of improving "the whole matter of organizing production, housing, cultural
and personal-services construction" in rural areas, expanding the construction of
roads and the development of transport, improving services to the population, and
increasing funds to rural areas for these purposes. We now need to shift to increas-
- ing capacities for the initial processing of agricultural output, to expanding the
construction of warehouses and storage facilities on kolkhozes and sovkhozes. In
this connection, forming agricultural enterprises and.the enterpr~:ses and organiza-
tions of the procurement system, consumers' cooperatives and food industry into co-
operatives for the purpose of combining material and financial resources to increase
the base for storing and pracessing agricultural output in rural areas, including
right on the kolkhozes and sovkhozes, becomes expedient. At the same time, better
3
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use should be made of opportunities for expanding the production of everqday items
made from local raw material in rural areas.
Implementation of the CPSU Central Committee and USSR Council of Ministers decree
" "On Furrher Developing Factory Production of Wood Pane1 Houses and Sets of Wood Com-
ponents for Houses Using Local Materials for Rural Housing Construction" is of im-
portant significance for developing the rural production sphere. This decree is im-
portant both from the viewpoint of rural social development improving housing con-
_ ditions for the rural population, public amenities for rural population centers and,
in so doing, drawing urban and rural living conditions closer to one another and
from the viewpoint of broadening and perfecting the spheres of application of labor
for the rural population. The decree states that one of our pressing tasks is "the
development in every way possible of the production base of industrial housing con-
struction in rural areas through the construction of new and expansion of existing
enterprises producing modern wood panel houses, as well as sets of parts for houses
with walls made of local building materials.... It is anticipated that house-build-
ing combines will be situated in maximum proximity to raw-material resources and
housing construction regions." This signifies that collectivization processes will
be intensified in rural areas, not only directly in production, but also in the
sphere of services to the population and organizing everyday life. The more so,
since the development of construction is unavoidably accompanied by expansion of
the road-transport infrastructure and sociocultural branches.
f
Development of the infrastructure creates conditions for r~ising the level of col-
lectivization of agricultural production, overcoming the relative socioeconomic iso-
lation of rural enterprises, and also expanding integration ties between urban and
rural areas in various areas of activity. At the same time, the infrastructure
emerges as an element of the comprehensive development of the spheres of labor ap-
plication in rural ar~as and facilitates overcoming the territurial isolation of
rural areas.
The low level of development of local and, especially, intrafarm roads is.a primary
brake on solving problems of preventing losses of agricultural output, developing
nonagricultural production in rural areas and ~nsuring that the rural population has
- access to the sociocultural centers of the cities. The rapid d~velopment of branches
of the nonproduction sphere in rural areas reflects the objective process of the so-
cial division of labor between urban and rural areas. ~Jith a view towards radically
trar~sforming branches of social services in rural areas, we need some redistribution
of centraliz~d financial and material resources of specialized enterprises of those
branches in �avor of rural areas. This can be done, we think, through direct in-
vestments in enterprises serving the rural populatipn and by developing integration
ties beCween urban and rural areas. T~~e presenC 1eve1 of concentration and special-
ization of social services branches permits (given a developed road-transport infra--
structure) siting base soc3ocultural, txade and personal-services enfierprises not
only in th~ cities, but also in rural settlements.
The developmenC oP local initiative in the sphere of sociocultural, trade and per-
sonal services to the rttral popu],ation is an important direct~.on in this area. In
- particular, it is possible to single out certain types of services within the frame-
work of individual �arms fa~c the purpose of impxov3ng the quality of services to the
- rural popula~ion and concentrating resources. Tn this instance, extensive use can be
made of combi,ning interfarm means and ef~orts to strengthen tfie material-technical
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, base of service enterprises, attract skilled personnel to them, find organizational
and economic forms and types of services (meeting local conditions). This line can
be actualized by increasing the role of local soviet and economic agencies. L. I.
Brezhnev stressed at the October (1980) CPSU Central Commi.ttee Plenum: "Much concern
for increasing the production of goods and services for the population must b~ di.s-
_ played by local party, soviet and economic agencies."
Improving the social division of labor influences the development and use of urban
territories. First, taking a number of production facilities and enterprises out of
the cities and siting them in rural areas enables us to resolve difficulties observed
in cities in a number of branches in connected with limited site si2e, lack of manpo-
wer reserves, and so on. About 60 percent of the proposals reviewed and adopted by
the Interdepartmental Commission on Siting Industrial Enterprises (RSFSR Gosplan) in
1975-1977 applied to siting enterprises in small and medium-sized cities, urban-type
settlements and rural population centers. The share of larger, major cities in sit-
ing new construction projects has been systematically reduced. Whereas it comprised
34.5 percent in 1975, it was 25 percent in 1976 and 22 percent in 1977.2
Second, opportunities are expanded for developing subsidiary farms at industrial en-
terprises in rural areas. The operation of such farms permits better satisfaction of
_ the demands of workers at these enterprises for certain foodstuffs.
Third, growth in worker well-being and increasing enterprise opportunities for organ-
izing the recreation of their own workers pose increasingly urgently the problem of
using the recreational functions of rural areas, foremost by expanding in them the
construction of recreation centers, dispensaries, tourist complexes and increasing
the number of dacha and orchard cooperatives for workers at urban enterprises.
Thus, developing integration pro~esses between industry and agriculture, between ur-
ban and rural areas, facilitates improving the production and nonproduction structures
of both urban and rural areas, equalizing social working conc~itions in various branches
and enterprises, weakening the socioeconomic specifics of spheres of labor application
in rural areas and establishing regions as socioeconomic units of the "city-village"
system. Within such regions, the role, functions, place and socioeconomic status of
each settlement, both urban and rural, is determined more precisely. Administrative
transformations, including change in the status of rural settlements (granting them
urban-type settlement status) are made based on better-substantiated criteria. Each
type of settlement, with its inherent advantages, finds its own forms of development
in the integrated "city-village" system. All these processes lead to improvement in
the social division of labor at a qualitatively new level facilitating better use of
the resources, opportunities and features of urban and rural areas, overcoming differ-
entiation in the socioeconomic development of enterFrises, farms, branches, settle-
ments and territories, both in individual regions and between regions. On the whole,
the development of these lines will, as was pointed out at the 26fih CPSU Congress, be
effected wirh a view towards "using the country's production potential more intelli-
gently and saving all types of resources in every way possible."
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981
11052
CSO: 1828/9
- 1See: PLANOVOYE KHOZYAYSTVO, Nu 2, 1979, p 60.
END
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