JPRS ID: 10235 USSR REPORT INTERNATIONAL ECONOMIC RELATIONS

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• Collection: JPRS
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• Sequence Number: 4
• Content Type: REPORTS

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JPRS L/ 10235
- 4 January 1982
- USSR Re ort
p
INTERNATIONAl. ECO~OMIC RELATIONS
CFOUO 1 /82)
' FBIS FOREIGN BROAD~:AST INFOROVIATION SERVICE
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JPR~ L/1A235
4 January 1982
- USSR REPORT
INTERNATIONAL ECONOMIC RELATIONS
(FOUO 1/82)
CONTENTS .
USSR-CEMA TRADE
Coordina+ing National Economic P]ans of CEMA Member-States for 1981
1985
(I. Portyannikov, N. Rakhutin; VOPROSY EKONOMIi{I, Sep 81)... 1
- TRADE WITH LDC'S
Book on South Yeman's Social, Economic Development
(V. N. Burmistrov; NARODNAYA DII~IOKFATISHESKAYA
RESPUBLIKA YE.`RENA: EKONOMIKA I TORGOVO-EKONOMICHESIffYE
OTNOSHENIYA, 1;~81) 15
- a- LIII - USSR - 38a FOUO]
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USSR-CEMA TRAD~
COORDINATING NATIONAL ECONOMIC PLANS OF CEMA MEMBER-STATES FOR 1981-1985
Moscow 'VOPROSY EKONOMIKI in Russian No 9, Sep 81 pp 107-116
[Artir.le by I. Portyannikov and N. Rakhutin]
' [Tex~] At the latest session, the 35th Session, of the Cou.ncil for Mutu~l .
Economic Assistance [CEMA], which was held in July 1981, there was a summation of
the results of coordinating the national economic plans of the CF.NIA member-states
f o~ 1981-1985. The Politburo of the CPSU Central Committee and the USSR Council of
Mi.nisters, afte~ considering the report of the delegation of the Soviet Union,
_ h~aded by Chairman of the USSR CAUncil of Ministers N. A. Tikhonov, noted that
"the completed coordination of the national economic plans and the session-ar;~-oved
coordinated plan f or multilateral integrational measures in 1981-1985, create a
solid basis for the successive development of the e~anomy af the fraternal cou-~tries
and the successful resolution by them of the increased social and economic tasks."
The current five-year period is the sixth f ive-year period for coordinating the plans
~ of the CIIrIA member-states. After arising, during the first years of the activity
of CEMA, as a method of coordinating individual problems in economic and scientific-
technical cooperation, the coordination of the five-year plans has currently been
converted into the leading form of ~oint planning activity, a harmonious interna-
tional system of coord:.nating the foreign-economic conditions for developing and
executing the f ive-year plans for the social and Pconomic development of the
fraternal countries under conditions of socialist economic integration.
"The main result of the coordination," N. A. Tikhonov remarked in his statement
at the 35th CEMA Session, "as we see it, lies in the fact that for ~he next five
years, and in individual areas for an even longer-range period of time, there
has been f ound, for the most part, the resolution of ques*.ions that are linked with
providing the countries with fuel, energy, raw and other materials, maahinery and
equipment, and other commodities."
The community of CEMA member -states has succeeded in doing this despite the fact
that the economic development during recent years has been proceeding under con-
ditions that are more camplicated than those of previous periods. In a number of
countri.?s there Ras been a reduction in the labor-resources growth rate. There
has been an increase in the expenditures, especially capital expenditures, f or the
extraction and transporting of fuel and raw materials, inasmuch as their extraction
in the USSR the basic supplier of these commodities in the socialist market
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hAVe hc~en constantly shifting to reg~ons that are xemote from placPS o~ consumption
and that are relatively unass3.~:tlated, and the deposits of mineral. resources
possessing increasingly inferior geological-mining ~onditions are being involved
in operation. For example, during the past f ive-year period the expenditures for
the extraction of one ton of crude oi1 in the USSR more than doubled a~ compared
_ with the period until 1972, and during the current f ive-year period those expen-
- ditures will increase even more. The specific capital investments for extract{on
of iron ore during the past 15 years at least tripled. In the Czechoslovakian
Socialist Republic the further increase in the production of coal involved the
- changeover to worsened conditions and, in many instances, the need to use deposits
of coal with reduced calorie output. The capital investments that were linked
directly with this alone constituted during the past five-year period approximately
one-third of the total capital investments in industry.
A definite effect is exerted upon the economic development of the CEMA countries
by the r ise in prices and the inflation on the world market, and by the worldwide
currency-finance and energy crises. The rise in prices of raw materials has
led to an increase tn prices of output of the processing industry. In certain
o~ Che CEME1 member-countries this has caused shortages ~in the commercial and
payments balance sheets.
A number of factors that complicate the economic development of the socialist
countries do not have anything in~~common with the diseases that affect the capi-
talist economy with its crisis-type instability, chronic unemployment, under-
_ loading of the production apparatus, disruption of the currency-f inance mechanism,
etc. At the same time, the socialist community has also been confronted ~y tasks
of locating new capabilities for the development of dS�namic and mutually ad~~anta~
geous cooperation within the framework of the CEMA, primarily by means of the
closer coordination of the national economic plans on a multilateral and bilateral
- basis, and also the carrying out oP a number o� other measures involv ing mutual
economir_ cooperatian.
In the Communique Concerning the 35th Session of the CEMA, it is stated that the
CEMA member-countries, using the advantages of the socialist system, on the basis
of their own efforts, and relying upon mutual cooperation, have moved considerably
attead in economic development. have increased their economic and scientif ic-
technical patential, and guaranteed a rise in the material and cultural standard
of living of their peoples, while preserving for themselves the status as the most
dynamic ecoriomic force in the world. That ls convincingly attested to by the fact
- that the volume of national ~ncome in 1980 as a whole ior the CEMA member-countries
increased by 66 percent as compared with 1970, and the volume of gross industrial
output, by 84 percent, During the past ten~year period there was a rise in the
average annual level of agricultural production; during the past f ive-year Plan
it was 25 percent higher than in 1966-1970. With regard to the growtl: ra*_es for �
- national income and industrial output, during the past decade t[:e CEMA countries
surpassed by almost twice the developed capitalist countries.
- Technical-production coopexation among the CEMA countries is being carri.ed out
successfully. This manifests itself particularly in the planned development and
deepening of the specialization and cooperation of production. Solely on the
basis of the concluded agreements, the reciprocal shipments of specialized
- output from the CIIyiA countries increased from 330 million rubles in 1970 to 25
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billion rubles in 1980. The expoxt of spec9.a~.i.zed output of machine~building
has been growing at a rate that is approximately twice as fast as the overall
export of machinery and equipment.
The recipr.ocal foreign-trade turnover among the CEMA countries increased during the
past ten years by a factor of 3.3 and at the present time exceeds 120 billion
- rubles. The reciprocal shipments provide for the overwhe~ming part of the import
needs of most of ~he CII~IA member-countries for machinery and equipment, petroleum,
iron ore, and consumer goods. Last yzar the reciFrocal shipments among the CEMA
member-countries for those commodities accounted for approximately two-thirds of
their total import.
By developing camplete economic and scientif ic-technical cooperation and deepening
the socialist economic integration and the coordination of plans, the CEMA countries
create favorable but, most importantly, stable prerequisites for their
steady, successive development and thus suhstantfally lessen the unfavorable effect
that the worldwide capitalist market is exerting upon their economy.
- During the current f ive--year period it is pl.anned to deepen further the comple.te
economic ties among the CII~IA member-countries. The congresses of the communist and
workers' parties of the countries in the socialist community, which congresses
were held in 1979-1981, by planning for the forthcoming years a new growth strategy
that is aimed at increasing the f inal output without any substantial increase in
the labor and material resources, demonstrated the unanimous striving to overcome
the factors linked wlth the compl~.cation of the foreign and domestic conditions of
economic devetopment. That played an important role in working out the scientifi-
~ cally substantiated basic d:tze~tibns for the social and economic development of
the CEMA member-countries for the fi.ve-year period.
The basic directians that are planned for the 3evelopment of the national economy
of the CEMA coun~tries during the present f ive-year period provide foz the ~ccessive
carryin~ aut of a palicy aimed at the intensification of production, the improvement
of the ::.umiuistration of the national economy, and the taking of all steps to
economize the natural and labor resources on the basfs of scientific-technical
progress. T'hz basic attentioz is devoted to the effectiveness of the national-
economic ties, since that will encourage the development of the national economies,
and wi~l centribute to raising the national standard of living and to the resolution
of the tasks of communist and socialist building.
The work of coordinating the national-economic plans for the present f ive-year
period was carried out in conformity with the program thzt was developed by the
CII~fA Committee on Cooperation in the Area cf Planning Activity and that was approved
at the 31st Session of the CEMA (1977) the Program for Conducting the Work of
Coordinating the CEMA National-Economic Plans for 1981-.1985. That program
providFd a coordinated organizational-methodology basts for the actions to be taken
by the Council couiltries and agencies in the process of the coordination work.
The program pro~eeded from the time~tested principles of combining multilateral
coordination within the framework of the CEMA Committee for Cooperation in the
- Area of Planning Activ ity and the other Council agencies with bilateral coordi-
nation among the central planning and economic agencies of the countries, with
the combining of both these forms and in the close tie-in with the developmer~t of
- national plans, so that the CEMA countries could take into consideration its results
at individual stages oi preparation of the draft versions of their own five-year
plans.
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- A great inflt~ence upon the carry3ng out o~ the work o~ cooxdinating the pl.ans
for the present five-year period and upon deepening the mutual cooperation and
the development of socialist econosnic integration was exerted by the meetings
and negotia*_ions of the party and gavernmental delegations of the CEMA member-
countries, at which.the most fundamental and most complicated questions of a
long-term nature were discussed and coordinated.
A new feature in the coordination of the plans for 1981-1985 is, first of all,
the fact that the coordination was carried out in combination with, and simul-
taneously with, the development and the initial implementation of the long-ran~e
programs that had been adopted by the CII~iA countries the long-ra~tge target
programs for cooperation in the key branches of material production. Those pro-
~ grams reflect the coordin.ated strategy of cooperation for a long-range period.
_ When selecting the most important problems of cooperation for the purpose of
rescslving them in the current five-year period, consideration is also taken of
the longer prospect. Thus, the long-term approach is intensif ied when the
CII~IA countries implement the most important national-econamic problems.
The experience ~.,f carrying out the work of coordinating the plans for 1981-1985
conf irmed the great importance of the long-range target programs for cooperation
have for the further development af power engineering, fuel an~ raw-materials
branches of industry, machine-building, agriculture and the food industry, the
production of manufactured commodity goods, and the transportation ties of the
CEMA member-countries. The now~traditional questions of production cooperation
with the adoption of the long-range target programs, in the course of the coord i-
naticn of the plans for the current f ive-year period, are resolved i.~ a comprehen-
sive manner with a consideration of the cooperation strategy that has been coordi-
nated in these programs in the appropriate branches of material production for
the long-range period. This is, as it were, the prerequisite for the changeover
in the future to the coordination of the long-range national-economic plans of
the CEMA country, and. that, together with the coordination of the f ive-year plans,
will serve the deepening of the cooperation in the f ield of planning activity.
Another no less important peculiarity of the coordination of the national-economic
plans.of the CEMA countries for 1981-1985 was the fact that the basic attention in
_ .the reciprocal c~operation among the countries of the socialist community is
devoted to the specia~ization and cooperation of production. In the course of
coordinating the plans there is an implementation of the Crimean accords arrived
at by the heads of the parties and gw ernments of the C~IA mernber-coantries, to
the effect that the next two five-year plans will be planned and carried out
under the sign of the further, ~ncreasingly deeper cooperation ar.3 specialization
- of production on the basis of the broad use of the achievements of scientif~c-
technical progress in the interests of the effective development of the economy
of each of the CEMA countries and the reinftircement af the socialist community.
That was promoted by the preparation and the signin,g of bilateral long-term
programs for specialization and cooperation of production between the Soviet Union
and other European CEMA member-countries. The programs, which are comp~ted for
the period until 1990, include a broad series of long-range measures that are
aimed at the maximum use of the capabilities of the specialization and coo~eration
~of production, upon the acceleration of scientif ic-technical progress, and upbn
the increase in the effectiveness oP social production. They determine the
strategic directions of the economic and scientif ic-technical cooperation,
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_ cspc~c i,~l l.y in uniting the matezi.al xesouxce~ and sc~,ent3,~~c~techn3,ca1 potent~ala
of the cauntries for the ten-year per~qd.
The CEMA countries have coordinsted and adopted the basic directions for ecunomic
an~ sc ient if ic-technical cooperat ion f or the per iod 1981-1985 and until 1990,
which hav~ been called upon to assure a stable and long-terrm basis for the further
deepening, expansion, and improvement of economic relations. One can already ~is-
cern tangible results. For example, there has been an increase in the volumes of
the reciprocal shipments of sgecialized output among the CEMA countries. Between
the.USSR and the Eurogean CEMA member-countries during the f ive-year period that .
has begun, the growth rates f or the volumes of reciprocal shipments of specialized
and cooperative output, primarily in the field of machine-building, will be con--
siderably higher than the growth rates for commodity turnover as a whole.
A factor of special importance for developing and deepening the integrational ties
in the f ield of macfiine-building is the state of agreement that was achieved during
the course of plan coordination with regard to the further expansion of cooperative
ven*_ures dealing with individual assemblies and individual parts for passenger cars
~ and trucks, motor buses, elQCtroni~ computers, equipment of nuclear power stations,
metallurgical equipment, road-building machinery, machine tools, railroad cars,
tractors, agricultural machinery, ships, etc.
- At the present time approximately 120 multilateral and more than a thousand bilateral
- agreements dealing with th~ specialization and cooperation of production, which
- were concluded between the USSR and other CEMA countries, are in the stage of
implementation.
An important feature in the coordination of plans and t::e preparation of the draft
versions of certain agreements dealing with measures for the long-range target
programs for cooperation in the present f ive-year period was the consideration of
the questions aimed at promoting the acceleration and increased effectiveness of
the economic development of the Socialist Republic of Vietnam, the Republic of Cuba,
and the Mongoli.an People's Republic.
- In particular, the Sov iet Union and Mongolia ~ointly developed a General Screme
for the Development and Placement of the Productive Forces of the MNR. [Mongolian
People's Republic] fcr the Period Until 1990. The measures involving the further
dev`lopment of the material-technical base of the national economy of the MNR with
= the technical and economic support of the Sov iet Union are aimed primarily at
increasing the effectiveness of the already created economic potential in the
country; the completion of the projects for which construction has been begun; the
guaranteeing of the upsurge in agriculture, light, food, and mining industry; the
� reinforcement of the fuel-and -energy and construction base; and also aimed at the
_ resolution of the first-priority problems of the Mongolian People's Republic. In
= conformity with the signed protocal governing the coordination of tha r~ational-
economic plans between the Czechoslovakian Socialist Republic and the i~INR, during
the present five-year period measures will be implemented to assure the ~oint de-
velopment of the natural resources of the MNR, and the processing of raw materials
of animal origin. Bulgaria will carry out the remodeling and modernization of a
number of production capacities that were created with Bulgaria's assistance in
Mongolia, and will also take part in the build ing of new pro~ects. Together with
other interested CEMA countries, Bulgaria wi11 participate in developing the ma3or
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d4poai~, ul pl~:.~spliorLC~~~, c:uk.inb ~:uul., coppar, tLna utlu~r w~.ne~al.a. Zn ~h~ cu'rrent
f i~�re-year period the operation of the International Geological Expendit3.on of the
Ir~terested CEMA Member-Countries to the MNR will continue.
Cooperation on a multilateraZ basis will be carried out with the Republic~of Cuba
in conformity with a DTsPS ['ong-range target program for cooperation~ in the
construction of new capacities for the production of nickel- and cobalt-containing
output, for the comprehensive development of agricultural production and the indus-
trial processing of citrus crops and the production of sugar fram sugar cane, and
~or the intensification of geologieal pruspecting operations.
When the plans of the MNR, Cuba, and the Socialist Republic of Vietnam were being
coordina~ed, consideration was taken of the specific features in the economy of
' those countries, where, practically speaking, there is no domestic production of ~
mach~.nery and equipment, and the policy aimed at the industrialization and creation
of a stable economy with a well-developed agriculture and a number of branches of
industry requ ires a considerable quantity of that machinery and equipment. As a
result, a search is underway for the opportunities to assure the niaxitmim satisfying
of the needs tt~at these countries have foY machinery and equipment, and for
the ~rendering of technical assistance in the construction of projects.
The CEMA countries and agencies, in conformity with the List of Prob~ems to
Coordinated on a Multilateral Basis, developed recommendations for resolving a
total of more ttian 150 problems in economic and scientif ic-technical cooperation, .
prepared draf t~fo~ ~uetcooperationr ndethe~meth dsrand formshofocarrying iteout.
and directions
On a bilateral basis the CE:~IA countries coordinated large-scale national-economic
problems of reciF~rocal cooperation. They include, first of a~.l, problems of satis-
fying the countries' needs for the inost important types of fuel and energy and
raw material resources, machinery, equipment, and inst,allations on the basis of
the further development and deepening of international specialization and coopera-
~ tion of production and other forms of cooperation. For example, in the pr~cess of
- coordinating the plans between the USSR and the GDR [German Democratic Republic -
- East Germany] , there was coordination of specif ic measures for deepening the
cooperation in the area of science and technology and, within the framework of
the Intergovernmental Comm ission on Economic and Scientific-Technical Caoperation,
agreements were concluded and understandings were achieved. These include, in
particular, the furthex development and application of microelectronics, the de-
velopment of new technological schemes and installations for the production of
energy, for the chemical indu stry, in the creation of pro~ressive production
technological schemes in the metal-processing industry. Proceeding from the large
importance of providing the national economy with fuel and raw materials, important
understandings have been reached with rsgard to the material-technical reinforce-
ment of the.branches of industry, and for their production ~ e~ui menttrand� For
these purposes large-scale reciprocal shipments of machinery, q P ~
units have been coordinated. For example, the GDR will deliver e~u ihmentsfornits
and equipment for the chemical and petroleum-ref ining industry, q P
open-pit mining, metallurgical equipment, transformer substations, and other elec-
- trical-engineering equipment. In turn, the Soviet Union will deliver to the GDR
equipment for nucleansanforhthegconstruction~industryiand~therbuildizig~materials
prospecting operatio ,
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industry, and for metallurgy, and will sim:~itaneously render technical assisLance
in installing them.
In the process of coordinating the plans, a large amount of attention was devoted
to cooperation in the area of the fuel-and-energy and raw-3naterials branches of
industry, which are of great importance for the development of the economy of
the countries in the socialist community. The problems of fuel and raw materials
have taken on world importance in recent years. The CEMA countries are resolving
them by relying chiefly upon their own resources. They have proved to be the
only industrially developed zone in the world to have avoided those serious blows
that were inf licted on =he capitalist economy by the energy crisis. By creating
a large-scale fuel and raw-materials industry, the countries in the socialist com-
munity achieved a high level of energy consumption. At the present time those
- countries consume energy resources, in per-capita terms, which are approximately
the same as in the countries of the European Economic Community (5 tons of
conventional fu el). Tn 198~, by relying on reciprpcal shlpments, they covered
their import needs for hard coal and lumber I~y 94-95 percent; crude oil and
iron ore, by 68-70 percent; etc. The USSR prov ides for almost 90 percent of the
import needs of the CEMA countries for petroleum products and 99 percent of the
natural gas. In the current five--year period the Soviet Union is increasing by
more than one-third the shigments to the CEMA countries of electrical energy,
fuel and raw material commodities, and materials. Faithful to its international
duty, the Sov iet Union, despite the diff iculties that have been linked with the
worsening conditions with regard to pro~uction, is increasing the shipments of
energy resources, in terms of conventional fuel, by 20 percent in the f ive-year
period that has begun, as compared with the previous five-year period. The
USSR delivers the fuel and raw materials to the fraternal countries at prices
that are considerably lower than the prices on the world market.
At the same time, the long-term economic development of the CEMA countr ies that
has been planned requires a corresponding increase in the production of the basic
types of raw materials, fuel, the production of energy, and thus the guaranteeing
of the further growth of the economic potential of the countries in the community.
~ According to preliminary estimates, the consumption of energy by 1990 will increase
in the CEMA countries by a factor of approximately 2.5 as compared with the present-
day level, and there will also be a considerable increase in the needs for ~11
types of raw materials and fuel, thus requiring the corresponding expansion of
the sources to cover them.
All this is radically changing the scepe of the economic ties and acts as one af
the factors influencing the need for a qualitatively new approach to the further
expansion of the economtc cooperation with respect to the most important fuel
- and raw-mater ial commodities. At the same time, a question thaz arises with all
acuity is the question of using all types of fuel and raw materials, including
those with low calorie content, that exist in the other CEMA countries; of
developing and producing energy-sdving machinery and equ ipment; and of achievtng
the accelersted development of nuclear power engineering.
A task that is becoming cr_itically important is that of making the efficient
application of everything that the countries in the socialist community already
have at their disposal, primarily the raw--material and energy resources. The
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rvn vrr~...~nt, vor, vi~i.~
present stage o~ development o~ the $oc~al~,st countries requi~res an increase
in ~roduction with a reduction of the amount o~ funds, materials, and energy
- required for producl.ng output. Th3,s ~s a~a~.thful and reliable means of resolving
the very i:mportant econom3c and so~tal problemts.
When coordinating the plans for the current five-year period, the Council's
- countries and agencies spec ified the priority directions to be taken in rPSOlving
, the fuel and energy and raw materials problems. The needs of the CEMA member-
countries for electrical energy will be satisfied primarily by means of the
accelerated growth of nuclear power engineering. For these purposes, the fol-
- lowing have been signed: a General Agreement Govern~fng Cooperation in the Devel-
- opment of tfie United Electr ical-Energy Systems of the CII~IA Member-Countries for
the Period Unil 1990; and the Agreement Governing the Multilateral International
Specialization and Cooperation of Production and Reciprocal Shipments of Equip-
ment for Nuclear Electric-Power Stations for the Period 19~1-1990. These very
important agreements laid the foundations �or the construction, w3th the technical
assistance of the Soviet Union, on the territory of the European CEMA member-
countries (excluding the USSR) and the Republic of Cuba, nuclear electric-power
. stations with a total rated capacity of 37 million wilowatts. The implementa-
tion of the progrann f or tl-,e construction of the nuclear electric-power stations
will make it possible for the participating countries annually to receive '25~
billion kilowatt--hours of electr ic energy and to save approximately 70-75 million
t~as of conventional fuel, which is approximately comparable to the activation
of four Soyuz gas pipelines constructed by the CF~lA countries during the past
f ive-year period .
The cooperation in nuclear power engineering, which unites the work of approxi-
mately 50 large-scale associations and enterprises in seven CEMA member-countries
and SFRYu [Socialist Federated Republic of Yugosla~ria] , makes it possible on a
single technical basis to assimilate and produce equipment for nuclear electric-
pbwer stations. Associ.ations and enterprises that are becoming ~the leaders in
nuclear machine-build ing are the Soviet Atommash, Czechoslovakian Skoda, the
Magr~eburg Heavy Machine-Bu ilding Combine, the Hungarian Ganz Magav Plant, etc.
In addition, for the more canplete satisfaction of the needs of the national
economies of Hungary, Poland, the USSR, and Czechoslovakia for electrical
energy, and with a consideration of the readiness of the Sov iet side to deliver
it to the other participating countries, in March 1979 those countries signed a
General Multilateral Agreement and a General Bilateral Agreement cancerning
' cooperation in constructing on the territory of the USSR the Khmel'nitskaya
2~uclear Electric-Power Station, with a capacity of < million killowatts and an
Agreement between Hungary, East Germany, Poland, the USSR, and C~~choslovakia
concerning the construction of a h~,gh-tension electrical-transmission linE
(750 kilovolts) from the USSR (Khmel'nitskaya Nuclear Electric-Power Station) to
- Poland (Rzeszow). The activation of the f irst unit in that nuclear power
station and the beginning of shipments of electrical en~rgy have been planned
for 198/+, and by 1985 those shipments have been coordinated in the volume of
7.6 billion kilowatt-hours. By 1990 they are supposed to reach 12 billion
kilowatt-hours. An agreement, signed in J'uly 1981, concerning cooperation
between Romania and the USSR in constructing, on the territory of the Sov iet
Union, the South Ukrainian I3uclear Electric-Power Stiation provides for the
delivery fram the USSR to Romania of electrical energy on a long-term basis.
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'fhe C~iA countries have hegun t~ ~m~~eptent the program adopted by the CII~iA
Committee on Cooperation tn the Area o~ Planning Acti~tty the program far
' multilateral cooperation in the comprehensive and more intensive involvement
in economic circulation of new and additional sources of energy solar, wind,
. geothermal, etc. In the course of the next three or four years it is planned t0
~ carry out a series of ineasures involving the economically substantiated expansion
of the use of renewable sources o� energy and additional resources of synthetic
hydrocarbon raw materials on the basis of cooperation among the interested
countries.
In the course of coordinating the plans, an agr~ement was worked out to create
and introduce improved processes in the secandary refinement of petroleum, for
which the specialization and cooperation of productfon of th~ appropriate units
and equipment will be carried out. For example, variou s units wtth an overall
refining capacity of approximately 190 million tans of petroleum a yeai will be
manufactured and delivered to the countries. The resolution of this problem will
make it possible to produce mere than 15 million tons of fuel and lubricants a
year.
A considerable amount of work in the Process of coordinating the plans has been
- dor?e in searching Por ways to meet the growing needs of the CEMA countries f or
ferrous metals. A~ large amount of attention here is devoted to working out the
questions linked with the re~solution of the problem of ineating the needs for
iron-containing raw materials, which problem, in view ox its scope, has become,
like the ~uel and energy problem, an ~nternational one.
, Measures have been planned in the USSR iron~ore industry to preserve the existing
shipments of iron-containing raw materials at the 1980 level. Projects are a~.so
underway to coordinate the draft of the General Agreement ~overning the brganizing
of cooperation in Constructing on the territory of the USSR the Krivoy Rog
Mining and Concentration Combine, both Por the purpose ef retaining the shipments
of iron-ore raw mat~rials at the 1980 level, and for satisfying the needs of the
CEMA countries for iron-containing raw materials in excess of the 1980 level.
However, the chief ineans of cooperation in the f ield of inetallurgy, as was noted
at the 35th G'~'~NIA Session, is not only the further buildup of the volume of produc-
tion of inetals, but primarily the fundamental improvement of the quality and struc-
ture of the metal cutput and the reduction of the anount of inetal needed, especial-
ly in machine-building.
In the ci~emical industry, in the course of the coordi~atio~t of the plans, a number
of important problems were resolved. A General Agreement concerning specialization
and cooperation in the production ~f energy-consuming and less energy-consuming
chemical output was signed. On its basis, bilateral agreements were prepared and
signed. Those agreements provide for the volumes and deadlines for shipments fram
the USSR to the countries participating in the agreement of energy-consuming output
(ammonia, methanol, polyvinylchloride, pelyethylene, div inyl, etc.) and from those
countries to the USSR of ].ess energy-consuming chem ical output (chemicals to
be used as additivies to polymer materials, synthetic dyes, subsidiary textile
substances, cfiemical means of protecting plants, plastics produced in relatively
small quantities, chemical semif inished products, etc.). The implementati.on of
the planned measures, with the tremendous saving in the import of hydrocarbons and
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energy carriexs, exerts a substantial ~,nRluence upon th� ~ot;mat~on ~,n the CA`ZA
countries of an economtcally substant3.ated structuxe ~,n the cheta~.cal industiy and
_ upon increasing the ef~ectiy~eness of cooperat~on in that area, in which the
material basis for the chemicalizat~on of the n~tional economy oP the countries
is being created.
Wfien searching tor ways to build up, bY their ~oint efforts, the capacities of
the power-engineering and extractive branches of industry with the purpose of
carrying out reciprocal shipments, the CEMA countries in the process of plan
coordination devoted a large amount of attention to questions of the efficient use
of the primary resources; the increase in production with a reduction in the
amount of assets, materials, and energy needed for the production of output;
the creation and production oP new progressive technology and technological schemes
that asGUre the increase in the effectiveness of production and that save the
fuel-~ .1-energy and ather material and labor resources.
The CEMA member countries are doing a lot for the joint development of the extrac-
tive industry. However, at the present ttme the factor that is taking on decigive
isnportance is the economical, efficient use of the primary resources. That is the
- conclusion of all the past congresses of the communist and workers parties of the
CEMA countries. Ttie reduction in the expenditure of primary resources per unit of
f inished output requires, as a rule, fewer expenditures than the incr~ase in their
extraction. Computations indicate that the carrying out of ineasures involv`~ng the
economizing of fuel requires from two-fifths to one-half the expenditures of
producing an equivalent volume of energy resources. These tasks can be fundamen-
tally resolved, as was noted at the 3~th CEMA Session, only as a result of the
_ reorganization of the structure of industrial production, the preferential develop-
ment af production entities requiring less energy and fewer materials, and the
introduction of technology and technological schemes that economize the resources.
"The key task today," N. A. Tikhonov said at the 35th CEMA Session, "is the raising
of the technical level of production and its qualitative indicators. There is
no other means of resolving the tasks of the 1980's othPr than the acceleration
of the scientific-technical progress. Our opportunities here are especially
great, for one-third of the scientific workers in the world are working in the
CEMA countries. With this kind of scientific--technical potential at our disposal,
- it is necessary to strive for the corresponding benefit. It is especially iuipor-
tant today to use all the opportunities of science and technology to reduce the
energy and material requirements of social production."
A brilliant exanple of the work being carried out in this direction is provided
_ by the cooperation between Czechoslovakia and the USSR in constructing and organ-
izing a comprehensive automated technological line for the production of ammonia
- and the manufacture of equipment for the comprehensive technological line for
the production of ethylene. The new lines with an optimal production capacity of
3000 tons of ammonia a day and 600, 000 tons of ethylene a year wi11 make it possi-
- ble to double the labor productivity, to achieve a substantial reduction in the
expenditures, and to reduce the metal consumption by 40 percent. This example
~ also attests to the f act that e large-scale comprehensive increase in the ef fec-
tiveness oP production can be achieved primarily by the resolution, by the efforts
of the CEMA countries, of the tasks fn the area oP scientif ic-technical cooperation.
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In the course of work to coo;.dinate the p~.ans in the f~:e1,d of m.ach~ne~bu~.ld~t,ng
and the radio--engtneering and electronic industr}*, a number of agreements and recom-
mendations were prepared. They deal with the further expansion of economic and
, scientific-technical cooperation. In addit~on, the products lists and tentative
volumes of the reciprocal shipments of machinery and equtpment until 1985 were co~
ordinated. The approved and already signed agreem~nts and amendments to previously
concluded agreements include the first-priority measures for the l.ong-range target
programs for cooperation, which provide for the covering of the needs that the CEMA
_ member-countries have for the basic types o~ machinery and equipment for the mining
- industry, elgctric-power engineering, the chemical industry, the petroleum and
petrochemical tndustry, agriculture, the food and light industry, as well as for
the development of the machine-building branches which provide the base for its
eff icient reorganizatfon.
Certain agreements that were developed and signed in the course of the plan coordi-
nation provide for the creation oP international productfon complexes which, from
the point of view of their scope and technical level, are unmatched elsewhere in
the world. These include the previously mentioned agreement dealing with the con-
struction of nuclear electric-power stations and the production of equipment for
them. At the 34th CEMA Sess3on in 1980 an agreement dealing with international
specialization and cooperation in developing and producing computer technol~gy
was signed. That agreement provides for the reciprocal shipments, during the cur-
rent f ive-year perfod alone, with a total value of more than 15 billion rubles.
The application in the national economy of new computer technology microcomputers
will considerable increase the labor productivity. and the return on invest-
ments and wi11 reduce the manpower needs by several ~aillion persons.
A large amount of work has been done to subdivide the programs and to erganize the
output of hydraulic and pneumatic component equipment, as a result of which, in
_ the USSR and other countries in the community, there will be an increase in the
production of of more progressive machinery and equipment for the mining industry,
machine tools, and road-bu ilding and other technology.
Despite, however, the existing achievements and positive resu lts that were achieved
in the course of coordinating the plans �ox 1981-1985, as a whole the specializa-
~ tion and cooperation oP production within the framework of the CEMA and in bilater-
al cooperation are still lagging behind the present--day requirements and the tasks
posed by the communist and wor kers parties of the CEMA member countries. As a
result of the fact that the planned development of international specialization
and cooperation of production on a long-term basis is a very important direction
in increasing the effectiveness of the further cooperation among the CEMA member-
countries for the forthcom ing decade, the CF,MA agencies have planned steps to
raise this work to a qualitatively new level and to concentrate the cooperation
in the specialization and cooperation in the problems hav ing great 3mportance to
the national ec~onomy, to intensif y the comprehensive nature of that cooperation
by means of the reciprocal coord ination of research e.fforts, technical elabora-
tions, the creation and production of technology, the organizing of its technical
- serv icing, the expansion of the scope of international specializat3on involving
standardized units and parts for the purposes oP optimizing the production of the
final output.
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rvx vrr~~.~t?i, u~t, ~iv~,Y
Definite results in the process o~' p].an coord~:nat~on we~e ach~eved in the field
of agriculture and the food ~.ndustry, and the pxoduct~on of manufactured consumer
goods and transportation ties among the CF~?A countries. The resolved problems
represent very important measures 3n the long~range target programs for cooperstion,
which f ormed the basis of the coordination work for 1981-1985 and determined as a
whole their positive results.
The multilateral integratfonal measures, and primarily those linked with the
implementation of the long-range target programs Por cooperation, found their reflec-
tion in the coordinated plan that was prepared by the CEMA Committee on Coopera-
tion in the Area oP Planning Act ivity and that was approved by the CEMA Session
the plan �or multilateral integrational measures for 1981-1985, which provides for
the construction, by tfie ~oint ePforts of those countries, of a number of economic
projects, the development of specializat ion and cooperation of production,
- cooperation in ~he area of science and technology, and standardization, as well as
- steps to promote the upsurge in the economy of Vietnam, Cuba, and the Mongolian
People's Repu b1ic.
For the successful carrying out of the measures that were agreed upon during the
coordination of the plans and reinforced by the appropriate agreements, the
_ national economic plans oP the ind ividual countries ~tipulate the necessary material,
labor, and f inancfal resources.
As ~.n the previous periods, the Soviet Union is doing everything possible to rein-
force the economy of the countrie.; in the socialist community. "With a large-scale
economic, technical, and scientific potential at its disposal," the Communique of
the 35th CEMA Session states, "the Soviet Union carries out shipments of fuel.
raw materials, machinery and equ ipment, and other oommodities,renders broad techni-
~ cal assistance to the CEMA member-countr ies in the construction of industrial
projects; and carries out the transmittal ef advanced production and scientific-
technical experience. The extensive Soviet market guarantees most of the CEMA ~
member-countries a stable area f or the sale of a large part of the export of output
of machine-building and other commodities."
_ Proceeding from the socialist principles governing the cooperation, the CEMA member-
countries as early.as 1975 agreed that, in their reciprocal trade, they would not
allow any arbitrary, sharp changes in the prices of raw materials, ~energy, fuel,
or other commodities. The prices in rec iprocal trade, according ~o their decision,
are established annually on the basis of the worldwide prices from which ~the
inf luences of speculat ifln and the market situat ion have been removed, and en the
basis of their average level during the previous f ive years. The ~o:Lntly found
resolutions with regard to contract pr~.ces made ~t possible for the soctalist
countries.to avo~d those d~~ficult~es that wexe caused to the capitalist world by
the energy crisis~ As a result of Sov~et sh~pments of petroleum alone, the
European CEMA member~countries during the past five-year period obtained an advan-
_ tage of no less than $3 bill~on a year, as compared with the world prices. And
tY~e existing procedure of establishing prices continues to prevail for the current
five~year p1an. With that procedure the prices in the trade among the CII~IA
countries are lower than the current world prices. Taking into consideration the
needs of the CEML~, countries, the Soviet Union, despite the difficulties linked
with the worsening of the drilling conditions, is, in 1981-1985, keeping the ahip-
ments of petroleum to those countries at the high level that was achieved in 1980.
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For ttie entire .f ~ve-year per:lod, Savi.e~ sh~,pments o~ pe[x'ol.eum w~ll canst~.tute
approximately 40A million tons. Duri,ng the current ~iVe~year p].an the export of
machinery and equipmeni: from the USSR to the CEMA countries will reach 35 billion
rubles, which is 40 percent more than during the past five~year p1an. Soviet ship-
ments of machinery and equipment cover the vitally important needs oP the CEMA
member-countries. They wi]_1 contr~bute to the expansion and renovation of the
fixed assets and the moderilization of production.
Cooperation within the fr~lmework of the CIIKA f:s yielding considerable advantages
also for the Soviet Union. Suffice it to state that during the past five-year
period the CF~IA countries provided ~or as much as 40 percent of the new vessels in
the Soviet fleet; 35 perr.ent of the new passenger cars; 12 percent of motor buses;
as much as 15 percent of the funds for our retail trade in ready-to-wear clothing,
- footwear, furniture, and canned goods. During the new five-year period the 5oviet
Union will import, in exchange for Soviet commodities, more than 60 billion rubles'
worth of modern machine equipment and more than 40 billion rubles' wor~h of consumer
goods. The shipments from the CEMA countries to the USSR of machinery and equip-
ment will contribute to the resolution of major tasks in individual branches of
the national economy and to the accelerated development of certain of the leading
branches of industry. Shipments which are oP great importance are, for example,
the shipments of inetallurgical equipment, equipment for the petrochemical and
chemical industry, electric locomotives, passenger and freight railroad cars, and
transport and fishing vessels. The increase in the import of furniture, knit goods,
garments, and other consumer goods will promote the expansion of the variety ~f
consumer commodities in the Soviet market.
The Basic Directions in the Economic and Social Development for 1981-1985 and for
the Period iJntil 1990 have stipulated the complete developmer,` of mutually advanta-
geous trade, economic, and scientif.ic~technical ties with the socialist countries;
the active participation in the further deepening of the socialist economic inte-
gration of the CEMA countries; and the consistent continuation of the implementation
of the long-range target prograrns for cooperation which are aimed at the resolution
~of the most important problems in the development of power engineering, the fuel and
raw-materials branches, machine-building, agriculture, transport, and the production
of consumer goods, as well as the b3.lateral long-range programs for the specializa-
tion and cooperation of production.
_ On the basis of the coordination which has been carried out for the plans, during
the five-year period that has begun there will be an expansion of the scope of the
reciprocal cooperation between the USSR and all the CII~IA countries, as a result of
which the reciprocal shipments of commodities will grow by almost 40 percent as
compared with the previous five~year period and will exceed 260 billion rubles.
During the currentfive-year period the commodity turnover between the USSR and
_ Bulgaria and Cuba will grow by a factor of more than 1.4 as compared with the pre- .
vious five-year period; with Hungary, East Germany, and Mongolia, ~ factor of
1.5; with Czechoslovakia, a f1ctor of 1.7; and with Romania, will almost double.
The planned scope of the reciprocal cooperation among the CEMA member-countries
during the current five-year period can be ~udged on the basis of volume of recipro-
cal commodity turnover that was agreed upon during the course of the plan coordina-
tion. That volume will grow in 1981-1985 by 36 percent as compared with the actual
reciprocal commodity turnover in 1976-1980. Moreover, the increase tn reciprocal
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- commodity turnovex that was planned ~ox the cux'xent ~7~Ye~yeax' pl.an outstxi.ps,
as it did during the previous pexiods, the gxowth rates of nati.onal ~.nco~ne and .
industrial production, thus attesting to the further deepening oP the international
socialist division of labor.
At the present time the CEMA member--countries are conclud~ng the intergovernmental
long-range trade agreements governing reciprocal sfiipments for the current five-
}~ear period and other agreements dealing with definite problems of economic coopera-
tion.
Thus, the course and results of the coordination of the nationaleconomic plans of
the CEMA member-countries for 1981-1985, as evolves from the materials~of the 35th
CEMA Session, convicingly indicate that, on the basis.of economic mutual assistance,
the further development and deepening of the international socialist division of
labor, and the consistent carrying out of a course aimed at socialist economic
integration, the CEMA countries, working together, are finding the means to resolve
many of the complicated problems and are providing the conditions for stable and
dynamic development. At the same time, under the management conditions of the
1980's, in the process of the work of coordinating the plans also located real
reserves of materials, financial, and labor resources which the countries have at
~ their disposal for the resolution of the problems that have arisen. The national
planning agencies and the CEMA Committee on Cooperation in the Area of Planning
Activity are applying efforts to locate additional.opportunities for the more com-
plete satisfying of the needs of the countries' national economies for fuel, raw
materials, energy, machinery, and equipment, and for expanding the reciprocal trade
in foodstuffs and manufactured consumer goods, which will contribute to the further
development of the economy and the rise in the standard of living in the countries
of the socialist community.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981.
5075
CSO: 1825/21 ~
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TRADE WITH T,DC' S ~
BOOK ON SOUTH YEMEN'S SOCIAL, ECONOMIC DEVELOPMENT
Moscow NARODNAYA DEMOKFATICHESKLIYA RESPUBLIKA YEMENA: EKONOMIKA I TORGOVO-
EKONOMICHESKIYE OTNOSHENIYA in Russian 1981(signed to press 24 Apr 81)pp 1-2, 175-176
[Table of contents and brief description of book by V.N. Burmistrov]
[Excerpts] Title Page:
Title: NARODNAYA DEMOKRATICHESKAYA RESPUBLIKA YEMENA: EKONOMIKA I
TORGOVO-EKONOMICHESKIYA OTNOSHENIYA (The People's Democratic
Republic of Yemen: the Economy and Economic Trade Relations)
Publisher: "Nauka"
Place and year of publication: Moscow, 1981
Signed to Press Date: 24 April 1981
Number of Copies Published: 2000
Number of Pages: 176
Brief Description:
The main directions in the development of South Yemen's economy in.the colonial
period, after winning independence, and at the present stage of implementing reforms
in South Yemen are covered. The foreign trade policies,.means of state control of
the republic's foreign trade, and basic trends in the development of foreign eco-
nomic trade ties are examined.
~ Table of Contents
Introduction 3
Chapter 1. Characteristics of the Social-Economic Development of the
_ People's Democratic Republic of Yemen and the Role of Foreign
Trade in the Country's Economy 11
1. Characteristics of the social-economic development of South Yemen
in the period of colonial enslavement 11
2. Social-economic reforms in the perivd of South Yemen`s independent
development 22
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3. General ct~aracteristics of South Yemen's present economic state....... 39
4. The role of foreign trade in the country's economy 60
Chapter 2. The Basic Principles of Foreign Trade Policies and the Means of
State Control of South Yemen's Foreign Trade 65
1. The basic principles of South Yemen's foreign trade policy............ 65
2. The role of the state in South Yemen's foreign trade 71
3. The means of state control of South Yemen's foreign trade 78
Chapter 3. Basic Trends in the Developme~t of South Yemen's Economic
Trade Ties 89
l. The dynamics, structure and geographic distribution of South
Yemen's foreign trade 89
2. Characteristics of South Yemen's economic trade ties with
capitalist countries 113
3. South Yemen's economic trade ties with developing countries........... 122
4. South Yemen's economic trade cooperation with socialist countries..... 128 .
S. South Yemen's economic trade cooperation with the Soviet Union........ 134
- ~ Conclusion 141
_ APPendixes 152
Footnotes 172
COPYRIGHT: Glavnaya redaktsiya vostochnoy literatury izdatel'stva "Nauka", 1981
CSO : 1807/ll~ END
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