JPRS ID: 8253 TRANSLATIONS ON USSR ECONOMIC AFFAIRS

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3� ~ JANUARY i979 i OF - i

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JPR5 ~/8253
30 January 1979
~
TRANSLATIONS ON USSR ECONOMIC AFFAIRS
(FOUO l/79)
U. S. JOINT PUBLICA~i'IONS RESEARCH SERVICE
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The report contains information on recent adminiatrative plans, changes, and
policy trends, itema on the state of the national economy, significant and -
representative comments ~nd statistics on principal industrial sectors.
_ 11. K. y W'ar.lx ar.d I)ocumcnt Analysi+. 17a. Drscripcors �
USSR
Economics
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JPRS ~,/8253
30 January 1979
TRANSLATIONS ON USSR ECONOMIC AFFAIRS -
_ ( FOUO 1; 7 9 )
- CONT~RTS PA~~
Problems of Dieposition of Industry Analyzed
(VOPR09Y II{ONOMIKI, Nov 78) 1
Distribution of the ?roductive Forces ~
Problems of Iabor Distribution and the Productive Forcea ~
Problems and Prospecte of Soviet-American Economic Relationa
(Ye. 3. Shershnev; SSSR-CShA: EKON~CHESKTYE 0?1'NOSHENIYA~
~976) 18 -
Book Proposing Methods of Evaluating Research Work Reviewed
(D. L~vov; VOPROSY EKONONLII{I, Nov 78) 21
' a - ~III - USSR - 3 FOUOJ
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PROBI.EMS OF D IS POS IT ION OF INDUSTRY ANALYZED
Dietribution of the Productive Forces
Moscow VOPROSY EKONOMIKI in Russian Na 11 Nov 78 pp 3-12
� [Text] Problema o� Deployment of the USSR Productive Forcesl--The economic
- effectiveness of national production is to an ever greater degree determined
by the systematic territorial organization of the economy. Full economic
development of the Union republica and economic regions is direcCly tied in _
w ith effective deployment of the productive forces through the territory of
the Soviet Union. Lenin's direcCives concerniz~g a policy of complete in-
tegration and a comprehenaive approach to the economic davelopment of every
region, however small, is enbodied in the practical experience of the na-
tion~l economy.
The principle of completeness in development of the national economy was ap- ,
plied back in the initial stage of the organization of socialiet planning--
in the period of the preparation of the plan for the G0~'sLRO [State Commis-
sion for the~ElecCrification of Russia] and the first state national economy
p~lan. That period saw the formulation of the following task: "The USSR can
only build and develop its national economy by giving full consideration to
' all~the natural and national characteristics of its vast society and by
specializing its individual components. This is the only path to the attain-
ment of an opCimum coefficient of effectiveness of national labor.i2
This important theoretical proposition has great practical significance for
the planning and organization of the socialist economy and it serves as the
methodological basis for the deployment of the productive forces of the
Soviet Union.
_ The following are correlative to total integration as the leading principle
of territorial organization of the economy of the entire country and its
individual regions: full exploitation of the natural resourcea; proportion-
ate development of the industry sectors of the regions; organization of in-
dustrial and agroindustrial combines and camplexes; development of a unified
system of regional national economic and territorial production complexes.
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Maximum unity in distrib~tion of aven diverse production underrakinga yielda
great national sconomic effect. Lump sum capiral investmenC costa are mini-
mized, operational outlays are reduced, and the enCire syaeem of production
orgnnization and manngement in improved.
The 25Ch CPSU Congresa laid the foundaCion for a new stage in Che develop- -
ment and furrher improvemenC of the terrirorial orgAnization of the USSR
economy on the basis of ef�icienC disCribution of the productive forces and
fully realized atructuring of the economy of Che Union republica and econ- '
omic regiona. In Che lOth Five-Year Pl;~n the diatribution ~f the producCive
forces and Che foxming of the economic system of the regiona are cr,arked by
qualitatively new Casks stemming fron the increased scope of the USSR na~
Cional economy, the fundamental changes in tihe terriCorial distribution of
labor, ~he increased degree of completeness in the structuring of the
economic syatem of the regions, and rhe growCh of Che economic effectivenesa
of the economy of the regiona as A reault of scientific-Cechnical and social
progresa. L. I. Brezhnev observed a~ the 18Ch Komsoinol Congress: "Of a
certainty, effectivenass and quality are very broad concepts: They also en-
compasa such fundamental eleroenta as the m~st rational distribution of the
productive farcea, improvement of the overall state planning, and a compre-
heneive approac~ Co soluCion of the ma~or economic problems."
Characterizing our time and the period lying ahead of ua is scientific de- _
velopment and practical solution of the vast sectorial and regional national
economic problems through exCenaive application of today's scientific~
technical achievements. The gigantic conatruction projects now include not
only the KamAZ [Kaina Motor Vehicle P1antJ, the Sayano-Shushenskoye GES, the
Tobol'sk Oil, Gas and~Chemical Combine and othere but also individual large
regions where new territorial production complexes are being built. Among
these are Western Siberia, the complexes of the Baykal-Amur main liae,
Krasnoyarskiy Kray gnd ma~y othera.
In the future the diatribution of the productive forcea will be coordinated
primarily with the solution of the major acientific-tech:~i~al and social
problems. Included among these are the follawing: the fuel and energy prob-
lem, the task of territorial redistribution of the water reaources, aad in-
creased labor productivity resulting from a long-tez~n policy of reduction of
the labor resources and efficient exploiCation of the new (especially the
northern) regions with their high c~ncentration of natural reaources. The
solution of these problems will play a significarit role in determining the
paths taken by further develapment of the country's economics. Changes are
taking place not only in the scale nf physical production but also in a funda-
mental reatructuring of the territorial economic proportiona. Speedy dis-
tribution of physical production in the eastern regions, particularly in
Siberia and the Far East, has become easential for the economics of the en-
tire country.
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Some Thaoretical Problems of Ragional EConomics
The chief euak of regional economics is systemati.c arudy of Che ob~ecCive
- econumic and social lawa operating in e~ch economic region oF the USSR and =
in the entire system of the country's regions. Scientific rasearch on re-
gional sconomice has enabled us Co determine the basic tiheoretical and prac-
ricA1 directions of the analysis and syntiheais o~ today's complex re~ional
ec~non;tc problems. An importane achiavem~nt of ragional economica is
acientific corroboration of the general patterns of diatribution of the ,
productive forces oE the USSR, the achemes pertaining to the phyaical pro-
~ duction sectora, Che Union republica, ~nd the economic regions as well as
- corroboraCion of the regional compreheneive programs for the national
economic and territorial~production complexea. Along wiCh development of a
system of ideas on the social and economic development of each region,
, scienti~ic research in the realm of regional economics enablea us to also
map out a atrategy of economic development, espacially in reapect to putting
new economic capacitiea into operation.
- At the same time, there are still unreaolved theoretical and meChodological
problems, a aituation which also affects the work of territor.ial economic
organization. We will dwell only on some of these problems.
:
NaCional income should be regarded not only as the most important synthetic
indicator nf national economy development buC also ae a general indicator of
the economic development of any region (Union republic, economic region,
oblast, kray, autonomous republic), an indicator which defines the degree o�
the re gion's participation in the t erritorial division of labor, the ef-
fectiveness of the development of the productive forces of the region, and
its economic structure. The statistical reports and planning indicators are
- prepared only for the Union republics and so one of the taska of regional
economic reaearch is a search for meChods of calculating national (net) in-
_ come for the economic re~ions and for individual regione.
_ Along.with study of the national income produced, income which is compuCed
' for the varioua regions as the amount of nar output of the physical production -
sectors, a subject of special interest is analysis of the utilization of~na-
tional income considered for the regions of the country on the basis of the
intersectorial and interregional production balances and output distribution.
Comparison of the national income produced (with due consideration for the _
structure of the region's economy) with the national income in P. particular .
rzgion furniahea important analytica~ material for an economic evaluation ~
- of the status and development of the national economy of the Union republic,
autonomous republic and economic region. The Economics Institute of the AN
[Academy of Sciencesj of Tadzhik SSR is now preparing a comparison of this
ki.nd for~ Tadzhik SSR.
Labor productivity varies considerably for the different regions. The bal- '
ance of labor resources develops unevenly for the economic regions and for
many regions it is also extremely worrisome. The ope~ling up of new regions,
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aspeciulty in Sibariu and ChQ F~r E~at, requirea a constanC influx of labor
rc~sourcea from othQr are~e (~uropean USSR). Technical remodeling and modarn~
iz~tion of the enterpriaes ~tre making it possible to incr~ase the producti.nn
of outpuC wirhout incre~sing the number of workere. Complex technica].,
er.nnnmic And social. problems pertaining to increase of labnr prnductivity
ure ~~i~ing in tt?e newly opened regions. Yncreased labor productivit,y, an
especially important feature for Che new regiona, enCails auch factore as
selacCion for operational purpoaes of effective mineral deposits and timber
CrACCa ~nd use of technic~lly efficient machines and equipmetlt suitable for
the n~tural conditions under which Chey will be used. All theae quesCions -
- requira in-dep~h scientific reaear~h fnr the enCixe syatem of the country'g
- regions .
The taek of regionai economic research is scientific analysis of the enCire -
complex oE problems relaCive Co increasing labor produc~ivity in every region
and dgtermining the principles,methoda and requirements for highly effective
: utilization of the labor resourcea exiating in the macroregions of the
country. The a�orementioned problema include the following: aystematic
alinement of the population living etandard for the country's regions,
cataloguing the characterisCica of the population of the Union republice,
development of a planned system of disCribution of the population through
the territory of the country, implementation of scientifically wel~-grounded
measures for protection of the natural resources and the environment, and _
many other measures.
The solution of the major regionai social problems requires the preparation
oF scientifically validated recommendations for practical planning. We
- therefore need normaCives for the living standard of the population, methods -
of development of a social infrasrructure for the couatry's regions, and -
evaluation of the effectivenesa of the eocial measures in the context of a -
regional breakdown. _
7'he nnost important elemenC in the economic structure of a region is fixed
capital. For the country as a whole the value of the fixed capital in 1915
- was ~,250 billion rubles, including more than 800 billion rubles for produc-
tfon ~ixed cagital. In the lOth Five-Year Plan 622 billion rubles of capftal
_ inves,CmenCs are allocated for future expansion of the fixed capi;:al. Satur-
ation,~of a regiun with fixed ca~ital also dsterminea the extent of its further
4conamic development. Regional economics goes into the matter of fixed
~capital from two atandpoints: increased effectiveness in the use of exist-
ing and newly Lntroluced fixed capital and the establishment of nec~ fixed
capital with maximum effectivenesa of the cspital outlays. . �
The affectivenesa of fixed capital is directly dependent on the study and
_ correct assessment of the economic, technical and social interrelationships
which evolve in tne process of planning, preFaration, development and putting
into operation of fixed capital. Ta a significant degree the regional
_ characteriatics determine the output-capital ratio for both existing and
new fixed c~pital. `Perritorial concentration of capital, organization of
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tha work of enCerprisea encompuasing producCion sectora, the capacity of the
construction baeea, the coefficient of cogt of the operation of equipmont--
a11 these are also at the same time factora of a regional charactar. xhe
� exiati.ng methods of calculating the effectivenesa of ehe diatribution of _
fixed capital and capital invearments are far from ideal and they fail to
make full allowance �or Che rerritorial charac~eristica. To a conaiderable ~
extent they account for Che diecrepanciea between the planned and actual
_ coat of conetruction. ~
We ahoul~ emphasize rhe special imp~rCance of Che facCors which incxease
= the cost of conatruction and operation of �ixed capital in the regions wiCh -
- unfavorable narural and climatic conditiions and in remote regions. The neaL
_ future will also see an increase in the capital and operational outlays for
implementation of ineasures for environmental protection (purification of
- drainaga watera, protecCion of the land and the water and air envirocunant ~
from pollution by industrial wasCe~). . -
Territorial differentiation of pricea and rates has a great effect on the
- choice of a region for distribution of production and on the ahaping of the
_ structure of the economy in che regions~ It has trerefore becoma extremely -
important to have a theoretical and practical study of the ques~ions of
- establishing prices embodying the principle of territorial differentiation. -
` The level of prices aad rates directly affects Che acientific planning cal- -
culations and the organization of construction by the enterprises, making
- it possible to arrive at variant evaluattons of production distribuCion nnd _
to determine the economic effectiveness of the operation of new enterprises
. and their comparative profitability. The calculations of the technical and -
. economic'indicators provide a basis for scientific reaearch and planning
work in the realm of regional economics and distribution of production man-
. power.
An extremely complex theoretical problem is enCailed in evaluxtion of the
' natural resources and�estabZishment of territorial pric~ differentiation -
for the varioua types of fuel and mia~ral raw materials. The eharp price
. fluctuations etemming from the natural conditions entailed in the working
- , of the mineral deposits mal+:e a sub~tantial impact on the effectivenesa~of _
~ the national economy. For example, the price of energy coa.1 calculated at
the rate'per ton of conventional fuel fluctuates for the various basins ~at
the points of extraction from 2 to 28 rubles and the pr~portion of this
. price for average transport expenses for the basins ranges �rom 15 to 60
percent. Great practical significance therefore attaches to the efforw to'
, obtain scientifically valid relationships among the regional prices for the
. natural resources. And this gives rise to the question of the extent to which
the regional prices for the natural re~ources should reflect the territorial '
differences in production costs, differences stemming from the natural and
other conditions; also, the differences in trans port expenses. This is~
especially important for solution of the major re&ional problems pertaining
to the task of accelerating the exploitation of the natural resources of the
USSR East and North. ~
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The mechuni~m for econnmic regulation of the locgCion of physical producCion
must be inCerrelated with a eciPnrifically valid policy of aeaee mot~.vaCion
for the developaic:n~ of tha regions. Ttiis is pttrticularly important for thd
regiong witti unLuvorable nf~eurul and climatic conditiona~ Accelezation of
� the d~:velopment of new re~ions ia af�ected by lower ratea for electric
power, reduction uf the norms for w ithholdings from profiC, increased ap-
propr.tutions fox the est~bliehment of a production and social infrastructure,
und other forms oF aconoinic motiva!tion. DefiniCe motivarional measurea are
alan necesaury when enCerpriaes are locat~ed in the small and medium-aized '
cities. ~
At the same time, there ia alao need for methoda of resrricting the location ;
of enterprisea with high material, energy and waCer index in regions where -
fuel, energy and water are in ahort supply. Increased natural resource coat
valuations for auch regions would indicate Che undesirability of locating
energy and water-intensive enterprisea in them. This restr3.cCion is also
important from the atandpoint of establishing economic conkrol over the ad- -
herence.to the territorial economic proportiona. It is also necessary to
_ inCensify the economic conCrol over the placement of n~w enterprises in the
- large cities. Ec:onomic regulation of physical production also has a bene-
- ficial effect in protection of the natural environcaent.
Improvement of Territorial Planning ;
- Science and the work of socialiat planning have now developed a new~approach
to improvement of territorial planning. This approach ia characterized by ;
the follow;ing: preparation of Eeneral schemes �or the disposition of t:~e ~
USSR productive forces for the long-term p2riod as preplan, scientifically
corroborated materials; preparatian of special schemea for the diapoaition
- of the national economy sectors and also for the all-round development and
dispositior~ of the productive forces of the Union republics and ~he economic
regions; impravement of the methods of compiling schemea for regional plan-
ning projects on the basis of scientifically valida~ed achemea; disposition
of the productive forces in Che various Unioa republics and economic r.egions;
development of comprehensive programs for the economic regions.and the re-
gionul national economic and territorial produc~ion complexes; prepararion
for the long-term period of scientific concepts defining the strategy of the ~
geographic distribution of the economic development of the country�s macro-
re~ions and the essential tasks relating to the future distribution of the ;
productive foxces throughout the regional aystem. ~ ~
Tn accordance with Che directives of~the 23rd CPSU Congress, the USSR Gosplan
GounciZ for Che Study of Productive Resources (SOPS) worked out a general ,
plan for the disposition of the USSR productive forces in the 1971-1980
period. This scheme was used for the practical planning. In the last few '
years the cuuncil has prepared a general scheme for the 1976-1990 period; -
this~scheme reflec:ted to an even greater degree the scientif ic concepta
which enable us to d~.termine the optimum variants for improvement of the
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territorial organization nf the USSR economy as well as the basic directiona
o� the developmenC oE rhe country's tiari~nal economy over the long Cerm. :[n
uddition to the clarificaCions and s upplements for the general acheme sub-,
mitted, the S OP5 is developing preliminary aolutions for Che most important
problema connected with die~oaition of the USSR productive forcea in the
period up to the year 2000.
The acienti~ically validated general schemes for the disposition of the USSR -
- productiv.e forces were f irmly incorporated as preplan materia ls in the ter-
ritorial~planning system. Their aignificance, however, is much broader~than
- thia. The existence of developed and approved sectorial and territorial
- schemes makes it possible ro improve the methoda of work on regional
, planning, the planning of pro~ect and research work, and indusCrial, agr~-
cultural and transport planning. A iding this planning is the establishect
procedure whereby baginning in 1971 decisions with reapect to Che planning
and construction of enterpriaes and installations had Co be made on the
� basis of the schemes for development and distribuCion of the national economic
~nd industrial sectors and the schemes for the development and deployment of
- the productive forcea in the economic regions and Union republics. -
Many socialist ~counCries are profiting fr nn the USSR's experience in develop-
_ ing general schemes for disposition of the productive forces over the long _
term. General schemes of a similar type are being prepared in Poland, -
- Hungary, Bulgsria, GDR and Cxechoslovakia. The SOPS is currently collabor-
ating with the scientific planning organizations of Mongolia in Che prepar-
ation of a Long-term general scheme for the development and deployment of
Che productive forces of MNR-[MongoliaJ.
ImprovemenC of_ tY~~ Cerritorial organization of the economic system generates _
new forms of deployment of the productive forces. In the his tory of the
economic development of the USSR special importance atCaches to the opening
up of new regions possessing a high concentration of valuable natural re-
sources. This national economy deve lopment, which is characteristic of
socialist construction, has made i.t possible to create the country's power-
ful raw material and energy potential. Every five-year plan for the develop-
- ment of the USSR's national aconomy maps out new paths for the economic ex-
ploftation of regions rich in natura 1 resources. The scale and time perioda ~
of this tota 1 economic exploi~ation are without precedent in world history.
'"fhe. long-range plans," said L. I. Brezhnev, '4ai11 lay the foundation for
the solution of many major problems of communist construction. This will
enable us to advance along the path to the establishment of a material and "
technical base for communism and to raise the living standard of thia people ~
~ to a qualitatively new level. It entails the all-round development of the -
productive forces, the~ acceleration of scientific-technical progress, and
the consequent enhancement of the effectiveness of the entire economic sys-
tem. Work wi11 be developed far the creation of new enormous national econ- '
omic complexes."4 .
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The characteristic features of ~t regional naCional economic complex are: a
lar$e newly exploited terrirory with a high concentration of valuable naturral -
_ resources, rhe exploiration oE which resolves the ma~or fundamett~al problems
of the country's economic developmene itt the near and distant fuCure; tihe
need Co establish not only apecialized indusCrial centera but also a com-
plcte production and social infrastructiure. _
_ The following are regional national ecor.~mic complexes: the West Siberian
~ 1owland complex (Tyumerskaya and Tomskaya obl~sCs and part of Novosibire kaya
Ob1asC), the system of the Angara-Yeniscy complexes (Krasnoyarakiy Kray,
Irkustskaya Ob1.asC and parC of Kemerovskaya Oblast), the Timan-Pechora com-
plex (Komi ASSR and parr of Arkhangel'skaya Oblas t). A regional nationa 1 ~
economic complex is rising in the vast territory of Che Near North ad~a- -
cent to the Baykal-Amur Trunk Line. Coming next will be the formaCion of the
new interrepublic complex of Che eastern Caspian.
The work of planning and territorial organization of the economy is to an
increasing extent embracing both the multisecCor and specialized territorial
produceion complexes [T PK]. Nearly all the regional national economic com-
plexes have TPK systems. In his report at the 25th CPSU Congress A. N.
Kosygin emphasized this poinC: "The charter of the various regtons of Che
country will to an ever incrcasing degree be determined by the realization `
- of the large-scale natiional economic programs and the eatablishment of ter-
- riCorial pro~iuction complexea."
Th~ Lerritorial production complex is a highly effective combination of en-
- terprises oi one or several specialized industries deployed witt~in a large -
economic region, a Union or autonomous republic, an oblast or a kray and
making use of their production and social infrastructure. Typical of the
1930's was the organization of the I~ibinskiy apatite-nepheline territorial
production complex. The lOth Five-Year Plan is continuing the development of
Che territorial producCian complex based on the mineral resources of the Kursk
magnetic auomaly as well as the Pavlodar-Ekibastuzskiy, Karatau-Dzhambulskty
_ and Mangyshlakskiy territorial production complexes in Kazakhstan. In Tadzhik -
SSR they are farming the South Tad~;hik Industrial Agricultural Complex. In ~
the system of the regional West Siberian National Economic Complex they ar~
mapping out the territorial production complexes of the middle Ob' and L-he
Tyumen'-Tobol'sk and Severnyy rPgions. In the Angara-YQnisey system of com-
_ plexes they have acceler~ted the pace of the development of the Sayansk com-
. plex and the Central Krasnoyarsk organization based on the Kansk-Achinsk.
- Fuel and Energy Complex; they are also fnrming the Boguchanskiy TPK. Near-
, ing completion is the Bratsk-Ust~-Ilimsk complex. In the zone of the BAM � -
[Baykal-Amur Trunk Line] they are beginning construction of the South .
Yakutsk territorial production complex, which is the firat of thase in the
sysCem of BAM complexes.
The schemes for the development of the national economic production com- ~ -
plexes have been incorporated in Che schem;es for the deve:opment and deploy- -
ment of the productive forcea of the Union republics and.~economic regions.. .
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~nit O~~ICIAL U~~ dNLY
Tlic JCItLtIH3H nnal~+r.a thc ~tutus oC ehn economic davulonmettt nf tfie dperntional
rnmpl4x~~y~ alubnrii~u an tl~e cnnc~u~~Ce fur thu l~n~; tnrm, and d~lin4ae~ eha
int~rr~luCionHhipd burw~~n tliu ~pnciullx~d indu~Criu~ ~nd Che prdducCidn nttd
gncial infraeCructur~, and ~cnp~ nead prinriey ~f eh~ non~eructinn nE th~
mnet impnrtenC in~egll~tidn~, the requi~iCe l~b~r, sn~Ce~ia1 ~nd fingncial
cn~tg, and thQir natinngl ~aonomic t3~~0Cr~,VEil1Qg8~ The ech~m~s for the cdm-
plexee con~tituta th~ basic gci~nCificnlly v~tid~ted dncumenr for the lnng-
rgnge planning nf the comp'l~xe~ in Ch~ gt~ta plune ("Che unifir~d conetruction
' prn,~ect"). 3Chemes lik~ rheee wieh v~rying degreng o� d~t~il hav~ been
worked out fnr ~11 the cnmpl~x~g now being formed.
~'rom 1969 to 1970 the SOI~S worked out g spacigl schema similnr ro a compre-
hengiv~ program for tt� develnpment of Ch~ prnducCiv~ forceg bf Kraennyar~kiy
Kr~y in the 1971-1980 p~rind. In him ~paech ar the preel~ceion meeting of
Ch~ vntere of th~ A~um~ngkiy electdrnl dietrict in Jun~ 1975 L. I. Br~zhnev
c~lled th~ deciginn for the development of th~ prdductive fore~s nf
Kraenoyar~kiy Kray a modcl cnmpreheneive eerrieorigl progr~m ~nd he nb-
servad ChgC Che othar nation~l economic complexeg and regiong of Siberia gnd -
rhe Far ~aet ar~ elmo in n~ed of such decieiong tying together economic,
ancial, politicnl, geographic and many oCher ~act~ts. For further devElop- ~
ment nf tha productive forces of Krasnoyarskiy Kray there was naa a need for
n perfectQd acheme fnr the new period (up to 1990).
The comprehensive program for the territorial production system differa from
the mnre concrete schecr~ea in reapect to the parCies involved, the relation to
rhe bxlnnce sh~gt, the capiCul outlgys and the resultg. The compraheneive
progr~m i8 not a preplan but g concreCe planning docwnent with fixed ~tagea
of implementution. Cong~quently, along wiCh the scientific and planning nr-
ganizations, an acCive ~rt in Che preparation nf the comprehensive programs
mus t alsa be taken by Che s tate planning organs (Gos plan USSR, Gosplan of
the republic, and the kray (oblast) planning cortaniasion).
The theoretical baeis of the modetn system of territorial planning is the _
regionat ecanamic aystem, which ie required to make a g tudy of the total com-
bination�of facts and pheno~aena which bring abo~t the planned development of
Che producCive forces in each of the country's regiotts. The deployment of
, the productive forces, the acientific basis of which i~ the synthesis of
ecnnomic, social, natural and technical sciences, also deCermines the degree
o: improvement of the economic structure of the regions.
The following must now be the focuR of sttention in the matter of improve- �
ment of territorial planning:
The methods of system analysis and a determination of the optimum territor-
ial economic proportions among ti~e macrozones and w ithin the zonea. Con-
stituting the basic scientific planning instrument are the general ach~mes
for t.hc plucement of the productive forces of the USSR and the achemea for _
the republics. A careful analysis of the territorial proportiona is espec-
ially urgent becauae of the accelerated development of the productive forces
of Sibe ria and the Far East.
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~t7k n!'i~'ICIAL USL ONLY
'Thc; mcthodology and meChnda ~f ~nrming lnrge nneion~l econamic COt11p1@Xt38 end
thetr ~ymt~m~ ehroughdut Chu e~rriCory n� Ch~ cnunCry. In eht~ conn~cCion~
E~pecinl import~nce i~ ur.~ulr~d by t1~~ prc~plun nnd ~eicneifiec~lly cnrrobor-
~ec~d nc:l~umc~ nn~ programg for ~he developmene nf Che ~xieting l~rg~ compl~xes
und ~nr ehe formatinn of new ane~.
'rha cn~tf~~d~ingy and meChuda pert~ining en rtie ~octal procesa~~ in th~ co~nCry's -
regiong, Cti~� proree~~s which en~ble u~ r^ influ~nc~ th~ demogrgphic procee~es
in cnrh region, end Cn provide ~nr efficic~nt ueilix~tion of the labnr re-
9dUXC45 and maintennnce nf An ~�f~ceive ti~l~nce beeween Che productidn prn-
gr~m und thE lnbnr raeourCC~s, ona which r~gulat~s the migraeion of the popu- _
l~tion. In this reg~rd epncial importancc~ atCachas to the programs for eocial
- d~velopment of the reginns, progrgms worked out by rh~ r~public economic in-
~tiCute~.
The methodnlogy and meChoda computaeion~ for environmenCal protecCion., methode
whiel~~~e ~cquiring ever greaCer economir gnd, parCicularly, social importance
nnd which hnva n~ubstc~ntinl effece on the atruceure of the economy of the
regtons, the volumes of cupitgl inveaCmenC~ and the concentration oF produc-
tion.
_ These m.~tters require profound and comprehensive rQaearch performed dir~ctly
_ ut rtie sites. This reaegrch muaC also find concreCe realization in the re-
~ion~l planning projects and in Che programs of capital inveatmenta and
gci~neific-Cechnical progreae in the republics and economic regiona.
The Tasks and OrganizaCian of Itegional Scientific Reaearch
~rom an overall standpoint, the scientific research taska in Che field of
regional economics and deployment of the country's pxoductive forces can be
divided into three groups: the atrategic (conceptual) taska, the concrete
(comprehensive regional programs), and the meChoda taske. The b..:ategic
taska should include the scientific concepts for the long-range period (up
ta che year 2000) and ehe specific directions of the economic development of ~
the entire regional system of the country and particularly of the large
J regtons which exert the greatest influence on the economic system as a whole.
It is ~Long these lines that we are working out the construction principles
and atage-by-atage development of the economy of the regiona on the basis of
i~.~rther rationalization of the deployment of the USSR productive forces.
In the matter of concrete tasks we need a decisive change to a higher level--
u bro~d development of comprehensive regional programs and a policy of look-
ing upon the schemes as the first etage in the solution of the complex of
regional problems. The first job ia the preparation of a comprehensive
program for the Far East (with apportionment for Yakutsk ASSR) and the now
in preparation comprchensive program for Krasnoyarakiy Kray. Required in
tl~e future will be the compilation of cocnprehensive regional programs for
nll the national economic and territorial prod~ction complexes, both already
cstabliahed and in the procese of formation.
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~UIZ nl~'~ICtAL US~ ONLY
Tn nur opi,nion, Chc~r~ im nend for et� davelopmanC nf comprehengive region~l -
prugrume fnr the ~acenrs n[ the n~Cion~l ecnnomy ~nd for all ehe Union re-
publice. prngrams oF ehi~ kind cnn only be worked oue ehrnugh the ~oint af-
forte nf tt~c ~cienCifia, prn,~ect drakring, ~nd pl~nning organi~aGiona. Tho
comprnh~n~iv~ regidnal programs ehould b~ r~g~rdad g~ planning document~ and
with the v~rious correceiv~~ ehey ~hould be incorporated in the BC~Cg five-
yegr end y~grly plgne for Chu dQVelopmenC of the counrry'e n~tional econnmy.
Tha v~eC,gcnp~ of th~ prepl~n nnd pl~nned work for current and futur~ die-
pnsieion oE the USSR productiv~ forceg $nd of Che dynamic ~11-rnund forma-
tion of th~ ~~nnomy of the Union republics and economic regione aleo makae
urgently nec~aggry a new approach Co the organization of inethodological work -
along thase lines.
There ie nQed f~r a gyatem of genaral and apectal methods for deployn~nt of
the producCive forc~g nnd for the economic development of the country's rQ-
gione on a new scientific bagis. In the pasG the people concerned worked
out genera~ methoda and a program of g~naral scheme~ which were used in
compiling the general echeme for the disposiCion of the producCive forces in
- the 1971f1980 and 1976-1990 periods. A greaC deal nf exparience was ac-
quired in reapect to the ecientific preparation of achemea oF this type.
The neQd is to apply a cregtive approach to Che generalizing of thie exper-
ience ~nd to perfect the overall merhodology of the general schemes and tha
methoda qf preparing industry and regional schemes.
An ncute need is also being felt for methoda to be used for the comprehen-
sive regional programs which encompasa noC only the territorial production
complexea but also the disposition of Che complexen of the industry aectors _
. (for example, the fuel nnd energy complex) and the long-term farmaCion of
economic complexes for the Union republics and the economic regions. Cur-
rently on hand is some reserve for the development of comprehensive program
methoda for the regional complexes (the Krasnoyarsk program and others).
Ha,tever, the work on theae ahould include the republic economic institutes
and a number of industry and planning inatitutes.
Among the rsgiona 1 methads of the functional type a special place is ae-.
signed to th~ general methode pertaining to the economic effectiveness of
- the dispo'eition of the productive forces wi.th an integrared and intertwined
syatem of individual method~. These include methoda aimed at effectiveness
of the diatribution of the varioua enterprises and production projects,
methods aimed at effectivenesa of the disposition of individual industries
- and complexes of the national economy sectors, and methods aimed at effective-
ness of the formatioa of territorial production complexes. This group may
also include the methodological materials pertaining to the calculation of
regional national income, to the effectiveness of the uae of production -
capital in the regions, and to the effectiveness of the mechaaism for econ-
omic regulation of the diatribution of physical prociuction. This is far~
from a complete liat of the scientific methods materials which muet be
prepared in the next feW yeara in the interests of improvement of
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N'nk nl~'I~'ICiN, U~L nNLY
Currlt~riul plunnlnK uiicl Cur~hnr clevuLnpmunC nt ~cic~nCific reeeurch. ~'hg _
l~rga ecientifiC CnLl~ctivQa can accompli~h thie on Che bamis of a we11-
cnordin~Ced plnn oE ~ci~nri�ic ra~egrch.
I~ i~ p~reiculnrly impore~nC tn dwell ~n rh~ prdblams ~nd the organiz~C'ionel
yrrurrure of the eci~nce df deplnymenC ot the producCive fnrc~s.
_ Wa now have ttll the precc~nditiunm fnr Che d~v~lopm~nr o� g well-b~lanced
ehcnry nf daployment nf the USSIt producC!ve forcen, dne which ie ~d~quate
for the c:ra of d~veloped goct~liem. Such a Chenry, as one of ehe mose im-
[~nrt~nC direcCidns of mndern ~cience, c,??? nnly be developed in an indiesolubly
inec~rgcting complex nf science~, econnmic ~nd eocial and natural and Cechni-
c~l. It ie neces~c~ry noe only tn aCudy Che objective economic lawe and to
be nbl~ co quickly nvnlu~ee the changing goci~l proceasea buC also to ~Ceain g
prnfound und mod~rn ~aientiftc l~vel in pgrceiving ehe nb~ecCive lawe of th~ -
disrribueton of ehe natural resouzc~s (geological, snil, ecological gnd a~ny
attier factore) and thQ laCeaC modern tQChnology.
The work of developmetsC of SoviaC economics requires a further differenti-
ution of the eci~nce br~nches ~nd particulgrly of the eeonomic aciencea. A
recent development has been the fornulaeion of the docCrine of tha gcience
o~ demographics nnd of the economice of the social processes. Economic and
maChemaeical methoda took shape as a branch of science. There also evolved
tt new direction in ec~nomtc science--regional economics. The scientific
discusaions on the problema of regional economica in Che republic economics
institutes and the broad coverage of theae problems in the central and repub-
lic preas accelerated the development of a regional economics which general-
izes th~ considerable experience of many yeara of regional economic research ~
in our country and abroad. As we know, the preaidium nf the Academy of
5ctencea USSR included in its basic fundamental research the comprehensive
problem "The Regional Economics and the Regional Social and Economic Devel-
. opment of the.U5SR in the Future"; this subject is being reaearched in prac-
tically ali the republic economic instiCutes. Regional ec momics as a
branch of science is being successfully ~leveloped by the acientiata of the
socialist countries. In the space of eight yeara each of the socialist
countries in turn has been conduc:ting special conferences and symposia on
the problems of eocialist regional economics. There have evolved in theae
countriea groups of highly skilled scientists who are versed in the theory
und methods of regional economics and are able to solve concrete regional
economic problems in their own countries. A large quantity of acientific
literature on regional economics is being publiahed in the USSR and abroad.
W ith all this, regional economics is not a science of the dis position of the
productive forces in the strictly scientific interpretation of this problem.
The rational disposition of the productive forcea is ~conaidered the basis
and the chief constituent element of regional economics. Regional economics
investigates only the objective economic lawa and the economic substance of
the phenomena and processes pertaining Co the disposition of the productive
forces.
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~ox o~~icr~ crs~ orrLY
In Muy 1978 Chgrn wae hQld ~n All-Union conferoncc of Che ec nnomic geogx~tphy
deparemente of rha counery'a univarsitias. Ae this canfarnnc~ n~oint re-
pnrt nf thre~ univareiria~ (Mo~cow, Leningrnd ~nd Kiev) defined the fundn-
crontnl t~netg in ttte furth~r d.~velopmenC of r~search in the field of economic
geogruphy. A decieion wae taken to organiz~ a combined coordinating -
ecieni:ific center for regional ~conomLc problems.
FOOTNOrT~S
1. This areicl.e servad as eha basig o~ the M~y 1978 Moscow--held All�Uninn
= conference on meGhodological and meChode problems relating to Che deploy-
mcnt nf ehe productive forcea and region~l economice. See pp 152-154 far ~
information on Che conference.
2. "fhe Five-Year Plan nf USSR National Economic Conaeruction," Vol 3.
Izdgtel'stvo Planovoye KozyaysCvo, 1929 p 9.
3. The decree was publish~d in full by Gosplan USSR in ehe ~ournal PIANOVOYE
KHOZYAYSTVO No 6, 1977 pp 154-155.
4. L. I. Brezhnev, '~By Che Leninist Course~ Speeches and Articlea," Vo1~5. _
POLITIZDAT, 19~6, p 68.
iProblems of Labor DisCribution and the Productive Forcea
Moacow VOPROSY EKONOMIKI in Russian No 11, Nov 78 pp 152-154 -
(Text] In the closing days of May 1978 Moscow was tlhe scene of the firat
scientific conference on methodological and methods problems connected with
deployment of the productive forces and regional economics; the conference
was orgaaized by the USSR Gosplan council for study of the productive forces.
Taking part in the *~urk of the conference were more Chan 400 scientigts from
many of the country's scientific organizations; they aubmitted 325 reporta,
(in the form af theses).
,
The plenary session heard a reporC fxom Academician N. Nekrasov which re-
vealed the basic directions anQ met'nodological tenets of the investigations
of the moat important problems conr~,ected with distribution o~ national pro-
duction and its eerritorial organizaLtor in light of thp decisione of the
25th CPSU Congress and the subsequent party and governa~ent decreea* ,
Academiuian N. Nekrasov ~ report was diacussed in four aeations.
*The article Academician N. Nekrasov wrote on the basis of this, repoxt is
published in this ieaue of the journal.
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~'Olt 01~'A'CCIAI. US~ ONLY
The ltrsr Hecrion--ehe meChndologicc~l problemy of Che econnmic ~nd ~ncigl .
- dnveln~xnenC nf Chn Uniott r~public~ and the economtc region~ and the formaCion
~ind devalopmr.n~ of thQ regidnal produceion complexe~--rnviewc~d the following:
lh~ regionul gGn~rttl ~ind nvernlL problQms; Che methodological nnd meehod~
que~ttons ent~iled in the developmant of tha economy of th~ Uniun republiem;
- problem~ aritittiled in ehe inCerr~gional pl~cemenr ot production ~nd the for-
n~arion ~nd development ot nnCiorial ecnnomic und Cerritorial production com-
pl~xes nnd industriul cc~nters; morhodologic~l problen~s connecCed wiCh ~he
- Eorm~tion of n socittl ir~frrsrruct~r~ ttnu a living seandard; methodologic~l
proUtems of reserCl~ment ttnd urb~nizatiun; methodogical problems contt~cted
wiCli safeguarding and improving the env~iunmenC. Yt wae noCed in Che
scckivn that rational dispoaition of Che prdducCive Eorces and purpoaeful
_ social ~nd ~conomic developmenC of the v~rious territorial units muat be
~:arried oue on Che basi~ of tha long-Cerm goals for Che development of Che
country's economy. A positive solueion for ehe problems of Che dev~lopcaent
of thege units can be assured on Che basis of interregional end intra-
region~l ntttion~l economy proporeions based on Che balance-aheet method of
calculutions. At preaent the bglance-sheee accnunts in Che Union republica
and regions are compiled on the b~sis of a LimiCed group of indicators. No '
intereectorinl b~lance sheet of financi~l resources is compiled and the
figur~s for th~ balances oi social product, national income, and monetary
income and expenditures do not fully reflect the true picture of the region's
economy nor are they coordinaCed with the planning calculation indicators
compiled for the aectors of rhe economy.
_ The section also discuased the new direction of regional economic research--
~ r.he effect of foreign economic relations on the formation of national
economic systems in our country. Fra,n the methodological atandpoint foreign
economic relationa based on the participation of a particular region in the
inCernational diviaion of labor is considered one of the most importaat
factors in the disposition of product3on. The number of new problems should
ulso include the methodological approaches to evaluation of the developmenC
of the scientific-Cechnical potential (NTP) of a region. Improvement of the
dis positioct of NTP is not only a way to increase the effectivenesa of
science but also an importanC instrumentality for planning the development
of the various territories and Che dispoaition of the country's productive
forces. The large territorial production complexes cannot develop auccesa-
fully in the context of the NTk [acientific-technical revolution] if they do
not possesa the requisite level of NTP.
A number of speeches touched upon the development of inethodological tenets
For econom�c evaluation of the environmental quality and protection in tlie
deployment of the productive forces and the formation of territorial produc-
tion complexes. The opinion was voiced Chat an instrumentality for motivat- -
ing environmental protection measures may be payment of a pollution penalty
which should be levied mainly against enterprises guilty of environmental
~ ~~ollution. It should m t be included in the production coats but ahould be
paid from the enterprise's fund. The pollution payaients collected from the
enterprises go into a fund for the implementation of environmental protection
m~:asures in the region.
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~n~ d~~~cr.n~. us~ o~.,Y
In the diecuseion of Cha meChodnLogic~l problems af regional form~tion of
the eocial infruetructura, ehu stnnd~rd of living, attd rea~CClement and ur- -
banizatinn, t?ttenrion wae �ocused on tho key problems nf inethoda o# evalu-
- ating the regional differentiAtion in the levels of developmant of the
epheras o� aervice; tho infraseruceurAl c~nfiguretion of Cli~ Carritories;
assegam~nra of Che levels of r~gional davelopment o� Che varLoug sectore of
the eervice ephere; formaCiun of n a~cial. in�rasCruceure in relaCion to the
dietribution of industry in a pnrticul~r aconomic r~gion; methoda of geo-
graphic differentiation of th~ living aenttdard of Che USSR popul~kion ~nd of
- compiling the regional differentia,ted balunce sheets of populaCion income
and consumption; methoda of pl+~nning regional differeatiation of public con-
_ sumption funda; the methodology of eatabliahing syatems of populated placea
in the USSit, Q Cc .
The sacond aection reviewed the problems of evalu~tion of the economic ef- -
~ecCivenesa of the diaposition of the productive forcea and their rerritor-
inl organization: mcienCific methodological queatinns of regional effective-
n~as of the diapoeition of tha productive forcea; methoda of facror analysis
of the economic effectivenesa of the distribuCion of phyaical production;
meChods pf determining and evaluating Che effectivenaes of the regional
- utilization of the moat important types of producCion resources; meChodolog-
ical questiona relatin~ Co evaluation of the economic effectivenesa of the
distribution of the industry secCora; methodological principles for deter-
mining the economic effectivenea~ of the formation of regional national econ-
omic complexes. We have not yet achieved a methodological unity in calcu-
- lurion of the economic effectiveneas nf the disposition of the productive
forcea and all of national production. One of the important reasona for this
is to be found in the apecific characteristics of Che evaluation of the de-
ployment of the productive forces: we need Co take into account not only
the purely production outlays but also the costs relating to the solution of
social problema in the regions of distribution; the regiona 1 characteriaCics
of the utilization of the most important Cypea of material resourcea can only
be interpreted if they are evaluated in relation to the national economic
coats.
.
The third section discussed the methodological problems of the development
and distribution of the physical production aectors: methods of economic
evaluation of th~ utilization of the natural resourcea, which methods aerve
as the moat important prerequisites for the development of physical produc-
tion in the territory of any region. However, as a reault of the lack o~
unity in the concepts pertuining to the nature of the economic evaluation of
the natu`ral resources there are today no generally recognized methods of
evaluating even a single one of the typea of natural resources. Inadequate
~ , study has been devoted to the methods of oomprehensive evaluation of the ter-
ritorial combinations of natural resources. In its most general form the .
comprehensive evaluaeion of the territorial combination of natural resources
(TS PR) is obviously the sum of the component evaluations of naturat resources
which make up the TSPR being evaluated.
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~OEt d~'~ICIAL (l5L ONLY
Ad wua noCed in ehc ~ccrinn eho eEF~c~ivenes~~o~ the compl~Ce ~xploiC~Cion
n~ thg rnw rtw terial re~ourcda i~ determined vi~ Che relaCionahip between the �
, o~eluys ~or proc~:sALnb eha raw m~?tnrial and the ef�ect nbeuined tte ~ reaule.
Thn calculnrinn oF c~xp~nditures does not pre~ent any apeci~l difficulCies -
Uut the meehnds of deC~rmintng Che e�fe~t tiave noC been ~dequar~ly worked
out bc~cnusa tha eEfece obC~ined from tha �ull exploiCaCion of raw mat~rial
ie varied--i:t shows up in pare beyond Cho enterpriaes of eh~ae indusCry _
g~cCnr.g and in gome c~ses ~ qu~neieative measure is hard eo come by.
7'he secrinn cnrried out a d~tailed gnalv:~is of Che methodologtcal probl~ma
oF regiongl devel.opment of Che country's fuel and energy complex, the com-
plex of the procassing industries, and ehe conatrucCion complex and iCe
marnli~l and technical base. The ahift of Che fuel extiraction induatry to
~he eaet and the est~blishment there of huge fuel and energy b~ses of Union
subordingtion require increased raCes of graath of induetrial production in
rhe eustern regions.
Ttie diecusaion of the problema of formation of a water economy includad a
review of the methods of water managemenC diarricCing and control of Che
warer resources exercised by a aingle w~ter mnnagement syatem for Che
country; re$ionul development of the water economy; economic evaluation of _
the waCer facto~ in the deployment of production; economic evaluation of
full uge of the water resources; compilation of waCer economy balance s?~eeta
tts bases for evaluation of the full utilizaCion and protection of the watar
re~ources; meChodological and organizational problams in predicCing water
consumption in induatry and agriculture.
The membera of the fourth section exchanged opinions on the uae of economic
- gncl mathematical meChods in deployment of the productive forcea: simulation
of territorial national economy proporCions; optimization of the distribution
of the various aectora of the national economy, and of induatry anc~ ~t:; non-
production sector; creating models for the planning and forecasti~zg of t,ha
developmenC and deployment of the productive forcea of the various regions;
simulation of the formation oF territorial production complexes and evalu-
gtion of their economic effectivenese; creation of models for the syatems of
personnel relocation, etc. Recent years have aeen a substantial grawth in
the volume vf work on the creation of economic and mathematical models for
- deployment of the productive forces. This has enabled ua to ewitch from
individual aectorial and regional models and general theoretical pro~ecCions
to practical development and monitoring of the systems of modele for long-
~ range planning on the Union, republic and regional Ievels.
The conference's concluding document noted that in racent years a number of
general and individual methoda have been developed for the various problems
pertaining to rational disposition of the productive forces and enhancement
of the effectiveness,of the social and economic development of the regiona.
A great deal of practical experience~has been aGquired for solution of the
sectorial and regional problems entatted in the development and deployment
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of Ch~ prnducriva forc~e and work has begun fnr the prepararion of ~ uniFied
eyatam oE tachnical and econnmic indicatora ~or the placement nf ehe indusery '
and national economy aectors.
Th~ growing importance of inetihndological mareri~l for eolurion of the prac-
rical problemg nE deploymant oF the productive forcas makea urgently necas-
eary further dev~lopment of rhe work along Che following lines: ehe esrab-
liahmant of a syetem,of ineerrelated merhoda for the preparation of schematice
_ for the diaCrtburion of the producCive forces and territorial organi~ation
and evalu~eion of their effectivaness; strengChening of the syatem of com-
preheneive re~tional reaearch on the problems relating to Che theory of de- '
ploymanr of the producrive forces and CerriCorial organization of naCional
� production; devalopmant of theoretical and methodological principlea for
recording Che impact of scianeific-t~chnical progresa on the diepoaiCion of
, the productive Eorcea and on enhancement nf ehe effectivenesa of the ter-
ritorial organization of production; improvement of the methods of analy~is
and preparation of terrieorial balance sheaes for varied reaourcea--fuel
~r~d energy, mineral raw materi~l, water, land, timber and labor; develop-
mQnt of ineChoda of quantitative analyais and economic evaluation aF Che
effect of international diviaion of labor on the formation of an effective
national economy strucrure in the regiona.
The conferonce's concluding documenC noted Chat for intensification of re-
aearch on the roethodological and methoda problema pertaining to the dis-
position of the productive forces and for employment of a unified approach
to the aolution of theae problems, it is deairable to set up a methodologi-
cal center which would asaume the functiona of orgaaising the planning and �
coordination of thia reeearch.
V. Yevatigneyev and L. Tatarnikova
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy Ekonomiki", 1978
7962
CSO: 1820
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~~nk a~~~'ICTAt, USC ONt,Y
PROBLEt45 AND'PItOSPECTS OF SOVIET-AM~RICAN ECONOMIC RELATIONS
- Moecow SSSR-CShA: Ekonomicheskiye Otnosheniya (USSR-USA: Economic Rela- ~
tiona) in Rusaian 1976 signed to press 11 Aug 76 pp 3-4, 415-416
[Annotation, table of contenta and attribuCion of chaptera from book edited
by Ye. S. Shershnev, Nauka, 17,000 copiea~ 416 pages]
[Annotation]
[TexC~ ~The book covere a broad range of topical problems in Soviet-Ameri-
can relations on the basie of an analysis of subeCanCial factual material,
ehows how political forces in khe United States are lined up on the iseue
~ of economic cooperaCion between the USSR and the United Statea, and indi-
cates the roade and possibilitiea of its development.
The authore of the various parts of the boo~ are as followa:
Ye. S. Shershnev, doctor of economic aciences: Introduction,
Chaptere 2, 3, 5 and 6(Sections 1-4), and Concluaion;
V. S. Anichkina, candidate of hietorical sciences: Chapter 1(Sec-
tion 1) and Chapter 8; .
V. A. Fedorovich~ candidate of economic aciences: Chapter 1(Sec- '
tions 2 and 3) and Chapter 8; �
N. A. Dolgopolova, candidate of historical sciences: :hapter 4
(Section 1); -
V. I. Zvolinakiy: Chapter 4(SecCione 2-k);
� S. L. Kambalov: Chapter 6(SecCion 5); `
P. M. Malakhin: Chapter 6(Section 6~; ~
I. I. Sheydina, candidate of historical sciences: Chapter 7 ~
Editor in Chief Ye. S. Shershnev,
doctor of economic sciencea ~
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F'UIZ Ui~'I~ ~CfAL USL nNi.,Y
CONm~Nm5 P~ge
~oreword 5
Intruduction 7
ChapCer 1~ Peaceful Coe~istence oE States With Ui�fering Social
_ Sy~etems ae the ~oremost Prin~iple of the Soviet
- SCate's F'oreign Po11cy 14
l.l. t.~nin's Princ~.ple of Coexistence and ies Development
in tihe Present Stage~ 16 -
1.2. ~conomic CooperaC~on as the MaCerial Basis of Che
. Peaceful Coexistence of States 38
1.3. International lsconnniic Cooperation and Socialiam 49
Chapter 2. Soviet-American Economic CooperaCion in the Firat
Stages of ita Development ~ 57
2.1~ Development of Economic Relaeions in the Years of the
~'iret ~ive-Year Plans 65
2.2. Cooperation During the~Yeara of World War II 8G
Chapter 3. The Period of the Cold War~and'Its Reaults 90 -
3.1. Gonls of American Co1d War Strategy and Waya of ~
~Implementing It . 96
3.2. Consequence o'f the Policy of Trade Discriminations 123
Chapter 4. Evolution of the Courae of United States Trade Policy
' in the Late 60's and'Early 70's 130
_ 4.1. Changes in Approach to the Country's Foreign Policy
Prioritiea 133
4.2. United States Businesa Circlea Reassese Their~Views ~
Concerning the Problems of Econamic Relations With
- the Socialiat Countriea 142
4.3. The Climate in the United States Congress Changes and a
- Reasaessment of Certain Cold War Postulates Begins 112
4.4. The Maneuvering of the White Houae in the Field of
Trade Policy 189
- Chapter 5. The Historical Significance of the Soviet-American -
Swmnit M~etinga 202
Chapter 6. Soviet-American Econamic Relations in the Preaent Stage 223
6.1. Asseasment of the Prospects of Soviet American Economic
Relations ~ 226
6.2. ~xpansion of Trade in the 1972-1975 Pgriod 233
6.3. Use of the Most Effective Forms of 'Economic Cooperation 247
6.4. I~inancial Cooperation Between the Parties ' 260
6.5. Improvement of the Mechanism of Business Contacts and
Relations 262
6.6. Urgent Probleiqs in the Fur:fier Development of Soviet-
American Economic Relat'ions 273
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~~oK nrrzc rni. us~ oNLY _
Chapter 7. ScienCific-Tectmical Cooperation, the Roada and
Prospecte ICe Developmene 294
7.1. A New Field of Sovieti-American Relarions 300 ~
7.2.. Main UirecCions of Scientific-Technical Cooperation
- Berween Che USSR and the UniCed Sti~tes 318
7.3. 5ignificance ro the Economy of SovieC-American
CooperaCion in ~he Fielda of Science and TechnoloRy 362 -
Ch~pter 8. Criticiam of Che Conceptiona of Opponents of Soviet-
- American ~conomic Cooper~tion 366
Conclusion ~ 389
Brief Chronology of Soviet-American Economic Relations (1917-1976) 397
Sub~ect Index 410 -
Iiiographical Index 413
COPYRIGHT: Izdatel'atvo "Nauka," 19~6
7045
CSO: 8044/0524
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� H'nR OF~ICIAL U5E ONLY
BOOK PROPOSING METHODS OF EVA~UATING RESEARCH WORK REVIEWED
Moscow VOPROSY EKONOMIKI 3n Rueaian No 11~ Nov 78 pp 146-148
(Review by D. L'vov of the book "Ekonomicheskiy Effekt Nauchnykh
Issledovaniy" (The Economic Impact of Scientific Reaearch) tiy L. I.
Veger and Yu. D. Matevosov, Izdatel'stvo AN Armyanskoy SSR, Yerevan,
1977, 145 pages]
, [TexC) This book is devoted to determining economic impact in the ,
sphere of scientiFic-technical activity and analyzing the criteria
' and indexes used to measure it and the inf~.uence of apecific�aspects of
science on the methodology of calculating impacta.
In their review of the quesCion of uaing the category of economic im-
pact, the authora criticize the viewpoint that has become wideapread
lately and says that economic impact is the primary or even the only
criterion for evaluating acientific activity. They also give a criti- `
cal analysis of the thesis that the category of economic impact is no~
- at all suited to,scientific activity and thus should not be used. The
authors believe that it is entirely proper to use this category for -
a definite sphere of science, and this is the result, for one, of the
target orientation of scientific research and development (SRD) and,
for two~ the possibility of calculating the impact with the necessary
' exactness. Thus~ total SRD where the economic impact can and muet be
_ calculated is made up of SRD pro~ects whose primary ob~ective is to
, improve the efficiency.of public production and which have adequate in-
formation (technical-economic parameters of future machinery, sphere of
ite uae and volume of use, and the ].ike) making it possible to determine
the economic impact with sufficient reliability.
Beginning from this point, the authors identify that part of applied
science where.the economic impact is the primary objective and should
be used as the target function and evaluation index. Uaing it as the
- basis f.or the stimulation system and oi.stribution of resources creates
one of the moat,important prerequisites ~~or optimal use of resources -
i� the particular branch of science. ~
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~OR ()CF'IC IN, USl: ONLY
This proposal Co view this pnrr of ecience aa a digtinct subsS+atem ~nd ~
ob~ect of control is unquestionably interesting. However~ such a d3s- ~
tinction raiaes a number of npw queationa which are not ereated in the
monograph. I~'or example~ how should we manage those acientific research =
insCitutes, and they are a majority, which are conducting research
aimed at solvin~ ~ocial probleme in addieion to dev~lopmen~ work to
solve the problema of raising p�roductio~ efficiency? How can we evalu-
- ate (stimulate, aLlocaCe resourcea) for research and development pro~-
ects which are so'lving multifaceted socioeconomic problems? The e~ig-
gestion of the authors of the baok that a separate and independent
' eystem of management be established for a11 SRD pro~ecte pureuing eco-
- nomic goals meriCs more serious and Chorough work. `
~ As for the other branchea of science, the authore believe that economic
calculations in them can aerve more limited purposes. For example~
give;~ a number of conditions, they can be used in the pure aciences to
~elect the moat economical alternaCivea for conduct3ng scientific ex~
perimenta. In applied research aimed at achieving social resultR~
- the economic impact should be used primaxily to select alternativea -
that guarantee achievement of the asaigned goal with minimum expendi-
ture of resourcea.
At the same time~ it should be observed that the authors' explanation
of diffarences in the use in the indexes of economic impact in d ifferent -
branches of science (they identify three factors: the nature of Che
goal, the extent of expenditures, and the correapondence between the
precision of the impact being calculated and the demanda that are made)
is not exhauative. This posaibiliCy of calculating economic impact
is a re~ult of more complex circumstances and the e�fect of a large
number of factors. That is why, for example, the book's explanation of -
- the reasons for the extremely limited use of the category of impact in
branches of science involved with improv3ng public labor organization
(research and development in economica, planning, organization of ma.n- `
agement~ and the like) is not convincing. It is true tfiat calculations ~
of economic impact are uaed much less oft~n here tthan in the develop- ,
ment of new means of production. However, to explain tfiis primarily
by the fact that expenditures for development are comparatl.vely small
is, in our view, incorrect. _
- It appeara that, in the given case~ this factor is not fundamentally _
important at all~ The reason that a calculation of the efficiency.
of such development work is not done is certainly not that it is use-
less; rather the reason is that methods of determining this efficiency
are not fully worked out. By the same token~ the primary reason for
inadequate uae of the category of impact applied to research and de--
velopment in the f ield of improving public production is a se~ries of
unresolved methodological and technical questions. Taking into ac- ~
caunt the trend toward more rapid development of these brancfies of _
knowledge compared to the development of science as a whole, which
can be seen in recent yeara in both the USSR and the United States~
an increaeing need will be felt each year to make economic calculations
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~nu or~tcrnt. us~ ~Ni.Y
~n~l ~ub~tantintion f~r ~h~~~ ~rd~e~e~, Ther~fdre, ~nnlyzing the re~~dn~
for innd~quuC~ u~~ nf ehe cg~~gnry af impncC in re~e~rch rei~ted tn im~
proving mnn~gemene ~nd alao d~v~lnping e~chniqu~~ a~ ealcul~eing ~hi~ _
impacC ~hnuld~ in nur view~ be nn imporC~ne line nf aeeivity in r~ir~ing
, thQ quality of economi~ celculeCiong~
The bonk devoC~~ a gnod d~~l nf ~p~ee tn what i~ c~11~d th~ pr~bl~m of
"sh~re pgrCinipation" by ~~v~rn1 ~ci~neific orggniz~~ione in th~ p~r~
f~rmgne~ of l~r~e programg~ Ut~d~r eh~~~ ~onditian~ uging th~ m~gnieud~
- df impnct tn ~vc?~.uc~ee eh~ aceiviry of ~ppcific orggni~aCion~ and compue~
_ ecanomic aCimulation fundg requir~~ Chgt ie b~ brok~n d~wn ined parC~
which could ba c~neider~d the eontribution of eaGh of th~ cn-performing
org~niz~ti~n~~ thu~ acting ~g evalugCion indexeg nf ~h~ir work~ L~ Veger
~ and Yu~ Maeevoaov criticize thoee ec~nomigte who ~uggeet dietributing
the total impact proportional to the expenditures of each organixaCion
beceuse Chi$ give~ collectiveg an interegt i;~ incr~asing cogt~; rath~r~
they propose Cheir own meChod~ bneed on con~id~r~tion df growth in ehe
mngnitude of impnct achieved after each etgge of development.
'Che nuthorg unqueerion~bly make a contribution to study of thig iesue~
Hdwever~ it seeme to us that they sti11 have not refuted the ph~itidn
nf those investigators who conaider Chis problem an arCificigl one.
The nuthors subetentiaee thp advisability of distributing the naCional
economic impact of new technology creaCed through SRD among acienc~,
prod~ction, and consumption and the partial impact of sci~nc~ among
aepgrate scientific organizations by reference to the poseibility o~
using partial impacC to conatruct a aystem for stimul~tion and distri-
bution of resourcea. By the same token it ia proposed that these in-
dexes ahould influence not ~uac stimulation but also the rate of de-
velopment of theae epheree~ However~ compuCing the part of impacC at-
tributable to rhe production ephere does not at all mean that it
should automaeically be allocated additional resourceg for development
because exiating production capacities may be adequate to produce the
new technology. As a result~ the use of partial impact does not in-
sure optimal diatribution of resources among different apheres, as
~ the guthors euppose Furthermore, the arguments given in favor of
using partial impacta to organize the syatem of atimulation and re-
source distrib~ition seem inadequate to us.
The book gives conaiderable attention to the factor of uncertainty
as a feature objectively inherent in science which has a notable ef-
fect on the technique of calculating economic impact in this sphere.
They analyze the nature and sources of the uncertainty~ review the
causes of the pYObabilistic nature of the impact-ahaping factore of
SRD (expected reaulta~ expenditures for 5Itn, development time), and
describe the effecte and influence of uncertainty on economic processes.
The authors propose~ for consideration of the probabilistic nature of
the expected results when determining future economic impact~ that
we begin from the idea that the economic impact calculated in the
courae of development ~rork ehould be figured as its mathematical
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F~nk aN~~~turnt, uyt: (INLY
.
~xper.c~tiun, in ~th~r wnrd~, th~ pr~du~e nf th~ eglrul~r~d imp~c~ ~nd -
the probabiiity n~ ~~hi~vin~ i~~
The b~nk e~ke~ up ~n~ nf Che mo~C inepre~ting i~gu~~ eann~~e~d to Ch~
fgetdr of ~ne~rrginty~ '1'hi~ i~ ~valugCi~n of problero~ (ale~rnativ~
~dluei~n~) that diffQr by eh~ gpread o~ rgndnm ~rror~ (+-in quadrgeie
d~vi~tion of po~eibl~ v~lu~~ of eh~ ~~tugi impaet and ~he ~xpeet~d im-
p~~t)~ Th~ yu~~~ian i~ ~ni~ad, far ~xampl~, of Che comparative ~vglu-
nei,dn of th~ ~ffic3~ncy of working o++~ tWO probl~ma (~olutinn epch- '
niqu~~ for on~ p~nbl~m) whic:h hav~ th~ ~~me mathpmarical ~xp~craeion
af imp~ct (euppo~e~ 1 million rubl~~) bue differ by poe~ible apr~ad~
of impact valuee~ for ~xgmple in eh~ ran~~a ~10 percent ~nd ~100 per-
r~nt~ Th~ authore answer thts quegtiun fnllow~s "~rom a n~tion~l
economic gCandpoinC alt~rn~eive~ ~nd problems with identicgl impact
but different confidence intervals gre ~qual in value~ If it ie
n~c~eeery to gelece onp oue of two or ~ev~ral poesible alternativea or
problem~, addieion~l information ehould b~ obt~ined (by conduceing ~x-
p~rimenes, t~~ting working el~menes or as~embl3e~~ er enli~Cing addi-
eidnal ~xp~re~) tn dee~rmine rhe m~gniCude of thp impget more exactly
nnd digein~ui~h among Che ~1Cernative~" (p 133).
'Phi~ stgtemenC by the guthore could be con~idered correct if Che eco-
nomic impact were congidered to be an abetract~ calculated caCegory.
tluc if we take the impact to be a quantity which ie rea~ized in the
concrete condition~ of the planned economic mechanism~ then we must
eake account of the reaction of thi8 mechaniem to random errore. Uaing
comprehensive planning Chat enviaions advance preparation of produc-
tion and corresponding expenditurea for the incorporation of na~r
recf~nology meane that a certain part of these expenditures will be loet
when the actual technical parameterg of new technology differ from ex- _
pected ones. And, obviously~ these logses will be greater if the de-
viations are greater. These were precisely the coneideraCions which
led us to argue that deciaion alCernativeg with smaller apreads of
posaible impact values where other conditiona are equal are better for
the national economy.
'Che monograph givea a detailed presentation of questions of the tech-
nique of determining the economic impact of SRD. In the appendix,
pnrticularly, it hae the authors' deeign of a technique Which aupple~
mente, for a number of gpecial iasuea, the technique (baeic principlee)
oE determining the economi~ efficiency of using nea technology~ inven-
tiona, and ~fficiency propoeals in the national econom}r. The aub-
etant~ation given for the unity and common character of the normaCive
coefficient of efficiency for the spherea of phyaical production and
science particularly deserves attention.
?iQw~ver, along with the true and interesting methodological poinCs
one also encounters queationable ones. For example~ the recomrt~nda-
tions concerning broad uae of both abaolute and comparative impact
aeems auperEluous. The impact of applied SRD oriented to improving
economic indexes ahows up ultimately in growCh in the aurplus product -
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1~'nlt (11'I~~CIAi~ Ilhl. c)NI,Y
~f ~nci~ey. B~e~u~~ th~ ~nmpgr~eive impncC, whi~h ~how~ th~ grnweh of
impnCe ~r~~C~d by eh~ u~a nf n~w G~~hnningy, ~iv~,~ nn ad~qugt~ly fu11
ch~r~cC~arix~tion nf nChi~v~mpne nf thi~ gd~1~ inCrodu~in~ ~n~ mdr~ ~n-
dex, Ch~ ~b~olut~ impg~~, i~ nnC ~u~effi~d, in our drininn~ -
The ~uChor~' propo~glg fnr improving Ch~ drg~nizgrion and us~ of calcu-
latinn~ of eCdnomic impacC do hold pracei.cal value~ ~h~ r~commenda-
tione on cre~ting condition~ th~k ~t1~YdflCp~ operaeinn~l Gglculatione
attrneC our gtt~ntion h~r~~
_ A~hortcoming of the bdok n~ n who1~ i~ th~ 1~ck of even hypoth~tic~l
example~ Co i11ueC~'8C~ Ghe primgry point~~
Ov~r~11, however, thia ie an intereeting and ug~ful work which contains
new, although eometimea aleo debatable~ propn~iCions with respect Co
the prnblema of det~rmining economic impact in the ephere of gcience~
COpYRiGHTt izdatel'8tvo "Pravda", "Vopro~y ekonomiki"~ 19~8.
11 ~ 1'l6
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