JPRS ID: 9676 USSR REPORT ECONOMIC AFFAIRS

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JPRS L/9676
21 April 1981
USSR Report
~ ECONOMIC AFFAIRS
(FOUO 4/81)
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JPRS L/9676
~
21 April 1981
USSR REPORT
ECONOM I c AFFAI RS
(Fouo 4/81)
- CONTENTS
PLANNING AND PLAN IMPLENIENTATION
Khachaturov Examines Soviet Economic Prospects
(T. Khachaturov; VOPROSY EKONOA'fIKI, Jan 81) 1
Experts Confe.r on 1981-1985 PTan, Period to 1990
(VOPROSY EKONOMIRI, Jan 81)......... 15
REGIONAL DEVELOT'MENP
Interindustry Machi.nebuilding Complexes Urged for East Siberia
- (P. Konevskikh, A. Grebenyuk; VOPROSY EKONOMIKI, Jan 81)....... 85
_Z
- a- [III - USSR - 3 FOUO]
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I . . . . . . . . . . . . . .
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PLANNING AND PLAN IMr^LEMENTATION
KHACHATUROV EXAMTNES S4VIET ECONOMIC PROSPECTS
Moscow VOPROSY EKONOMIKI in Russian No 1, Jan 81 pp 3-14
- /Article by Academician T. Khachaturov: "New Prospects of USSR Economic and Social
- Development"/
/Text/ Tite 26th CPSU Congresa--a great event in the life of the Soviet people--is
approaching. Each party congress marks a new stage of the development of socialist
- society. "Each congrE:ss has opened new horizons Uefore our party and country,"
- L. I. Brezhnev said at the June (1980) CPSU Central Committee Plenum. Extensive
prospects o� the fur'cher development of the Soviet economy are developed in the
- draft plan of the CPSU Central Committee for the 26th party congress, "The Basic Ai-
rections of USSR Economic and Social Development for 1981-1985 and the Period to
_ 1990," which has been brought up for national discussion. The great 3nterest of
Soviet economists in this docum2nt is understandable, bearing in mind the theoreti-
cal and practical im.portance of the provisions contained in it. Many of the provi-
sions aim economic thought both at the need for their further theoretical elabora-
- ti= ann at the search for means of their practica] subntantiation and use in the
_ planning and management of the development of the national economy.
The draft plan of the CPSU Central Commit;ee has a number of peculiarities both
with respect to structure and with respect to content, which distinguisl: it from
similar documents whiclt were published earlier for the 24th and 25th CPSU Con-
gressess
First of all the draft plan covers not only tiie next, the llth Five-Year Flan, but
_ also the more distant future--up to 1990, that is, the entire decade of the 1980's.
= This conforms to the new system of national economic planning, which is called for
- by the decree of ttae CPSU Central Committee and the USSR Council of Ministers of
12 July 1979, with the coverage by the long-range plans of periods of 20, 10 and
5 years (apart from thP annuat plans). Such a brosdening of the planning horizon
- makes it possible to determine the directions of the forthcoming development of
; socialist society foY an extended period of time and to present more clearly to
= both the Soviet people and the peoples of other countries the anticipated direction
of the builaing of comanunism. For the first time since Lenin's plan for the State
Comnission for the Electrification of Russia, which was drawn up for a 10- to 15-
w year period, the draft of the Bas3c Directions calls for the drafting of a plan in-
= tended for a period of 10 years.
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Another imporrant .feature of the draft plan of the CPSU Central Committee is that
the importance of the social aspect of the.development of society is emphasized in
' it. Its very title speaks about the economic and social development of the USSR,
and not about the development of the national economy, as in the Basic Directions
adopted by the 25th CPSU Congress. In conformity with this such important social
goals as the comprehensive development of the personality of the Soviet individual,
the access of the entire population to cultural values for the purpose of ensuring
- the harmonious spiritual life of the people, the increase of the level of educat4on
' and culture and moral upbringing are included in the draft plan in question. Work-
. ing conditions will be improved, a communist attitude toward labor will be furth�r
developed, the labor and social activeness of workers and their participation in
' the management of social production will increase. An increase of the free time Qf
workers on the basis of the development of public services is called for. Many of
these questions require careful study by economists and sociologists. On the one
_ hand, the very setting of such tasks of increasing the standard of living and level
of culture of the people is possible owi.ng to the 4chievements of the Soviet economy
and the increase of the material well-being, while, en the other hand, the socio-
economic development of society is responsible for the Soviet way of life and the
new gains of the building of communism.
. The aim at a comprehensive nature of development, both economic and social, is a
third peculiarity of the draft plan of the i.PSU Central Committee. The possibility
and nzcessity of comprehensiveness stem from the advantages of the sociali.st econ-
omy, the conformity to plan and the proportionality inherent in it, the public own-
ership of the means of production. Comprehensiveness can and should be achieved in
- all the directions uf the development of productive forces and social relations, in-
cluding the use of natural resourcess the development of ineans of production, tech-
nical progress, the combination of sectors and the interrelations of regions.
- TY!us, the assurance of the uniform planning of the proportionate and balanced de-
velopment of all the sectors of agriculture, industry, transportation and warehous-
~ ing services, which belong to the complex, and their precise cooperation on the
output of agricultural produce, its storage, transportation, processing and delivery
- to the consumer is in accord with the strengthening of the agro-industrial camplex
- and the implementation of the food program. The planned formation of territorial
production complexes for the assurance of the efficient distribution of productive
: forces will undergo further development. A number of major comprehensive programs
= of economic development will be implemented, the production management system will
~ be improved. Economic science is faced with the problem of elaborating methods of
determining the effectiveness of the compretiensive approach in the development of
the economy, of comparing the capital and current expenses in the case of different
versions and of identifying the advantages of comprehensiveness.
The fourth peculiarity of the draft plan is the ex,.~mination of the questions o� com-
bining the scientific and technical revolution with the advantages of the socialist
economic system, introducing highly efficient new equipment and technology in all
sectors of production and using them in solving social problems as well. The im-
provement of the methads of determining the effectiveness of the versions of tech-
- nical development and the finding of ihe optimum one of them, as well as the estab-
lishment of tlie optimum versions of social development and the conparison of the
various means of ineeting social needs are the obligation of economic science and
practice.
- 2

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The fifth peculiarity of the draft plan is the aim at the utmost placement into
_ operation of the enormous production resources and internal reserves, which exist
in all the links of the economy, the increase c:f labor productivity, the saving of
material resources, the reduction of the production cost and the acceleration of.
production processes. This implies the need to utilize the advantages of the social-
- ist economy under the conditions of the near exhaustion of the potentials of exten-
sive growth in the presence of full employment and rising expenditures on the com-
mitment of new natural resources to the economic turnover. The noticed deplet:ion
of some resources must also be taken into account. Therefore the transition to in-
tensive methods of managing the economy is becoming more and more urgent. The need
- to strive for an increase of the efficiency of social production, its intensificu-
~ tion and the aehievement of high end results is emphasized in Che draft of the BasjL--
Directions. It is a matter of an immutable principle of the building of the econ-
omy--the achtevement in the interests of society of the greatest results with the
complete utilization of production resources.
Much attention in the draft plan is devoted to the improvement of administration
and to the increase of the level of leadership and management in all the links of
the economy.
As is known, the measures stipulated in the decree of the CPSU Central Cotmnittee and
the USSR Council c;f Ministers of 12 July 1979, "On Improving Planning ar..d Strength-
ening the Influence of the Economic Mechanism on Increasing Production Efficiency
and Work Quality," will be implemented during the new five-year plan.
The study of the draft plan shows that the provisions belonging to it and its en--
� tire structure and content are an invaluable contribution to the elaboration of the
problems of the political economy of socialism.
A significant increase of the we11-being of the people is planned by the draft plan.
It is important to emphasize that the sectors of industry of group B will increase
production more rapidly than the sectors of group A, with an increase of the public
consumption funds.
_ An increase of industrial production by 26-28 percent, or 4.7-5 psrcent a year, of
agricultural production by 12-14 Fercent, or 2.3-2.7 percent, the freight turnover
of rail transport by 14-15 percent, or 2.7-2.8 percent a year, and of capital in-
vestments by 12-15 percent, or 2.3-2.8 percent a year, is planned for the llth Five-
Year Plan on the basis of the powerful production base created during the lOth and
preceding five-year plans.
The achievement of the indicated growth rates is a difficult task. A considerable
- straining of the available assets and potentials, the increase of labor productiv-
ity in all the links of the economy, technical progress and the reduction of the
materials-output and capital-output ratios of production are required for its solu-
tion. In recent times the growth rate of the production of a number of developed
W capitalist countries has slowed considerably. According to the available data of
the Organization fnr Economic Cooperation and Development, the forecast of the na-
tional iacome for 1981 showed for the United States a decrease of its amount by
0.5 percent, for France an increased by 2 percent, for the FRG an increase by
2.5 per.cent, for Italy an increase by 1.5 percent, for Great Britain a decrease
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by 0.5 percent, and on the 3verage for all the OECD countries an increase of only
" 1.2 percent.
Uf course, the standard of living and the level of well-being of the people depend
far from only on the rate of economy growth, but also on the levels of social devel-
opment, culture and education. At the same time the level and effectiveness of eco-
- nomic development, as well as to a great extent the degree of utilization of the
' econ.omic potentials which society has, influence the solution of the problems of
social progress.
Enormous potentials for economic growth and social development exist in the USSR
economy. The planned economic and social progress on the basis of the increase of
- production efficiency and the intensification o� production can be ensured on the
condition of their utilization both during the 11th Five-Year Plan and in the sub-
sequent future period. This depends on the degree of realization of such most im-
portant conditions as technical progress and the development of science, the in-
crease of labor productivity and the decrease cf the laborroutput ratio of produc-
tdon, the efficient use of material resources and their saving, the increase of the
- effectiveness of capital investments and the expanded reproduction of fixed capital,
the better organization of the management of the national economy. Economic sci-
ence is capable of examining and determining the influence of each of these condi-
= tions in all their specific details and components on the economic and social devel-
opment of the country and of giving them a quantitative evaluation in comparison
urith the expenditures necessary for their realization.
The development of science and technology is the main path of the intensification of
the economy and the increase of its efficiency. In expediting the development snd
= adoption of the lat-ist technical achievements, at the same time obsolete products
_ should be removed from production and their use should be halted, thereby promoting
the updating of the production and the increase of the efficiency of consumption.
It is possible to distinguish two tqpes of new technology. Many well-known and
- proven models of new equipment, which are still not being produced in adequate
_ quantity and have not become widespread, belong to one of them. With respect to
these model the problem oF their mass adoption and better utilization is arising.
_ By increasing the production and use of computers and other electronic equipment,
].asers, synthetic materials, metal powders and other types of new technology, which
- have demonstrated their worth, it is possible to ensuie in a short time an increase
of the technical level of production and consumption, and at the same time their
greater and greater economic efficiency.
- Along with this the acceleration of the development and the introduction of the
other type of new technology--fundamentally new techno].ogy such as thermonuclear
- power, new types of compact and economical motors which did not need petroleum fuel,
the development of space and the control of the weather and climate--are an impor-
tant task. Fundamentally new technology is the high road of its development in the
long-range future, which reveals unprecedented passibili.ties of the progress pf so-
cialist society and the prospects of creating the material and technical base of
- communism.
The development of both types of new technology is called for in the araft of the
Main Directions. The use of highly efficient systems of machines and technological
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pracesses, which ensurQ the complete mechanizat:ion and automation of prc,duction, is
planned. The number of inechanized and atitocrtated flow lines and automated control
- systems will 'oe increased. Industrial robots and built in systems of automatic con-
trol with the use of microprocessors and minicomputers will be used extensively.
The Production of computers and other instruments and means of automation must be
developed considerably on the basis of the 'Latest achievements of microelectronics,
optical electronics and laser technology. nie extremely rapid growth in recent
years of the output of computers in the United States and Japan, the great efficien-
- cy, the employment of the user system of the use of computer centers and their con-
siderable workload should be taken into account.
- In the development of new machines and equipment their capacities will be incressed
with the sinrultaneous decrease of their dimensions, metal-output ratio and power con-
" 5umption and with the reduction of the expenditures per unit of the final product.
The module principle wi11 be used in the designing af new machines with the use of
standardized blocks and units.
_ The further electrification of the national economy will be of enormous importance
for technical progress. The generation of electric power in the country will in-
crease by 1985 by 20-24 percent as compared with 1980 and will come to 1.55-1.6 bil-
lion kWh. Of this amount 220-225 billion kWh (or 15 percent) will be generated at
nuclear electric power stations. Thi.s means that the proportion of electric power
generated at nuclear electric power stations will increase 3.7-fold as against 1980.
The proportion of nuclear electric power in 1979 was 12 percent in the United
States, 13 percent in France and 10 percent in Japan. The increase of the propor-
tion of nuclear electric power in its t4ta1 generation, which is planned for 1985,
should be rated favorably, as a sta,ge of its furthe.r growth and technical develop-
ment.
It is important to emphasize the need for the leading growth of the generation of
electric power as compared with economic growth as a whole. In 1980 650-fold more
~ electric power was generated than in 1913 and 26-fold more than in 1940, while the
national income was respectively 75-fold and 13-fold greater. The growth rate of
the generation of electric power was greater than the growth rate of the national
income during Lhe years of the postwar five-year plans, including during the lOth
Five-Year Plan, when the generation of electric power increased by 24 percent, while
the national income increased by 21 percent. The leading growtti of the generation
of electric power is important especially because it leads to an increase of the
electric power-wurker ratio, which, in turn, is conducive to an increase of labor
productivity. Thus, the electzic power-worker ratio in industry incr_eased from
197C to 1979 by 36 percent, while labor productivity increased by 52 percent. For
the period 1975-1979 the corresponding figures were 8 and 14 percent (it should be
taken into account that labor productivity i.s calculated by dividing the gross output
in /current prices/ /in italics/ by the number of warkers).
In electric power engineering itself technical progress also takes the form of the
concentration of production, the changeover to more powerful electric power sta-
tions and more powerful unlts. In recent years thermal electric power stations
have been built with a capacity of up to 4 MW (the Zaporozhskaya GRES), while hydro-
electric power stations have been built with a capacity of up to 6.5 MW (the
- Sayano-Shushenskaya GES). The production of nuclear reactors with a capacity of
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1-1.5 MW and power blocks with a capacity of 500,000-800,000 kW, of turbogenerators
with a capacity of 1-1.5 riW is planned for the future. The great capacity of elec-
= tri:c power stations and power blocks makes it possible to increase the efficiency
- of electrification and ta economize on the unit capital investments and the cost of
electric power. The capacity of electric current transmission systems will also
increase---to 1.5 million V of direct current and 1.2 million V of alternating cur-
= rent. This will make it possible to solve the problem of supplying electric power
- to the European part of the USSR and the Urals without the transportation there of
. low-calorie coals, which wauld require major investments in the construction of new
- rail outlets from the east. The coal of Ekibastuz and the Kansk-Achinsk basin will
= be burned loca2ly in the furnaces of the boilers of electric power stations, and
_ the electric cUrrent will pass through electric power transmission lines of the
- first stage--a direct current with a tension of 1,500 kV from Ekibastuz to the
Center and an alfi2rnating current with a tension of 1,150 kV from Ekibastuz to the
Urals.
- The concentration of production, as is knowa, is not suitable always and everywhere.
V. I. ienin wrote that "in indo:stry... the law of the superiority ot large-scale
production is not at all as absolute and simple as is sometimes thought...."1 It
_ is easier to chan;e medium-capacity enterprises over to a new processing method.
- For example, t'lie construction of small-capacity metallurgical plants at the site of
the consumption of inetal products and the forrnation of fer.rous metal scraps is en-
visaged in the draft of the Baslc Directions.
Muci.i attent:Lon in the draft of the Basic Directions is devoted to the task of increas-
ing the ourput of advanced materials. It is a matter af increasing the strength
properties, corrosion resistance, thermal shock resistance and cold resistance of
metals and alloys, metal components and pipe, as weil as of producing new materials,
coniponents and articles on the basis of powder metals. In our country the produc-
tion of polymeric materials, synthetic resins and plastics and synthetic fiber is
still not being adequately developed. Therefore the considerable increase of the
output of these 3~.~portant materials, which in :!ktny instances effectively replace
ferrous and nonferrous metals, as well as natural fibers (especially for the produc-
tion of industrial fabrics) is called for.
_ Along with the extensive adoption uf new technology which is already known and has
been tested, the broadening and acceleration of theoretical scientific research are
of enormous importance for the increase of the productive forces. The rasks of
developing such fundamental social sciences as political economics and philosophy
are sec in the draft plan of the CPSU Central Commi.ttee. These sciences wi11 re-
ceive a new impetus on the basis L)f the analysis of the achievements of the develop-
ment of socialist society and the prospects of its movement, as well as studies of
' the economic and social problems of mature socialism and the world socialist system,
the economics and politics of the capitalist countries. The questions of generaliz-
ing the experience of the world communist and working-class movement are especially
singled out.
1. V. I. Lenin, "Polnoye sobraniye sochineniy" /Complete Worlcs/, Vol 4, p 110.
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A number of major tasks have been set on the development of the natural and techni-
cal sciences, so that the results of research in the area of mathematics, physics,
chemistry, biology and other basic scier.ces could be prepared in good time for sub-
sequent use in pro duction.
2'he possibilities of a considerable increase of labor productivity are an pnormous
_ reserve of economic and social. developmQnt. In accordance with the draft of the
Basic D3recsi6ns an increase of the productivity of national labor for the country
- as a whole by 17- 20 percent, or 3.2-3.7 percent a year, and in industry by 23-25
percent, or 4.3-4.5 percent a year, and in agriculture (the public sector) by 22-24
percent, or 4-4.1 percen*_ a year, is planned fox the llth Five-Year Plan. The
y growth of labor p roductivity is even higher in some sectors of industry. The
- growth of Iabor productivity will be greater than it actually was during trie lOth
- Five-Year Plan. Thereby the lag in the growth of labor productivity wi11 be offset.
The main source of the increase of productivity is the introducti_on of new technol-
ogy. Labor productivity should increase more rapidly than the production capacity
of new equipment and its cost. If the growth of labor productivity is less than the
growth of the pro duction capacity of equipment, this means that the created objec-
- tive passibilitie s of increasing output will not be fully realized due to the lag
of labor productivity.
The incrEase of iabor productivity depends on the level of the mechanization of la-
bor. The proport ion of manual labor in our country is still very high. In indus-
try about one-thi xd of the workers, not count-j-ng repairmen and adjusters, are en-
_ gaged in manual labor. In construction the proport:ion of those engaged in raanual
_ labor is even higher--about one-half. The supplantation of manual labor will make
it pcssible to el iminate the shortage of manpower, which is being experienced here
_ and there and is to a considerable extent the result of shortcomings in the organ-
ization of labor dnd the use of machinery. About 10 million people are employed in
our country in ma terials handling operations. This figure is excessively great.
`Phe use of manual labor limits the possibilities of developing producti.on. The
_ goal of the utmos t recluction of manual, unskilled and difficult physical labor is
set in the dxaft of the Main Directions.
The increase of the intensity of labor by means of the elimination of losses of
working time and idle times is an important factor of the increase of labor produc-
tivity. The intensity of labar= where it is lagging, must bs brought up to the so-
cially normal ave rage level. Labor discipline should be tightened u,r, and the re-
sponsibility for the assigned matter should be increased. The elimination of these
shortcomings depends on the improvement of the organization of labor and production.
In order to reduc e the intrashift idle times, which often take up a significant
portion of the wo rking time, it is necessary to ensure the continuous supply of
- materials, raw ma terials, fuel, electric power, as well as spare parts, to achieve
_ the normal operat ion of the equipment and the smooth pace of production and to elimi-
- nate crash work.
_ Advanced forms of the organization or labor and the combining of occupations should
be used more extensivEly. SteFs must be taken for the elimination of the monotony
_ of labor processe s, the lending of a creative nature to labor, the stimulation of
initiative, rationalization and invention. The tightening up of discipline and
_ 7
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~ the increase of responsibility tn all the links of production, the development of
socialist competition and the extension of material and moral sCimulation are an
important task.
Economic science and practice are faced with the important tasks of studying the
questions of the economics of labor and elaborating specific proposals on increasing
its productivity. It is rt.ecessary to analyze regularly the main factors which gov-
ern the overall level of labor productivity and to determine quantitatively the role _
of technical progress, the intensity of labor, its organization, fihe skill of'work-
ers and material and moral stimulation in increasing the level of labor productivity.
- The proposals on the improvement and dissemination of the rate setting of labor, the
improvement of worlcing conditions at enterprises and labor safety procedures may
provide much. Economic estimates of the compar.ison of the expenditures with the
- obtainable economic and social impact from measures on the increase of labor pro- _
ductivity are needed.
The intensification of production and the increase of ita efficiency in many ways ~
depend on the improvement of the use of materials, raw rnaterials, fuel and power.
Much attention is devoted to these questions in the draft of ths Main Directions.
The task of sav3ng material resources, reducing the outlays Qf the main types of
materials, using secondary resources and byproducts exteneively and eliminating
losses in all sectors of the national economy is set.
The proportion of the material expenditures in industry has reached 80-85 percent of
the total expenditures on the output of commnodity production. The reductian of the
materia_l expenditures by just 1 percent would yield a saving of about 4.5-5 bil-
lion rubles a year. In fact, the efficiency of such a reduction of expenditures is
, even greater, if we bear in mind that limited natural resources are conserved,
- environmental pollution is reduced and so forth.
- The saving of material �resources is possible at all stages of the production cycle,
beginning with the extraction of raw materials. The available data for the extrac-
, tive industry show that up tc 30-40 percent of the coal found in a deposit, up to
50 percent of the gas, up to 70 percent of the petroleum and up to 20 percent of the
iron ore are lef t in the ground. Measures on increasing the yield of minera.l re-
- sources are quite possible. Thus, the use of new methods of affecting petroleum
beds and the adopti.on of an advanced means of the gas lift operation of wells and
of hi.ghly pioductive deep-well pumps are indicated in the draft of the Main Direc-
tions. The material interest of enterprises of the extractive industry in increas-
ing the yield of mineral resources must also be increased--for example, by the ap-
praisal of deposits and the entry of their value in the balance sheet of the enter--
~ prise. Then, for example, a coal mine would also strive to bring coal to the sur-
face from thin seams which it is now unprofitable to use. It is quite possible to
prevent great losses of casing-head natural gas. More than half of the gas being
~ obtained is now being used, but still much gas is annually burned on flares. The
reason for this is the delay with the construction of gas-collecting systems, com-
pressor stations, natural gasoline and other plants, tanks and so on. An end must
be put to this wastefulness.
The complete utilization of extracted raw materials may yield a great impact. Thus,
_ at the Ust'-Kamenogorsk Lead and Zinc Combine raw materials of a large number of
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descriptions are processed and many types of products to be marketed are produced,
including those, the need for which was previously met by imports. At the Balkhash
riining and Metallurgical Co::-tbine byproducts constitute up to 30 percent of the
total output. Processes of the thorough recovery of nickel, copper and cobalt have been set up at the Noril'sk Mining and Metallurgical Combine. A signi.ficant amount oi the sulfuric acid, produced in the USSIt is obtained from the sulfur dioxide ex-

haust of copper smelting and other plants of nonferrous metallurgy. At the Azov-
. stal' Plant th.e metallurgical si.ags are used for the production of construction
materials. But many useftil components contained in the raw materials being ex-
tracted are not being used. Zinc, bismuth, antimony, tungsten, molybdenum, gold
and silver go to the dumps.
The possible saving of fuel and energy resources is a substantial reserve of the
3evelopment of production. Specific assignments on the saving of fuel and energy
resources, ferrous metals, pipe, rolled products, nonferrous metals, lumber and _
cement are cited in the draft of the Main Directions. These assigr.ments should be -
_ regarded as the minimum assignments.
= We groduce more mineral fuel than any other country. However, it is not being used -
efficiently everywherz. In electric power engineering there are many obsolete.power
'ulocks which should be replaced by more improved ones. The consumption fuel in
ferrous metallurgy and the chemical industry is too high. Many gains have been -
made in the eountry in the central heating of cities and enterprises. But still
- there are more than 400,000 small, uneconomical boiler houses, which belong to vari-
ous departments and overconsune an Enormous amount of fuel. The hea.t losses in new -
apartment houses, which has Pxcessively large areas of windows in conformity with -
current fashion in architecture (without consideration of the peculiarities of the _
- climate in our country) are great. Much fuel is wasted in transportation, much -
electric power is wasted due to the reduced voltage in power systems and the reduced -
frequency of the alternating current. The elimination of these shortcomings re-
_ quires capital investments, but estimates show that the unit capital investments -
- allocated for saving fuel and energy resources are one-fourth to one-third as much -
as the unit investments necessary for increasing fuel prodLCtion.
_ We are in first place in the work in the production of "the bread of industry"--pig
- iron and steel, but we do not have enough ferrous metal. Meanwhile a significant
- saving can be achieved in the production and consumption of ferrous metals. It is
quite possible tfl reduce the large losses of inetal in ferrous metallurgy itself by
the more extensive use of the oxygen-converter method of producing steel in combina- -
tion with its continuous teeming and the increase of the production of_ rolled prod- .
ucts from semikilled metal instead of killed metal. In machine building and metal-
working it is possible to reduce the scrap by the replacement, where possible, of
the cutting of inetal by pressings for which it is necessary to increase the produc-
tion of rolled sheet. More precision injection molding should be performed. It is possible to decrease significantly the wear of parts of machines and equip-
ment by increasing the production of high grade steels, and this is equivalent to
the increase of the production volume. The production of tin sheet metal, includ-
ing the thinnest, will be increased. Losses from corrosion can be reduced by the
extensive use of powder-base coatings, as well as plastic coatings. These and
other measures will provide a large saving of inetal, will increase the economic
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efficiency of the production and use of inetal in the national economy and will make
it possible to realize the large internal reserves.
We fell more trees than in any country rahatsoever. But we are experiencing a seri-
ous shortage nf wood. it is necessary to improve sharply the use of wood in the
= national economy by reducing the great waste and losses which form at the logging
sites, in transportation and in p rocessing. It is a question of tens of millions
_ of cubic meters of scrap wood, from which it is possible to make wood pulp, wood
- particle and wood fiber board, cellulose, paper, cardboard and a number of products
. of wood chemistry. Tens of millions of cubic meters of round timber are used for
making boards for boxes, which usually make not more than one turnover, and then
are thrown Qut or burned. At the same time large amounts of fertilizers, vege-
tables, fruits and other proeiucts are being lost due to the shortage of packaging.
= The increase of the produc*_ion of cardboard, palyethylene and other packaging can
save much timber and capital and eliminate the spr~ilage of valuable products.
- The available data attest to cons iderable losses of construction materials--brick,
glass, cement, of which we also prnduce more than any other country. The losses
are in many ways connected with careless loading and unloading ane; poor storage.
'Phe responsibility for losses and the material interest of construction workers in
' saving construction materials -,iust be increased.
= The same thing applies to fertilizers. Our country is in first place in the world
in the production volume of mineral fertilizers. Howaver, there are still not
enough fertilizers, especially for application to grain crops. The losses of fer-
tilizers during transportation, unloading and storage are especially intolerable.
- The excessive consumption of fertilizers when applying them to the soil, their wash-
ing away and contaaination of bodies of water with all the adverse consequences of
this are also occurring. As a result of the inadequate development of the infra-
= structure (roads, warehouses, elevators, refrigerators) the losses of agricultural
produce are large. Grain is being lo st, potatoes, vegetables and fruits are spoil-
ing, the live weight of livestock purchased by the state is decreasing. The devel-
opment of the infrastructure requires expenditures, but they will be recovered in
= short periods not exceeding 2-3 years, if the elimination of losses of agricultural
and other prcducts is taken into account. Moreover, the supply of the population
will be improveda The strengthening of the infrastructure is one of the important
conditions of the food program which has been planned for implementation.
Economists are faced with the crucial task of making a comparative evaluation of
the means of saving material resources in the national economy--in industry, agri-
= culture and material supply--and of eliminating the considerable losses.. These
resources of economic growth must be fully utilized.
The better use of the created fixed capital is a great reserve in the socialist
economy. The workload of equipment in industry, agriculture and transportation
must be increased significantly. It is possible to judge the reserves available
here from a large number of indicators. The shift coefficient in industry is low,
it is approximately 1.3. The study of the possibility of increasing this coeffi-
cient and thereby increasing the production volume merits attention. The number of
- hours of the operation of electric motors in industr.y is an important indicator of
the use of capital--on the average it dcas not exceed one-fif th of the total annual
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number of calendar hours. There are data that, for exaznple, in the United States
~ this indicator is considerably higher. It would be advisable to study the possibil-
ity of loading equipment more completely. A very imp4rtant measure is called for
_ by the decree of the CPSU Central Committee and the USSR Council of Ministers of
lZ July 1979--the drawing up of passports of enterprises. Oxe of the goals of tihese
passports is the identification of the pxoduction capacity of the enterprise as a
whole and of its individual shops and other subdivisions. The prc,ciuction capacity
of the er.tire enterprise is often limited by its least developed units--for example,
the procurement or transportation shop. The development of this unit, the "undoing
of the bottleneck" so that it would not limit the capacity of the enterprise as a
whole, can increase it considerably. This should become an important object of
economic analysis and calculation. The improvement of the use of the fixed capital
of the enterprise also depends on the quality of the organization of production
- manag ement.
A sp ecial section in the draft of the Main Directions is devoted to questions of
capital construction, the task of which is the increase of the production potential
on a new technical base, as well as the development of the nonproduction sphere.
Construction holds an important place in the Soviet Union. In the past 15 years the
fixed capital of the USSR YLas increased nearly twofold, while the fixed production
capital has inereased 3.2-fold. This made it possible to increase the gross nation-
al p roduct 2.5-fold and the national income 2.3-f_old.
The economic impact obtained from capital construction could be considerably great-
er, if the existing shortcomings were eliminated. Among them are: long construc-
- tion periods, as a result of which the production facilities at times are techno-
logically obsolete by the time construction has been completed and the rated capacity
has been completely assimilated; the exceeding by the actual cost of construction
of th e initial estimated cost, according to wliich the project was included in the
plan; a not always high quality of construction, which creates the need for modifi-
cations and improvements after the projects has been presented for acceptance.
The task of radically improving construction and increasing the effectiveness of
capital investments is set in the draft of the Main Directions. In order to shorten
the construction period, it is necessary to do away Grl.th the dispersal of capital
inves tments among too large a number of projects, while for this it is envisaged to
concentrate capital investments at the most important construction projects and to
decrease the number of projects veing built at the same time. This will make it
possible to reduce to the standard the unfinished coristruction, which now amounts
to th e annual amount of capital investments. Further, capital investments should
- be channeled first of all into the renovation and retooling of operating enter-
prises. The construction of new enterprises and the expansion of operating ones
should be begun only if the needs �of the national economy cannot be met by means of
renovation and retooling. The instructions on the production of a set of machines
= for the performance of construction operations under the conditions of an operating
works are of great importance for the priority performance of renovation and retool-
ing. Measures on the improvement of planning and estimating are called for.
The increase of the efficiency of capital construction presumes the implementation
of the measures contained in the decree of the CPSU Central Committee and the USSR
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Council of Ministers of 12 July 1979. The new procedure of drafting long-range
plans for 20, 10 and S years and especially the fact L-.hat the importance of five-
year plar.s as compared with annual plans has inaxe.&..n~d,are especially impartant to
improving capital construction. The five-year plans have now become the mzin form
_ of the planning of the economic and social development of the country and have be-
- come the basis of tbe organization of economic activity. It is clear that precise-
l,y long-range plans, ana not annual plans, are more in keeping with capital con-
struction, which in many instances requires a long time. Another important instrcuc-
tion concerns the fact that current production and new construction should be plan-
_ ned as a unified whole. This makes it possible to determine more validly the need
for construction. The drawing up of passports of construction organizations, just
as for industrial enterprises, will be conducive to the sounder plannitig of as-
signments on the amount of work-, which should be performed.
- The adoption of a new procedure of financing capital construction--not according to
_ the amount of work performed during the given period (month), but for the completed
and turnkey projects--will help to eliminate the shortcamings of capital construc- `
tion. The increase of the role of credit and the ather measures, which are called
for by the above-indicated decree and are aimed at the radical improvement of con-
struction, and the increase of its efficiency, are alsfl of substantial importance.
The elaboration of procedural questions of the determination of the effectiveness
of capital investments, both productive and unproductive, the evaluation of the ef-
fectiveness of individual directions of capital expenditures, for example, on the -
- infrastructure, the use of natural resources and individual major projects by ob-
lasts and regions of the USSR, and the elaboration on this basis of proposals on in-
_ creasing the efficiency of social productian are required of economic science. A
- new Standard Method of Determining the Effectiveness of Capital Investments and
_ methods of calculating the effectiveness of expenditures on nature conservation
measures and the nonproduction sphere have recently appeared. They should be re-
comnended for experimental checking and subsequent extensive use.
The development of the economy and the increase of production efficiency ensure
the implementation of important mea5ures aimed at social development and ttte in-
crease of the national well-being. Labor is the only source of the increase of the -
national wealth. The increase of consumption is also in keeping with the increase
of production. It is planned to increase the per capita real income during the
five-year plan by 16-1$ percent. The average monthly wage of workers and employees
will increase by 13-16 percent and w:Lll come to 190-195 rubles a month, while the
income of kolkhoz farmers from the public sector (not counting the income from the -
_ private plots) will be increased by 20-22 percent, that is, to 142-144 rubles. The
increase of the production of goods needed by the population will make it possible
to increase the retail commodity turnover by 22-25 percent and thereby will promote
. the more complete satisfaction of consumer demand with the stability of state re- -
tail prices for the main goods. The solution of the food problem will make it pos- M
- sible to improve the nutrition of the population by means of the most valuable
products with respect to quality. The demands for industrial goods will be met
' more completel}*.
The public cor.sumption funds will be increased by 20 percent. State aid to families
having children and to young couplzs will increase. For the purpose of improving
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the working conditioas and conditions of everyday life of working women partially
paid leave to care for a child of up to one year is being introduced, while the op-
portunity to work a part workday or part work week is being introduced for women
haV3.ng young children. The network of kindergartens and nurseries will be expanded.
_ The social security system will be improved. Trade and public dining will undergo
considerable development. Apartment houses with a total area of 530-540 million m2
- will be built. The improvement and development of public education, socialist cul-
- ture and art and health care are planned. All this will promote an increase of the
lPvel of well-being and the culture of the people, and thereby will also affect the
increase of labor productivity and further economic development. An important task
of economists is to establish the effectiveness of social progress for the develop-
ment of the economy of the country as a whole and by sectors and regions.
_ Considerable space in the draft of the Main Directions is devoted to questions of
the distribution of productive forces and to the economic and social development of
the union republics. The development of the production potential of the eastern
regions of the country--Siberia, the Far East, Kazakhstan and Central Asia, which
have large natural resources--is called for in this section. The development of
- power-consuming works, machine building and agriculture, as well as the necessary
_ production and nonproduction infrastructure should be carried out here. At the same
- time in the European part of the country and the Urals industry will be developed
on the basis of the previously created economic potential, the renovation and re-
- tooling of operating enterprises without an increase af the munber of working people.
This is not the place for new power-consuming and water-consuming works. Power en-
gineering will be developed by means of nuclear electric power stations. The draft
_ plan contains instructions on the development of production by republics and econom-
ic regions with allowance made for their specialization and the di.vision of labor
in the country. All this is another object for economic analysis, the sound choice
of effective versions o.f distribution and the improvement of the methods of deter-
mining them.
The improvement of administration and the increase of the level of management in all
the units of the economy are spoken about in the last section of the draft of the
Main Direr_tions. The enhancement of the role of planning as the central unit in the
management of the national economy and the increase of the importance of the five-
year plan as the main tool of the implementation of party economic policy are called
for. The need for the reflection in the plans of the internal reserves of produc-
tion and the present achievements of scientific and technical progress and for the
choice of the most effective directions of devalopment is emphasized. In production
management the role of the policy of economy should be increased, cost accounting
should be consolidated, the time factor should be taken more completely into ac-
count, all types of resources should be used, losses and waste should be eliminated
and nonproductive expenditures should be reduced. Great importance is attached to
the requirement of efficiency and the quick payback of new technology and products.
A number of important instructions are given on the improvement of the style and
methods of the uianagement of the economy on the basis of Leninist principles of ad-
ministration, the development of initiative and socialist enterprise. It is neces-
sary to combat bureaucracy and formalism, departmentalism and regionalism, to in-
crease the responsibility for the assigned matter and the results of work and to de-
velop the creative initiative of wor.kers in the management of the economy. Only on
these conditions is it possible to ensure the improvement of *_he management of all
units of the economy and the complete utilization of available reserves.
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~ These instructions in the area of the management of the economy and the improvement
of planning, as in the areas stipulared by other sections of the draft of the Main
Directions, provide a mighty stimulus for the develogment of the scientific and
practical activity of economists and sociologists. All this will promote the en-
richment of :aocial science and will be a valuable contribution to the development
of the political economics of socialism and of philosophy. The Soviet people,
- gutded by these instructions, will ensure by their labor further gains of the eco-
nomic and social development of the country and the acceleration of the movement of
- socialist society along the path to communism.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981
7807
CSO: 1820/103
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- PLANNING AND PLAN IMPLEMEI3TATION
EXPERTS CONFER ON 1981-1985 PLAN, PF.?tIO,T) TO 1990
Moscow VOPROSY EKONOMIKI in Russian No 1, Jan 81 pp 56-109
/Article: "Discussion of the Draft Plan of the CPSII Central Committee for the
26th Party Congress, 'The Main Directions of USSR Economic and Social Development
for 1981-1985 and the Period to 1990"T
/Text/ In December 1980 there was a discussion of the draft plan of the CPSU Cen-
traZ Committee for the 26th party congress, "The Main Directions of USSR Economic
and Social Development for 1981-1985 and the Period to 1990," which was held by the
- editorial boards of the journals VOPROSY EKONOMIKI, PLANOVOYE KHOZYAYSTVO and SO-
TSIALISTICHESKIY TRUD. Staff inembers of a number of scientific research institutes
and high.er educational institutions and workers of planning and economic organiza-
tions took parC in the dis,:ussion.
Academician T. S. Khachaturov (editor in chief of VOPROSY EKONOMIKI). The editori-
al boards of the journals VOPROSY EKONOMIKI, PLANnVOYE KHOZYtiYSTVO and SOTSIAI.ISTI-
- CHESKIY TRUD along with the mast active readers have gathered at this conference to
- discuss the draft plan of the CPSU Central Committee for the 26th party congress,
"The Main Directions of USSR Economic and Social Development for 1981-1985 and the
Perio d to 1990." This draft plan reveals new prospects of development to the
Soviet Union and our people. It has peculiarities which distinguish it from a
similar document that was published for the 25th congress. These differences con-
- sis t first of all in the fact that in the past five years the country has advanced
far, and w2 are now faced with new gains and new tasks. Their specification is
also the main content of the draft plan of the CPSU Central Committee. But this
_ draf t plan also has differences with respect to methodology.
Let us begin with the fact that it covers not only the next, the llth Five-Year
~ Plan , but also the decade up to 1990. This is in keeping with the decree of the
- CPSU Central Committee and the USSR Council of Ministers, "On Improving Planning
and S trengthening the Influenee of the Economic Mechanism on Increasing Production
Efficiency and Work Quality," in which the new procedure of compiling long-range
plans of economic and social development for 20, 10 and 5 years is established.
The draft of the Main Directions being discussed covers a 10-year period, and the
prospects for the llth Five-Year Plan are elaborated with the necessary detail,
while the main goals of development are outlined for the decade as a whole.
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The second peculiarity of the draft plan consists in the fact that the directions
of not only ths economic, vutalso zhe social development of the IJSSR, as is obvious
from the very title of this document, are examined in it, while the preceding draft
plan for the 'Sth congress was called "The Main Directions of National Economic
~ Development."
In conformity with this questions of the comprehensive development of the individual,
- the broadening of the access of the entire population to cultural values and the
increase of free time on the basis of the development of services and questions of
- demography and the strengthening of the family are included in Section II of the
draft plan of the CPSU Central Committee. A large number of tasks of social de-
. velopment and the increase of the national well-being are contained in Section VIII
of the draft plan.
- Of the other peculiarities of the draft p12in it is possible to indicate the great
- importance which is attached to the development of science and the acceleration of
technical progress, which was reflected in Section III of the document, and these
tasks were set before the tasks in the area of industry, agriculture, transportation -
and capital construction. It is a question here both of the introduction of tech- _
nical achievements, which are already known and need extensive dissemination, and =
of fundamentally new tasks of the development of the social and natural sciences,
which govern the high road of further scientific and technical progress. The ques- `
tions of the development of agriciilture, like the other questions, are given in the
draft of the Main Directions comprehensively, in connection with the development of
the other sectors associated with agriculture and the entire section acquired the
corresponding title--"The Development of the Agro-Industrial Complex."
A special section is devoted to nature conservation with the distinction of the
tasks in this area. The means of improving administration and increasing the level
of management in all the links of the economy are also specified in an independent
section. As a whole the draft of ihe Main Directions with respect to both the
methodology and the content sets the basic tasks both for the llth Five-Year Plan
and for the subsequent future period.
What is the main Cask of our conference?
The draft of the Main Directions has been submitted for extensive national discus-
sion. We can make specific suggestions in development of what has been outlined in
this draft plan, or can give new suggestions which could be discussed here. For
_ example, the tasks in the area of the increase of labor productivity are recorded
in the draft plan. Perhaps, it would be worthwhile to speak about the specific di-
rections of this increase--to what extent it should take place due to the introduc-
tion of new technology and the intensification of production and to what extent due
to the improvement of the organization of labor and management.
It seems to me that it would be possible to speak in more detail about the availa-
bility of material reserves and to attempt ta determine the means of their more com-
plete utilization. Perhaps, the means of increasing the efficiency of social pro-
duction, the effectiveness of fixed capital and capital investments and of decreas-
ing current expenditures should also be indicated.
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It is desirable that the statements at t.his conference would conclude with specific
suggestions, which we could print in the journals and which could be used in the
' final preparation of Che draft plan.
- Correspunding Member of the USSR Academy of Sciences Ye. I. Kapusrin (director af
~ the Institute of Economics uf the TISSR Academy of Sciences). The main goal sefi lzy
the Communist Party for the llth Five-Year Plan and the future period to 1990 is
the more complete satisfaction of the needs of the Soviet individual and the compre-
hensive development of the individual. The most important aspect of the socialist
way of life found expression in the wording of the main tasks oC economic and social
development. The increase of the social and labor activeness of the Soviet people
in the coming period is one of the means of achieving the goal of socialist produc--
, tion. As T. S. Khachaturov has already said about this, the draft of the Main Di-
rectians is notable for its social orientation: ft is the draft of the plan of not
only the economic, but also the social development of the country. For alZ the de-
cisive importance of the task of further increasing the level of consumption of
material wealth by the workers, such an iiidicator of our socio-economic development
as the vital activity of a person, his specific behavior in labor and daily life,
_ his goals and methods of achieving them is extremely important. The program of the
steady increass of the national well-being far from exhausts the tasks of the fur-
ther social progress of our society. There is no direct relationship between the
standard of living and the way of life. It is incorrect to assume that the more
material wealth a person consumes, the more complete a reflection socialist prin-
ciples find in his labor and behavior in everyday life. The increase of the mate-
rial well-being should perforce be cambi;ied with the moral development of tlie
individual, for which certain economic cunditions, which are envisaged by the draft
of the Main Directions, are needed.
The tasks of the development of the socialist way of life must be reflected more
- completely in the draft plan. This should be done in Section II of the draft plan,
_ in which the policy of "increasing the social and labor activeness of the Soviet
people" is discussed and the task: "To ensure the further social progress of soci-
ety, to implement an extensive program of the increase of the national well-being"
is set for the next decade.
In both formulations it would be advisable to include the words "the iurther im-
provement of the socialist way of life"; this concept is considerably broader than
the concept "labor and social activeness," since the latter does not cover all the
vital activity of a person.
The task of further developing the socialist way of life (which at the same time
means an uncompromising struggle against negative phenomena in the life of individ-
ual members of society) has also not been included in the formulation of the main
task of the llth Five-Year Plan. The attitude of a person toward his own labor in
social production, his responsibility for the assigned job, his discipline and so
on are and will be the most important condition of the further increase of the ef -
ficiency of social production.
Under the conditions of present-day scientific and technical progress, the increase of the complexity and cost of new equipment, the objective processes of the inten- -
sification of socialization, the specialization and cooperation of production each
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violatiop of discipline and labor rhythm does much greater damage to the state and
society as a whole than before. In the 1980's the increase of the responsibility
of people to society and of the discipline of eac?z person must be ensured not only
by administrative measures and educational work, but also by other sccialist meth-
ods--by the creatinn at the works of those conditions which raould promote to the
utmost the increase of the labar initiative and independent action of the workers.
In this connection I would like to emphasize that in the dra�t of the Main Direc- -
tions, where the increase of the responsibility of each person for the assigned =
job is discussed, it is necessary to speak more precisely about the responsibility _
of engineering and technical personnel for the organization of labor at the works.
In the draft plan of the CP5U Central Committee the enormous importance of the in- _
troduction of the scientific organization of labor is quite correctly indicated,
but it is important first of all to ensure the material and moral responsibility
~ and interest of engineering and technical personnel in the more effective use of the .
labor of all workers and employees. We call upon the workers to participate in so- -
_ cialist competition, to make the most of every minute, but these minutes made avail-
able at times are squandered due to the unsatisfactory management of some engineer-
ing and technical personnel. We make the appeal to make the most of, to save and ~
to use efficiently metal, fue1, power and equipment, and at the same time these
materials, this equipment frequently are piled up in the production yard; new tech-
nological processes, which ensure the economical use of manpower and material re-
- sources, in many instances are being adopted slowly. The responsibility of the en- -
gineering and technical personnel, the management and engineering staff for the or- -
ganization of production and labor must be emphasized to the utmost. It is expedi-
- ent to do this in Paragraph 6 of Section II of the draft plan, in wl:ich the need
"to increase the responsibility of economic managers for the results and quality of
the work, the fulfiJlment of the plan assignments and contractual obligations, the -
observance of the principles of cost accounting, the assurance of the profitability
_ of production and the acceleration of the turnover rate of the working capital of
enterprises" is discussed. To these requirements it should be added "and for the
organization of production and labor."
The development of socialist competition is acquiring greater and greater importance
_ in the improvement of the socialist way of life, the increase of socialist disci- _
pline and responsibility and the strengthening of the combination of personal and
public interests. In the draft of the Main Directions the need "to promote in every
possible way the increase of the social and labor activeness of the Soviet people _
and the development.of socialist competition" is discussed distinctly. But it must
be borne in mind that socialist competition should be integrally cambined with the
plan. Meanwhile in the conception of many of our planners and managers competition
is contrasted with the plan. 1'herefore, in our opinion, it is expedient in Para-
graph 6 of Section II of the draf t plan, in which the assurance of "the fundamental _
coordination of the plan, economic levers and stimuli" is discussed, to add the
words "and socialist competition."
Apparently, it is also necessary to make more precise the tasks of the social sci-
- ences, having provided in the list of these tasks for the extension of the research
on theoretical and methodological questions of socialist competition.
- The tasks of improving working conditions and developing the content and nature of
� 1abor are set in the draft plan of the CPSU Central Committee, which is extremely
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necessary for the further development of the socialist way of 1ife, which is first
of all rhe labor way of life. The need for the enhancement of the creative natlire
- of labor and the increase of the satisfaction of each person with his labor are also
discusred ia j.t. But when tasks are set in the area of the development of industry
- and the production of systems of machines and equipment, especially automatic 9ya-
- tems with program control, in my opinion it must be clearly indicated that it is a
- matter not simply of the elimination ot manual labor in unskilled and monotonous
- jobs, but first of all of the development of the creative nature of labor, which is
of the greatest importance for creating the satisfaction of a person with his labor,
- the need for which is increasing more and more.
The active involvement of workers izi the mana.gement of social production is one of
the most essential aspects of the socialist way of life. The tasks of broadening
- the involvement of workers in management, of further developing socialist democracy,
_ of increasing the initiative of workers, of developing competition in every possible
way and so on arp set in the draft plan. In my opinion, this formulation should be
augmented. It wou13 be correct in principle, when speaking about competition, to
emphasize that name~y it is the most massive and effective form of the participation
of workers in the ma>>agement of social productian, and this in the end also implies
the further aevelopment of socialist democracy.
The existence of a group of workers who receive the minimum wage is of definite
importance for the still existing differences within the very socialist way of life.
The task is for the increase of the monetary wage, including for workers receiving
its minimum amount, to be accompanied simultaneously by a rise in labor productivity
and an increase of the material wealth being produced.
~
Along with workers who receive the minimum wage there are families whose working
members may have an average wage or even higher. However, when there are a large
number of dependents, and first of ail children, the per capita income in families
- is small. An increase of the payments and benefits from the public consumption
' funds and of the grants for such families is called fc,r in the draft plan. It seems
to us that it is expedient to formulate the task of the assistance of more needy
_ families on the part of society and to link it more closely with questions of demo-
graphic policy and the problem of strengthening the family, which were reflected in
the formulation af the main tasks of the economic and social development of the
country.
M. M. Darbinyan (USSP. Gosplan). In the draft of the biain Directions much attention
- is devoted to the problem of ineeting the needs of the population. 'Phe need for the
concenCration of forces and resources and for the gradual implementation of programs
is indicated. The food program is called the primary program. The main contours
- of this work are outlined in the draft plan of the CPSU Central Committee and in the
- speeches of L. I. Brezhnev at the November (1979) and October (1980) plena of the
party Central Comittee.
A greater interest in the receipt of pxoducts from state resources and a much
smaller interest in other sources: the private plot and the subsidiary farms of
production enterprises, have been noticed in recent years. Consumption owing to
the private plot has not increased appreciably. Thus, during 1960-1978 for meat it
remained at approximately the same level. The proportion of the output of the
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_ private plot in the total resources differs greatly by republics. Thus, in 1978 for
meat it ranged f rom 13 percent in the Estcnian SSR to 34 percent in the Kazakh SSR.
~ Therefore, the need to increase the output of products of subsidiary farms and pri-
- vate plots is quite legitimateZy indicated in the draft of the Main Directionsa
The taking of the per capita level of consumption as a plan indicator will increaee
. significant.ly the interest in the resources from the above-indicated sources. At
present local organs frequently devote too little attention to the development of
_ the private plot, kolkhoz trade and the commission trade of consumer cooperatives
and at the same time make a request for the allocation of addi*_ional stocks or food-
stuffs through state resources.
Standards of consumption and a model of rational constunption should be the goal of
the entire food program. For some products these standards have already been
achieved, for others they might be achieved in the next few years, for sti11 others
- (for example, fruit) the achievement of the standards might go beyond 1990. It is
quite understandable that it is impossible to assume that the satisfaction of the
demand with respect to the main foodstuffs would be achieved in 5-10 y2ars. And
this means that the program should envisage a rational balanced diet for all tYieze
years and at the same time the balance of supply and demand with respect to each
commodity for each year, without waiting until the time when actual consumption
reaches the standards for all commodities. This is a very complicated and difficult
problem, but its solution should be provided for in the program. In this connection
_ I propose to note in Section V of the draft of the Main Directions: "The �ood pro-
gram should be aimed at meeting the needs of the population at the level of the
- standards of rational consumption, as well as should ensure the balance of supply
and demand at all stages of the implementation of this program."
The program of the eevelopment of the production of consumer goods and services is
identified as another important program which requires elaboration in the draft of
the Main Directions. The subprogram of the increase of the production of new con-
sumer goods, in our opinion, should become a component of this program. The elabor-
ation of the latter is called for by the decree of the CPSU Central Committee and
the USSR Council of Ministers, "On Iniproving Planning and Strengthening the Influ-
ence of the Economic Mechanism on Increasing Production Efficiency and Work Qliali-
ty." This subprogram should be aimed at the elaboration of a system of ineasures on
the creation and the assurance of the development and functioning of the economic
mechanism and the material and technical base for the production of new consumer
goods in conformity wlth the steadily increasing demands of the population. Accord-
ing to our estimates, not less than 25-30 billion rubles of these goods should be
produced during each fi.ve-year plan.
At present some work has been done on creating the economic mechanism of the produc-
tion and introduction in everyday life of new goods: instructions on the procedure
of setting the prices for new goods have been approved, stimuli aimed at increasing
- their output have been stipulated. However, for the present th3ngs are still pro-
gressing slowly. In this connection the instructions on the output of goods char-
acterized by novelty, which are stipulated in the draf t of the Main Directions in
Section IV, should be moved, in our opinion, from the paragraph in which cultural,
- personal and household goods are discussed to the paragraph in which the need to
. develop the production of consumer goods as a whole is emphasized, they should be
formulated more precisely and it should be noted that the elaboration of ineasures
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_ on the stimulation of the production of new goods should become a component of the
overall program of the development of the production of consumer goods. For the -
regulation of the sale of new goods it is necessary, in our opinion, to develop a _
network of special stores for the sale of especially fashionable goods.and new goods. _
. Fiim stores shauld be enlisted extensively in this work, and it i.s expedient to ex-
empt them entirely from the sale of goods in short sugply.
Ye. A. Odinets (USSR Gosplan). The food program is extremely important both eco-
- nomically and socially. It should be based, in our opinion, on scientifically sound
standards of consumption, on the food allowances elaborated by the Institute of Nu-
trition of the USSR Academy of Medical Sciences for different age groups of the
= population with allowance made for climatic zones.
Fish products account for more than 20 percent of the protein of animal origin in
the total balance of this protein which is consumed in the USSR. The average per
- capita consumption of these products is now close to the standard recommended by
- the Institute of Nutrition--18.2 kg, but a shortage of fish products is being felt
_ in some economic regions and population centers. Such factors as the increase of
the size of the population of middle age, for whom this protein is more beneficial
than the pretein of the meat of warm-blooded animals, as well as the disappearance
of national habits in nutrition play a considerable role in this, Taking this into
account, as well as several other factors, we presume that in the next few years
w-ith an overall increase of the consumption of proteins of animal origin the pro-
portion of fish protein in the food balance will be maintained, while in some re- _
gions it should be increased. A gradual increase of the proportion of live,
chilled and individually frozen fish, cooked fish and prepared fish will be ob- _
served in the structure of fish products. The production and conaumption of canned
fish wi"Ll not increase as rapidly as during the past decade.
The need to increase the productivity of inland bodies of water and to develop more
rapidly the production of fish is discussed in the draft of the Main Directions.
At present pond, lake and other commercial fisheries (including agricultural fish-
eries) are already providing us with about 190,000 tons of good table fish--carp,
~ /amur/, silver carp, peled (whitefish), trout. In 1985 it is envisaged to increase
the production of this fish to 410,000 tons. But, when catching fish in rivers and
lakes, we should "sow" and cultivate the future "crop," consiming 4.5-5 kg of mixed
feed per kilogram of commercial fish. The national eeonomy has to spend consider-
able capital in order to offset the losses of bioingical resources in rivers, lakes
and reservoirs due to water pollution, the change of the hydrologic regime, which `
is connected with the irrecoverable consumption of water, and inadequately con-
trolled amateur fishing. During the llth Five-Year Plan it is planned to allocate
about 500 million rublss just for the development of comanerical fishing enterprises
in the system of the fish industry (excluding agriculture) and the infrastructure
_ connected with them.
A number of ministries and departments underestimate the importance of the building
of fishing facilities, which in conformity with the approved plans of construction
of industrial enterprises, hydraulic and other structures should be built to offset
the harm being done to fish stocks. The construction of such fishing facilities is
often carried out last of all or is postponed for an indefinite period. As a re-
sult great harm is done to biological resources. Therefore in Section IX "Nature
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Conservation" of the draft of Che Main Directions an additional paragraph, in oLr
opinion, should be inserted: "The general clients of the construction of industrial
enterprises, power developments, water managemenC systems and structures, th:: build-
- ing of which may do harm to the biological resources of inland seas, rivers, lakes
and reservoirs, are to ensure at the same time as the indicated construction the
building of facilities which offset this harm."
- V. V. I1'in (USSR Gosplan). In the draft of the Main Directions very much attention
is devoted to increasing the production af consumer goods. We should direct the
main attention when producing consumer goods to the increase of the quality of the
output being produced and the updating of the assortment. Stimulation is a very
powerful lever of the increase of the production of consumer goods. It must be
used correctly for increasing *_he production of these goods.
The Main Statutes on the Formation of Incentive Funds, including for the stimulation
of the production of consumer goods, have already been drafted for the llth Five-
Year Plan. Much attention is directed to stimulating an increase of the quality of
the output being produced through the corresponding systems of indicators, such as
the proportion of output of the highest quality category and the reduction of the
output of products of the second quality category.
However, there is also another very important aspect in this problem--we need not
unly to achieve the required quantity and the proper quality of goods, but also to
see.to it that they reach the consumer. In other words, it is necessary to in-
crease the responsibility of ministries and enterprises for the outp~_It of these
goods and their delivery to consumars. Therefore the formation of funds and the
payment of tonuses during both the lOth and llth Five-Year Plans have been made de-
pendent on the meeting of contractual obligations. But this system also has its
shortcomings. They consist in the fact that with respect to consumer goods the
supplier bears responsibility for delivery according to a consolidated products
_ list (assortment). During the llth Five-Year Plan it is necessary to remedy this
situation. The delivery of products for production engineering purposes and con-
sumer goods in conformity with concluded contracts should be the main indicator of
the evaluation of the activity of an enterprise. Only in this case will we be able
to ensure complete compliance with the interests of consumers.
With the now prevailing system of management the head ministries are responsible
for the production of certain goods or others. However, unfortunately, there is
no statute on the head ministry which would be responsible for the production of
specif ic mass demand goods. Therefore it is necessary for this statute to be
drafted and approved in the shortest po ssible time. The following clause, in our
opinion, must be recorded in the draft of the Main Directions: "To increase the
personal responsibility of the executives of ministries, departments and enterprises
for the production of consumer goods."
- Apparently, it would be advisable to give assignments to the ministries so that they
would deliver them to production associations and enterprises and would assimilate
the production of new mass demand goods according to the models of the All-Union
Permanent Pavilion of Models of Consumer Goods of the USSR Ministry of Trade, and
to establish a procedure of economic stimulation for the fulfillment of these as-
si~runents. For the purposes of increasing the quality of the goods being produced for
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the pouulation and expediting the updating of their assortment it is useful, in our
opinion, to introduce a procedure, in accordance with which only those new goods,
which in consumer properties, technical level, external appearance and other param-
eters meet the demands made on items of the highest quality category, would be put
into production. At the same time the time for obtaining the approval of standard
technical specifications for new consumer goods must be shortened. The evaluation
of the activity of ministries, associations and enterprises on the output of cul-
tural, personal and household goods also requires improvement. It is expedient to .
evaluate the production of these goods according to the total volume, including the `
production volume of the components, blocks and parts for them.
An important question concerns the stimulation of the manufacture of children's
goods. For these purposes it is desirable to increase the percentage of the tempor-
ary markups on the retail prices for these goods of improved quality, which would ~
be allocated for the payment of bonuses to workers.
V. F. Mayyer (Scientific Research Institute of Economics attached to USSR Gosplan).
While approving of the draft plan of the CPSU Central Committee for the 26th party
congress, I would like to make a few provisions more precise. The capital invest-
- ments in agriculture can be reduced by means of the expenditures on reclamation, if,
for example, we do not carry it out in such oblasts as Murmanskaya Oblast and ones
like it, where the impact will be small. The obtained assets can be invested with
a much greater impact in other areas of the development of the national economy.
' In the draft of the Main Directions there is a paragraph in which it is stated that
it is necessary to place the main stress in agriculture on the production of grain
= and fodders. Moreover, the need for the safe keeping of agricultural produce is
discussed there. I propose to remove the middle of this paragraph, which pertains
to grain and fodders, since given the present level of the development of produc-
tion and consumption not only grain and meat are important for us. Given the as-
sets which are now being invested in agriculture, it is quite possible to ensure
= the production in the necessary amounts of veoetables, fruits and all other agricul-
tural produce.
It is necessary, in my opinion, to augment the text pertaining to working conditions
with indications of the specific measures which would ensure the reduction of manual
labor, espec ially hard manual labor. It is well known that programs af the reduc-
- tion of manual labor, as well as of the mechanization of loading and unloading, -
handling and warehousing operations will be elaborated. It would be advisable to -
- note specifically how these programs should be implemented and to what extent it is
expedient to reduce manual labor.
- The question of ineeting the demand of the population is very important. It was re-
flected in th e section on social development and the increase of the national well-
being. But it is necessary to expand this paragraph and to indicate specifically
by what means the problem of ineeting the demand of the population should be solved. -
But it must, in my opinion, be solved, first, by expanding the output of the cor-
responding products; second, by improving the planning of the production and sale
of consumer wealth; third, by achieving the proper ratio betweer, the increase of the
monetary income of the population and its backing with goods and, finally, fourth,
by means of an active policy in the area of retail prices. It is necessary to keep _
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stable or reduce the average level of prices when adjusting the prices for individ-
ual goods. Both the way of 1ife, which Ye. I. Kapustin discuss ed in his statement,
and the problem of the effective stimulation of production rest upon the problem of
demand.
~
Corresponding Member of the USSR Academy of Sciences S. S. Shatalin (All-Union Sci-
- entific Research Institute of Systems Research of the USSR State Committee for Sci-
ence and Technology and the USSR Academy of Sciences). In the draft of ":The Main
Directions of USSR Economic and Social Development for 1981-1985 and the Period to
= 1990" it would be necessary to cite the main strategic indicators of the development
of the USSR national economy to 1990--the growth rate of the national income, the
real income of the population, industry, agriculture, capital investments and so on.
This would make the economic and social development of the USSR in the future more
visible.
Only one indicator of the characterization of the aggregate eff iciency of social
production--the increase of the produ.ctivity of national labor--is contained in the
document. The data concerning the fact that during the llth Five-Year Plan
85-90 percent of t:he increase of the national income should be provided by the in--
crease of labor productivity, could create for the reader inadequately trained in
economics, it seems to me, the impression that the proportion of intensive factors
_ in the economic growth of the country is being planned precisely as such, which, of
course, is incorrect. Moreover, the question arises, why with a 20-percant in-
crease of the national income during the llth Five-Year Plan and a 20-percent in-
' crease of labor productivity is not 100 percent, but 90 percent of the increase of
the natianal income being pravided by means of the latter?
_ The plan assignments not anly on the increase of labor productivity, but also on
the change of the output-capital ratio and the materials-output ratio of social pro-
duction, on the increase of the aggregate efficiency of the use of material and
manpower resources and concerning the proportion of intensive factors in the in-
crease of the amount of the national income of the country must be cited in the
draf t of the Main Directions.
During the further work on the draft of the Main Directions it is expedient to seek
an opportunity to stabilize the proportion of nonproductive capital investments in
their total amount. In recent years this proportion has steadily declined. It is
necessary to proceed on the basis that the increase of capital investments in the
development of health care, education, culture, housing construc.tion and science.
is the most important condition of the assurance of a steady long-term increase of
the efficiency of the use of production resources.
_ '"he elimination of losses in the national economy is a less capital-intensive
means of achieving the end national economic results as compared with the increase
= of production volumes. It is also necessary to outline more specifically the main
structural changes and to single out the task of developing technologiPS which save
- niaterial, manpower and natural resources. Without this it is very difficult to en-
sure rhe balanced, effective development of the national economy without a deficit.
= On the basis of the elaboration and implementation of a program of the prevention
of losses and the development of an "economizing" structure of production and
"economizing" technologies it is possible to solve more constructively the questions
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of the acceleration of the dynamics of nonproductive capital investments, the im-
provement of the structure of capital investments in the agro-industrial complex
and the determination of their rational amount.
In the Main Directions it would be advisable to provide for the elabo ration of a
comprehensive goal programs of the complete satisfaction in 1990 of the effective
demand of the population for material consumer wealth and services. The assurance
of a balance in the consumer sector of our economy is the most important condition
of the steady increase of the national well-being, the creation of an effective
system of material stimulation and the transition to the primarily intensive bal-
anced development of the national economy as a whole.
Such a program should, in my opinion, contain purposeful interconnected measures in
the area of the eacpansion of the production of goods and services, the improvement
of the economic mechanism, the regulation of the monetary income of the population
and retail pricea. It ahould also be closely coordinated with thefood program now
being elaborated.
Let us note specifically that the assurance of the balance of supply and demand in
- the consumer sector of the national economy presumes the pursuance of a more active
planned policy in the area uf retail prices. The steps in this area should not be
_ of a purely financial nature, that is, these steps should n4t bear the consumer
function of the static "cutting off" from consumption of a number of less "effec-
- tive" goods and services frpan the point of view of the level of income of consumers.
Retail price policy should also create the economic conditions for the stimulation
of producers in the expansion of production and the increase of the quality of
scarce goods and services.
The further improvement of the system of pension security is called for in the draft
of the Main Directions. It seems expedient to augment the system of ineans in this
area with the task of increasing the newly granted pensions for a11 categories of
workers, employees and kolkhoa farmers. Moreover, I consider it necessary to de-
velop a mechanism of the constant adjustment of pensions with allowance made for
the index of the growth of the real income of the ponulation and the retail price
index for consumer wealth and services.
And, finally, it seems necessary to set in the Main Directions the task of the fur-
ther centralized increase of the wage of workers of the nonproductive sphere of the
~ national economy, the average level of which lags behind the average wage level in
the national economy. Let us recall that the wage in the nonproductive sphere does
not increase "automatically" following an increase of social production and the pro-
ductivity of national labor.
E. P. Gorbunov (Institute of Economics of the USSR Academy of Sciences). T. S. Kha-
chaturov said that one of the main traits of the draf t of the Main Di rections is
its social orientation. The solution of these problems is linked with the need to
change over to direct planning, which ensures the balanced development of social
production. It is possible to ensure a balanced Cype of expanded reproduction on
the basis of the enormous material resources which we have today. Therefore in
Section I of the draft of the Main Directions there must be inserted the provision
that as a result of the fulfillment of the Ninth and lOth Five-Year Plans the
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material conditions were created in the country for the Cransition to balanced eco-
- nomic growth.
At the same time it is necessary to emphasize more distinctly the role of the sphere
of consumption. At present the very course of expanded reproduction cannot be
- backed effectively enough if the old planning and preplanning instructions on the -
role of consumption, which were widespread 15-20 years ago when we interpreted the _
= sphere of consumption as a deduction from the national income, are applied to its _
development.
Consumption plays an active role in the process of expanded reproduction. The fig-
ures cited in the draft of the Main Directions attest quite convincingly to this.
During 1981-1985 the national income will increase by 18-20 percent, labor produc-
tivity--17-20 percent, the real income of the population--16-18 percent, wages--
13-16 percent, public consumption funds--20 percent, personal services--40-50 per-
cent. The connections between the growth rates of labor productivity and the na-
tional income, as well as between the rate of increase of the consumption of the
national income and the growth of labor productivity are traced quite disr.inctly
here. During the period of mature socialism the sphere of consumption plays a most
active role in the process of expanded reproduction, and, of course, we should take
this circumstance into account. In point of fact, the development of the sPhere of
consumption serves as an indicator of the optimality of our development, of the op-
timum rate of expanded reproduction as a whole.
The development of the sphere of consumption acts as a gauge of the amount of so-
cia.lly necessary expenditures of labor. K. Marx has a thesis about a more devel-
oped expression of the law of value, when he states that the amount of these ex-
penditures is determined not only by the average expenditures of labor, but also by
the distribution of national labor in proportion of social needs. This circumstance
is of the greatest importance for taking into account in the national economic plan
the distribution of iiational labor and public capital truly in proportion to all
social needs, including the needs of the population.
_ Here the question arises of improving the system of material stimulation, which, in
particular- finds expression in the brigade contract. Measures on improving the
planning of the development of consumer items and services, in my opinion, should
also be implemented in this direction. In connection with what has been said, it~
seems to me, the need has arisen for a change in the traditional, established meth-
ods of planning the consumer sphere.
We are using rational standards of consumption too extensively in planning. These
standards are revised f rom time to time, they bear a minimum of economic informa-
tion and are designed for the so-called average man, without consideration of the
specific social conditions of his existence. In science there is a much more pre-
cise reference point of the standarsis of consumption, which is based on the analy-
sis of socio-economic conditions and the formed level of consumption in each social
group of the population. Planning must also be carried out with allowance macle for
the socio-economic structure of the population. This concerns both the output of
- individual types of products and the planning of prices, rates, the system of mate-
rial stimulation, social security and others.
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Under the conditiar.o of balanced economic development the consumption fund, which
_ is calculated in accordance with socio-economic standards, can be the objective
basis of the formation of the entire structure of social production. A scientif-
- ically sound amount of the consumption fund, which is def ined as the sum of the ef-
fective demand of the population plus the amount of the public consumption fundg,
would make it possible on the basis of advanced standards to establish both the
amount of the accumulation fund, which is necessary for their production, and its
total amount, the amount of the national income, the gross national product and
others. The main ways of implementing measures which ensure balanced economic de-
velopment should be singled out in the section of the draft of the Main Directions,
in which the economic mechanism is discussed.
The last suggestion concerns the final sect_.an. Here, in my opinion, it is expedi-
ent to single out a special paragraph, in which it is necessary to emphasize the
need for the differentiation of the economic mechanism depending on social produc-
tion in individual territorial zones and regions of the country. This is suffi-
ciently well known, the problem here is clear, but this principle should be ob-
_ served, because our national economy is losing much from the lack of this.
A. V. Orlov (director of the All-Union Scientific Research InstituCe of the Study
of Consumer Demand and Marketing Conditions). The thesis advanced by L. I. Brezh-
nev at the October (1980) CPSU Central Committee Plenum that the production of con-
sumer goods should be strictly dependent on tra4e and the consumer, should be re-
flected in the draft of the Main Directions. For this a system of plan and evalua-
tion indicators must be developed. Here we are for the present still at the very
start of the path. It would be correct in Section VIII of the draft plan of the
CPSU Central Committee, as well as in the five-year and annual plans to provide for
the introduction of the indicator of the degree of satisfaction of the demand and
needs of the population. Such an indicator can be used along with the indicators
of the volume and growth rate of the retail commodity turnover. The basis exists
for its calculation in the form of predictions of demand and standards of consump-
tion.
An evaluation indicator of the deoree of satisfaction of the declared need of trade
for resources, which would attest to what extent the planned production volumes
- meet the needs of trade for goods, should be introduced for evaluating the develop-
- ment and the interrelations of the sectors producing consumer goods with trade. In
the interrelations between production associations and enterprises, on the one hand,
and organizations and enterprises of trade, on the other, it is expedient to estab-
lish an indicator of the acceptance and filling of the orders of trade with allow-
ance made for the assortment, the dates of the making of delivery and the qualita-
tive attributes of the goods. They should coaform to the contractual relations
which are established at wholesale trade fairs. In this connection in Section VIII
of the draft plan, in which the development of trade is discussed and the increase
of the role of the economic contract in the drafting of the plans of the production
and sale of consumer goods is stressed, ttie need to sharply increase the importance
of the orders of trade should also be discLssed.
The creation of the conditions for increasing the degree of balance of supply and
demand is of great socio-economic importance. This influences the stability of
money circulation, the possibilities of developing the retail commodity turnover,
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~
- the efficiency of sacial production and the improvement of the economic mechanism
and as a result the needs of the Soviet people are met more completely. Therefore
. the planning organs, which are working on the general problem of the balance of the
plans of economic and social development, should direct the IIeost serious attention
= to this aspect of the problem. It would be correct in Section II of the draft plgn
of the CPSU Central Committee among the main goals, which define concretely the
primary socio-economic task of the llth Five Year Plan in the area of the improve-
ment of management (Paragraph 6), to make the following entry: "To seek when draft-
ing and implementing the plans of economic and social development an increase of
the degree of balance of supply and demand on the domestic market of the country."
The need for the development of the production of consumer goods at an anticipatory
rate and for the improvement of coordination and specialization in the production of
such goods is emphasized in the draft plan of the CPSU Central Committee. T!iis
clause, in our opinion, should be given in the following wording: "For finding re-
serves for increasing the output of consumer goods, improving their assortment and
quality and meeting the needs of the national economy and the population to in-
crease the responsibility of the head minis tries, to improve coordination and spe-
cialization in the produclion of consumer goods."
- T!iere is also another thing to which I woul d like to direct attention--the problem
_ of new goods. The problem is urgent, since different criteria of the updating of
the assortment exist in industry and trade. If we direct our attention to the.data
- of light industry, the annual updating of its items is 50-60 percent. In the case
of stricter criteria the percentage of updating is considerably lower--10-20 percent.
Apparently, the contradiction between the cunception of what the updating of the
production assortment is and what the updating of the trade assortment is must be
overcome. It is necessary to give more precise definitions of the criteria of the
improvement of the assortment, its updating, the novelty of items and the concept ~
- "fundamentally new goods."
The assumption that the improvement oF the study of demand is needed has been formu-
lated in the document being discus sed. Obviously, this work cannot be restricted
only to trade. In many countries --socialis t and capitalist--industrial associa-
tions, combines and firms are engaged in the study o-' the market and demand. Here
- rhe sphere of activity of trade and industry should be clearly delimited. It is
~ one thing to study demand for drawing up requisitions and orders, it is another to
study the demand for new, promis ing, technically complicated items. Therefore it
is expedient in the draft of the Main Directions to note: "To improve the work on
the study of demand in trade and industry, to establish a unifed system of the com-
prehensive study and forecasting of demand."
D. N. Karpukhin (director of the Scientific Research Institute of Labor). An in-
- crease of the growth rate of labo r productivity as compared with what was actually
- achieved during the 10th Five-Year Plan is called for in the draft of the Main Di-
rections. This requires the making of an entire set of decisions.
The level and growth rate of labo r productivity in all the sections of the national
economy depend on the increase of the effectiveness of capital investments by means
of the shortening of the duration of the construction of projects and the increase
of the quality of construction, the speeding up of the placement into operation and
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- assimilation of capacities, the carrying out of the renovation and retooling of
op erating enterprises on the basis of the latest achievements of science and tech-
- nology. Meanwhile the designing and construction periods in our country consider-
ably exceed the established standards and come to 8-10 years, as a result of which
- by Che time they are placed into operation the new enterprises are becoming techni-
cally obsolete. The lack in the plans of sections on the scientific organization
of labor has the result that a considerable amount of manual operations and adverse
working conditions are being maintained at new enterprises and enterprises undergo-
ing renovation. The technical and economic indicators, and the level of labor pro-
ductivity in particular, in a number of instances are planned at a lower level than
the achieved average sectorial leuel.
The shortening of the cycle of the assimilation of production is one of the impor-
tant reserves of the increase of labor productivity. The prevailing standards of
the assimilation of capital investments are still very great. According to these
standards, 6-12 years are required from the start of the elaboration of the engi-
- neering plan to the placement into operation at the rated capacity, and the design-
ing takes up nearly 24 percent of the total time, the performance of the construc-
tion and installation work--46 percent and the assimilation of the rated capaci-
ties--30 percent. This means that the standard period of the investment process
is lengthened artifically by one-third due to assimilation alone. 77ae experience
of advanced construction projects of the USSR and foreign practice attest to the
possibility of shortening the duration of the cycle of rhe building and assimila-
tion of new capacities by one-third to one-half.
The main thing which determines the level and growth rate of labor productivity is
the increase of the technical level of production. During 1971-1980 great changes
occurred in the production apparatus of industry, the fixed production capital in-
crea5ed significantly, new implements of labor and advanced technological processes
were introduced in production. However, during the year of the lOth Five--Year PZan
the fixed production capital grew less rapidly than during the Ninth Five-Year Plan.
The rate of increase of the replacement of obsolete and worn out machinery and
equipment is especially lagging. As a result, a considerable amount of worn out
- anci obsolr~e machinery is :low in operation .in industrS.
The development of fundamentally new technology ar~d the quickest possible introduc-
tion in production of new implements of labor and technological processes, which en-
- sure both an increase of production efficiency and the solution of social problems,
are of particular importance under present conditions. The implementation of the
comprehensive goal program of the reduction of manual labor is one of the main re-
serves of the increase of the growth rate of labor productivity.
Great reserves of the increase of labor productivity are incorporated in its better
organization. The reporting data show that the percentage of fulfillment of the
plans on the scientific organization of labor is increasing from year to year, but
the number of ineasures on the scientific organization of labor is not increasing,
while the proportion of those covered by these measures among industrial personnel
engaged directly in production is decreasing. An especially large amount of atten-
tion should be devoted to the scientific orgauization of labor when designing new
enterprises, renovating operating ones and developing new equipment and technologi-
cal processes. In the overall system of ineasures on the scientific organization of
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labor the proportion of such advanced directions as the brigade form of the organiza-
tion of labor, the combining of occupations and the operation of several machines
should be increased. At the same time it is necessary to transform the requirements
of the scientific organization of labor into criteria of the choice of socially ac-
cegtable versions of technical and technological decisions, as well as changes of
working conditions and the production environment.
The timely revision of the norms and their thorough substantiation are the most im-
portant conditions of the increase of the role of rate setting in the increase of
labor productivity. During the llth Five-Year Plan measures aimed at the more ex-
tensive use of intersectorial and sectorial standards should be elaborated sa as
to achieve in the immediate future the average level for industry of the coverage
of pieceworkers by these standards; particular attention should be devoted to the
chECking of the quality of the standards being used and to the organization of the
timely revision of obsolete sectorial standards.
= During the llth Five-Year Plan it is expedient to gradually convert all sectors and
works to the standard method of planning of the number of employees and to estab-
lish that the enterprises and organizations, which have converted to such a method
- of planning of the number of employees, are exempt from certain forms of the regu-
lation of staffs.
In light of the implementation of ineasures on the improvement of the economic mecha-
nism the economic and material stimulation of competiLion requires further improve-
ment. The bringing of socio-economic factors into play is an important condition
of the acceleration of the growth rate of labor productivity.
The situation in wh4.ch the plans for labor productivity are not fulfilled
but plans for production volume "are achieved" by means of the
enlistment of an additional number of wurkers has lasted for a long time now.
Thereby great complications are arising with manpower resources, the balance of
which is tight as it is.
During the coming period in connection with the sharp dPcline of the growth of the
able-bodied population there will be no possibility of fulfilling the planned pro-
duction volumes with the nonfulfillment of the plan on the increase of labor pro-
ductivity. There will simply be no additional workers. Therefore enterprises and
sectorial ministries should match their needs for manpower with the acutally exist-
ing manpower resources of the given region, city, oblast. In this eonnection it
would be advisable in the draft of the Main Directions to include the following
clauses: "The combination of the full employment of the population with the in-
crease of the efficiency of labor in all sectors of the national economy is an im-
portant task in the area of the use of mangower resources. It is necessary to en-
sure conFormity between territorial and sectorial planning of the number of em-
ployees. In the location of production and the performance of capital construction
to take into account the regional peculiarities, the dynamics and structure of the
manpower resources. To elaborate comprehensive goal programs of the improvement
of the pattern of employment {n regions with a high and low growth of the able-
bodied population."
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The following paragraph should also be recorded: "To step up state monitoring of
- the use of manpower in all sectors of the national economy, to establish effective
penalties for the violation of the linits of the number of workers and employees,
lar$e losses of working time, the turnover of personnel, a high proportion of manual
labor."
= An important problem is the overcoming of elements of the spontaneity of the labor
- mobility of the population. Territorial, sectorial, 3.nterplant and interoccupa-
tional shifts of workers are still achieved predominantly in an individual, cen-
trally unregulated manner, which inevitably gives rise to inefficient flows of la-
bor from a national economic standpoint and increases considerably the costs of the
reproduction of manpower resources. In this connection the question of reorganiz ,
ing the establi.shed system of job plar.ement on a uniform basis should be raised;
the network of job placement and information bureaus for the population should be
increased; their rights should be broadened and the efficiency of their work should
_ be increased.
The improvement of workiag conditions is discussed in the draft of the riain Direc-
tions. But, in our opinion, they are inadequately specified. Therefore I propose
to note: "To continue the policy of further implementing socio-economic changes in
labor, which are aimed at the increase of its efficiency, the enrichment of the con-
tent, the improvement of the conditions and the gradual achievement of the social
homogeneity of labor. 'rhe elaboration and implementation of goal prcgrams in the
area of labor should ensure a decrease of the number of workplaces which require
unskilled manual, difficult physical labor, as well as with monotonous and unappeal-
ing functions."
In our country the amount of capital which we are using to make payments in connec-
tion with unfavarable working conditions is increasing more and more. In the
structure of the regular labor force, in spite of the implementation of a set of
measures aimed at improving the working conditions, the number of workers enjoying
benefits and campensation in connection with a jot+ at works and in shops with dif-
ficult and harmful working conditions is increasing with each year. As is known,
in addiCion to higher wage rates and salaries, the receipt of free preventive diet
therapy, as well as the granting of the right to a state pension with special bene-
fits and in favorable amounts, the workers employed at works with difficult and
harmful working conditions enjoy additional leave and a shortened workday. In the
draft plan of the CPSU Central Committee it should be noted that state assets and
the assets of enterprises should be used first of all for avoiding and eliminating
unfavorable and unappealing working conditions. It is also expedient to include in
the draft plan the following provision: "To provide opportunities for the continu-
ous creative growth of workers. To cultivate in labor collectives, brigades and
links intolerance toward violators of production and labor discipline.
Yu. P. Kokin (Scientific Research Institute of Labor). The draft plan of the CPSU
Central Committee is based on the fact that the entire arsenal of the cen':ralized
and decentralized regulation of wages should be subordinate to the task of increas-
- ing the influence of wages on production efficiency and the increase of work quali-
ty. In the 1980's not so much the increase of the levels of pay as the improvement
of its organizati.on should be placed at the center of attention when implementing
centralized measures.
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_ In Section VIII of the draft of the Main Directions it must be noted, in my opinion,
that today it is necessary to utilize to the utmost the implementation of ineasures
on the increase of tjie rates and salaries of workers and employees in order to im-
_ prove the system of the organization and differentiation of wages. It seems that
given the achieved level of the average wage attention should not be directed
_ toward an overall increase of wages, but it is necessary to ensure an increase of
the wages for those categories ot workers for which this is extremely necessary.
The increase of the level of wages should be linked not only with the solution of
social problems, but also with the increase of the efficiency of work and with the
growth of the contribution of workers to the overall results. The reduction of the
number of people receiving pay of a low level should be ensured first of all by the
improvement of their skills.and by their transfer to the performance of more com-
plicated and, consequently, higher paid jobs. Technical progress and the processes
of the automation and mechanization of simple manual operations, which are con-
nected with it, are creating the conditions for this.
The need to implement centralized measures in the area of the increase of the mini-
mum, as well as the rates and salaries of workers and employees during the llth and
12th Five-Year Plan is dictated by the fact that in the process of introducing the
new wage conditions we have an opportunity to improve the rate setting of labor, to
revise obsolete standards, to introduce new, more advan.;ed, technically sound norms.
At the same time we have the opportunity Co improve the system of various types
of incEntive payments.
During tfie period of the improvement of the wage conditions it is necessary to focus
the main attention on bringing the differentiation of wages in line with the changes
in labor, which occLr under the influence of scientifj.c and technical progress, and
on the differentiation of rates and salaries according to the complexity of the
jobs being performen and the skills of the workers.
It is necessary to increase the proportions
for the problem of stimulating workers who a
conditions and to perform unappealing types
also important to ensure an increase of the
age wage of workers and specialists who are
labor.
in pay according to working conditions,
re forced to work under adverse working
of jobs is being aggravated. It is
differences in the levels of the aver-
engaged in engineering and economic
I would like to second the suggestions on the need to improve the methods of evalu-
ating the labor of specialists (employees in the broad sense of this word) for the
purposes of ensuring the conformity of the level of pay to the complexity and re-
sults of labor. We have a mechanism for solving this problem: it is first of all
- the extensive adoption in practice of supplementary payments to specialists for
_ high skills. Particular attention is devoted to this in the decree of the CPSU Cen-
t-ral Committee and the USSR Council of Ministers on the impr.ovement of the economic
- mechanism. Another direction is the extension of the practice of using the skills
categorization of specialists who are employed in the different engineering and
economic services of enterprises.
In the coming period it is very important not only to ensure an increase of the
wage rates and salar.ies with allowance made for the increase of skills and the
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complexity of the jobs being performed and to properly take into account in pay the
differencea in working conditions, but also to organize the mechanism of the intro-
duction of the new wage conditions so that it would make it possible to ensure in
the production and nonproduction sectors of the national economy a direct link of
the changeover to the new wage conditions with the increase of production effici2rl-
_ cy and work quality. In the draft of the Main Directians this is discussed in gen-
eral outline, but it is necessary to provide for the implementation of more precise
measures.
When elaborating the main directions of the improvement of the organization of wages
in production sectors it seems necessary to proceed on the basis that the process
of gradually increasing the sphere of application of the time rate plus bonus wage,
which appeared in recent years, will continue in the future in con3unction with the
improvement of the rate setting of the labor of workers whose wages are based on a
time rate and of specialists, with the adoption of technically sound standards of
the number, service, standardized assignments and so forth.
The improvement of the prevailing systems of incentives and first of all of the
payment of bonuses is one af the important directions of the improvement of the or-
ganization of wages. An increase of the effectiveness of the bonus system can be
- achieved on the basis of:
= the establishment of indicators which influence the material interest of workers
in increasing labor productivity, improving product quality, decreasing the labor-
output ratio and others;
the extensive dissemination of collective forms of the payment of bonuses for the
_ end results of production and first of all within the framework of the brigade or-
ganization of labor and material stimulation;
the increase of the reference point of the payment of bonuses, that is, the indica-
tor upon the achievement of which the bonus can be paid;
the assurance of the conformity of the established indicators to the tasks set for
the given subdivision, the worker (group of workers) or the enterprise as a whole;
the timely change of the indicator (terms) of the payment of bonuses, the adjustment
of its level, amounts, as well as the group of people being paid bonuses with the
corresponding changes in production conditions.
To sum up, I would like once again to emphasize the main idea: the improvement of
the organization of wages in the immediate and more distant future should be aimed
- at the assurance of the necessary connecti:,a of the measure of labor and the meas-
ure of pay, at the increase of the stimulating role of all the structural elements
of the wage and the assurance of their connection with the achievement of higher
results of labor and with the increase on this basis of the efficiency of all so-
cial production. This should 3e formulated distinctly in the draft of the Main Di-
rections both with reference to the implementation of ineasures in the area of the
- improvement of the organization of wages within the limits of the rights granted
- to enterprises and when implementing centralized measures in the area of increasing
the rates and salaries of workers and employees.
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Ye. L. Manevich (Institute of Economics of the USSR Academy of Sciences). It is
well known that over the past 20 years the birth rate has been declining in our
country, which is creating an unfavorable demographic situation. Therefore it seems _
expedient in Section II of the draft of the Main Directions to make after the para-
graph on an effective demographic policy the following entry: "To implement a gys-
tem of ineasures on increasing the birth rate and length of life, for which during _
the next decade (1981-1990) to extend the system of state grants to families having
two or more children, with allowance made for the established income, the wage lev-
el and the standard of living."
In connection with granting partially paid leave to working women, beginning in 1981,
to care for a child until he reaches one year of age I would consider it nec-
_ essary to insert in Section VIII of the draft plan the addition: "To take into ac-
- count the time spent on rearing children when calculating the total length of serv-
ice for obtaining a pension owing to age." I also propose to record in this sec-
tion after the words: "To provide for the further development of the network and
the improvement of the operation of kindergartens and aurseries" the following pro-
vision: "To reduce the workload per teacher and per nurse. To expand the training
of teachers at pedagogical schools. To establish a procedure in case of whic'n a
child at the request of his parents can be assigned to any kindergarten or nursery
near the place of residence." Ttao mor.e amendments, in our opinion, would be appro-
priate in the same paragraph. First, the words that children's institutions must
be built "especially in regions with a high race of employment of women in soclal
production" should be struck, since it is also necessary to build children's insti-
tutions where there is the possibility of involving women in social production (in
the republics of Central Asia and Transcaucasia). Second, to build preschool in-
stitutions to accommodate not less than 2.5-2.8 million (instead of 2.5 million,
which is called for in the draft plan, which is less than was planned during the
lOth Five-Year Plan). Third, to supplement this paragraph with the following
clause: "To eliminate completely the employment of women in jobs which are difficuZt
and harmful to them."
For the purposes of protecting the health and increasing the length of life of the
population it would be desirable to supplement Section VIII of the draft plan with
the following entries: to develop extensively the network of dispensaries at enter-
prises, to introduce a complete dispensary system for men over the age of 40 and for
all working men and women employed in difficult and harmful jobs; to meet complete-
- ly the need of the populatiotL for medicines; to i.mprove the supply of all medical
- institutions with the latest treatment and diagnostic equipment; to conduct on a
broad scale a campaign against alcoholism with the enlistment of all the mass media,
to reduce gradually the production of liquors.
_ The consequences of the decline of the birzh rate and consequently of the growth of
the population, which began in the early 1960's, will appear in 1981-1990. Thus,
- the growth of the population of able-bodied age will dec].ine from 18 percent in
1971-1980 to 3.8 percent in 1981-1990. Moreover, some negative features, which now
exist in the use of manpower, losses of working time, the diversion of ti�orkers from
the performance of their immediate duties, the keeping of extra workers and em-
- ployees at enterprises and others may have an adverse effect during the coming
period. In this connection the efficient use of the available manpower resources,
first of all by the introduction of new equipment and technology and the improvement
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of the organization of production and labor, is acquiring truZy enormous importance.
All these questions, it seems to us, must be reflected in Section II of the draft
plan of the CPSU Central Committee.
In Paragraph 3 of Section II of the draft plan it is proposed to make the following
insertion: "In 1981-1990 the gradual release of manpower as a result of an increase
of the machine-worker ratio, the radical improvement of the location and special-
_ ization of production, the increase of its smoothness, the maximum reduction of
losses of working time and the increase of the material interest of both collectives
of workers and each worker is the main means of providing the national economy with
personnel. For the purpose of decreasing the interest of anterprisES in keeping
extra workers to create favorable conditions for the extensive dissemination in all
sectors of the national economy of the Shchekino method and the brigade contract.
It is necessary to pursue a policy of the gradual renunciation oif the practice of
sending workers and employees to agricultural 3obs, which increases and aggravates
the strain in the provision of enterprises with manpower and forces them to keep
extra workers." The entry in Paragraph 3 of Section II of the draft plan on the
creation of the conditions for providing enterprises being newly placed into opera-
tion with personnel, especially in Siberia and the Far East, should be supplemented
with the following clauses: 10To establish regional wage coefficients and the
_ amounts of public consumption funds at a level that would completely offset the
- higher expenditures on food, the purchase of clothing and footwear and heating."
"For the scientific substantiation of the level and zone of regional coefficients,
- as well as the level of public consumption funds it is necessary to construct ter-
ritorial cost of living indices."
"The cdmplete mechanization and automation of production are to be carried out first
of all in regions with extreme living conditions. To plan the level of inechaniza-
tion in strict conformity with the level of provision of the given region with man-
~ power."
In Paragraph 4 of Section II in the second paragraph after the words "to improve
- working conditions and to increase labor productivity" it is proposed to make an
addition with the following content: "and on this basis to release a certain por-
tion of the workers for their use in other sections of production and in other sec-
tors of the national economy."
~ The economical and efficient use of manpower resources in the interests of raising
labor productivity and increasing social production presumes the improvement of the
economic mechanism and first of all the repudiation of the established system of
"planning from the achieved level." Therefore in Section XII after the seventh
paragraph I propose to note: "When drafting the five-year and annual plans of
ministries, production associations, enterprises and organizations not to proceed
= from the achieved results of economic activity, but to be guided by economic con-
siderations and estimates (the availability and utilization of production capaci-
ties, the replacement of obsolete equipment, the level of specialization of produc-
- tion, the availability of skilled manpower, the shift coefficient and others)."
- V. I. Markov (Moscow City Planning Commission). In recent times with an increase
of the proportion of technically sound norms a decrease of the growth rate of labor
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productivity has been occurring, while the labor-output ratio in a number of in-
stances has been increasing, that is, no relationship is traced between the adopted
methods of evaluating the level of the rate setting of labor and its productivity.
Therefore it would be advisable to stipulate in the draft of the P4ain Directions the
need for the improvement of the indicators of the efficiency of the rate setting of
labor and instead of the ones used (or along with them) at present (the proportion
of the technically sound norms and the proportion of workers who are covered by
rate setting) to introduce indicators which would reflect the change of the actual
level of the labor-output ratio and the expenditures of wages on the production of
the output; the reduction of the losses and unproductive expenditures of warking
time, the use of overtime; the tightening up of production discigline; the increase
of the smoothness of preduction. Tkie improvement o� the rate setting of labor
should serve the real increase of its productivity.
Along with the more precise statement of the tasks in the area of the rate setting
of ?abor it would be advisable to specify the economic penalties for the excessive
enlistment of manpower, especially in regions with an acute shortage of manpower.
We would consider it proper to establish in such regions higher social insurance
rates than on the average for the cauntry, to introduce for enterprises a fee for
the actual increase of manpower as compared with the preceding period, as we11 as
adequately sufficient contributions to the budget of the appropriate local soviet
_ of people's deputies for the development of the social infrastructure for that por-
tion of the manpower which the enterprises and organizations attract from other
economic regions of the country. It would also be desirable to set in the draft of
the Main Directions the general task of broadening the rights of the local soviets
of people's deputies in the use of economic penalties against enterprises of union
and republic ministries and departments in those instances when they misuse the
~ limited manpower recources of a city or region.
- Taking into account that in recent years a tendency to use unsatisfactorily the
public fund of working time has been observed, it would make sense to formulate in
the draft plan a paragraph of approximately the following content: "To wage a
= resolute campaign for the elimination of all tyPes of inefficient labor, which are
connected with the unsatl.sfactory organization of labor and production."
- A. A. Prigarin (Center of the Scientif ic Organization of Labor of the Radio Engi-
neering Industry). The material stimulation of managers and specialists has a num-
ber of shortcomings: either we do not stimulate them enough or we do not stimulate
what must be stimulated. As far back as five years ago we made a mass survey in
our sector and found that more than a fourth of the enterprises were paying to all
the plantwide subdivisions bonuses in identical amounts. Although the remaining
enterprises differentiate these bonuses among the subdivisions, it is not by more
than 5-10 percent. In the overwhelming majority of instances the bonuses are also
- not differentiated within the departments. But when the workers of the functional
subdivisions (and there are thousands of them at large enterprises) receive the same
proportion of the bonuses, one cannot speak of any stimulation.
It is generally recognized that the amount of the bonus should depend on the per-
sonal contribution of the worker ta production, on the results of the activity of
the subdivision in which he works and on the work of the production collective as
a whole.
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It must be said that in recent years in our sector the situation has improved in
- this respect. We were able to develop and adopt atmany enterprises a system of the
comprehensive evaluation of the activity of the subdivisions and their workers. It
is based on the fact that the subdivisions and specialists are paid bonuses precise-
ly according to the indicators for the achievement of which they bear responsibility
in conformity with their functional duties. Where this system has been adopted, the
- amounts of the bonuses range among the individual structural subdivisions from
17-20 to 50 percent. However, we now see that this difference in the bonuses in
also inadequate.
At present the maximum percentage of the bonus is paid for the fulfillment of the
main fund-forming indicators, and there is no room left for incentives for other im-
portant indicators. Such a situation does not make it possible to create a genuine
interest in increasing prociuction efficiency. Apparently, it is expedient to
change the ratio of the fixed and variable parts of the wage of engineering and
- technical personnel, for today the -iariable part of the wage is clearly inadequate.
At the same time the question ot lending greater flexibility to the f ixed part of
, the wage (salary) with allowance made for the personal contribution of each specific
- specialist to the overall results of the work could also be examined. In this con-
- nection I propose to include in S - ction XII of the draft of the Main Directions
the following clause: "To ensure the increase of the responsibility and material
- interest of managers and specialists in increasing production efficiency."
The persennel situation should also be discussed. It is impossible to increase the
output-capital ratio when there is a shortage of personnel. And in th is respect
there is a very good entry in the draft of the Main Directions. It is indicated
there that it is necessary to take steps to ensure the balance of the available
workplaces and manpower resources. These words accurately indicate the essense of
the difficulties which have arisen for us and the means of overcoming them. At
present no one knows how many workplaces there are in the country. Hence, it is
first of all necessary to learn to count them. But this is not at all a simple
task, since in some types of production the workplaces are determined according to
the units of equipment, while in others they are determined according to the area,
in still others according to the standards of the labor-output ratio and so on.
After solving these methodoiogical problems it will be possible to include the in-
dicator of the number of workplaces in statistical reporting.
Further, standards of the correlations between the number of workplaces and the num-
- ber of workers which is necessary to attend them should be elaborated. These
correlations, which are different for different works, should take into account the
optimum shift coefficients, as well as the main types of workplaces (the workplaces
of operators of several machines, collective workplaces and so on). All this will
make it possible to include the indicators of the number of workplaces in the system
of planning at all levels of the national econmy and thereby to determine objective-
ly the need for personnel.
I propose in Section II of the draft of the rlain Directions following the words
. "to take steps to achieve a balance of the available and newly created workplaces
with manpower resources" to add the words "to introduce the indicator of the num-
, ber of workplaces in state statistical reporting and in the system of plan indi-
cators."
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And, finally, a remark on the question of management. It is a very good thing that
an entire section on the improvement of management is included in the draft of the
Main Directions. But still there are a number of unsolved questions. Who ia re-
sponsible for the ianprovement of the management of the national economy as a whole.
What organs? Who is responsible for this problem on the staff of the ministry?
At the level of the enterprise? Today a mechanism of the constant improvement of
nanagement is virtually absent. Bur it must be created.
V. N. Zarubin (All-Union Scientific Research and Planning Institute of Labar in
_ Construction) . The nesd to persistently increase the efficiency of social produc-
- tion in all sectors of the national economy on the basis of its all-round intensi-
fication is emphasized in the draft of the Main llirections.
The most important indirator of the efficiency of the construction industry--the
- growth of labor productivity--depends both on the increase of the technical level
= of construction and on the better u,:ilization uf the available means of production.
In recent years the growth of labor productivity in construction has been accom-
= panied by a sharp increase of the capital-output ratio of production. Thus, during
1975-1979 the capital-labor ratio in construction increased 1.5-fold, while labor
productivity increased by only 9.6 percent. Today the release of one worker re-
_ quires 2.0- to 2.5-fold more fixed production capital for construction purposes
than 10 years ago., The unit saving of labor expenditures from capital investments
in the development of the production base of the construction industry has also de-
creased substantially. This means that each percent increase of labor productivity
is now achieved by much more capital-consuming decisions than at the early stage of
; the industrialization of construction. In the opinion of a number of economists,
such a situation is a.n objectively governed process which occurs in the majority of
economically developed countries of the world.

However, such changes are taken toq little into account when evaluating the results
' of the work of construction organizations. For the failure to fulfill the assign-
ments on the increase of labor productivity the economic manager of any level has
_ to bear some administrative and economic responsibility, but he bears practically
na responsibility for the cost at which this increase is achieved. Moreover, he
can be punished for the incomplete assimilation of ths allocated capital invest-
ments, without wh ich he could have been quite able to get by. At the same time the
use of more capital-consuming design decisions ensiires a structural increase of
labor productivity with the same labor expenditures. Consequently9 the formed
tendency for the capital-outgut and materials-output ratios of construction to in--
crease to a certain extent is also dictated by subjective factors.
In the July (1979) decree of the CPSU Central Committee and the USSR Council of
Ministers on the improvement of the economic mechanism it is indicated that the
choice of the most effective means of achieving high end national economic results
sliould be the ma.in direction of all planning work. In light of this decree the
increase of labor productivity must be regarded not as an end in itself, but as the
most important means of increasing production efficiency. The acceleration of
_ this increase should be combined with the economy of all production resources and
rhe reduction of the specific capital investments per unit of the final construc-
tion product, that is, it should be ensured by primarily intensive methods.
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Taking into account the exceptional importance and interdependence of the problems
of the further intensification of construction and the acceleration of the growth
of labor productivity, I would consider it expedient to make in Section VII of the
draft of the Main Directions the following change: to supplement the final phrase
of the section "To increase labor productivity in construction by 15-17 percent"
with the words "with the minimum expenditures of public resources."
In my opinion, this will promota the mobilization of the collectives of planning
and surveying, construction and installation enterprises and organizations of the
construction industry to seek the most economical means of increasirig labor produc-
tivity and will create an additional incentive to increase the efficiency of con-
struction.
S. G. Semin (State Committee for Labor and Social Problems). The balance of man-
power resources during the coming five-year plan is turning out to be extremely
tight, therefore in the draft of the Main Directions much space is devoted to ques-
tions of the extension of the combination of occupations and positions and to the
performance of the set amount of work with a smaller number of personnel.
As many years of practice have shown, the further dissemination of the experience
of the Shchekino Azot Chemical Combine and its followers in improving the organiza-
tion of labor, material stimulation and planning is one of the reserves of the in-
crease of labor productivity and the provision of new enterprises and works with
skilled personnel. According to the data of the reports of enterprises which were
generalized by the USSR Central Statistical Administration, in four years of the
lOth Five-Year Plan more than 8,300 production associations and enterprises of in-
dustry used the Shchekino method. As a result during those years 772,000, or about
5 percent, of the industrial personnel of enterprises who are engaged directly in
production were released from operating works. Of them approximately one-half
were sent to the shops and sections of these enterprises which had been newly put
into operation. Not less than 4,000-5,000 new shops and sections of industrial
enterprises were manned with skilled personnel owing to releasing on the basis of
- the use of the Shchekino method.
The release of manpower from operating works at enterprises of industry made it
_ possible to achieve a significant saving of the wage fund, which was allocated for
the stimulation of workers for the further increase of labor productivity and the
increase of the volume of output with the simultaneous decrease of the number of
- those employed. During the indicated years supplements to the rates and salaries
of more than 688,000 workers, engineering and technical personnel and employees,
_ who combined occupations (positions) or performed the set amount of work with a
smaller number of personnel, were established and paid. More than 700,000 people
received a one-time lump award for the elaboration and implementation of ineasures
- which ensur.e a reduction of the number of personnel and an increase of labor pro-
ductivity as against the plan. The amounts of these awards were established sub-
ject to the achieved level of the growth of labor productivity and the actually ob-
tained saving of the wage fund from the adoption of these measures.
Great possibilities for the further extensive use of the Shchekino m.ethod were re-
vQaled owing to the adoption by the CPSU Central Committee and the USSR Council of
Ministers of the decree "On Improving Planning and Strengthening the Influence of
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the Econocnic Mechanism on Increasing Production Efficiency and Work Quality." This
decree extended considerably the rights of enterprises in the use of the saving of
the wage fund and the material stimulation of workers for the increase of labor
productivity.
_ In the draft of the Main Directions it is noted: "To implement measures on the
furt::er extension and the increase of the effectiveness of the brigade form of the
organization of labor and wages." Under the conditions of the brigade form of Che
organization of labor and wages the motto of the Shchekino method "More Output,
- Fewer Personnel" is realized to the greatest extent. The combining of occupations
and the use of the functions of interchangeability are used extensively in the bri-
gades. The amount of the wage of the workers, who are paid according to the end
- result, depends on their number--the smaller the number of those employed who ful-
fill the set assignment, the greater the wage each of them wi11 receive. Thus, the
development of the brigade form of the organization of labor and wages is conducive
to the dissemination of the Shchekino method, which is one of the directions of the
work on the increase of labor productivity and tne efficient use of manpower re-
sources.
During the coming five-year plan it is necessary to use the new forms of material
stimulation more effectively and to direct them first o� all toward the solution of
the main task specified by the draft of the Main Directions. In this work much de-
pends on how it is viewed in the ministries--the headquarters of the sectors of the
- national economy.
The issue of PRAVDA of 17 November 1980 in the editorial "Developing the Shchekino
Method" indicated specific measures which it is necessary to implement in the sec-
tors and at enterprises for the dissemination of the Shchekino method. It is sug-
gested to the ministries that they draft long-range plans of work in this direction
and determine the enterprises at which the assimilation of the Shchekino method
can yield the greatest impact. It is especially emphasized ehat the campaign to
achieve high results with fewer forces during the llth Five-Year Plan will also re-
main one of the main directions of party policy in the area of the building of the
economy.
M. R. Yermakova (Scientific Research Institute of Labor). The efficient use of
natural, material and manpower resources is one of the main directions of the eco-
- nomic and social development of the country for the coming decade. Its achieve-
ment will require the elaboration of a system of ineasures. It seems that the con-
sistent implementation of the principle of making payment for the resources which
are drawn by economic units should be of substantial importance in this system.
Resources, as is known, within certain limits are interchangeable in the economic
sense. This makes it possible to select the optimum version of expenditures from
several versions which are characterized by a different ratio of the resources used.
At present the fee for capital, the fee per stump, rent and interest on credit are
used. A fee for water was introduced by the decree of the CPSU Central Committee
and the USSR Council of Ministers, "On Improving Planning and Strengthening the In-
Fluence of the Economic Mechanism on Increasing Production Efficiency and Work Qual-
ity." The absence in this system of payments for manpower resources deprives it of
integrity, reduces the effectiveness of action and entails the inefficient use of
personnel.
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A means of stimulati^.g the efficient use of manpower resources--the increase ot the
- prevailing rates of the contributions for state social insurance--is outlined in
the indicated decree. New rates of contributions, which have been increased very
negligibly and therefore cannot ensure the solution of the outlined problems, have
already been approved as well. The contributions for social insurance, in essence,
are a form of payments for manpower resources, but a very undeveloped one. They
reflect only a negligible portion of the expenditures of the state through pub-lic
consumption funds. This significantly confuses enterprises with respect to the
real expenditures of society on the reproduction of manpower resources, which along
with the wage and the contributions for social insurance include the expenses for
education, health and a number of others. As a who].e only 75.2 percent of all the
_ expenditu;.es of the state on the reproduction of manpower are taken into account in
the production cost. Such inadequate consideration hinders the implementation of
measures on the mechanization of labor and the introduction of new technology. The
- indicated expenditures may be effective from the point of view of society, but dis-
_ advantageous for the enterprise, since it uses manpower resources on too easy terms.
- Moreover, the level of contributions for social insurance in the structure of pro-
duction costs in our country is quite low.
Full consideration in the production costs of the expenditures on the reproduction
of manpower will serve as an economic stimulus of the efficient use of personnel.
The greater the amount of these contributions is, the greater the production costs
are, and hence the smaller the profit is. And, vice versa, the saving on the amount
of the contributions for manpower resources can to a certain extent be paid into the
material incentive fund. Thus, by using the mechanism of cost accounting, enter-
- prises will treat more economically the labor of each worker, will use him for the
- proper purpose, will not divert him to perform uperations uncharacteristic of his
- skills, will release extra specialists, will shift them if necessary to another
front of operations when expanding production without attracting additional man-
power. All these circumstances are responsible for the importance of solving the
- question of introducing payments for manpower resources.
= Studies on this problem, in which practical versions of introducing a fee for man-
power xesources in the cost accounting mechanism are proposed, at present have al-
- ready been made. Or.e of them was elaborated by the Scientific Research Institute of
Labor of the USSR State Coumnittee for Labor and Social Problems. The fee for man-
power resources can be levied either as a percentage of the wage fund in much the
same way as the contributions for social insurance or in absolute amounts per em-
ployed person, which are differentiated subject to education, sex, age and so on.
Absolute and differentiated norms are more preferable. The consideration of the
factors wh:Lch characterize the qualitative composition of the manpower resources
when calculating the payments for manpower resources can directly or indirectly in-
fluence the level of the utilization of personnel and prompL: enterprises (institu-
tions) to attract personnel only with the educPCion and skills which are required
for performing one job or another.
The essence of the method of calculating the rate of the contributions for manpower
resources, which was elaborated by the Scientific Research Institute of Labor, con-
sists in the following. The amount of the payments and benefits from public con-
= sumption funds (excluding payments for regular leave), which one worker on the
average accounts for, is calculated first. Then this amount is multiplied by .
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differentiated coefficients, which take into account various factors that influence
the level of the labor contribution of each worker (sex, age, education). The
- grand total for all the personnel of the enterprise gives in aggregate the necessary
_ amount of the contributions for manpower resources for the given enterprise.
The fee for manpower resources should, in my opinion, be introduced as a mandatory
payment by its inclusion in the production costs. The net surplus of the profit
and the turnover tax are the main sources of assets for it. The net surplus is an
unstandardized and the largest payment from the profit to the state in many sectors.
It does not promote the development of cost accounting. The turnover tax also does
- not have any stimulating function. All this makes necessary and possible the reduc-
tion of these payments for the purpose of introducing by this means contributions
for manpower resources. The change in the ratio of the profit and the turnover tax
- will entail a change of the structure of the wholesale prices of industry with
their invariable level in profitable sectors. In sectors with a low profitability
an increase of the wholesale prices of industry is possible, which will require the
- temporary introduction of subsidies.
The performance of an experiment is being prepared in accordance with the materials
of this study. On the basis of this I believe that in the draft of the Main Direc-
tions of USSR economic and social development for the coming decade the paragraph on
the saving of resources should be supplemented in the following manner: "To gradu-
ally improve the cost accounting mechanism of the payments for the resources drawn
by ecanomic units. To introduce a fee for manpower resources" (Section XII).
A. P. Bulkin (NIIEinformenergomach). Under the present conditions of the intensi-
fication of social pxoduction the further increase of its volume, the improvement
of product quality and the acceleration of scientific and technical progress are
leading to an increase of the role of engineering and technical labor in the in-
crease of the effectiveness of public expenditures. In our opinion, the problem of
the utilization of engineering and technical personnel and the increase of the ef-
ficiency of their labor needs further elaboration. Along with cost accounting meth-
ods of stimulation according to the end results the improvement of the forms of pay-
ment for engineering and technical labor within the framework of the wage plays an
_ important role. The point is that today the quantity and quality of the engineer-
ing labor, wh ich is expended on the development of new technology, in most instances
are not directly balanced with the level of the wage.
~ The standards of the increase of the wage, which are set in the plan and are con-
nected with the additional output of the standard net production, take into account
only the average levels of the wage and their trends. The problem consists in mak-
ing the level of the wage of the engineering and technical worker in each specific
case directly dependent on the level of his skill in conformity with his certifica-
- tion. Today the maximum level of the wage and its minimum amount with the existing
_ salary spread are set not on the basis of the certification of the worker, but sub-
ject to the length of service, the shortage of the given specialty and a number of
other factors which have no direct bearing on the "output" of one staff inember or
another.
The need to increase the results of the labor of engineering and technical person-
nel, using for this the potentials incorporated in the system of wages, and not
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just the system of stimulating funds, should be reflected in the draft o.f the Main
Directions.
In a number of machine building subsectors the plans of deliveries of new equipment
and its installation on operating pxoduction areas are not properly coordinated
with the proportion of the retirement of obsolete equipment. A situation is form-
ing in which the actual number of machine tools exceeds the number of people em-
ployed in physical production (with allowance made for the equipment workload
ratios and the shif t coefficients). The number of machine tool operators does not
correspond to the amount of installed equipment. There are frequent instances when
new equipment, which has agrived in accordance with the orders of machine building
enterprises, cannot be installed due to a shortage of production areas. At the
same time obsolete equipment, which has been removed from the sphere of physical
production, is again comani.tted to the productj.on turnover, output which should be
produced on the new equipment is being produced on it. As a result in a number of
instances conditions are created beforehand for the output of products which do not
fully conform to the social need for them.
The more careful analysis of the actual economic efficiency of the use of mass pro-
duction equipment merits attention. This equipment has a substantial influence on
production efficiency as a result of the considerable volumes of its output, the
vastness of the sphere of use and the length of operation in the national economy.
But not all models of mass production equipment realize the potential Pconomic ef-
ficiency. Z'here are machines which do not achieve the rated indicators in the proc-
ess of operation, which often leads to the nonfulfillment by enterprises of the
planned production volumes. In this connection it is necessary to use fully the
economic mechanism af pricing for establishing t'.:,~: discounts on inadequately effi-
_ cient types of machines, to place the enterprises producing them under disadvantage-
ous cost accounting conditions and to remove this equipment more promptly from
production.
There is no planning unity when developing intersectorial sets of machines and
equipment, especially for the production infrastructure. The production of large
- unique equipment is not always coordinated with related sectors of machine build-
ing: materials handling, metallurgical and others. Thus, the production of large
atomic power equipment is not balanced with the potentials of the transportation
equipment, the lifting devices and the structural components to which these lifting
devices should be secured. In the draft of the Main Direc.tions it is expedient to
_ emphasi2e that the planning of intersectorial works should be bala_nced on the basis
of a comprehensive technical, economic and social analysis with allowance made for
the systems approach, which connects systems of machines over the entire techno-
logical cycle. The production and introduction of such equipment should be accom-
plished on the basis of a directive planning processing method, which efficiently
takes into account the national economic resources in the sphere of its production
and operation. Advanced standards of the consumption of fuel, raw materials, mate-
rial resources and labor should become the basis of this processing metho3.
In the plans of scientific and technical progress more attention should be given to
the role and place of the standardization and typification both of basic equ3pment
and the primary Qutput and of the consumer goods being produced by machine building
enterprises. In a number of instances a broad list of auxiliary assemblies and
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units having identical or similar parameters is totally unjustified. Thus, modern
domestic motor vehicles like the ZAZ, Moskvich, Zhiguli and Volga have different
- types of batteries, control instruments and so forth. Vehicles of the same class
have different types of wheels. This can also be attributed to large trucks, which
are being designed and are used in the national economy. Wheels of different aize
_ and so on are mounted on vehicles of the identical load capacity. This complicates
the repair of equipment and its operation and decreases the level of specialization
- at plants of mass and series production. As to consumer goods, their production
should be carried out with allowance made for the specific nature of the enter-
prises. This especially pertains to durable goods. Durable goods of greater com-
plexity must be produced at enterprises having unique equipment. With respect to
both products for industrial purposes and consumer goods we must be guided by the
best world and domestic models, which should be reflected in the corresponding
standards. This should be emphasized in the draft of the Main Directions.
Corresponding Member of the USSR Academy of Sciences L. M. Gatovskiy (Institute of
Economics of the USSR Academy of Sciences). A special place in the draft of the
Main Directions is assigned to the acceleration of scientific and technical prog-
ress and the increase of its efficiency. One of the most important conditions of
the fulfillment of this basic task is the overcoming of a widespread shortcoming:
the assimilation and introduction.pf new equipment, in spite of the n.ational eco-
nomic impact incorporated in it for the entire service life, are unprofitable for
associations and enterprises due to the temporary worsening of the economic indica-
tors. Much has been planned and done to overcome these difficulties, but the
= problem has still been far from completely solved. For this there are needed:
, a) the full compensation of the enterprises and associations, which are assimilat-
ing and introducing new efficient equipment, for the necessary temporary exceeding
of the production expenditures; b) the establishment for this period of assign-
ments on the volumes of output, labor productivity, the profit, the labor-output
ratio, the materials-output ratio and the capital-ouCput ratio in conformity with
both the requirements of good work and the real possibilities which are connected
with the process of assimilating and intreducing new equipment; c) full reimburse-
ment of the losses in the economic stimulation funds, which arise during this
period not through the fault of the enterprises and associations. Al1 this creates
the need for the establishment for each technical item (technological process) of
annual standards of expenditures and terms of assimilation.
The solution of the problems of the neutralization of the adverse influence of the
processes of assimilation on the economic indicators and of the differentiated ap-
proach to the assessments of the operation of enterprises (associations) and the
plan assignments received by them is quite practicable. The enterprises and asso-
ciations which assimilate and introduce new equipment, when its impact and the eco-
nomic indicators are still inadequately high, should receive through the unified
fund for the development of science and technology (YeFRNT) assets by means of de-
ductions from the profits of previously assimilated equipment. All the new equip-
ment being assimilated, having then become previously assimilated equipment, as if
"returns" the assets, which were contributed to the YeFRNT and were received for
reimbursement of the expenditures of assimilation. Such an economic mechanism is
essentially of a credit nature and requires the corresponding improvement of the
procedure of forming and using the assets of the YeFRNT. It is expedient here to
use bank credit more extensively.
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Since the assimilation and introduction of new equipment are usually accompanied by
additional difficulties, it is necessary not only to eliminate the unprofitability
of the assimilation of new equipment, but also to create advantages for the enter-
prises and associations which are assimilating it. This should be achieved by the
considerable enhancement of the role of the markup for quality on the wholesale
price for equipment and additional ma.terial incentives for the collectives and work-
ers who assimilate and introduce new equipment (by means of the obtained impact and
the redistribution of the assets of the material incentive funds).
The neutralization of the adverse influence of the period of assimilation on the
economic indicators will substantially increase the interest of enterprises, asso-
ciations and ministries in the output and use of high quality new equipment. Owing
to this the number and amounts of the markups on the price for new equipment will
increase greatly (at present the markups Yiot for new, but for previously assimil-
ated equipment hold a considerably predominant place with respect to the number and
amounts). At the same time the increase of the interest in the output of high
quality new equipment should be cornbined with the task of makiag more rigid the de-
mands on the efficiency of new equipment, which is advanced in i:he draft of the
Main Directions (Section XII).
In our opinion, on the basis of the measures set forth above a gradual shifr should
be m.ade to a procedure, in case of which all the equipment being newly produced
will, as a rule, be considered new equipment if it meets the requiremer.ts of the
- highest quality category (that is, with respect to its technical and economic indi-
cators it is superior to or corresponds to the best analogs), while in the future
it would basically always be fundamentally new or, at any rate, would be superior
to the best analogs. The requirement of the transition of technical developments
to the designing, as a rule, of equipment of the highest quality category should
- accordingly be combined so that efficient inventions would gradually become the
basis of the research of sectorial institutes. In connection w3.th what has been
said I propose to formulate in Section XII of the draft of the Main DirPCtions a
- clause on the full compensation of associations and enterprises for the necessary
greater expenditures on the assimilation of new equipment and on the creation of
certain advantages for them.
M. A. Vilenskiy (Institute of Economics of the USSR Academy of Sciences). The im-
plementation of the Main Directions is intended for 10 years, up to 1990. There-
fore in the area of ,cientific and technical progress broader tasks must be set
than are recorded i:z the draft plan, namely a transition must be made from exten-
sive to intensive technical progress. Until now extensive technical progress has
predominated in our country, that is, it has taken place in breadt.:L, embracing new
works and types of 13ber. This is a natural process, and tt will continue fur-
ther. With the completion of overall mechanization the extensive means of techni-
cal progress will be completed. And it should shift to a higher level, that is,
work should be actively performed on the replacement of available machines by fun-
damentally new machines. Only such replacement will ensure the further growth of
- labor productivity at a fast rate. This is the intensive means of the development
of technical progress. Whereas at the stage of extensive development the replace-
ment of manual labor by machines took place, at the intensive stage the replacement
of machines by machines takes place. For this it is tiecessary to record in the
draft plan: "To concentrate the efforts of basic and applied scientific research
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_ institutes on the development oi fundamentally new equipment which is based on those
technological principles which make it possible to change radically the technologi-
cal processes of processing in the direction of the decrease of operations (ineffi-
cient technology); the decrease of the parts making up the finished items; the re- _
duction of manual labor; the decrease of the materia--s-output ratio and the power-
output ratio." -
In the draft of the Main Direc:tions much attention is devoted to the better use of
- material resources. Probably, this direction is now moving into first place among
the measures on increasing the economic potential of our country. However, it is
impossible to limit ourselves to the overcoming of the impractical attitude Coward
the use of resources, but it does unquestionably exist. For the main cause of the
low utilization ratio of raw materials, materials and fuel is the lag of the tech-
nology of their processing. This is most evident from the example of power engi-
neering. In 1979 we burned in the national economy 1.6 billion tons of convention-
al fuel, about 700 million tons of them were used efficiently, that is, were con-
_ verted into power. This is not only wastefulness, but also a result of the fact
that the present technology of fuel combustion does not make it possible to use ef-
ficiently more than 40 percent of the energy of fuel. At present we consume ap-
proximately 310-320 g of conventional fuel for the generation of 1 kWh, while the
_ energy value of.l klvfi is only 123 g of conventional fuel, that is, we are wasting
nearly 200 g. Consequently, it is necessary to set for the basic sciences the task
of accelerating the development of fundamentally new technological processes of the
- use of material resources and first of all fuel and power.
- The need to improve the system of evaluation of the technical level of items and
products is recorded in the draft plan. Such an entry directs the attention of the
- developers and prodlicers of new equipment toward the improvement of the technical
parameters. However, the achievement of high technical parameters often comes into
conflict with the economic and social parameters. If the economic parameters are
adequately specified, the social parameters might not always be distinctly ex-
pressed. Meanwhile the influence of the use of equipment on man through the
- changes which this equipment makes in the production and natural environment should
be assigned to the social parameters. And such influence increases with the accel-
eration of scientific and technical progress and is manifested in not only favor-
able, but also adverse results. Therefore the evaluation of new equipment and a
new product should be not only a technical, but also a socio-economic evaluation. And
~ therefore in the draft of the Main Directions it should be recorded: to develop a
system of the evaluation of the socio-economic and technical level of new products;
to rake decisions on the beginning of the series production of new products only
from the standpoint of such an integral evaluation. This clause should correspond
to the clause recorded in Paragraph 4 of Section II of the draft plan of the CPSU
Central Committee, which says that it is necessary to pursue a policy of the devel-
- opruent and output of machines and equipment which make it possible to improve work-
- ing conditions, increase labor productivity and save material resources.
In the draft of the Main Directions much attention is devoted to social problems
which it is planned to solve during the llthe Five-Year Plan, and for the first time
- it is shown that social factors influence the growth of the economy (Section VIII).
Here it is noted that "the effective use of social factors of the growth of the
economy" should be envisaged during the llth Five-Year Plan. This is an extremely
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important clause. It shows that a very close interrelationship exists between eco-
nomic growth and the achievement of social results. However, the point is that it
~ is possible to solve the question of the effective use of social factors of the
growth of the economy by having the approp riate methods of calculation, but so far
such methods do not exist. Therefore I propose to add to the indicated clause the
- words: "To elaborate indicators of the evaluation of the influence of social fac-
tors on the growth of the economy and methods of their use."
D. M. Palterovich (Institute of Economics of the USSR Academy of Sciences). I pro-
pose three additions to the draft of the Main Directions, which is being discussed
today. The first concerns the development of functional specialization and the
- overcoming of the elements of the "natural economy" in many sectors. It is well
known what great losses the national economy bears as a result of the fact that
each sector produces spare parts for itself, performs the repair of equipment (of -
ten by the semihandicraft method), creates its own stnall logging strips and saw
frames, carries out a significant portion of motor shipments by departmental trans-
port, produces packaging, implements and so on. The trend of the "natural economy"
is also being carried over to the sphere of scientific and technical progress. Due
to the lack of a developed system of collective-use computer centers more and more
= associations and enterprises are organizing their own computer centers, often mini-
ature ones, with a very low level of utilization of the computers. Each department
and association designs and sets up its own automated control systems, often devis-
ing in so doing one that was devised long ago. The dispersal of procurement and
- ancillary works for hundreds and thousands of enterprises, the output of which costs
_ two- to threefold more as compared with their centralized production, is continuing
due to the lack of a specialized sector for the output of products of general ma-
chine building use. Substantial shortcomings also exist in the development of item
specialization--similar equipment is being produced in small batches at different
- plants.
Technical and structural pQlicy which is aimed at overcoming these shortcomings,
requires, in my opinion, the implementation of the following measures:
the development.of a specialized sector of intersectorial works with the correspond-
ing organs in large economic regions and the gradual (over one to two five-year
plans) concentration in it of the majority of independent enterprises which pro-
duce products of general machine building use;
the allocation in the future of all capital investments in the construction of new
and the expansion of operating capacities for the output of products of general
machine building use of the sector of int ersectorial works;
the creation of new capacities for the output of machine building products, includ-
ing special machines and equipment, only in the chief ministries; the organization
of a unified sector of materials handling machine building;
the proriibition, as a rule, of the designing and construction of new machine build-
ing enterprises with their own shops for the production of blanks, standard tools
and so forth;
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the further concentration of the output of each type of machine building producz aC
a smaller number of enterprises;
the increase of the capacities of adjustment organizations, collective-use computer
centers, organizations for the designing of automated control systems, centers for
the preparation of programs for equipment with numerical control, organizations for
the introduction of new equipment and so forth to such a level that the functions
characterisCic of them would be performed on the basis of strict functional spe-
cialization.
The listed measures should, in my opinion, be reflected in the draft of the Main Di-
recti.ons, in which it should be recorded: "To carry out the development of the sec-
tors of the national economy on the basis of strict functional specialization, to
_ concentrate assets on the creation of new production capacities exclusively in spe-
cialized sectors."
The second suggestion is connected with the creation of large-scale machine sys tems.
The need for the development of machine systems and the acceleration of the retool-
= ing of operating enterprises is indicated in the draft of the Main Directions. The
effectiveness of these directions of scientific and technical progress can be en-
sured only on the basis of their close interconnection and by the use of the
program-goal method of planning and the management of the process of retooling.
- Machine systems, in my opinion, must be the basis of the planning of the process of
_ retooling sectors, for which it is necessary first of all to change fundamentally
the approach to this very concept. In the literature a machine sys*_em is often
_ understood as a set made up of several units of equipment, a line, a unit or even
an individual complex machine which is designed for the mechanization of a certain
technological procecs or set of operations. The concept of a machine system is in-
terpreted in this way in Section IV of the draft of the Main Directions, in which _
= it is planned "to increase substantially the production of systems of machines and
equipment, especially automatic manipulators with program control." Meanwhile the
_ development of a machine system merely begins with the transition from the individ-
ual machine to a set. The complete machine system should embrace all the main and
auxiliary processes of one entire sector or another or at least of an independent
subsector. The sectorial machine system or system of sets of machines should be -
- come the basis of the planning both of research and development for the creation of
new equipment for tt:a given sector and of the production of the machines belonging
~ to the system, the formation of sets and their delivery to customers. At the same
time the machine system should become the basis of the program of the retooling of
the sector for which it is intended. It is necessary, in my opinion, to approve -
the list of machine systems liable to development within the USSR State Committee for Science and TechnoZogy. -
_ In this connection in Section II of the draft of the Main Directions it is expedi-
- ent, in my opinion, to note: "To develop for each sector of production and for the
- sectors of the nonproduction sphere a uniform sectorial system of sets of machines
and to transform this system into the basis of the planning of the dk-velopment,
production and making of sets of equipment and the compiling of programs of the re-
- tooling of sectors."
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The third suggestion. An entire set of ineasures on the acceleration and the in-
crease of the efficiency of scientific and technical progress is outlined in the
draft plan being discussed today. It is expedient, in my opinion, to supplement it
with the following clause: "To develop creative competition in the process of de-
veloping new machines, technological processes, materials and methods of the nrgAn-
ization of production; to make the selection of versions of new equipment, as a
rule, on the basis of open competitions with extradepartmental appraisA." It
should not be feared, in my opinion, that the selection of the designs of new equip-
ment on the basis of open competitions will cause additional expenditures on de-
signing. Such a procedure of selection will help to enlist in the solution of each
serious technical problem various organizations and collectives of enthusiasts (re-
gardless of their departmental affiliation) and to eliminate the "monopoly" of the
head scientific research institutions, which often reject "outside" designs for the
sake of protecting "the honor of the uniform." As to some additional expenditures
on the development of alternative designs, they will be repaid with interest due to
the oxerall increase of the level of the designs of new eguipment and the selection
_ of the best of them for practical adoption. L. I. Zusman. For the successful solution of the most important problems of the
further progress of the national economy and the acceleration of the transition of
- the economy to the path of intensive development a very important role belongs to
economic science. A number of achievements exist in this area. Among them, for
example, is the further improvement of the method of determining the economic effec-
tiveness of capital investments, which was promulgated on the basis of the decree of
_ the CPSU Central Committee and the USSR Counci.l of Ministers of 12 July 1979. For
the first time a method of evaluating the effectiveness of capital investments in
' the nonproduction sphere, in environmental protection and in the sphere of circula-
tion has been elaborated. Let us take, for example, the study of national wealth.
This global problem, in which the ultimate economic efficiency of material and
spiritual public activity is reflected, so far has not held a worthy place in eco-
nomic research. However, as the economic potential of the country increases, the in-
terest in studying national wealth increases significan*ly. In recent years the
USSR Central Statistical Administration has published in statistical yearbooks an
estimate of the amount of national wealth without including the valuation of land,
- forests and other natural resources. At the beginning of 1980, according to the es-
timate of the USSR Central Statistical Administration, the amount of national
wealth in the USSR came to more than 2.5 trillion rubles.
The national wealth of the USSR holds under present conditions and will especially
- hold in the coming period a very important place among the global indicators of the
_ economic and social development of the country. The rate and directions of the
growth of tha national wealth will determine the conditions of the fulfillment of
the main economic and social tasks for 1981-1990. For a scientificaily sound ap-
praisal of the natural resources, which are liable to inclusion in the amount of
the calculated national wealth of the country, it is necessary to elahorate nethods
of appraising land, farming lands and other used natural resources and the wealth
_ of the nonproduction infrastructure. This question is also closely connected with
_ the determination of the economic effectiveness of capital investments, since the
land areas taken up by industrial construction should be taken into account in the
capital investment.s accor3ing to a specific appraisal. The same thing also
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pertains to other natural resources being used, which are not reproducible and are
partially reproducible. Therefore I propose in Section III of the draft of the
Main Directions, in which the concentration of efforts in the area of the social
sciences is indicated, to supplement the phrase, in which the expansion of the
studies on theoretical questions of "the increase of the efficiency of social pro-
duction" is discussed, with the words "and national wealth," while in Section IX,
where it is a matter of the developipent and improvement of the system of cadasters
of natural resources, ta indicate "and their national economic appraisal with a
breakdown by regions and for the USSR as a whole."
I cannot agree with the suggestion of V. Mayyer on the pursuance of an "active
policy" of retail prices, from which follows the need to increase the prices for
scarce foodstuffs and types of clothing. At the same time I-fully support the
tasks on increasing the real income and on the stability of retail prices, which
are formulated in the draft of the Main Directions.
I believe that the main emphasis in the allocation of capital investments for the
agro-industrial complex should be placed on thP reduction of losses. I propose to
- indicate in Section V of the draft plan of the CPSU Central Committee the priority
of the construction of warehouses, storehouses, elevators and other facilities, the
_ improvement of roads and the fitting out of ineans of transportation for ensuring the
keeping capacity of transported and stored products. In Section VIII of the draft
plan, in which the strengthening of the material and technical base of trade is dis-
cussed, I consider it necessary to insert a clause on the expansion of the construc-
tion af warehouse facilities and storehouses, which ensure the safekeeping of agri-
cultural products.
S. S. Shnitser (All-Union Scientific Research Institute of the Meat Industry).
The organizing and mobilizing significance of the draft plan of the CPSU Central
Committee for the 26th party congress, "The Main Directions of USSR Economic and
Social Development for 1981-1985 and the Period to 1990," consists in the fact that
the most important directions of the economic and social development of the nation-
al economy of our country are set forth in it. The inclusion in this document of
many details, in my opinion, would decrease its value. The remarks on the draft
plan should cnncern only basic, fundamental questions.
And still I consider it necessary to insert two suggestions in the draft plan. An
important sphere of the activity of many organizations is information, the sharing
of ideas and advanced know-how, the study of foreign science and practice. Economic
and sectorial journals, institutes of information, bureaus of technical information
and other organizations are dealing with these questions. The need for the improve-
ment of the w01"k of information organs, the increase of their efficiency, the organ-
ization of the extensive discussion of individual problems, debates and so on ~aould
be indicated in the appropriate section of the draft of the Main Directions.
The other rema.rk concerns questions of the food complex. Along with the problems
of increasing the production of foodstuffs it is necessary to stress the questions
of their efficient use, the elimination of losses and the more thorough and complete
- use of raw materials. Data on the substantial gaps between the volumes of the pro-
duction and consumption of foodstuffs have been repeatedly cited in our journals.
' And, of course, it is significantly less expensive to store and deliver to the
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consumer ready to use foodstuffs than to produce additional products. I want to di-
_ rect the attention of the editorial boards of the economics journals to the need to
redouble the attention toward questions of the solution of the food problem, the
development of the food industry and the entire agro-industrial complex. The cover-
age uf urgent, negative aspects in the work should nat be evaded. But means and
steps to eliminate them must be suggested.
A. A. Beschinskiy (Commission for the Forecasting of Power Resources). It is neces-
sary to transform energy conservation into an ob3ect of statewide policy. It is
well known that the correlation between the development of power engineering and of
the national economy as a whole is one of the most important economic proportions.
This is governed first of all by the decisive importance of power engineering for
the growth of the productivity of national labor. Moreover, in present technologies
the circulation of matter is being replaced more and more by the circulation of
energy. Therefore the increase of power consumption and the improvement of the
_ structure of power carriers are of very great importance for the technological im-
- provement of production.
- At the same time power engineering is one of tne most "expensive" sectors of the
economy: its capital-output ratio is five- to sixfold greater than the average
- ratio for industry. About one-third of the industrial capital investments and ap-
proximately 15 percent of all the capital investments in the national economy are
- being allocated for the development of the fuel and power complex. The cost of a
llnit of power is increasing, and in the immediate future this process will continue.
The difficulties which we have been faced with in zhe l.ong-range planning of the
development of the fuel and pawer complex are well known. They are the problem of
petroleum, the shift of the energy center of gravity to the east, the problem of
developing the eastern regions, the development of the corresponding transportation
systems and so on. Under these conditions we have to solee truly far-rear_hing
problems. Suffice it to say that over a pexiod of 20-25 years about 60 billion
tons of conventional fuel must be extracted from the ground. And it is necessary
to clearly understand that we should solve a two in one problem: on the one hand,
to increase the energy resources and, on the other, to pursue an energy conservation
policy, a policy of the utmost saving of energy. It must be admitted that in this
respect wastefulness i.s still being allowed in our country. For example, 60 per-
cent of the bailer houses in the municipial and personal services of the RSFSR do
not keep an account at all of the heat being released, 20-25 percent of the enter-
. prises of a numter of power-consuming sectors do not have instruments for *_he plant-
wide recording of the consumption of thermal energy; there are several hundred
thousand small boiler houses with L specific consumption of fuel, which is three-
to fourfold greater than its consumption at large boiler houses or heat and electric
power ,:;tations. At the same time 2 million people are employed at small boiler
_ houses. Many obsolete plants at electric power stations, which cause a great over-
consumption of fuel, are still in operation in our country, and they must be re-
placed.
All these stiortcomi:zgs attest that we need the systems planning of the entire com-
_ plex of energy resources and a unified system of its management. Today we proceed
from an approximate value of the coefficient of elasticity of the poraerroutput
ratio on the order of 0.9-0.8 (a 1-percent increase of the national income accounts
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- for a 0.9-percent increase of the consumption of energy). Meanwhile this figure is
unacceptable. If we, for example, reduce it to 0.7 percent, in the coming 20-25
years we will be able to save about 9 billion tons of conventional fuel. But it is
very difficult to reduce it. In order to solve this problem, a system of the con-
- trol of energy consumption, and precisely a system, must be created. It is neces-
- sary to analyze the final consumption of energy, that is, the consumption which is
_ characteristic of that structure of technology which we design and use, and to
_ study this structure in order to know how much it costs us from the standpoint of
energy.
Abroad they have officially adopted a decrease of the coefficient of elasticity from
1.0 to 0.7-0.6 for all countries, but I believe that it will not be achieved. In-
cidentally, nowhere has it been revealed what the mechanism will be, by means of
which it wou]_d be possible to decrease the elasticity to such a range. But the
very direction of the search merits attention. This problem is difficult. If we
speak about the final energy consumed in industry, here its specific consumption is
decreasing, while in agriculture, transportation in connection with the development
- of aviation, motoring and so on it is increasing. Therefore structural shifts, of
coursP, complicate the solution of the problem of reducing the coefficient of elas-
ticity, and they must be taken into account. But we need to exert every effort in
order to achieve this reduction. However, it must be realized that this wiZl not
occur of its own accord. Therefore I would like to formulate my own suggestions
for inclusion in the draft of the Main Directions in the following manner:
"To consider it necessary to organize the planned management of power consumption,
meaning the achievement of its rational pattern, the adoption of power-saving tech-
nology and the reduction of the power-output ratio of the national income, the de-
velopment of an efficient structure of the ultimate power carriers while meeting
all the requirements of technical progress and the increase of labor productivity.
To introduce in the practice of planning and statistical reporting the indicator of
the setting of standards of the consumption of the final energy."
N. M. Nikolayevskiy (VNIlneft'). In accordance with the draft of the Main Direc-
tions the production of petroleum along with gas condensate in the amount of
620-645 million tons is called for in 1985. According to the draft plan, it is
necessary ta achieve an increase of the rate of petroleum production ir_ the regions
_ of Western Siberia and Kazakhstan by the faster placement of new petroleum deposits
~ into operation and the use of inethods of affecting petroleum beds for the purpose
- of increasing their petroleum yield. This orients technical policy in the area of
petroleum production and the organization of the petxoleum business toward the
- elaboration of decisions which should be characterized by the greatest national
economic efficiency.
First, there should 'oe retained as the basis of further technical progress in pe-
troleum production the technology of the two-stage working of petroleum deposits,
which was proposed by Academician A. Krylov and has justified itself in the regions
of the Urals-Volga area and Western Siberia. This technology is being implemented
there in accordance with the designs of the VNIlneft' and Gip-rotyumenneftegaz in
= t:~e systems of the working of the main objects with sparse ini~ial net_works of wells
with a density of 36-64 hectares/well with the contour injection of water and with
the drilling of standby wells at subsequent stagesof the working of the deposits
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(in the zones missed by af:ecting). Such a system creates the most favorable con-
ditions for assuring the stable productivity of old wells with in increase of the
petroleum yield and promotes the release of a significant r-� ion of the drilling
capacities and facilities for broadening the front of geological prasi3ecting and
developing new deposits.
Second, it is necessary to increase the quality of the designing and planning of
the additional working of old petroleum deposits, at which wells might be drilled
' without adequate hydrodynamic grounds, which causes the overcapitalization of
J' work not backed by an increase of production.
_ Third, in the area of the econamic substantiation of the choice of versions of the
construction of new capacities in petroleum and gas production, of new equipment
and technology of the working of petroleum and gas formations, as well as when
evaluating the conditions of the reserves of petroleum (gas) it is necessary to
distinguish the conditions and limits of the applica:.ion of the indicator of the
inclusive expenditures, without allowing their replacement by a criterional indi-
cator- the minimum expenditures. In the sectorial methods the fundamental distinc-
tion of these indicators in economic evaluations should be specif ied, which is
- especially important when planning the development of the extraction of minerals in
general and, thus, in the distribution of capital investments. The point is that,
by citing the indicator of the "inclusive expenditures," old petroleum regions can
- increase the planning orders for "the number of ineters of production drilling"
based on the misunderstood meaning of inclusive (that is, the maximum permissible)
expenditures as an economic "limiter" of the number of producing wells at deposits
- and, consequently, of the amounts of capital investments at old objects. Such an
dpproach can adverseJ.y affect the development of exploration and the placement of
- new deposits into operation.
A no less important task set by the draft plan is the elaboration and development
of inethods of increasing the petroleum yield. This problem has already been solved
theoretically and methodologically. Everything depends on associated works which
produce equipment, apparatus, chemical reactants and instruments. This equally con-
cerns thermal methods of utilizing carbon dioxide, production waste, sewage and so
on.
The economic efficiency of these methods in connection with the great voJ_umes of the
injection of reactants and the peculiarities of affecting the bed, as practical ex-
perierice has shown, appears not immediately, but several years after the start of
introduction.
The question of the reliability of the means of inechanized petroleum production,
especially deep-well pumps, is becoming especially pressing. In general the
lengthening of the free--flow period of the operation of wells, which is character-
istic of the sparse distribution in the initial network o� wells with their negli-
gible interference, postpones the time of the changeover of the we11s to mechanized
working. However, it is well known that the majority of old wells operate on sucker
= rod pumps and deep-well electric pumps, with a considerably shorter period between
- overhauls than, for example, in the United States, where alloy steels are used ex-
tensively for this purpose.
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The cluster development of petroleum deposits should be carried out only out of
necessity (the sea, swamps and so on), since the finished slant holes drilled from
a cluster are often not used for yeara, which leads to the "freezing" of capital
; investments, while during their operation the conditions of the mechanized produc-
tion of petroleum worsen and the frequency of overhauls increases. The enthusigsm
for "clusters" ur..dar usual conditions of dry land, as well as the oversaturation
- of a single-stage cluster with 20-30 and more points for drilling should be halCed.
Of the measures of great importance for the economics of the production and trans-
portation of petroleum in the main region of petroleum product ion--Wes tern Siberia--
during the period ro 1990 it is neceasary to distinguish the need for:
a) the development of the system of transportation lines, first of all roads,
along the routes of all-unfon petroleum and gas pipelines on the territory of the
oblast with the entire set of services of mator transport;
b) the extensive development of the production of compressors of various type
sizes, equipment for the gas lift production of petroYeum, local power plants,
chemical reactants in volumes adequate for the implementation of the outlined
measures on the increase of the petroleum yield of the beds;
c) the consolidation of petroleum worker personnel by development of the non-
production infrastructure in the regions of the location of new petroleum (gas)
deposits.
The questions and measures which have beeu touchn4 upon are presently being dis-
. cussed and, of colxrse, not all the assumptions st-9red here are shared. There are
also other points of view, therefore their discussion is n-_l the more important.
- I. G. Pashko (USSR Gosplan). Ferrous metallurgy of the Soviet Union for a number
of years now has held first place jn the world in the production volume of pig iron,
steel, rolled products, pipe and hardware. A high level of scientific develop-
- ments is noted in this sector. Licenses for the continuous teeming of steel,
electroslag smelting, the evaporative cooling of inetallurgical units, the dry
' quenching of coke and others have been sold to many foreign countries. The largest
- units in the world, including a blast furnace with a useful volume of 5,000 m3,
oxygen converters with a capacity of up to 400 tons, highly productive sheet rolling
= mills with a capacity of 6 million tons, pipe and other machines, are being used
successfully at ferrous metallurgy enterprises.
In spite of the achieved high level of production and the enlargement of the as-
sortment of inetal products, the needs of the national economy for them are still
not being completely met both with respect to the quantity and with respect to the
- quality of some types of inetal. In his epeech at the November (1979) CPSU Central
Committee Plenum L. I. Brezhnev said: "Metallurgy and machine building remain a
topic of our particular concern. In spite of the enormous scale of the production
of inetal, as before there is not enough of it." This is caused by the following
factors. The first is that fundamental qualitative changes in metallurgy itself
- are being carried out slowly. The second is that the adoption of new technological
processes in the main sectors which conaume metal is lagging.
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Metal will be the main construction material in the future period as well. There-
- fore an important state task is the further development of ferrous metallurgy and
the leading development of machine building and metalworking. In the drr�ft of the
Main Directions it is recorded: "In ferrous metallurgy the radical improvement of
quality and the increase of the output of efficient types of inetal products should
become the main direction of further development." At the same time it is planned
to carry out the extensive retooling of enterprises with the replacement of obso-
lete equipment. The predominance at present of the repair of equipment over its
_ replacement is adversely affecting the growth rate of labor productivity and prod-
- uc*_ quality and is leading to the excessive eonsumption of rolled ferrous metal
products.
Three questions should be examined with reference to this sector. The first is the
~ amounts of the continuous teeming of steel. The continuous teeming of steel pro-
vides a 10-15 percent saving of inetal as compared with the teeming of steel in in-
gots. In the Main Directions it is stated: "To increase the teeming of steel in
- continuous billet casting machines to 35-37 million tons," that is, to increase it
more than twofold. However, there are grounds to assert L-hat the continuous teem-
- ing of steel can be increased to 42-45 million tons. '
For the first time in world practice our scientists and designers have developed
machines for the continuous casting of billets of the curved and radial type, which
make it possible to save great amounts of inetal. The method of the continuous teem-
ing of steel, which is used in the USSR, has been patented in 28 countries, and
licenses have been sold in many countries. In spite of this, in the USSR only
_ 16 million tons of steel, or about 11 percent of all the steel smelted, was teemed
in continuous billet casting machines in 1979. The reason for this situation lies
in the fact that the units for the continuous teeming of steel are being used only
in a portion of the steel smelting shops being newly put into operation, while they
' are virtually not being installed in operating shops. Moreover, the machine build-
ers are unable to create the necessary capacities for the production of continuous
billet casting machines.
The second question is the structure of the production and consumption of rolled
products. It is characterized by a relatively low proportion of rolled sheet prod-
- ucts in its total output (41 percent). We are still not fully utilizing the great
- advantages of rolled sheet products and therefore cannot substantially reduce the
weight of machines. Ferrous metallurgy has increased the capacities for rolled
sheet products, but our machine building has not prepared itself for the use of
plate.
The third question is the need for the maximum increase of the strength properties
of carbon steel from 24-30 kg/mm2 to 40-45 kg/mm2. For this measures must be elab-
orated along the entire technological chain from the pig iron to items of the
fourth conversion. A strength of not less than 60 kg/mm2 should be taken as the
= base for structural and construction steel. With the increase of the strength and
� density of inetal it will be possible to build lighter components and machines.
- Plastic deformation must be combined with the heat treatment of inetal--then the
~ saving of inetal will increase two- to threefold.
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The overcoming of the delay of the adoption of new technological processes in the
sectors which consume metal, and particularly in machine building, is very impor-
tant. The metal content of the majority of machines and equipment being produced
remains high, the amount of metal scrap in the manufacture of machines is high., the
utilization ratio of inetals is low (it has stabilized at one level--0.72, and is
not increasing).
= In the past 10 years ferrous metallurgy has increased considerably (three- to five-
fold) the output of low alioy steel, thermal hardened rolled products and many
= ofiher economical types of rolled products. But the achievements of ferrous metal-
, lurgy are not always reflected in machine building. The weight of machines per unit
of technical parameter is decreasing slowly. The technology of billet prcduction
in machine building is still far from perfect. Much cast steel and cast iron is
being consumed, rolled sheet products are being used inadequately, the methods of
_ cutting predominate instead of the development of more advanced processes of stamp-
ing, pressure forging, extrusion, rolling and welding. In machine building too
- few metal straining machines are being used in the pool of inetalworking equipment.
All this attests that machine building was inadequately prepared for the adoption
of new technological processes.
The solution of the problem of working metal by advanced methods with an increase
of the use of rolled sheet products requires a comprehensive approach. In machine
- building the construction of stamping and welding ahops must be carried out more
rapidly and they must be fitted out with advanced forge and press equipment. In
_ ferrous metallurgy the capacities for rolZed sheet products must continue ta be in-
- creased. Beginning in 1981 USSR Gosplan wi.ll set assignments on the average reduc-
= tion of the total specific consumption of metal and the increase of its utilization
ratio, as well as on the decrease of the consumption of cast steel and cast iron
and forged pieces made from ingots.
In connection with what has been said the measures on the improvement of the struc-
ture of billet production in machine building, the decrease of the work.ing of metal
by cutting, the reduction of the consumption of cast iron and cast steel, the in-
crease of the use of rolled sheet products, as well as ferrous metal substitutes
and the maximum utilization of the strength properties of steel should bP reflected
in the draft of the Main Directions. The implementation of these measires will
make it possible to utilize the far-reaching reserves of our metallurgical and
machine buildinp complex.
Ye. A. Afanas'yevskiy (Council for the Study of Productive Forces). In the draft
of the Main Directions it is stated: "To raise to a higher level the organization
of national labor and all production; to concentrat2 forces and resources on the
solution of the main national economic problems" (Section II). Among the main
national economic problems the prcgram on the increase of the production of con-
sumer goods is named as one of the urgent problems.
Light industry produces half of all the nonfood consumer items of the country. An
lmportant direction of the improvement of the forms of its social organization is
- the achievement of their more complete conformity to the new socio-economic, demo-
graphic and urban development conditions. At present one form of production con--
centration--large cembines--predominates in the sector. In this connection the
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level of the utilization of fixed capital under the conditions of the inadequate
aupply of manpower reaources is decreasing. Thus, at the largest cotton combines
(up to 3,000 and more looms), at which 44.7 percent of the looms of the sector are
concentrated, only 39.8 percent of the fabrics are produced. These combines operate
12-15 percent less time as compared with smaller enterprises; at them, as a ru1e,
the level of the turnover of personnel is considerably higher, while the downtimes
of equipment are two- to threefold greater_ than the standard.
At one time modern types and sizes of enterprises and the principles of their loca-
tion which conformed to the new material and social conditions of production were
elaborated. They are production associations--newly erected projects and the ag-
glomerate form of territorial concentration. Such a form is based not on the de-
concentration of production, but on its specialization. It is called upon to solve
the same problem of the intensification of production, but under changed socio-
economic conditions, which ascertain the inefficiency of the location of large-
- scale praduction on a single territory. However, an underestimation of the impor-
tance of this form of organization is occurring in the practice of sectorial plan-
ning. Meanwhile the reserves for increasing consumer goods by means of i.ts adop-
- tion are very great. Therefare it is expedient to define concretely the provision
of the draft of the Main Directions on the increase of the level of organization of
national labor and production. It should be indicated that the level and forms of
concentration and specialization in industry should be brought more completely into
line with the formed sociudemographic situation and should conform to both the
intraproduction and extraproduction conditions.
The construction of branches of operating enterprises and associations will unques-
_ tionably ensure an increase of the economic effectiveness of social production and
capital investments and will make it possible in a short time to increase the out-
put of consumer goods. Here, however, it is necessary for the construction of
branches to be subordinate to the uniform scientific principles of distribution,
, which are specified for the new forms of the organization of production in the
_ General Plan of the Development and Distribution of the Productive Forces of the
USSR for the Period to 1990. The branches shuuld not be transformed into a like-
ness of the enterprises of local industry, the territorial organization of which
- is not subordinate to a uniform system.
The changeover to the construction of small specialized enterprises and branches
wit?iin production associatioas of light industry, in our opinion, will be conducive
to the successful solution of the problem raised in the draft of the Main Direc-
tions: "To develop at a leading rate the productiou of /consumer goods/ /in bold-
face/" (Section IV).
Academician of the All-Union Academy of Agricultural Sciences imeni V. I. Lenin
~ V. A. Tikhonov (Institute of Economics of the USSR Academy of Sciences). Two main
- problems are arising in the development of agro-inc:ustrial production: first, the
improvement o.f its sectorial structure and the assurance of the optimum balance
;aith respect to production resources, the rate and volumes of production; second,
the management of this complex multisectorial system.
Inuustry which serves agriculture and the processing sectors, has accumulated an
enormous production potential. There is no country in the world which could supply
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agriculture with more than 370,000 tractors a year. Agriculture now has colossal
- power capacities--about 580 million hp. The power-output ratio of our agriculture
has already exceeded the American level. But labor producivity in agriculture is
increasing extremely slowly. The technological labor-output ratio is practically
not decreasing, while the majority of the increase of labor productivity is a re-
sult of the increase of the fertility of ttie soil. The growth rate of labor pro-
ductivity nearly coincides with the growth rate of the gross production of agricul-
ture. This attests that farming,for the present retains features of production of
primarily the extensive type.
A strange situation has formed: a very high number of employees is being maintained
and, in spite of the growth of the material and technical base of production, the
number of workers has almost not decreased, while their shortage is increasing wich
each year. The main reason for this phenomenon is the unsatisfacrory structure of
the material and technical base in general, and the equipment being used and sup-
- plied, in particular. In essence, industry up to now has been supplying farming
not with systems of machines, but with individual machines. Therefore the complete
- mechanization of technological processes has not been carried out in full. Trac-
tors are being delivered without a complete set of power tools, As a result the
power potential embodied in them is being inadequately utilized.
The material base of the "postagriculture" production stages--primary processing,
storage, transportation and prucessing of the produced output--is especially back-
ward. Hence the recurring losses of the produced output, whi.ch are increasing
along with the growCh of its production.
The time has come to resolutely set for our indus*ry the task af changing over from
~ deliveries of indivIdual machines to deliveries of integrated technical and techno-
. logical systems which encompass both the praduction of agricultural produce and its
processing on the basis of waste-f ree technology. This will obviously require the
appropriate changes in the structure of industrial production and the improvement
- of the cooperative ties between its sectors. I believe that these requirements
should be reflected in the draft of the Main Directions.
The improvement of the structure of agriculture itself is also necessary. Let us
take the following example: the production of potatoes in the country has exceeded
90 million tons. We are the largest potato producers in the world, we surpass the
United States in the production of this product by 6.5-fold. But can it be said
that in the consumption of potatoes we are at the same level? I believe that it
cannot, since the weight of commerical potatoes in our country is not more than
half of the produced potatoes, while the retail sales volume is less than the
Ame.rican level. The consumption of potatoes for seed and for feeding livestock
(which is totally uneconomical) and especially ttie losses at all the stages of the
postharvest cycle from transportation to the dining table are excessively great.
= The question arises: is it necessary to increase the production volumes of pota-
toes, to take up for this extremely labor-consuming crop more than 7 million hec-
tares of plowland and enormous masses of people in order then to waste the output,
at best to feed it to livestock, obtaining from this a meager return? I believe
that it is necessary to make a decisive turn toward the formation of specialized
zones of the production of cotmnercial potatoes so as to ensure an increase of the
harvests, while having reduced the scale of their plantings. An adequately
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powerful processing industry must be developed in regions of the high concentration
of potato production and the waste-free technology of the production and conversion
of tubers into a final product suitable for consumption without its processing under
household conditions must be set up. Such a technology exists. It makes it pos-
sible with a sma11 gross production to ensure a higher yield of the commodity and
final product. This direction should be envisaged in the new five-year plan. This
pertains not only to potatoes, but also to wheat, cotton, milk and others.
We need to undertake more actively the formation of specialized zones for the pro-
duction of comanercial products on the basis of the task of bringing the production
of each of them closer to the regions having the most favorable conditions for this
- type of production. A universal structure of agricultural production in every re-
gion of the couniry is an anachronism, a residual offshoot of the natural economy.
V. I. Lenin consitiered as one of the attributes of the changeover of farming to
- prodttction of the industrial type the specialization of regions, the creation of
systems of farms and the organization of the intersectorial and interregional ex-
change of products. If we wish to fully utilize the biological potential of re-
gions, we should develop their specialization more actively in conjunction with the
creation of a developed production and social infrastructure of these regions and
the expansion of the interregional exchange in products of the main specialization.
Apparently, only on this basis will we be able to achieve an increase of the pro-
duction of energy-packed and high protein fodder cereal and pulse crops (owing,
in particular, to a slight reduction of the production of wheat in the regions
which specialize in the production of corn, legweinous and pulse crops) and to
solve the problem of the acute shortage of fodders.
The second urgent problem is the management of integrated multisectorial agro-
- industrial production. Such integrated production is being formed and really ex-
ists. The strengthening and expanding production economics contacts among its sec-
tors serve as confirmation of this conclusion. However, so far a unified agro-
- industrial complex as an integral and complete production economics system has not
yet been formed. Only the material and social conditions for its development have
been formed. Now these conditions have to be transformed into real-i_ty. The
changeover from primarily sectorial to primarily program--goal planning and the man-
agement of agro-industrial production as a unified whole is called upon to play a
most important role in this process.
The food program now being elaborated is obviously the first step in the direction
of tlie solution of the indicated problem. But it should be clearly realized that
the program will perform its functions only if a effective system of the management
of its implementation from a unified center is developed. L. I. Brezhnev directed
attention to this aspect of the matter in his speech at the October (1980) CPSU
Central Committee Plenu*n. This task was not reflected in the draft of the Main Di-
rections, I believe that this should be done and the assignment to develop and
adopt during the llth Five-Year Plan a well-balanced system of the management of
agro-industrial production at all levels should be formulated.
j It is a question, to be sure, not only of the system of organs of management, but
also of the mechanism of the management of economic interests and economic activity
in the system of multisectorial agro-industrial production. The main principle of
this mechanism was proclaimed back at the 25th party congress: it is necessary to
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- afford the consumers of a product extensive opportunities to influence its produc-
ers. For agro-industrial production this principle of the economic mechanism can
be considered the basic one. The point is that in the process of reproducing the
, final product all the sectors of the agro-industrial complex are connected in suc-
cession. Each one is the consumer of the product created at the preceding stage of
_ production and the starting poinrc for the next stage. The link between them is
- fundamental, and the end result is determined by the degree of rationality of the
= bond at each preceding "junction." It is possible to orient each stage toward the
maximization of the end result only in one way: by the effective economic control
of the consumer of the product a t each stage of reproduction over the producer of
- the product being consumed with respect to its quality, structure, assortnent, de-
livery dates and so forth. With in the unified state plan of production it is nec-
essary to grant economic organiz ations and departments the right to use more ex-
tensively direct intersectorial, interregional and interindustry contracts on re-
_ ciprocal deliveries of products with mandatory mutual respflnsibility for the ob-
servance of *he contract terms. Here the responsibility should be materia.l. It
should concern not only enterprises, but also specific people--the managers through
whose fault the terms of the contracts are not met.
In short, the role of the consumer as the client and the responsibility of the pro-
ducer as the filler of orders should be increased to the utmost and in all areas of
- activity--be it deliveries of ineans of production or reclamation construction, the
repair of equipment or the delivery of agricultural raw materials to the processing
industry. Changes should probably also be made in the policy of distributing capi-
tal investments. They should b e allocated to the agro-industrial complex as a
whole, having granted its management organs the right to distribute and allocate
them to the most important spheres of activity.
, So far it has been a question of the mechanism of intersectorial cooperation. But
- the system of the stimulating mo tivational mechanism in agriculture requires fur-
ther improvement. There has unq uestionably been some progress in this matter.
During the new five-year plan no t the plan indicators, but the real level of pro-
duction is to be the criterion of economic stimulation. The purchase prices for
products produced in excess of the level achieved during the preceding five-year
plan will be increased significantly. Such a system should be augmented with the
effecr_ive material stimulation of the workers. The job contract plus bonus rate
with the periodic advancing of funds has given a good account of itself at the
level of primary labor collectives. Its advantage is that neither the volume of
performed operations nor the time worked, but the volume of outFut really produced
functions as the criteria of the personal income of the workers.
Such a system of pay for the labor materialized in the product should acquire a
dominant position in agricultura 1 production. This should be reflected in the draft
of the Main Directions. Such a principle of pay should be extended to all the
levels of production of sovkhoz es, kolkhozes, interfarm enterprises and associa-
tions. For the managers of all levels and specialists it is expedient to use a
system of supplementary payments for the end results instead of the ineffective
system now used of bonuses, the amounts of which are very inadequately connected
with the production volumes and their dynamics. It seems to me that the incentive
system, first, should be constantly oriented toward the increase of the end re-
sults and, second, should operat e automatically, as an inevitable consequence of
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the achieved production results. It would not at all be a bad thing if the mate-
rial incentive fund of economic managers and specialists were formed accordtng to
- a fixed standard of deductions from the new product produced during the year and
were distributed among the workers of production management. The assignment on the
development and experimental checking of the most advanced and effectively operat-
ing systems of economic stimulation should be formulated in the draft of the Main
Directions.
L. V. N3.kiforov (Institute of Economics of the USSR Academy of Sciences). In the
draft of the Main Directions much attention is devoted to the solution of the socio-
economic problems of the village, the convergence of the working and living condi-
_ tions of the urban and rural population and the overcoming of the socio-economic
differences between the city and the countryside. The solution of these problems
will make it possible to create the necessary social conditions for the dynamic de-
velopment of agriculture, for the meeting of the needs of the country for food-
stuffs and agricultural raw materials and for the further strengthening of the so-
cial homogeneity of Soviet society.
At the same time, taking into account the national economic importance of socio-
economic changes in the village and the overcoming of the differences between the
city and the countryside, it would be advisable, in my opinion, to show in more de-
tail in the draft of the Main Directions the ro1e, directions and possibilities of
the development of the village. It seems that this can be done if all the aims,
_ which concern the solution of the socio-economic problems of rural areas and are
now contained in various sections of the draft plan, are concentrated in a special
subsPCtion of the section on social development. In such a subsection it would be
- posrible to enlarge the group of problems and directions of the socio-economic de-
ve7.opment of the village. In particular, attention should Ue directed to the need
for the more complete utilization of the production potential of the village for the
purposes of ineeting the needs of the population for consumer goods by means of the
expansion there ef the processing of agricultural produce, the sectors of local in-
- dustry, the production of construction materials From local resources, without
limiting oneself to their development at kolkhozes and sovkhozes.
An indicator of the need for the development of the social contacts between rural
settlements and between the city and the countryside for the purposes of the more
efficient development of the social infrastructure and the assurance of the accessi-
bility for the rural population of all types of public services would play a great
role.
Taking into account the important -regional peculiarities of the socio-economic
_ problenis of the village, it would be advisable to i'ndicate the need for the elabora-
tion of territorial programs of the comprehensive