JPRS ID: 10070 USSR REPORT ECONOMIC AFFAIRS

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• Content Type: REPORTS

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F'c~l2 c?F~F'IC't ~1 1 ~~b' 11N1
- JPRS L/ 10070
_ 23 (Jctober 1981 ~
- tJSSR Re ort ~
p
ECONOMIC AFFAIRS
- (FOUO 16/81)
Fg~$ FOREIGN BROADCAST INFORMATION SERVICE
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~ JPRS L/10070
23 October 1981
= USSR REPORT
- ECONOMIC AFFAIRS
(FOUO 16/81)
CONTENTS
PLANNING AND PLAN IMPLII~NTATION
Main Goals of llth Five-Yeax Plan Reviewed
(F. Kotov; VOPROSY EKONOMIKI, Jul 81) 1
INVES'I`MENT, PRICES, BUDGET AND FINANCE
Impact of Banking System on Production Analyzed
(I. Levchuk; VOPROSY EKONOMIKI, Jul 81)......., 13
INDUSTRIAL DEVEI,OPMFNT AND PERFORMANCE
Retooling, Repair in Industry Exarr~~.ned
(V. Krasovskiy; VOPROSY EKON~~MIKI, Jul 81) 25
- a - [III - USSR - 3 FOUO]
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PLANNING AND PLAN IMP'LEMENTATION
, MAIN GOALS OF 11TH FIVE--YEAR PLAN I7.EVIEWED
- Moscow VOPROSY EKONOMIKI in Russian No 7, Jul 8P pp 9-19
/Article by F. Kotov: "The Main Tasks, Rates and Proportions of the llth Five-Year
P1 an"/
/Text/ The 26th CPSU Congress specified the strategy and tactics of USSR economic
and social development for the 1980's as a new stage in the creation of the material
- and technical base of communism, the development of social relations and the forma-
tion of the new man. The continuity of the strategy ~and tactics in this area and
the further development of their principles as applied to the conditions of the new
lU-year planning period so as to overcome the noted tendency for the rate of econom-
ic growth to slow and to make qualitatively new gains in the socio-economic develop-
ment of the country, are characteristic. During these years the changeover to the
'i primarily intensive path of the development of the economy will be accomplished
~ owing to the more complete utilization of the potentials of technical progress, the
~ increase of the level of management of the economy, the improvement of planning,
' the stepping up of the influence of the economic mechanism and social factors on the
i development of physical production, the improvement of the labor and moral training
of the workers, the improvement of the use of the socialist principle of distribu-
tion according to labor and the increase of the role and importance of labor collec-
~ tives and local soviets of people's deputies.
The goals of the long-range economic policy, which creates the prerequisites for the
' further economic and social development of the country, are specified in the Main
Directions of USSR Economic and Social Development for 1981-1985 and the Period to
1990.
On the basis of the economic and social development achieved in past years with al-
lowance madefor the peculiariries of the planning period, the 26th party congress
formulated the main task of the llth Five-Year Plan. Its accomplishment presumes
- the implementation of a series of ineasures which cover all aspects of the labor,,
life, living conditions and cultural level of the Soviet people. The most impor-
- tant of them are: the complete meeting of the demands of the entire population for
foudsruffs and nonfood consumer items; the improvement of the housing, cultural and
everyday living conditions of the population; the accomplishment of profound changes
in labor, the improvement of working conditions, the provision of extensive oppor-
tunities for creative activity; the further development of education and culture;
the improvement of the health and the efficient use of free time of the workers on
the basis of the improvement of trade and personal service, the development of the
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- L_c:reation industry, tourism and physical culture, the network of inedical institu-
tions and so on; the promotion of moral education and a communist attitude toward
labor; the overcoming of the socio-economic differences i~ the living, working and
everyday conditions of all categories of workers.
An entire series of ineasures ha~ been outlined for the achievement of the ultimate
goals of the five-year pla^__ The emphasis is being placed on the development of
social production, the improvement of its pattern and the economical use of all re-
- production resources, the improvement of product quality, the reorg3nization of
- management and planning first of all for the purposes of the timely and more com-
plete utilization af the achievements of science and technology, equipment and work-
_ ing time.
The country has an enormous production, scientific and technical potential and
skilled personnel. The fixed production capital of the USSR in 1980 amounted to
1,149,000,000,000 rubles, that is, it was twofold more than in 1970. The volumes
of the extraction of raw materials and fuel and the output of construction mate-
~ rials increased. The areas of irrigated land and the number of livestock and poul-
try increased. Having 35 million hectares of reclaimed land, the country has begun
to depend less on weather conditions in arid regions. The fixed nonproductive capi-
tal has increased consi.derably. The number of those employed in the national econ-
omy came to 112.5 million, including 27 million specialists, about 1.4 million sci-
entists, approximately 900,000 plannera and 500,000 designers. For the accomplish-
ment of the set national economic tasks in 5 years 13 million skilled workers will
be trained at vocational and technical schools and 10 million specialists with a
higher and secondary specialized education will be trained. More than 10 million
people are studying at the higher and secondary educational institutiona of the
country. The participation oF the USSR in the w~rld and the international socialist
division of labor has increased. The foreign trade turnover of the USSR in 1980
came to 94.1 billion rubles.
Such ma~or national economic problems as the construction of the Baykal-Amur Rail-
- way Line and the development of the natural resources of the regions ad3acent to it,
the for.mation of industrial centers on the basis of the Ekibastuz, Kansk-Achinsk
and Southern Yakut coal basins, the development of the West Siberian Petrolewn a:.d
Gas Region, the strengthening of the materia~ and technical base of nuclear power
engineering, th~ creation of the robot equipment industry, the changeover of agri-
cultural production t~ an industrial base and an advanced technology and others
will be solved during the llth Five-Year Plan. However, the accomplishment of all
these tasks will take place under the conditions of the slowing of the growth rate
of the able-bodied population in many regions of the country; the shift of the ex-
traction of fuel and many types of~ raw materials to northern and eastern regions,
where major material expenditures, especially in the infrastrucCure, and large ex-
penditures on the transportation of the raw materials and fuel extracted here to
the Urals and the European part of the country are required; the commitment to pro-
duction of less rich deposits in developed regions; the remoteness of the lands to
be irriga~ed from sources of water; the need for the more significant increase of
the resources for simple reproduction and environmental protection and other factors
requiring ma~or additional expenditures. The offsetting of these expenditures is
possible c,n the basis of the complete utilization o� scientific and technical prog-
ress and th~ improvement of administration and management as applied to present
conditions.
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The difficulties of changing over the economy to the primarily intQnsive path of
development were discovered during the lOth Five-Year Plan. With the abrupt reduc-
tion of the extensive factors of growth, it was indicated at the 26th CPSU Congress,
violations of discipline, displays of mismanagement and the inadequate preparation
of managerial persunnel for work under the conditions of the sharp decrease of the
effect of extensive factors of growth and the placement in the forefront of the
qua].itative characteristics of production activity took place. "But, perhaps, the
main reason is," L. I. Brezhnev said at the 26th CPSU Cnngress, "that the force of
inertia, the traditions and habits, which formed during the period when not so much
the qualitative as the quantitative aspect of the matter came to the forefr~nt, have
not yet been completely overcome." The nonfulfillment of the assignments on the
output of resource-saving equipment was noted; a relatively small proportion of the
capital investments was allocated for the renovation and retooling of operating
enterprises. The socialist principle o.f pay according to labor was violated at
many enterprises and organizations. Many tasks, which were set by the 25th CPSU
Congress, in the area of planning, management, especially when introducing and as-
similating new equipment, the organization of labor and wages were not accomplished.
All these shortcomings could not but adversely influence during the lOth Five-Year
Plan the growth rate of labor productivity, the use of productive capital and mate-
_ rial rPSOUrces, the times of the placement into operation and the assimilation of
new production capacities and, consequently, the output of many types of products
of industry and agriculture.
On the basis of the critical interpretation of the experience of the lOth Five-Year
Plan the 26th CPSU Congress outlined a series of ineasures, which are aimed first of
all at the quickest possible alimination of the disproportions and "bottlenecks" in
the national economy and the achievement of the optimum ratio between the consump-
tion fund and the accumulation fund, which ensure the solution of a wide range of
social problems and the steady increase of the ~rodu:.tion potential of the country.
An important place in USSR economic and social development for 1981-1985 and the
period to 1990 is assigned to the problem of the rate of economic development of the
, country. In_recent tiines the inadequately efficient use of reproduction resources
_ and the existing discrepancies between the achieved level of development of the pro-
ductive forces and the management and planning of the development of the economy,
wh-ich lagged behind it, as well as the economic mechanism were the cause of the
' slowing of this rate. The workers of planning organs and economics scholars dragged
out the fulfillment of the assignments of the 24th and 25th CPSU Congresses on the
preparation of scientifically sound suggestions on the solution of the ripe problems.
The 26th CPSU Congress appraised these negative phenomena, outlined measures, which
arc conducive to t}~e increase of the rate of economic development of the country,
and outlined the fur.ther increase of the absolute increments for the most important
indicators. During the llth Five-Year Plan the significance of each percent in-
crease of the resources for current consumption and sociocultural construction will
increase substantially.
During the llth rive-Year Plan as compared with the lOth Five-Year Plan the absolute
increases of the national income will be 9 billion rubles more, including the con-
sumption fund--more than 13 billion rubles, the output of indt!stry--44 billion
rubles, the output of group B--18 billion rubles, the output of agriculture (average
annual production)--7.5 billion rubles, the retail commodity turnover--more than
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8 billion rubles. The decrease of the absolute increases according to these indi-
cators, which occurred during the lOth Five-Year plan, ~s the~eby being overcome.
1971-1975 1976-1980 1981-1985
- National income. . . . . . . . . . . ~ . . . . . . 80 74 84
Output of industry . . . . . . . . . . . . . . . . 152 127 171
including:
group A . . . . . . . . . . . . . . . . . . . . . 114 98 124
group B . . . . . . . . . . . . . . . . . . . . 38 29 47
- Output of agriculture (average annua~ production). 13 10 18
~ Retail commodity ttirnover . . . . . . . . . . . . . 52 52 60
Ti1e increase of the indicators of the materr~a?_ stimulation of social production is
planned. It is envisaged to increase the wages of workers and employees by 13-16
percent and the pay of kolkhoz farmers by 20-22 percen~. As a result the proportion
of the population with a per capital income of .100 rubles and more a month will in-
crease considerably. 'These indicators are being coordinated more closely with the
= tasks of the developmE~nt of producrion and the increase of its efficiency, the im-
provement of product quality, the more completP utilization of production capaci-
ties, the strengthening ~f the stability of labor collectives, especially in the
regions of Siberia and the Far East.
Much attention is being devoted to questions of stimulation for the end results of
work, as well as to the improvement of the t~rigade form of wages. The main thing is
the combination of collectivity in work wiL�h thP proper incentive for the specific
contribution of each member of the brigade. An important role belongs to the coun-
cils of bri~;acles. The departments of labor and wages of production associations,
en~erprises, ministries and organs of the State Committee for Labor and Social Prob~
Lems should give them assistance. Here the planned increase of wages during the
_ llth Five-Year Plan will take pla~e under the conditions of the stability of retail
prices for basic foodstuffs and nonfood consumer items, which will lead to a~sub-
stantial increase of the real income of the workers. As resources are accumulated
- first of all by means of the utilization of the reserves of the increase of labor
productivity, a new stage o~ the increase of the minimum wage, the rates and sala-
ries of wcrkers.will begin. As in the past, the payments and benefits received by
the population from public consumption funds, which will increase during the 5-year
period by 20 percent, will play an important role. They are being linked to a
greater extent with the solution of the problems of the changeover of the economy
ro the path of primarily intensive development, the introduction of new equipment
- and th~ increase and improvement of production.
'!'he importance af passenger transport and communications in solving the set of so-
cial problems will increase. All types of passenger transport will be supplemented
with new vehicles, which will make it possible to shorten the time en route, espe-
cially when travelin~; to work.
The formaticn of the unified automate~: communications network of the country on the
basis of the latest data transmissio~.i systems will be continued, color television
and stereo radio broadcasting will uldergo development. Artificial earth satel-
~ lites will be used more extensively fc.r the organization of multichannel television
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and radio broadcasting. 'lfie length of long-distance telephone channels will in-
crease approximately 1.8-fold, while the number of telephones in cities and vil-

1 lages will increase 1.3-fold.
'The rapid development of the sec~ors, ~�rhich produce consumer goods and the raw mate-
rials for their production, will be the material basis of the backing of the in-
crease of the real income of the population. Thus, t:ie growth rate of the output
of the food industry will increase from 7 percent during the lOth Five-Year Plan to
23-26 percent during the llth Five-Year Plan, local industry--from 31 to 40 per-
- cent, light industry--to 18-20 percent. Particular attention will be devoted to the
utmost development of agriculture--the main raw material base of the food and light
industry and the supplier of trade organizations with fresh produce which does not
require industrial processing. The planned acceleration of the growth rate of the
output of agriculture is connected with the strengthening of its material and tech-
nical base. In 1985 kolkhozes and sovkhozes will be supplied with 1.4-fold more
- mineral fertilizers as compared with 1980 with improved quality characteristics,
1.8-fold more feed additives and more than 1.5-fold more electric power. The de-
liveries of diverse equipment, tractors, agricultural machinery, machines for animal
husbandry and fodder production, motor vehicles and so on will increase.
Under present conditions, when agriculture is saturated with many types of equipment,
the main attention should be devoted to the quality of the equipment being produced
and the improvement of its structure so as to change over more rapidly to industrial
methods of work with allowance made for the improvement of breeding, the boosting of
prcduction and the increase of the quality of mineral fertilizers, especially herbi-
cides. This will ensure an increase of the yield of crops and will increase labor
productivity.
Agriculture will contirue development in the unified agro-industrial complex. An
important role is being assigned to the complex food program, which will be a com-
ponent of the five-year plan. In this program much attention is devoted ta the de-
velopment of the production and social infrastructure, which will promote the pre-
- sexvation of the grown produce and its delivery to the consumer. The development
of the hotbed and hothouse system, first of all in the regions of Siberia, the Far
East and the European north, also merits attention.
The role of heavy industry in the production of goods for the population is increas-
ing. Thus, the output of chemical fibers and filaments will increase 36 percent.
It is planned to increase by approximately 1.4-fold the production of cultural,
personal and household goods with the substantial enlargement of the assortment and
the increase of quality. It is envisaged to increase the volume of personal serv-
ices to the population by 40-50 percent with the significant improvement of the
standards of service and the increase of the number of services which are in demand.
The material and technical base of trade will be strengthened, warehouse facilities
and vegetable bases will b~ mechanized.
In the materials of the 26th CPSU Congress much attention is devoted to the develop-
ment of heavy industry, first of all to the strengthening of the material and tech-
� nical base of the fuel and power complex, the sectors which produce construction
materials, the chemical industry and machine building. All types of transport and
first of all rail transport, which in recent types has become a"bottleneck" in the
national economy, will be `urther developed. It will be supplemented with a more
efficient fleet of locomotives and cars.
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The planned 12-~5 percent increase of capital investments in the national economy
(711-7,30 billion rubles) wil.l make it possible, with the decrease of the proportion
of unfinished construction to the standard level and the observat~ce of the set
pex:.od of the construction of facilities, to increase the fixed production capital
in the national economy by approximately one-third. The nonproductive fixed capital
will also increa~e substantially with an increase of its quality. Thus, with the
retention of the volume of the placement of living space into nperation, which was
achieved during the lOth Five-Year Plan, the capital investments for these purposes
will increase considerably, which will make it possible to build apartment houses
according to new, improved designs which create greater conveniences for the resi-
� dents.
Ttie realization of the social program and the rate of development of the economy,
which have been outlined for the llth Five-Year Plan, and the decrease of the effect
of extensive factors of growth are possible on the basis of 'the utmost intensifica-
tion and the increase of the efficiency of social production. Labor productivity
is the most important indicator of production efficiency. The acceleration of its
growth rate in all the sectors of physical production is called for during the new
- 5-year period (see the table).
1976-1980 1981-1985
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . 17 23-25
Agriculture (average annual production in public sector;. . 15 22-24
Rail transport . . . . . . . . . . . . . . . . . . . . . . . 0.5 10-12
Cons t ruc t ion . . . . . . . . . . . . . . . . . . . . . . . . 11 15-17
- By means of this indicator there has to be obtained 85-94 percent of the increase
of the national income, more than 90 percent of the increase of the ~utput of indus-
try and the entire increase of the output of agriculture and construction and in-
staZlation work. In many sectors of industry it is envisaged to ensure the increase
of the output of products entirely by means of the increase of labor productivity.
The most important factors of the accomplishment of this task will be: the more
rapid introduction and assimilation than before of the .achievements of technical
progress at operating enterprises; the increase of the level of the mechanization
and automation of production processes, especially in auxiliary, subsidiary, loading
and unloading and warehousing operations; the rapid development of the robot equip-
ment industry, which is being created, for the output of various manipulators; the
increase of the number of workers who have acquired an occupation in all forms oi
resident educational institutions, and so on. The level of the electric power-
worker and capitai-labor ratios will increase substantially. The capital-labor
- ratio will increase in 5 years in industry by 32 percent, in agriculture by 38 per-
cent and in construction by 20 percent. Approximately 35 percent of the fixed pro-
duction capital in industry and more than 40 percent in agriculture will be re-
placed during this period. Ivfuch attention is also beia~g devoted to the improvement
of the organization of labor ~nd wages, the creation of the conditions for the
elimination of the turnover of personnel, the tightening up of labor discipline, the
introduction of the brigade form of the organization of labor and the increase of
the role of the councils of brigades in organizational and educational work and the
improvement of the rate setting of labor. As a whole in physical production dur-
ing the llth Five-Year Plan not less than 20 million people can be conditionally
released due to the enunerated factors of the growth of labor productivity.
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The changeover of the economy to the primarily intensive path of development re-
quires the efficient consumption of material resources and the more complete utili-
zation of fixed capital and production capacities. Particular attention is being
devoted to the saving of fuel and energy resources, which during the 5-year period
will amount to 160-170 million tons of conventional fuel.. Important tasks have
_ been set for the sectors, which produce and use construction materials, on the im-
provement of the quality characteristics and their more efficient use. Thus, in
machine building and metalworking the specific consumption of rolled ferrous metal
products should be decreased on the average by not less than 18-20 percent, steel
pipe--10-12 percent, rolled nonferrous metal produ~ts--9-11 pe~cent. A 7-9 percent
saving of rolled ferrous metal products and a 5-7 percent saving of cement will be
provided in construction.
- For the achievement oF the outlined saving of material resources there are needed:
the introduction of fuel- and energy-saving technological processes, including
waste-free technology; the complete processing of raw materials and materials; the
increase of the output of economical units of large unit capacity, especially for
thermal and nuclear electric power stations; the development of the central heat
supply of cities; the reuse of material, fuel and energy resources, as we11 as by-
product resources; the decrease of the weight of mac:iines and equipment per unit of
. useful effect; the replacement of inetals with plastics, and so on. The outlined
measures on the intensification of the policy of economy, the improvement of the
rate setting of material resources, accounting and monitoring of their use, the im-
provement of the stimulation of the economical use of resources and the imposition
of strict penalties for the display of poor management should play an important role
in this. All this will promote a decrease of the materials-output ratio of the na-
tional product, which in many sectors continues to remain high.
The increase of the shift coefficient of equipment and the time of its utilization
during the week is an important factor of the overcoming of the decrease of the
output-capital ratio along with the preferential increase of the productivity of the
new equipment being produced over the increase of its cost. Experience has been
gained in this area, especially in the textile industry, but for the present it is
being disseminated slowly in machine building and other sectors with a discontinu-
ous nature of production. In this connection the workers who work in sectors with
a continuous nature of production have been placed under unequal conditions, which
creates a turnover of personnel and expenditures of time for retraining. This, in
turn, adversely affects the increase of labor productivity, the quality of the out-
put being produced and, in the end, the increase of the national incame.
The consistent implementation of the measures elaborated by the party on the im-
provement of management, planning and the economic mechanism and the strengthening
of Che comprehensive approach in planning and in the making of management decisions
in tr~ process of their implementation will promote the increase of the efficiency
of sacial production. This appears in the elaboration and im~:lementation of com-
prehensive goal programs on the most important and difficult problems, the solution
of which requires the participation of many organs of management and scientific
institution.s.
More than 15 comprehensive goal programs on such economic and social problems as the
food problem, the fuel and energy problem, the development of the production of con-
sumer goods, the rcduction of the use ~~f manual labor, the assurance of the complets
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.
utilization of material resources, the development of machine build~ng, transporta-
tion and others have been included for the first time in the Ilth Five-Year Plan.
In the union republics comprehensive goal programs were drawn up o~n~nany socio-
economic problems. The goal program method on t~e realization of scientific and
- technical problems is being improved. Programs are being elaborated on 160 prob-
lems, which will be a most important factor of the acceleration ~of th~e rate of sci-
entific progress, which will conclude with the mass productio~n of n~ra types of prod-
- ucts, the introduction of advanced technology and methods of prospec~ing for miner-
als and so on. All these programs will be a basic component of the five-year plan.
A number of new indicators, for example, the standard net output, a system of ine-
chanical and economic norms and standards and others, whj.ch create the conditions
for the increase of the efficiency of social production, will ~e used in it.
The indicators of industry are being elaborated for ~ mmre ~xtensive products
list, they reflect high quality and technically imprmved types of items; the meas-
urers of the indicators for many types of machine bu~.bdin~, which are aimed at the
decrease of the weight of equipment per unit of it~ ca,pacit;~, have been made more
precise. A plan of the production and deliveries o~ complete sets of technological
equipment is envisaged for the first time, the list uf products, in accordance with
which the material balances are drawn up, has been en'larged. Moreover, in the five-
year plan the distrib~ition of the most importan~ types of products among users will
be envisaged, which will create great stability of the plan, 2specially in construc-
tion, as well as the conditions for the early conclusion of contracts between the
enterprises which supply and use these products. The assignments characterizing the
economic impact from the adopti~n of scientific and technical measures are speci-
fied in the five-year plan. The capital investments and material resources for the
retooling and renovation of operating enterprises will be stipulated, their propor-
tion in the processing sectors will be increased. All this will create the prere-
quisites for the more accurate calculation o-f the material stimulation funds of
enterpri~es and the strengthening of the contractual r2lations of the producers and
vsers of products.
The accomplishment of the main tasks of the five-year plan requires the improvement
- of the national economic, intersectorial and intrasectorial proportions. The
closer link of science with production and the efficient use of material and man-
power resources should promote this. The increasing absolute increments of the na-
tional income on the basis of these factcrs are making it ~assible to envisage the
leading growth of the consumption fund and the increase of its proportion in the
n~tional income from 75.3 percent in 1980 to 77.3 percent in 1985. The growth
The
rates of both subdivisions of social production are approaching each other.
proportions of industry will change in favor of consumer goods. Whereas during the
Ninth and lOth Five-Year Plans the growth rate of the output of industry of group A
exceeded the growth rate of the produc+tion of group B, during the llth Five-Year
Plan the preferential development of group B is planned. In the production of the
~ national product and the national income a further increase of the proportion of
industry will occur, including due to th~ increase of the volume of the industrial
processing of agricultural raw materials.
The implementation of the set of ineasures being outlined on the increase of the
effectiveness of capital investments and the more complete utilization of the cre-
ated production potential of the country will make it possible to change such an
important proportion as the r3tio of the growth rates of the amount of capital in-
vestments and the national incame. During the Ninth Five-Year Plan the growth
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_ rate of capital investments exceeded the growth rate of the national income by
1.46-fold and during the lOth Five-Year Plan by 1.38-fold; an increase of capital
investments by 12-15 percent and of the national income by 18-20 percent is planned
" for the llth Five-Year Plan. This is a difficu~t task, and its accomplishment de-
pends on the efforts of scientific, planning and economic organs at all ievels of
management.
The preferential increase of the volume of the retail commodity turnover and per-
sona] services as compared with the increase of the income of the population has to
be envisaged for 1981-1985, which will make it possible to improve the established
proportions between monetary income and its backing with resources. At the same
time it is necessary to eliminate the cases observed during the lOth Five-Year Plan
' of the lead of the growth rate of wages as compared with labor productivity, espe-
cially in construction, agriculture, a number of sectors of industry and rail trans-
- port. The optimality of this proportion should be achieved by the improvenent of
the organization of production and labor and of material and technical supply, the
- strict observance of contractual obligations between the enterprises which produce
and use the products, as well as the strengthening of the cost accounting relatioas
between kolkhozes and sovkhozes, on the one hand, and the enterprises of the sectors
of the national economy, which send workers and equipment to participate in agricul-
tural operations, on the other. Here it is necessary to specify the sources of the
wages of the workers being enlisted from nonagricultural sectors.
Important measures on the improvement of the proportion between the increase of the
' capital-labor ratio and labor productivity have to be implemented. However, the
ministries of a number of sectors in their plans are still retaining the preferen-
tial growth of the capital-labor ratio over labor productivity. This concerns
first of all agriculture and the extractive sectors of industry. The increase of
production efficiency requires research and organizing work on the overcoming of
- the for.ned trend.
The changes in the number of those working in physical production and the nonproduc-
tive sphere should also take place on the basis of the mechanization and automation
- of production processes and the increase of labor productivity. It is planned
to increase the growth rate of the number of those employed in the latter by more
than threefold as compared with the sectors of physical production.
't'he further development of the structure of exports by the increase of the propor-
tion of the output of the sectors of the processing industry, semimanufactures and
enriched raw materials is envisaged.
- Ttie policy of the preferential development of the sectors which govern the accelera-
tion of the .rate of technical progress in the entire national economy, especially
machine building and instrument making, the chemical and petrochemical industries,
will be continued in indu~try. The proportion of the output of the enumerated sec-
- tors in the overall industrial production will be increased to approximately
38 percent in 1985 as against 30.2 percent in 1975 and 34.5 percent in 1980. Major
_ structural changes w~ll occur in all complexes and sectors. Th.us, in the agro-
indu~trial complex along with the development of the sectors which ensure the in-
crease of the yield of agricultural crops and the product~Lvity of animal husbandry,
measures will be implemented on the keeping capacity of products during harvesting,
transportation, processing and storage. In recent times the losses of agricultural
products, first of all vegetables, frequently 'nave amounted *0 20-30 percent.
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In tl~e fuel and power complex it is planned to make structural changes in the direc-
tioii of the increase of the role of at~mic energy and water pow~r, natural gas and
coal which is minE3 by the open-cut method. With the further increase of the pro-
duction of petroleum the latter will be used f irst of all not as a source of fuel,
but as a raw material for the chemical inciustry. The use of atomic energy for the
- central heating of cities is being expanded. The construction of nuclear TETs's
~ and nuclear heat supply stations is envisaged for these purposes. Significant
cllanges will also occur in the regional propo rtions of this complex. The share of
the ~astern regions of the country in the production of fuel and the generation of
electric power, which is produced on the basis of inexpensive coals and water re-
_ sources, will increase substantially. The co nstruction of large thermal electric
power stations for the transmission of electric power to the Urals and the regions
= of the European part of the country is planne d on the basis of the use of the coals
mined by the open-cut method at the Ekibastuz, Kansk-Achinsk and Kuznetsk coal
basins. All this is setting important tasks for pipeline and rail transport. The
transmission of electric power over long distances is acquiring especially great
importance. During the llth Five-Year Plan only nuclear electric power stations
~~id stations for heat supply will be built in the European regions.
'Che increase of the role of aluminum, synthetic resins and plastics, composition
m