JPRS ID: 9873 USSR REPORT ECONOMIC AFFAIRS

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000400030054-5
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• Original Classification: U
• Document Page Count: 37
• Document Creation Date: November 1, 2016
• Sequence Number: 54
• Content Type: REPORTS

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JPRS L/9873
29 July 1981
- US~R Re ort
p
ECONOMIC AF~AIRS
CFOUO 10/91)
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JPRS L/9873
29 July 1981
- USSR REPORT
ECONOMIC A~FFAIRS
(FOUO 10/81)
CONTENTS
REGIONAL DEVELOPMENT
High Official Discusses Azerbaijan Economic
Development, Planning
(S. K. Abbasaliyev; NARODNOYE KHOZYAYSTVO AZERBAYDZHANA,
Mar 81~ . 1
- Special Requara;:~lents of Siberian Development Stressed
(VOPROSY EKONOMIKI, May 81, PLANOVOYE KHOZYAYSTVO, May 8I). 12
Siberia's Regional Production Complexes,
by V. Voznyak
Siberia's Special Economic Role,
by A. Granberg
- a - [III - USSR - 3 FOUO]
*`nT nT*R/'~f ~ ~ T i[~n /~fif l!
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- REGIONAL DEVELOPME'NT
HIGH OFFICIAL DISCUSSES AZERBAIJAN ECONOMIC DEVELOPMENT, PI~ANNING
Baku NARODNOYE KHOZYAYSTVO AZERBAYDZHANA in Russian No 3, Mar 81 pp 1-9
/Arr.icle by Deputy Chairman of the Azerbaijan SSR Council of Ministers and Chairman
of the Azerbaijan SSR Gosplan S. K. Abbasaliyev: "Urgent Problems of National Eco-
nomic Planning at the Present Sia~e"/
/Text/ Our country is marki~g the 60th anniversary of the founding of Gosplan and
planning organs at a memorable time. This anniversary coincided with the time of
the holding of the historic 26th party congress, which established the great tasks
of the building of communism at the present stage.
The program of socio-economic development, which was outlined by the congress in ,
conformity with the economic strategy of the party, was established with allawance
made for the more complete utilization of the created economic, scientific and tech-
nical potential. This places upon planning organs greater responsibility in the
_ , matters of seeking and utilizing the deep-seated reserves of the effective increase
of social production.
The decisions of the 26th CPSU Congress and the 30th Congress of the Communist Par-
ty of Azerbai~an face the republic Gosplan and its organs locally with the task of
the skillful bringing into play of the available potentials of economic growth and
the increase of the efficiency and quality of work in the irr.terests of the further
increase of the well-being of the workers.
The far-reaching gains in economic and social development, which have been made by
the Soviet people, are connected to a decisive extent with the consistent implemen- �
tation of Lenin's ideas of socialist planning. The planned management of the na-
_ tional economy of the country, whi~h has been carried out for 60 years, has made it
possible to ensure the unprecedented growth of productive forces and on this ba~~is
to achieve a sharp increase of the level of well-being of the people. In ascer~ding
the steps of the five-year plans, our countzy is ateadiiy moving toward the heights
of communism and is becoming more and more powerful and more beautiful.
The Azerbai3an SSR as a component of the national economi~ complex of the country
has covered the same path of development and has gone through the same stages of
planning. ,
With the triumph of Soviet power in April 1920 a new stage in the c:eation af the
foundations of socialist planning began in Azerbai~an.
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The Supreme Economic Council attached to the republic Council of People's Commis--
sars, which played an important role in the organization of the foundations of cen-
tralized plannen *~anagFment, was foxined in 1921. On 19 October 1921 a general plan-
ning commission was organized within the Supreme Economic Council attached to the
- Azerbaijan SSR Council of People's Commissars. During those years the feasfbility
of utilizing the water power resources of the Kura and Araks Rivers was substanti-
ated, the prospects of the development of a number of s~ctcrs of industry and agri-
culture, particularly with respect tu the petroleum industry, cotton growing, irri-
gation and cultural construction, were determined, which helped in a short time not
only to restore, but also to transform the former remote colonial part of tsarist
kussia into one of the flourishing republics of our country.
Especially great gains were made during the 1970's. Soviet Azerbaijan today is a
republic of powerful industry, multisectoiial highly mechanized agriculture, de-
veloped science and great culture. During the years of Soviet power the output of
industrial products has increased 156-fold. The electric power stations of the re-
public now generate sevenfold more power than was ger~erated in all of tsarist Rus-
sia. The output of agricultural products has increased by more than 7-fold as com-
pared with the prerevolutionary level, while the output of the products of plant
growing has incr~3sed nearly 10-fold. The yield of cereals in 60 years increased
by 3.5-fold, while the yield of cotton increased more than 8-fold. The area, to
which everything except petroletmm was delivered prior to the establishwent of Sovi-
et power, today ships more than 350 types of its own industrial products to 65 coun-
tries ~f the world.
As a result of much political and organi.zing work of the party organization of the
republic, Soviet Azerbaijan has made a worthy contribution to the implementation of
the policy of the party, which was outlined at the 24th and 25th CPSU Congresses.
During the past decade the amount ~f produced national income.of the republic has
increased 2.14-fold, the volume of industrial output--2.2-fold, the gross output
of agriculture--nearly 2-fold. In all 15.6 billion rubles were channelled into the
- national economy of the republic, which is 1.8-fold more than during the precedirig
decade. The efficiency oG sccial production increased considerably. The produc-
tivity of national labor increased 1.6-fold, in industry--l.7-fold, the efficiency
of fixed production capital increased. During the lOth Five-Year Plan the propor-~
tion of the output of the highest quality category in the total amount of the gross
output of industry increased from 1.3 to 16.1 percent. The accelerated, dynamic
growth of social production was accompaniPd by a considerable increase in the level
of the well-being of the pec;pie.
- As a whole the gains made in the 1970's ensured a substantial increase of the pro-
portion of the Azerbaijan SSR in the unified national economic camplex of the coun-
try. As Candidate Member of the Politburo of the CPSU Central Committee and First
Secretary of the Central Committee of the Communist Party of Azerbaijan Comrade
G. A. Aliyev noted in the Accountability Report to the 30th Congress of the Commu-
nist Party of Azerbai~an, "In scale and completeness, in the nature of the changes
in the structur~ of industry and the entire economy, the lOth Five-Year Plan is the
best in the creative chronicle of Azerbaijan. It was truly a five-year plan of
efficiency and quality." All these achievements convincingly demonstrate the ad-
vantages of the socialist planning system and are a result of the scientifically
sound economic policy of the party.
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' New, more difficult.tasks of enlarging the scale of production and accelerating the
. rate of economic and social deuelopment face the country during the 1980's and the
llth Five-Year Plan.
In the Accountability Rep~rt of GenPral Secretary of the CPSU Central Committee
Comrade L. I. Brezhnev to the 26th CPSU Congress, on the basis of the thorough and
comprehensive analysis of the factors of the economic growth of the country a de-
tdiled program of the further growth of the economy is given and the main direc-
' tions of soc.io-economic progress and the specific means of implementing them are
specified.
The accomplis;lment of the new, more difficult ta.sks is connected, first of all, with
' the need for the further improvement of the system c~f planning and the mechanism of
management.
For our country the 1980's will be characterized by a number~of features, which
should be taken into account when determining the immedlate problems which require
solution.
~ In contrast to the demographic situation which has formed throughout the country,
~ in the Azerbai~an SSR favorable circumstances with manpower resources have formed.
_ Estimates show that in the 1980's in the all-union increase of manpower resources
the share of Azerbaijan will be nearly sixfold greater as against its proportion in
the total size of the population of the country. In the future Azerbaijan should
specialize, among the few southern republics, in labor-intensive works, which is
in full a~cord with all-union interests.
In spite of the stabilizing tendency of convergence of the levels of the development
of production between the republic and ~verage union indicatora, the gap is still
significant and is on the average 20-25 percent. One of the tasks of the next
decade is to reduce the existing differences to a minimum.
The interests of the increase of the efficiency of social production and the ori-
entation of the economy of the republic toward the increase of the standard of
living of the people, which ensue from the decisions of the 26th CPSU Congress and
the 30th Congress of the Communist Party of Azerbai3an, require the gradual solu-
= tion of a number of most important problems, to which,.first of all, there can be
assigned:
the further improvement af the national econcmic proportions and the structure of
_ industry, which is connected with the increase of the industrial potential, the as-
surance of the more complete utilization of mineral raw material and natural re-
sources with their working into final products; the elimination of the dispropor-
tions between the volume of output of agricultural products and the capacities for
their pro~essing; between the ~roduction of consumer goods and the meeting of con-
siuner demand ;
the intensification of production by the acceleration of retooling, the introduc-
tion of the achievements of science, the more complete utilization of fixed capi-
tal and the increase of product quality, which ensure a high growth rate of labor
productivity and the efficiency of soeial production;
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the creation of a firmly balanced republic food complex, without relaxing the at-
tention and efforts toward the development of the sectors of all-union specializa-
tion;
the active influencing of the factors, which characterize the increase of the stand~
ard of living of the workFrs, the gradual convergence of the used and produced na-
tional income by the accelerated development of the sectors ~f the social infra-
structure and the better utilization of public consumption funds;
the assurance of the preferential increase of employment as compared with the in-
crease of manpower resources for the pu~cpose of involving in the public sector the
able-bodied population, especially women, and of improving the social structure of
the population; the elimination of the existing disprop~rtion between the demand
of the national economy for skilled personnel and the rate of their training;
the more efficient distribution of productive forces, whicli is aimed at the equal-
ization of ~the levels of the economic d~velopment rif the individual regions of the
republic, the attacY~ment of manpower resources in these regions and the gradual de-
crease of the great proportion of the Baku-Sumgait region in ir~dustrial production.
' During the llth Five-Year Plan the republic is faced wi.th important and responsible
tasks. In conformity with the Main Directions of the Economic and Sncial Develop-
ment of the USSR National Economy for 1981-1985 and the P~eriod to 1990, which were
approved by the 26th CPSU Congress, during the llth Five-~ear Plan in Azerbaijan it
is envisaged to increase the volume of industrial production by 2.9-32 percent, the
average annual output of agricultural products--by 15-17 percent. 5tate capital
investments in the amount of 10.5 billion rubles have to be as.similated.
The further enhancement of the role of science, scientific.and technical progress
and the efficiency of social production is necessary for the successful accomplish-
ment of~the e~onomic and social tasks facing the xepublic during the llth Five-Year
Plan. During the coming period the importance of scientific research and develop-
ment, which are being performed in the republic, as the starting point of long-term
planning should b~ increased even more.
It is necessary to improve the planning of all~ spheres of science, ensuring the in-
creasc of the efficiency of the use of the scientific potential of the republi_c.
The improvement of planning and management in the sphere of science, first of all,
should be aimed at the elimination of the serious disproportion between the numbe~
of scientific jobs which have been completed and have been introduced in production.
Thus, on the average about 2,000 acientific ,jobs are completed annually at scientif-
ic institutions and organizations, but only about half are introduced in production.
Particular attention should be devoted to the strengthening of the material base of
science and to the construction of pilot enterprises and works, which ensure the
materialization of the results of scientific research.
The improvement of the sectorial structure ~f scientific xesearch is also an impor-
tant factor of the increase of the efficiency of science. Whereas in the country
the network of sectorial institutes, planning and design and pilot experimental
bas s in such sectors as light, the food, the wood processing and several other sec-
_ tors is inadequate, in Azerbaijan it is essentially absent.
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The decree of the CPSU Central Committee and the USSR Councrl of Ministers "On Im-
proving Planning and Strengthening the Influence of the Economic Mechanism on In-
creasing Production Efficiency and Work Quality" augments the arsenal of planning
with one of the most important components of the long-term state plan--compcehen-
sive goal programs. The elaboration of long-term comprehenside goal programs and,
first of all, the goal program of the development of scientific and technical
progress, which should constitute the basis of scientific forecasts and long-term
national economic plans, has to be expedited with allowance made for the enhance-
ment of the role of science in solving the ke; problems of the socio-economic de-
velopment of the republic. .
Taking into account the particular importance of the solutiox~ of a number of prob-
lems for the development of the republic economy, the elaboration of such urgent
~ comprehensive goal progr~.uis as the food program, the efficient use of manpower re-
sources, the reduction of manual labor in industry and transportati~n, nature con-
servation and the efficient use of natural resources, as well as the meeting of the
demands of the population for new industrial.goods is acquiring great importance,.
At present preprogram operations are already been carried out on the individual
goal programs.
The rep~iblic comprehensive food program which is called upon to ensure the maximum
meeting of the demands of the population for foodstuffs on the basis of the funda-
mental unity and the balance in development of the sectors of the agro-industrial
. complex, is the most important and vitally necessary one among the programs being
drawn up. As Comrade L. I. Brezhnev noted at the 26th CPSU Congress, in this sec-
tor of the national economy "...the center of gravity now--and this is a distinc-
tive feature of the agrarian policy in the 1980's--is shifting to the yield from
capital investmentsL the increase of the productivity of agriculture, the extension
. and improvement of its ties with all the sectors of the agro-industrial complex."
For the successful implementation of the food program the planning organs need to
ensure comprehensive planning, the proportionate and balanced development of all
sectors of the agro-industrial complex, the considerable strengthening of its mate-
rial and technical base, the improvement of the economic ties between the sectors.
and the organization of ~heir efficient cooperation. In this connection the at-
- tention toward questions of the assurance of the keeping capacity, of agricultural
prodt~.cts and the increase of the capacities of the processing industxy and procure-
ment organizations, which are called upon to ensure the complete processing of the
agricultural products of both the public sector and the private subsidiary sector,
- should be increased.
At the same time the special-purpose oriPntation of the.food program is advancing
the task of the thorough study of the established level of supply of the population
with foodstuffs and the scientifically sound determination of the demand of the
population of the republic for these goods with allowance made for demand and the
identification of the real possibilities of further increasing the output of the
products of plant growing and anima], husbandry. It is necessary to identify the
additional reserves of the maximum increase of the production and procurement of
meat, milk, eggs, grain and potstoes for increasing the level of their per capita
consumption. .
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number of problems of a socio-economic, educational nature. Along with the crea-
tion of new works and workplaces, the planned training of a skilled regular labor
force of the necessary specialties and the improvement of the material and technical
base of vocational and technical schools are the most important of them.
The a~celeration of the rate of economic growth of the republic governs the further
ir.crease of the standard of living of the population. This, first of all, requires
the serious study of.the questions of consumption in the national income be~ng used.
At the 30th Congress of the Communist Party of Azerbaijan Comrade G. A. Aliyev di-
rected attention to the need for the thorough study of these questions.
For the purposes of the better solution of social problems the leading growth of the
national income being used is envisaged during the llth Five-Year Plan. Here it is
planned to change the structural parameters of the consumption fund and to provide
for the leading growth rate of the real income and the public consumption funds.
During the coming per;od it is planned to contiune the consistent policy of improv-
ing the wage mechanism and of increasing the rates and salaries of workers and em-
ployees, first of all in the production sectors, with allowance made for the utmost
identificdtion and utilization of the reserves for increasing labor productivity.
Among the urgent economic problems connected with the increase of the well-being of
the people, which have to be solved in the next few years, the elimination of the
existing disproportions between the production of consumer goods and the meeting of
the demand of the population for them is acquiring great importance, to which atten-
tion was directed with utmost urgency at the 30th Congress of the Communist Party of
Azerbaijan.
Our plans are called upon to direct the attention of enterprises to the finding of
resources and means for the production of cansumer goods in the sectors of heavy
industry and, first of all, machine building, the chemical and petrochemical indus-
try and nonferrous metallurgy of Azerbaijan. The enterprises of the republic Minis-
try of Local Industry, which are obliged to provide for the maximum utilization of
local raw material resources for the production of consumer goods, should make a
substantial contribution to the solution c~f this problem.
On the basis of the task of the complete, efficient use of the created production
potential, which was set by the 26th CPSU Congress, the questions of the identifica-
tion of reserves for the improvement of the use of production capacities, the ie-
duction of the downtimes of machines and equipment, the increase of the shift coef-
ficient, the ef.ficient and economical use of raw materials and materials, fuel and
- power and their full consideration when formulating national economic plans are ac-
quiring particular importance.
The problems of increasing the efficiency of the work of the extractive sectors of .
republic industry, which are still not ensuring the adequately complete extraction
of minerals from the ground, are closely interrelated with their solution. First
of all this concerns the oil drilling industry, in which it is necessary to develop
extensively the front of operatione which are aimed at the introduction of second-
ary and tertiary methods of the recovery of petroleum.
The years gone by were characterized for our republic by the extremely inadequate
development of electric power engineering and its production base. With the aigh
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The social transformation of the village will become an integral component of the
food program. In this connection serious attention will be devoted to questions of
housing construction with allowance made for the creation of private subsidiary
farms, the improvement of the working conditions of kolkhoz farmers and the expan-
sion of the network of health, Educational and cultural institutions.
~"he entire system of planning, the scientific, technical and structural policy, as
- well as the sEarch for and introduction of new efficient forms and methods of manag-
ing production and labor should be subordinate to.the changeover of the entire na-
- tional economy primarily to the intensive path of development.
Labor productivity is the n~ost generalizing indicator which characterizes the inten-
sification of the economy and the increase of the efficiency of all the sectors of .
the national economy. Theref~re, in planning policy the deep-seated factors which
govern the increase of labor productivity should be actively influenced. It should
be persistently endeavored to use efficiently, wisely and with full output the
enormous economic, scientific and technical potential which has been created in the
_ republic.
In spite of the positive changes which were achieved during the years of the Ninth
and lOth Fiva-Year Plans in the area of the improvement of th~ use of manpower re-
sources, the availability of still unemployed able-bodied inhabitants requires the
- planned solution of the questions of their efficient use. The goal program in this
area is called upon to ensure the elaboration of a set of ineasures which are aimed
at the further improvement of the sectorial and territorial structure of employmea~t
for the purpose of the maximum posaible involvement of the able-bodied population
in social production.
The solution of the problem of the efficient use of manpower resources involves the
dete~ination of the further means of developing labor-consuming works and, first
. of all, the advanced sectors of machine building, of rapidly developing the nonpro-
ductive'sector of the economy in small and medium-sized cities and of intensifying
the process of committing the natural.and manpower.resources of the western and
central regions of the republic to the national economtc turnoVer.
It is necessary to pursue more actively the planning policy of further leveling the
still existing differences in the cievelopment of productive forces and ~o ensure a
systems approach to the problems of the comprehensive economic and social develop-
ment of each economic region of Azerbai~an by the formation of territorial produc-
tion complexes and the_balanced development of the inter.connected sectors, the
sphere of'application of male and female labor and the social infrastructure.
The establishment in the regions of the republ2c of branches of large enterprises
oi machine building, light industry and other sectors will promnte the solution of
' the problem of the more complete utilization of manpower resources and the improve-
ment of the structure of employment of the population. In particular, during the
llth Five-Year Plan it is planned to establieh branches of large machine building
enterprises in Nakhichevan', Stepanakert, Ali-Bayramly, Lenkoran', Khachmas, Divi-
chi, Fizuli, Shamkhor and Sheki, and branches of light industry enterprjses in Geok-
chay, Vartashen, Khanlar, Agdam, Khaldan, Tauz, Akhsu, Kyurdamir and other cities.
. The active involvement of manpower resources in the public sector under the condi-
tions of the republic is a complicated matter which requires the solution of a
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1.5-fold increase of the consumption of e~.ectric power, the increase of power capaci-
ties was only 1.25-fold. The formed shortage of electric power, especially in re-
cent years,~ was covered with a great ~train from the Transcaucasian Power System
and could not fully meet the needs of the republic:.
During the new five-year plan the construction and renovation of a number of large
electric power st~tions have to be completed and the preltminary work on the Yeni-
kendskaya GES has to begin in 1981.
The economical use of fuel is of great importance in the reliabJ.e power supply of
the republic. At present the specific consumption of conventional fuel at the
electric power stations of the republic is nearly 33 grams higher than on the aver-
age for the country. This is leading to the great excessive constm?ption of valuable
organic raw materials. The task is to achieve by the end of the llth Five-Year Plan
on the basis of renovation and modernization the decrease of the gap between the
average sectorial and the republic indicators on the specific consumption of fuel
and the losses of electric power in the netwarks.
In order to speed up the increase of power capacities it is necessary to substanti-
_ ate and solve the problem of the expansion of the Azerbaydzhanskaya GRES to 2.8 mil-
lion kW and the construction of a nuclear electric power station, which sh~uld be
put into oper3tion in the early 1990's.
In the achievement of the tasks advanced by the 26th congress an exceptionally im-
portant role is being assigned to capital construction.
The construction workers o� Azerbaijan have gained much practical expPrience in the
organization and management of production and in the building of large industrial
facilities, agricultural complexes and irrigation structures and unique civil
facilities.
At the same time many serious shortcomings continue to occ~:r in capital construc-
tion. Brigade cost accounting is being laxly introduced. A disproportion has
formed in the development of construction and its material and technical base.
In conformity with the decree of the party and governmenC of 12 July i979, in order
to perform increasing amounts of capitpl construction the contracting organizations
need to expedite the implementation of ineasurea which are aimea at the improvement
of the organization of construction, the more extensive introduction of cost ac-
counting and the further increase of labor productivity. Planning at the present .
stage should promote the utmoat concentration of assets and resources at the most
important start-up projects in order to achieve a decrease of the amounts of un-
finished construction to the level of the standard and to ensure the maximum in-
crease of production capacities in a short period.
- In siiort, the implementation of large-scale plans of economic development will re-
quire a substantial increase of the potential of construction~in the republic.
During the llth Five-Year Plan the volumes of shipments by all types of transport
will increase considerably. The creation of a highly efficient unified transporta-
tion system, by which is meant the economically balanced and technologically inter-
connected functioning of all types of transportation, is the main task of the
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elaboration of the comprehensive program of the development of transportation. It
~s necessary to devote particular attention. to the elaboration of economic balances
_ of transportation w~th allowance made for the efficient distribution of shipments
among types of transportation.
In connection with the accelerated devElopment of individual sectors of. the economy
the planning organs should prevent arising disproportions which can cause economic
losses in the national economy. In particular, in the Azerbaijan SSR suc?~ dispro-
portions have been noted between agciculture and the capacities of the processing
sectors.
The gains made by agriculture of Azerbaijan have caused a sharp increase of the out-
put and procurement of the products of plant growing. However, the capacities of
the sectors, which process agricultural raw materials, have developed considerably
more slowly. As a result a significant disproportion has formed between production
and the capacities for the processing of these raw materials, which is leading to
losses of the crop and the decrease of the quality of the processed producrs. The
planning organs, the appropriate ministries and departments need to take urgent
steps to develop the ~apacities of the processing indus~try and to provide it with
modern, highly productive equipment. .
The increasing scale of the involvement of natural resources in the economic turn-
_ over requires the increase of attention to the problems of preventing disturbances
~f the ecological equilibri~. Under the conditions of the Azerbaijan SSR the re-
cultivation of lands, which have been disturbed and polluted by industry, trans-
portation and the wastes of municipal services and other sectors, is one of the im-
portant tasks in tr~i: area. This is especially important for Apsheron, where more
than 30,000 hectares, or more than S percent of the territory of the regi.on, have
- become useless. The ~~:~~er increasing volumes of water consumption and the low level
or the water supply of ~he republic are creating tha need for the efficient use and
conservation of watec resources. It is planned to periorm much wvrk on the purifi-
cation and reuse of the waste water of industrial enterprisea and on the improvement'
of the reclamation state of lands.
In order to create favorable conditions for the labor, daily life, relaxation and
protection of the health of the workers of the republic it is necessary to increase
considerably the wor~~ on the prevention of the pollution of the air and the water
area of the Caspian Sea.
An important role in the effective development ~f the econony during the llth Five-
Year Plan is being assigned to the measures specified by the party on the improve-
ment of planning and the perfection of the economic mechanism, for effective opera-
tiori of which, as Comrade L. I. Brezhnev emphasized at the 26th CPSU Congress,
"...t?~~e proper economic situation and orgar~izational and management relations should
be created."
C
In this connection it is planned to enhance the role of long-range planning, to
create an integral system of interconnected and balanced annual, five-year and long-
range plans on the basis of the use of goal program, balance and etandard mEthods,
and to orient them toward the assurance of the proportionate growth of the economl?
at:_1 the effic~ent combination of the sectorial and territorial principle of develop-
ment. Along with this, in the set of ineasures aimed at the improvement of the
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economic mechanism more attention should be devoted to the further strengthening of~
cost accounting, the increase of the influence of the new evaluation indicators of
the plan on the end results of work and the. strengthening of material and moral
stimuli.
Let us note that in the republic much work has been performed and continues to be
performed on the implementation of the measures specified by the decree~ of the
party and the government, which were adopted in July 1979.
For the purpose of the mor~ objective evaluation of the results of the activity of
each labor collective, in a number of economic experiments a new evaluation indica-
tor--the st3ndard net output, which it is planned to use in the majority of sectors
as the main indicator in the planning of production, the determination of the labor
productivity, the planned wage fund, the profit and others, is being introduced in
planning practice.
The thorough study and generalization of the gained experienc~ of work on the in-
troduction of the evaluation indicators of the plan and the strengthening of the in-
fluence of the levers of the economic mechanism, so that the enterprises which have
not yet begun the work in this direction could effectively use the recommendations
of scientists in the process of changing over to the new conditions of management,
is an important and urgent task of the scientists of all the economic and scientific
research institutes, chairs and laboratories of higher educational institutions.
The responsibility of enterprises for the meeting of contractual obligations on de-
liveries of products according to a specific list and assortment is now being in-
creased. In this connection the strict adherence to planning and contractual dis-
cipline is acquiring particular importance.
As Comrade L. I. Brezhnev emphasized at the 26th CPSU Congress, "The party has al-
ways regarded the plan as a law. .And not ~ust because it is approved by the Su-
preme Soviet. The plan is a law because only its observance ensures the coordinated
working of the national economy. We will say frankly: this obvious truth has be-
gun to be forgotten. The practice of adjusttng plans downward has acquired an ex-
tensive scale. Such a practice disorganizes the economy, 3emoralizes personnel and
accustoms them to irresponsibility."
Taking into account the increase of the role and responsibility of Gosplan in the ~
matter of the comprehensive solution of long-range problems and the stepping up of
the monitoring of the obser~ance of planning discipline, the CPSU Central Committee
and the USSR Council of Ministers have adopted a special decree on the improvement
- of the organization of the work of Gosplan and the enhancement of its role in the
system of organs of state government. A corresponding decision of the Central Com-
mittee of the Communist Party of Azerbaijan and the Azerbaijan SSR Council of Min-
- isters has been adopted with respect to Gosplan of the republic. Particular atten-
tion is directed to questions of the comprehensive development of the interconnected.
sectors and regions of the republic and the overcoming of departmentalism and re-
gionalism when drafting state plans.
It is recognized as expedient to establish in Gosplan of the republic eight inter-
- sectorial combined administrations headed by the deputy chairmen, which will coordi-
nate and solve in conjunction all the problems of the development of the interre-
lated sectors and will bear responsibility for their implementation.
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The means of the further dynamic development of the national econflmy of Azerbai3an
during tne years of the llth Five-Year Plan are specified in the decisions of the
26th CPSU Congress and the 30th Congress of the CoTmnunist Party af Azerbaijan. The
fulfillment of the five-year plan will make it possible to take a new important
step in the solution of major problems, on which the further economic and social
progress of the republic depends.
COPYRIGHT: NARODNOYE KHOZYAYSTVO AZERBAYDZHANA, 1981 ,
7807
CSO: 1800/532
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REGIONAL DEVELOPMENT
SPECIAL REQUIREMENTS OF SIBERIAN DEVELOPMENT STRESSED
Siberia's Regional Production Complexes
Moscor~ VOPROSY EKONOMIKI in Russian No 5, May 81 pp 54-65
[Article by V. Voznyak: "Peculiarities of Development of Siberia's Regional
Production Complexes"]
[Text] During the 26tiZ CPSU Congress L. I. Brezhnev noted that, in accordance with
decisions of the 26th CPSU Congress, regional production complexes are being formed
in the European portion of the RSFSR, the Urals, Siberia, the Far East, Kazakhstan, :
and Tajikistan. Industrial development of the new regions is important in both so-
cial and political nlaiis.
~Vithin the country's interindustry investment complex, which includes construc-
tion production (the construction industry), branches o~ investment machinebtiild-
ing, the group of industries that produce constructional structure, articles, ma-
terials and construction machinery, and repair and certain infrastructure units,
its various regional parts differ as a function of the economic geography and de-
gree of industrial development of the region. In the regiori:; of~ Siberia that are
being newly developed, the forming of construction and installing organizations,
construction-industry and building-materials industry enterprises, and facilities
that produce various types of construction machinery and equipment for the facili-
ties that are being erected there plays a decisive role. Problems of the acceler-
ated buildup of investment capacity in these regions for support of the intensive
development of the huge regional production complexes that are being established
and which are exerting an ever-increasing influence on development of the country's
economy are acquiring important procedural and practical significance.
The establishment of regional investment complexes in the new regions depends
upon the coticept adopted for their deve].opment, the technical and technologi-
cal principles for developing industries for the specialization of TPK's [Territor-
ial Production Complex], and use of the achievements of scientific and technical
progress in construction, as well as the approach to the creation of the production
and social infrastructure in these regions. Thus, in order to develop the oil-
fields of Tyumenskaya Oblast, which are situated in swampy regions difficult of
access and which later became the base of the West Siberian oil and gas complex,
a number of plans were advanced, including development of the oil region by
means of the erection of fixed trestles (of the Neftyanyye Kamni type in Azerbai-
- jan), and the complete drying of the swamp by laying special canals and passing
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- barges with drill rigs over them. These variants were marked by great labor inten-
- siveness and required great capital investment and the creation of basically dif-
ferent investment complexes. Another design for industrial development of
the oil deFosits was adopted in practice. Development of the fields was started ~
_ with the more accessible sections, based upon experience in the oil provinces of
Tatari.a and Bashkiria, and then, as in-house experience was gained, engineering
solutions that met local requirements were worked out.
The especially complicaced natural and economic conditions of the Siberian regions
that are being nPwly developed industrially necessitate the development of specific
regional directions for scientific and technicai prcgress, the creation of equip-
ment and technology that will meet these cor.aitions, and a search for ways to re-
duce national-economic outlays for building facilities in these regions.
For the benefit of the West Siberian oil and gas complex, scientists and special-
ists de�~eioped and put into design arxd construction practice a new method for
erecting fa~;ilities in swampy regions, which previously had been considered, ac-
cording to the existing directives and construction nortns, as unsuitable for de-
velopment, without the removal of weak, water-saturated and peaty soils and re-
placing them with importPd-stone fill. This enabled a great speedup in the pace of
building production capacity, cities and settlements in this region and reductions .
of more than 180 million rubles in the cost of ths construction and installing work
for oil-industry facilities for the period 1968-1980, of 12 million man days of .
- labor expenditures, and of 700,000 cubic meters in the consumption of prefabricated
- reinforced concrete.
The outfitted-r~odule method of building oil and gas industry facilities, whic;z was
approved at the 25tti CPSU Congress, in L. I. Brezhnev's speech at the 18th Komsomol
Congress, and in "The Main Directions for the Economic and Social Development of
the USSR During 1981-1985 and During the Period up to 1990," was wide?y disseminat-
ed at this same com~lex. In 1980 Minneftegazstroy [Ministry of Construction of
Petroleum and Gas Industry Enterprises] organizations, using the outfitted-module
_ method, built facilities at the TPK at a tr~tal budget-estimated cost of 450 mil-
lion rubles. The introduction of this method enabled great economic benefit to be
obtained. New teclinical and operating solutions were applied in the laying of
pipelines and the erection of railroads, highways, electric-power stations and
power lines, which speeded up construction and reduced con~truction costs.
_ The basic investment complex of the TPK is the supply and equipment base
for construction work. It is included in the infrastructure industries of the
_ region, along with the transport, power and nonproduction spheres. Increased de-
_ mands are laid in the modern era on the supply and equipmen~ base for construction
work. It should enable construction organizations to erect facilities wi.th indus-
trialized methods from parts, structure and finished components and modules that
have a high degree of factory manufacture, creating the material pz~erequisites for
raising labor productivity in construetion, reducing time for building the facili-
ties, and reducing the cost thereof. In the new regions the supply and equipment
base for construction should be developed at a rate that outpaces not only that of
the complex's specialized industries but also that of its infrastructure. As the
- establishment of the TPK's fixed capital is completed, the requirements for con-
struction-industry capacity is reduced and its role is reduced down to one of
maintaining construction work volume at a preset level.
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Development of the concept of forming the supply and equipment base for con-
struction at new TPK's is of basic importance. Thus, at the initial stage in
assimilating West Siberia's oil deposits, construction was performed with imported
materials and structure. Later the need arose for the construci:ion of cnterprises,
departments and ~asting yards for making prefabricated reinforced-concrete arti-
cles and structure, as well as workshops for repairing construction equipment,
- garages, and so on. Since the program for developing West Siberia's oil industry
requires huge capital investment, some scientists believe it is necessary to be
oriented to maximum possible reduction of investment in fixed construction bases
~that are designed for prolonged operating periods. The specifics of building up
oilfield facilities, the high share of expenditures (up to 35 percent) for laying
_ pipelines, that is,for operations of a mobile nature, the comparatively low share
_ of construction and installing operations in tota7. investment volume, and so on,
- enable the prescribed levels of oil recovery to be insured without additional ex-
penditures for developing local construction bases, large cities and other elements
(excluding transport and power supply) of the overall oilfield infrastructure.*
When establishing a base for the construction and the building-materials industries
in new regions, the requirements for nonprodu~tive construction must be considered.
During the initial period of conquering the West Siberian ail and gas complex, the
role of the social infrastructure was underevalua~:ed; opinions were expressed that
it was not necessary to create permanent cities and settlements in these regions,
that temporary-type construction should do. As experience has confirmed, if the
prescribed level of recovery oil and gas in the region is to be supported, the
establishment of interdependent production facilities requires the construction of
b~:se cities such as Surgut, Nizhnevartovsk, Nefteyugansk, Nadym and Uray, with
~vell-appointed housing and facilities for social and personal-amenity purposes and
settlements for regular workers and for rotating-duty type workers. For new TPK's
y the most rational scheme for siting cities and settlements must be developed in
each specific case. In so doing, as experience shows, the construction of large
communities in regions where industry is being newly developed should be restrict-
ed; for servicing remote oilfields or other facilities, it is desirable to erect
rotating-duty type workers housing settlements made out of lightweight collap-
sible structure or wooden buildings.
A high-capacity production base for construction was necessary for the success-
ful forming of the new large and oil and gas complex in West Siberia and for the
development of cities and settlements in this region. During the Eighth Five-
Year Plan the executioii of a major program for building construction-industry and
- building-materials industry enterprises began in the regi.on. As a result of its
realization in Tyumenskaya Oblast, the base of the West Siberian oil and gas com-
plex, during the next two five-year plans capacity for producing prefabricated
reinforced-concrete articles rose 6.9-fold, while large-panel housing-construction
capacity rose 6.5-fold, keramzit-graveT capacity 6.8-fold, and brick capacity
1.6-fold.
Along with the traditional types of materials and structure, the output of modular
systems and lightweight enclosure structure has been mastered at the TPK, and
enterprises that make pipe insulation for the laying of conduitfree heating net-
works and that repair construction equipment have been built. The capacity of
*See, for example, "Ekonomicheskiye problemy razvitiya Sibiri" [Economic Problems
in the Development of Siberia]. Novosibirsk, 1974, page 217.
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Development of the Construction and the Building-Materials Industry
of Tyumenskaya Oblast During the 8th to lOth Five-Year Plans
Productive capacity 8th Five- 9th Fi~re- lOth Five- ilth Five-
Year Plan Year Plan Year Plan Year Plan
Capacity for producing prefabricat-
~ ed reinforced-concrete articles ~
- (thousands of cubic meters)........ 128 245 965 1,700
Capacity for fully prefabricat-
ed housing construction
(thousands of cubic metersl.... 35 153 660 1,000
Capacity for producing keramzit
(thousands of cubic meters)........ 50 222 554 830
Brick plants (millions of bricks).. 220 288 393 460
Sibkomplektmontazh [Siberian Association for the Manufacture of Outfitted Modules~
- enabled 2,100 box modules and 380,000 square meters of aluminum enclosure structure
with foam plastic fill to be manufactured in Tyumen' in 1980. A support and lo-
gistics base in Tyumen' and support bases in Surgut, Tobol'sk, Nizhnevartovsk,
Nadym a~~zd the Kharp settlement have been established and continue to be developed,
and local enterprises, subordinate subassembly-outfitting bases, casting yards for
prefabricated reinforced-concrete articles, and repair shops at khe junetures of
concentrated construction and various focal points of construction have been
organized.
At the same time, there have been definite deficiencies in development of the sup-
ply and equipment base for construction of the TPK during the recent period.
Construction-industry enterprises belong,as a rule, to departments; many
of them are of small capacity. When they were planned, the severe natural condi-
tions of the region were not given due consideration. At some enterprises, obso-
lete technology oriented to the output of heavy, cumbersome reinforced-concrete
structure was being used. Lags were permitted in erecting housing and cultural and
personal-amenity facilities for the workers of these enterprises, and the undevel-
oped state of the repair base impeded mastery of production capacity that had been
introduced. Despite the comparatively rapid pace and large scale of formation of the
the supply and equipment base for construction and the development of construction
organizations in West Siberia's oil and gas regions, the requirements for a complex
with i_nvestment capacity are being met with great strain, and a large
amount of materials and structure are being shipped to this TPK from other regions.
An im~ortant reserve for raising the effectiveness of the supply and equipment base
for construction at new TPK's is ~the creation of large interagency enterprises
at which highly productive machines and units can be used, the introduction of com-
pletely mechanized and automated industrial lines, and an intensification in spe-
cialization of production, thereby reducing labor expenditure per unit of output
- and the cost thereof. I.i recent years the capital investment of several agencies
has been amalgamated at the West Siberian oil and gas complex for purposes of
erecting large facilities for the construction industry and for wood processing.
Such facilities include reinforced-concrete product plants at Surgut and the Kharp
settlement, which ~linneftegazstroy is erecting with the shared participation of
Minnefteprom [Ministry of Oil Industry] and Mingazprom [Ministry of Gas Industry],
a wood-proeessing combine in Surgut, which is being built by USSR Minlesprom [Min-
istry of Timber and Wood-Processing Industry] with the shared participation of
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Minneftegazstroy in the amount of 40 percent, USSR Minenergo [Ministry of Power and
- Electrification] 20 percent, and USSR Minpromstroy 20 percent, and capacity for
- producing fully transportable buildings at the Pyshma Lumber Combine that USSR Min-
lesprom is erecting with the shared participation of Minneftegazstroy, Mingazprom
and M~nnefteprom.
Definite difficulties arise in the financing and transfer of shared funds when
these facilities are erected. Ministries often do not transfer funds to the prime
developer on time, pleading inadequate allocation of capital investment to them.
It is desirable tha* capital investment for developing the constructi~n production
base for a TPK be allocated to the prime organizations by direct assignment for
purposes of erecting large enterprises that serve definite areas of construction,
regardless of the customers' agency subordination. Recommendations have been
worked out for creating mobile bases for the construction industry in new regions,
. but they are not being realized because of a lack of special transport means and
equipment.
Machinebuilding facilities that produce equipment for enterprises under construc-
tion and construction machinery can be~located apart from the new TPK's. The devel-
opment of such facilities in these regions, which are marked by a shortage of labor
resources, is not always justified because of the high labor intensiveness of
the output produced. However, it is desirable to site some enterprises at the
TPK's, for example, plants that manufacture outfitted-module arrangements, certain
- types of special transport means and construction equipment, and, above all, test
and experimental production facilities. These should be mainly assembling enter- '
_ prises that obtain separate components and assemblies from other regions. It is
economically desirable that new industrial regions use reliable equipment, which is
marked by longer periods between repairs.
It is necessary to create in the new TPK's design and scien~ific-research organi-
zations of the construction profile in the form of independent institutes, as well
as branches and separate large institutes that are located in industrially devel-
oped areas, and construction training institutes. Bringing these organizations
close to construction operations will help to speed up incroduction of the
achievements of scientific and technical progress and to promote personnel
~etention in construction.
New regions of Siberia are at present being developed selectively. Primarily those
regions are being developed at which, with a given level of development of produc-
tive forces, it will be possible to obtain scarce output, fuel and power resources,
or raw materials more cheaply than in industrially developed regions. The effec-
tiveness of the TPK's that are being established in these regions depends to a
great extent upon the pace and scale of their development and acceleration of the
- introduction of the fixed cap~.tal of the complex's specialized industries into op-
eration. Therefore, the sequential promotion of construction in new industrial
regions, where first construction organizations and their production base are
created, and a production and social infrastructure for the region. is developed,
and only then is the capacity of the industries for specialization of the TPK
built, inevitably leads to a delay in introducing the new sources of raw materials
and fuel into national economic circulation and to the freezing of f'inancial and
material resources for a long time.
. Therefore, in most cases, the construction industry, the infrastructure and the
complex's specialized industries are developed simultaneously while TPK's are being
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established in the new regions. Thus when the West Siberian oil and gas complex
was being established, the recovery and transporting of oil, and then of natural
gas, were being orgar.ized. In so doing, assuring an optimal cambining of the pace
and proportians of development of all branches and spheres of economic activity of
a complex through the internal development of those branches and spheres is exces-
sively complex. In practice, cases occur of late introduction of production capa-
city into operation, and the lagging of various branches af the complex, as a re-
- sult of which disproportions in developing the TPK arise and its effectiveness
is reduced. To a definite extent this is caused by the lack of invest~ent
_ capacity in the region.
Under existing construction practice, prefabricated reinforced-concrete structure
and articles, quarried materials and wall and certain heat-insulating material,
which make up the major portion of all material resources used in construction, are
categorized as local building materials. Most contracting construction agencies
have been assigned to the local region. As a result of this, construction capacity
and investment capacity as a whole for a definite region are categorized
as local economic resources. However, in recent years substantial changes have
occurred in construction work, in the development of productive forces, which are
characterized by the appearance of more transportable types of structure and arti-
cles, the use of highly productive machines and mechanisms and of new and effective
transport means, a considerable rise in the level of the industrialization of con-
struction work, the transformation of construction sites into assembling sites, and
the introduction of basically new methods of construction. This will enable broad
- intraregional and interregional manipulation of construction resources, which, in
turn, necessitates improvement in production relations in construction. Moreov-
er, the TPK is not a cell of a single national-economic complex that is closed
in its economic relations, and, therefore it cannot be oriented to providing it-
self with all types of resources, including investment capacity.
This creates objective grounds for developing concrete organizational and economic
forms for acquiring investment capacity for the industrially developed
regions of the country for participation in the establishment of new TPK's and for
_ concentrating them in case of necessity on the more important sectors of economic
development. There is definite experience in this work. For example, USSR Min-
promstroy has acquired construction organizations from the Bashkirskaya ASSR and
Irkutskaya, Permskaya and Omskaya oblasts for construction of the city of Nizhne-
vartovsk, Tyumenskaya Oblast. Using their own production base for large-panel
housing construction, they supported fulfillment of the task for introducing hous-
ing capacity in this city during the Ninth Five-Year Plan. However, in so doing,
large-panel housing of obsolescent series was shipped that was not fully suit-
able for the severe natural and climatic conditions of the region and did not meet
the essential norms for three-dimensional layout indicators. It was required that
new production capacity be built in Nizhnevartovsk or that a number of existing
housing-construction combines from other regions convert to the output of
northern versions of outfitted apartment houses. This work was not done in good
time; this adversely affected the quality of the city's development and fulfillment
of the plan for introducing apurtment houses during the 10th rive-Year Plan.
Minneftegazstroy uses widely at the West Siberian oil and gas complex the capacity
of construction organizations of other regions during the winter, when it is possi-
ble to operate in the sw~.mpy regions. The organizations recruited in some years
- did up to 30 percent of the ministry's operating volume in the TPK. In the summer
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these organizations were moved back to their regions, enabling them to provide a
workload on the construction equipment more fully and rationally over the year and
to manipulate the equipment. However, the construction organizations of this mini-
stry that were acquired from other regions to erect compressor and pump stal:iun~ ir~
West Siberia ar~e operating less effectively than the local organizations: organi-
zational breakdo~vns and remoteness from production bases are telling.
The lack of legal bases, of precisely governed organizational and economic forms
for the operation of the construction organizations that are involved in the new
TPK's, is one of the main factors in their frequently low effectiveness. The
bringing of additional construction ca~acity into the region of new industrial
development, notwithstanding the substantial scale thereof, is not systematic in
nature. The capacity of the construction organizations is not adequately balanced
with the tasks for introducing fixed capital at the new TPK's, and the production
bases for building in inhabited regions are being used without due consideration
for the specifics of areas being developed for the first time.
During the last 2 years such new forms of organization as mobile specialized con-
struction and installing organizations have appeared. All-Union construction and
installing associations have been formed within USSR Mintyazhstroy [Ministry of
- Construc~ion of Heavy Industry Enterprises], USSR Minpromstroy and USSR Minstroy
[Ministry of Construction] for supervision of their work. A most important task of
these mobile organizations is the construction of enterprises and facilities in
poorly developed regions and in areas with an inadequately developed constru:,tion
base. Minneftegazstroy has created 8 mobile specialized construction and install-
ing organizations (four based on existing trusts) for the construction of pipelines
and compressor and pump stations in parts of the country that are remote and
_ sparsely settled and 30 mobile mechanized columns for the construction of compres-
sor and pump stations remote from the production bases of this ministry's con-
- struction organizations.
The mobile organizations do construction and installing work, as a rule, under
- subcontract agreements with the regional construction organizations. The client
= ministries and agencies are obligated to specify in budget estimates for construc-
tion of the facilities that these specialized construction and installing organi-
zations be reimbur~sed for expenditures connected with the mobile nature of the
work and be given an increase in the bonuses for reducing the standard cunstruc-
tion time. A number of pay advantages have been established for workers of mobile
specialized construction and installing organizations. Thus, the supervisors of
these subunits are authorized to pay workers who are sent to build facilities for
a period of over 2 months an increment to the wage in the araount of 75 percent of
the fixed rate (or salary for the post) instead of the per diem for expenses.
During the workers' stay for the construction of facilities in the field where
wage factors are used, payment of the indicated increment is made to take into
account the approved factors. The size of the bonus is increased for piece-rate
workers, and one-time compensation for workers of these organizations at the end
of the term of service has been established. Ministries have been granted the
right to categorize mobile specialized construction and installing organizations
one group higher, with respect to wages, than the group category that is
set in accordance with existing indicators, and to raise the salary of the super-
visory workers of mobile organizations of the first group by 10-15 percent.
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Construction orgar~izations of the Ukrainian, Belorussian, Uzbek, Kazakh, Lithuan-
- ian, Latvian and Estonian Union republics, certain RSFSR oblasts and the cities of
Moscow and Leningrad were recruited in 1980 for the construction of apartment
. houses, facilities for social and personal-amenity purposes, and highways in thc
area of the WESt Siberian oil and gas complex. This greatly s~:religthened thc
investment potential for creating new fixed capital in the West Siberian oil
and gas complex and for increasing housing and road construction in that region.
It was required, for example, that in 9 months the production of parts for apart-
ment houses in Nizhnevartovsk, Tyumenskaya Oblast, be organized, these parts and
other supplies and equipment be shipped by rail to the oil and gas region, con-
~ struction subunits be organized locally, and apartment houses with a total area of
32,000 square meters be put into operation in 1980. In so doing, a purtion of the
preparatory tasks (cutting of linoleum, wallpaper, and other items) was carried
out at Moscow enterprises and the items shipped in containers to the West Siberian
construction project.
During the lith Five-Year Plan, growth in construction volume will be stabilized
or the volume will be reduced somewhat in various industrially deve].oped regions
of the country. This will be caused by further intensification in the develop-
ment of the socialist economy but also by the need to send ever greater capital
investment to the establishment of new regional production complexes in Siberia.
Consequently, more effective forms and methods for enlisting the capacity of con-
struction organizations that are being freed in the more inhabited regions for
work at the new TPK's must be worlced out on the basis of using existing experi-
ence. It is desirable, in our opinion, to create within construction and install-~
ing associations or other organizations that are located in industrially developed
regions, mobile specialized construction and installing subunits for permanent work
in the new regions. In order to provide them with structure, articles, consolidat-
ed components, blanks, and so on, definite production-base capacity in inhabited
areas should be allocated and it should be restructured to allow fo~ the peculi-
arities of construction in the new regional production complexes. It is desirable
that the ministries responsible for the various construction projects allocate
tasks to these mobile subunits in five year plans.
An impori:ant resei~ve for raising the investment-type capacity of the new TPK's is
recruitment of additional skilled work force from industrially developed regions on
the basis of the expeditionary or rotating-duty type method. This method is being
used i.n some parts of the country by Minnefteprom, Mingazprom, Minneftegazstroy and
Mingeo [Ministry of Geology]. Minneftegazstroy, for example, is recruiti.ng up to
20,000 men per year for work at West Siberian oil and gas complex construction
projects. These mcn will work under the expeditionary or rotating-duty type meth-
od, and it is further proposed to send up to 70,000-80,000 men from other parts of
the country to this TPK. It is desirable that the construction ministries that are
- working in SibF:ria`s regional production complexes create, where they have high-
capacity contracting organizations, special expeditionary construction subunits
(expeditionary trusts) for permanent work in the new areas. These ministries' head
organizations at the TPK's could execute responsive local supervision over the
activity of the expeditionary construction organizations.
At the same time, such an approach to the problem of building up investment
capacity in regions of new industrial development is not without ~efinite disadvan-
tages. AdditionaZ funds are spent for transporting articles and structure and For
deploying construction organizations from inhabited regions to the new TPK's. When
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constructional structure is shipped t~ remote regions, some of it arrives in an
unsuitable state as a result of multiple transshipments.
In examining questions of capital investment effectiveness under these circumstan-
ces,it should be considered that construction is a subsystem of a regional produc-
tion complex and, in the final analysis, the tim~ly introduction of fixed capital ~
into operation and the provisioning of a potential for speeded up involvemer~t in
the production of raw materials, fuel and energy yields more tang:ble results for
the national economy. Often the introduction of a facility ahead of time at a new
TPK will make it possible to obtain an economic benefit that is comparable to the
cost of the facility itself. That is why, despite the necessity for allucating
substantial resources for developing the production and social infrastructure in
new regions and the increases in construction costs that are associated with the
severe natural and climatic conditions, the remoteness of these regions and certain
other unfavorable factors, and the additional expenditures for redeploying organi-
zations and shipping materials and structure, the effectiveness,for example, of the
West Siberian oil and gas complex is high, thanks to the accelerated involvement of
oil and gas resources in the national economy's circulation.
The enlistment of investMent capacity from industrially developed regions in
order to form new TPK's should be viewed as an economic policy that is necessary
for assimilating new, promising regions of Siberia, as well as the rar East and
the country's European North. The concept of a regional inves~t~ent complex is
becoming inadequate with respect to the standard practices for categorizing the
characteristics of these new processes. The concept of a investment potential
for a regional production complex that includes investment branches of the econo-
my that are lucated on the land of the given region, as welZ as the capacity of
construction and other capital-creating enterprises and organizations that are re-
cruited from other regions in a planned procedure, characterizes the sup-
- port potential of the new TPK's more completely. Its level is defined not by a
simple summation of this capacity, for it depends to a greac extent upon the
concrete organizational and economic forms of their use in construction practice.
Becau~e of this, improvement in the management of construction and of investment
processes for creating fixed capital in a regional production complex emerges as
an important factor in raising the TPK's support potential.
When elaborating inte.rindustry, interregional and national economic problems, and
also during integrated planning for developing regional production complexes, a
specifie-program approach, which supplements the existing system of industrywide
and regionwide planning and management~; becomes necessary. When forming TPK's,
branch plans for developing industry and other spheres of the national economy do
not always consider regional peculiarities in due measure, and, at times, the inte-
grated use of the region's reserves and interdependencies of an interiridustry
nature are not considered. Each agency in regions being developed for the first
time by industry often tries to create its own minimal infrastr�ucture. As a re-
sult, transport arterials, construction-industry bases, boilerhouses and other fa-
cilities have to be enlarged or rebuilt in just 2 or 3 years after they have been
erected.
_ Thus, 26 ministries and agencies are building at the West Siberian oil and gas
complex. The pace of development of the social infrastructure and of erection of
inderdependent industrial enterprises, the production base for construction
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~
organizations, and transport arterials and communications systemslags behind the
pace of oil and gas recovery. For example, Surgut was built up with various re- "
served housing rayons (for oilfield workers, geologi~ts, power-engineering workers,
builders and railroaders), which led to an increase in all transport arterials,
ineffective urban-development decisions, and increased construction costs for the
city as a whole. Similar faults are also characteristic for other iFK's of .
Sibei�ia, particularly the South Yakutia, West Amur and Sayany TPK's.
Notwithstanding the desirability of a programed approach to the establishment of
TPK's, at the end of the lOth Five-Year Plan there were practically no developed,
approved programs for developing complexes. In accordance with the CPSU Central
Committee and USSR Council of Ministers decree about improving planning, USSR Gos-
plan was charged~with working out, with the participation of Union-republic coun-
cils of ministers, USSR ministries and agencies, and the USSR Academy of Sciences,
programs for solving large regional problems and for establishing and developing
the most important regional production complexes. Each large social and economic
development program includes two main subprograms--support and production. When
forming TPK's in regions being developed for the first time by industry, it is pre-
cisely the support subprogram that defines development of the complex, not only
for the initial period but also for~ a fairly long time, and it can be singled.out as.
a self-contained program.
. It has now become necessary to organize special control organs for realizing the
support programs for the establishment of TPK's, which would enable the branch and
regional aspects of controlling development of the complex to be combined more
completely. They would determine, on the basis of the long-term program, the basic
rates and proportions of five-year and annual plans for the economic and social de-
velopment of TPK's, they would courdinate the branch plans of ministries and agen-
cies that participate in development of the complex in accordance therewith,, and
they would provide for monitoring the realization of these plans.
Regular monitoring and analysis of progress in carrying out specific programs for
developing a complex will enable the TPK control organ to work out recommenda-
tions on the~development of all branches of the economy for the given region that
are more rational from the national economy's point of view, and on the prevention
of possible distortions when establishing the complexes.
As I,. I. Brezhaev noted at the 26th CPSU Congress, "integrated sectorial subunits
have been created in USSR Gosplan. The Commission of the USSR Council of Ministers
on Questions of Dee~elopment of the West Siberian Oil and Gas Complex and an inter-
agency regional co~ission under USSR Gosplan, located in Tyumen', have recently
been established. These are steps in the right direction. They will help to con-
trol regional production complexes better and to consider and combine regional and
branch-of-industry interests better. This work must continue."
A large number of organizations of various ministries are, as a ru1e, doing con-
struction and installing work at the new TPK's. This is connected with the exist-
ing specialization of construction ministries in the erection of definite types of
facilities and with the need to preserve, for the present, the in-house method
of construction, although in a somewhat changed form. In many cases the capacity
of the contracting construction ministries in the new regions do not provide for
fulfillment of the planned amounts of capital construction, timely introduction of
production facilities and development of the social infrastructure, which compels
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client e:ntcrprises to establish in-house construc~;ion organs. Often such organiza-
tions are assigned as self-contained trusts or associations. Thus, in Glavtyu-
menneftegaz---the prime oil-industry crganization in Tyumenskaya Oblast--there is
the large association Zapsibneftestroy [Association for the Construction of Oil
Industry Facilities in West Siberia], and within Tyumengazprom [All-Union Industri-
al Association of Tyumenskaya Oblast's Gas Industry] there are several construc-
tion and installing trusts.
It is desirabl~, w}ien improving the structure for controlling construction in re-
gions of new industrial development, to determine for each TPK the prime client and
the prime contractor. However, it is not possible to do this in practice at multi-
industry TPK's, in which construction and installing work is being carried out by
organizations of a numter of specialized construction ministries. In this case,
prime organizations at the main administration or association level, or, in some
cases, a production-control organ of the ministry, should be identified for each
construction ministry. Thus, for coordinating the activity of Minneftegazstroy
constr~iction organizations in the West Siberian oil and gas complex in Tyumen', a
functional Main (Territorial) Production-Control Administration was created in
Tyumen'. This enabled the ministry to concentrate in this organ the solution of
many production-control questions, including provisions for monitoring the progress
of construction of the most important facilities, responsive supervision over con-
struction organizations recruited from other regions, and the coordination of haul-
ing by rail, water and air transport.
Client services at TPK's are at present basically decentralized, and the grant-
receiving bodies are practically all indeoendent enterprises. It is necessary to
centralize these services in accordance with the specialization and responsibility
of the associations and the main administrations of minisLLies and agencies, also
taking into account requirements for the integrated build-up of the region. This
will enable the construction of large industrial clusters to be organized, the
auxiliary production facilities of various agencies to be atnalgamated, and enter-
prises of greater capacity to be built. It is desirable that each industry in a
TPK have one client.
In order to regularize the structure for controlling construction in a regional
production complex, the organ for planning control of the TPK can perform gener-
al coordination of the activity of' prime enterprises and organizations of the cli-
ents and contractors within the framework of the long-range support program and
of plans for the complex's economic and social development.
It must be considered that not only does construction play a determining role in the
development of new TPK's but the Territoria~. production Complexes also help to
increase the effectiveness of construction. The existence of a long--range support
program for developing the complex enables capital investment for the TPK to be
planned mo:e rationally (not allowing the investment to be dispersed over numerous
construction facilities) and capital investment to be balanced with the capabili-
ties of the construction organizations and with the supply, equipment and labor
_ resources, including those in interregional use. In so doing, the necessary coor-
dinations and the compilation and approval of technical feasibility studies for
the construction of the new facilities are greatly simplified.
Wi~:hin the system of ineasures for speeding up the introciuction into operation of
production capacity and facilities and for raising the effectiveness of capital
investment that were called for by ~:he CPSU Central Committee and USSR Council of
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Ministers decree about the improvement of planning, it is desirable to gradually
convert various industries to the construction of enterprises (or structures)
through credit granted by USSR Stroybank to the contracting construction and in-
stalling organizations in the amount of the full cost of building the enterprise
(or structure) upon turnover of the finished enterprises (or struc~;ures) to the
client in turnkey fashion.
It must be noted that construction ministri~s have at their disposal potentials for
organizing turnkey construction that are far from identical. In our opinion, in
order to begin this work, mir?istri~s that work with a limited number of clients
should above all be specialized by type of construction. In particular, in the
West Siberian oil and gas complex it is desirable to convert Minneftegazstroy to
turnkey construction. The organizational prerequisites for introducing this method
have already existed in the Sibkomplektmontazh association, which not only produces
modular installations and outfitted structure at its enterprises and provides for
the erection of production capacity out of them, but also, jointly with SibNIt'Igaz-
stroy [Siberian Scientific-Research and Design Institute for the Construction of
Gas Industry Enterprises], designs new types of these installations, and it will
also, beginning in 1982, outfit with equipment the facilities that it has erected.
~with.its own forces.
At the first stage Minneftegazstroy could perform integrated design, construction
and equipment outfitting for trunk oil and gas pipelines and turn them over in
turkey fashion to the client, in unison with the oil-pumping and compressor sta-
tions, after industrial tests have been held. Transferring the functions of pipe-
line design to the construction ministry will enable the solution of such import-
ant problems as land allocations, choice of optimal routes, the execution of prepa-
rations for construction, a rise in the technical and organizational level of con-
struction operations, and the introduction of progressive industrial methods for
f~owline performance of operations by large mechanized complexes to be speeded
up. The activity of outfitting organizations within the contracting ministry will
conform with a single plan, and deadlines for shipmen~s in this case will be more
closely correlated with plan deadlines for installing equipment and introducing Fa-
cilities into operation.
The terms for the functioning of production within the framework of the TPK's will
help greatly the development of cost-accounting relationships in construction.
Based on the long-term support program for developing the complex and on
stable five-year plans, a potential for establishing long--term cost-accounting ties
= and for concluding standing agreements among participants of the support
process is provided for. Economic agreemei~ts are now concluded basically by con-
struction and installing trusts and client production associations (or enterprises),
and also between trusts and subcontracting organizations. Since at large TPK's
a large number of such organizai;ions participate in the long-term support process
(for example, in the West Siberian oil and gas complex more than 80 trusts and
subunits equated to them, many separate subcontracting construction administrations
and cost-accounting sections, and a substantial number of client enterprises are
assigned), these ties are numerous. It is desirable to concentrate conclusion of
the basic economic agreements on the level of the prime organizations for their in-
dustries at the TPK, which, as a rule, include organizations of the middle control
element.
With conversion to the turnkey method for building facilities, objective grounds
are established for further wide development of cost accounting in construction
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!
organizations. This method is the highest form of organization of the
supporti process in the modern era, creating favorable conditions for developing
such underlying principles of cost accounting as self-supportiveness, material in-
~entives, and responsibility of the collective for the final result of the enter-
prise's economic activity. The construction organization will emerge in this case
as a commodity producer that meets definite social needs for the construction
product and accomplishes its activity under full cost accounting.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1981 f
Siberia's Special Economic Role
Moscow PLANOVOYE KHOZYAYSTVO in Russian No 5, May 81 pp 73-?9
[Article by A. ~ranberg, doctor of economic sciences, professor and deputy director
of the Ins~itute of Economics and Organization af Industrial Production of the Si-
berian Department of the USSR Academy of Sciences: "The National Economic Effec-
tiveness of the AccelE~~at~d Tievelopment of Siberia's Productive Forces"]
[Text] The long-term social and economic strategy of the party and the Soviet Gov-
ernment calls for accelerated development of the productive forces of the country's
eastern regions and an er?hancement of their role in the national economy. The 1;rip
of CPSU Central Committee General Secretary, Chairman of the USSR Supreme Soviet
Presidium Comrade L. I. Brezhnev to these regions in the spring of 1978 was of
- great significance in fulfilling party and economic decisions on the integrated �
development of the natural wealth and the development of the productive forces of
Siberia and the Far East. In December 1978 the most important problems in devel-
oping Siberia's productive forces and speeding up the introduction of scientific
developments uf the SO AN SSSR [Siberian Department of the USSR Academy of Scien-
ces] were discussed at an expanded session of USSR Gosplan.* In June 1980 an
All-Union Conference on the Development of Siberia's Productive Forces, which pro-
duced detailed recommendations, was held in Novosibirsk.
The problems of speeded-up build-up of the economic potential of the country's
eastern regions were given much attention in the discussions of the draft of "The
Main Directions for Economic and Social Development of the USSR Auring 1981-1985
and During the Period up to 1990" and in the work of the 26th CPSU Congress.
The trend in the development of Siberia's economy at an overwhelming pace has been
firml~~ manifested over the past two decades. Siberia's share in the country's eco-
nomic potential has steadily increased. While in 1965 its share was 8.1 percent
in the gross social product and 7.5 percent of the national income produced (net
output), by the end of the decade, according to the calculations of IE i OPP [In-
stitute of Economics and the Organization of Industrial Produetion] of SO AN SSSR,
Siberia's gross social output was about 9.5 percent, and national income produced
was more than 10 percent of the All-Union volume. During this same period Si-
beria's share in gross output of industry increased from 8.1 to 9-9.5 percent; cap-
ital investmsnt used increased from 11.5 to 13-14 percent, and freight turnover for
~~See: "The Accelerated Development of Siberia's Productive Forces Is a Most
- Important National Economic Task," PLANOVOYE KHOZYAYSTVO [The Planning Activity],
No 3, 1980.
2L~
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all types of transport rose from 13.7 to 1?-18 percent. The annual volume of Si-
beria's industrial production now greatly exceeds the annual output of all USSR in-
~ dustry on the eve of the Great Patriotic War.
At the end of the 1960's Siberia entered the group of the more developed regions
of the country, according to level of economic development. Back in 1965 it
lagged behind the Union average in amount of national income produced per capita by
about 10 percent; but already in 1975 it surpassed this by about 16 percent ~
~(according to an evaluation by IE i OPP SO AN SSSR).
During four five year plans (from the 7th through the lOth), all the basic
industries of the national economy, except for agriculture, developed at a more
rapid rate in Siberia than they did on the average for the USSR as a whole. lluring
1961-1978 industrial production in Siberia rose 4.1-fold, at a time when it had
risen 3.8-fotd for the country as a whole. In so doing, the annual pace of growth ~
of gross output of industry during 1961-1975 was only one-sixth of the All-Union
average (in 1963-1966, 1969 and 1977), which was explained as the result of a
poor crop and a sharp drop in the introduction of new production capacity. The
average annual rate of growth of industrial production in Sibe.ria during this peri-
od was 8.2 percent, but for the USSR as a whole it was 7.7 percen�: If the 6 years
that were noted above as unfavorable are excluded, then the average annual rate of
_ growth was 9.1 percent, which is 1.18-fold the All-Union rate.
The overwhelming rate of growth of Siberia's industrial production is determined
mainly by the development of group A industry, primarily branches of the fuel-and-
power complex, nonferrous metallurgy, and the crsmical, timber, wood-processing and
pulp-and-paper industries. For example, during 1961-1978 the generation of elec-
tricity rose 6.4-fold in Siberia but 4.5-fold in the country as a whole; output of
the fuel industry increased, correspondingly, 4.8-fold and 2.7 -fold, chemical in-
dustry output 8.1-fold and 7.1-fold, and output of the timber complex 2.45-fold and
2.3-fold. During this period the production of light-industry articles rose more
rapidly (3.5-fold) in Siberia, 2.4-fold for the whole country. This, however, was
achieved mainly by a sharp jump during the Eighth Five-Year Plan (the increase was
1.8-fold).
; As a result of changes in locating the couni:ry's productive forces in the past 15-
20 years, Siberia's specialization in the production of fuel and raw materials has
intensified. Thus, in 1978 Siberia yielded 10 percent of all rolled ferrous metal,
44.5 percent of all petroleum, 28 percent of all natural gas and casing-head gas,
31 percent of all coal, 17.5 percent of all electricity, 22 percent of all commer-
cial timber, and 19 percent of all lumber. Siberia's share in providing for All-
~Inion,growth in the production of fuel, nonferrous metals, forestry products and a
number of chemical industry products was still greater.
~~s a consequence of its special functions in the nationwide regional division of
labor, Siberia has major peculiarities in the breakdown of the production struc-
- ture and in the dynamics thereof. The share of the extractive industries in
- Siberia exceeds the USSR average almost 2.5-fold. In this case, unlike the nation-
wide trend, the pace of growth of the extractive industries in Siberia cedes little
in pace of growth to the processing industries over a long period, and in some
years of the 9th and lOth five-year plans it even exceeded it. It is known that
the development of machinebuilding and chemicals influence the magnitude of the
_ rate of growth of' USSR industry as a whole t~ a great extent. In Siberia the fuel
industry, especially its oil and gas subbranches, have begun to play this role in
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,
the last decade. The following computations are indicative. If the fuel industry
~ is excluded from the gross output of Siberian industry, the average annual pace of ~
industrial production during the Ninth Five-Year Plan is reduced from 8.2 pcrcent
to 7.8 percent, and for 1976-1978 it falls from 5.6 percent to 4.7 percent. In the
nationwide cc...,putations, that same operation leads to a contrary change--the pace ,
is increased. These facts speak about the need for a thorough analysis of the
structural peculiarities of the region's economy when evaluating the resu].ts of its
previous development for purposes of long-range planning.
The creation of a support base for heavy industry in the Kuzbass [Kuznetsk Coal
BasinJ, the industrial belt along the Transsiberian Mainline, the main oil and gas
recovery base in West Siberia, and large multi-industry regional production com-
plexes in the Angara-Yenisey region has great significance. As L. I. Brezhnev
~ noted in the Accountability Report of the Central Cotnmittee to the 26th CPSU Con-
gress, "...the industrial conquest of the new regions is important in both so-
cial and political plans."
However, in developing Siberia, important deficiencies and disproportions are also
observed that seriously impede the overwhelming growth of the region's economy in
the interests of the harmonious development of the country's single national eco-
nomic complex. Over a period of several five-year plans, the pace of growth of Si-
beria's industry has proved to be lower than called for by the plans. Unfortunate-
_ ly, during the 10th Five-Year Plan this trend was not overcome: it~~was planned
to increase gross output in Siberia 1.5-fold, but it actually grew by about
1.3-fold.
In Siberia a number of branches of the economy and production facilities for which
there are favorable economic prerequisites, especially in being provided with fuel,
energy, mineral raw materials, water and geological resources, are not being devel-
oped rapidly enough. Thus, the chemical industry is being developed unevenly.
During the Eighth and Ninth five year plans, the rate of its growth in Siberia was
lower than the All-Union average. As a result, Siberia's share was reduced consid-
erably in nationwide production of mineral fertilizer (from 5.9 percent in 1965 to
2.6 percent in 1978), synthetic resins and plastics, chemical fibers, and a number
of other most important types of output.
An unfavorable trend has prevailed in the developmsnt of Siberia's electricity.
Because of a stretchout in periods of hydroelectric-power construction and delays
in the erection of new thermal electric-power stations, the average annual rate of
growth in the generation of electricity fell from 16.9 percent during the Seventh
- Five-Year Plan to 12.2 percent in the Eighth, to ?.6 percent in the Ninth, and to
4.6 percent in the first 3 years of the lOth Five-Year Plan, becoming even lower
than the industrywide pace. As a result, Siberia converted from a region of sub-
stantia2 power-capacity reserves to the group of re~ions with a deficit of electri-
city, as a consequence of which the siting of a number of power-intensive produc-
tion facili.ties was slowed. The share of Siberia in increases in the production of
paper, plywood, furniture and other highly valuable output made of wood is unjusti-
fiably low. In particular, during the Ninth Five-Year Plan only i.t percent of the
All-Union growth in paper production was obtained, and in 1976-1978 the figure was
2 percent.
Siberia's agriculiure has been developed more slowly in the past 20 years than on
the average for the country, and there were considerable fluctuations. As a
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result, Siberia's share in the USSR's agricultural production has been reduced
somewhat: this is charaeteristic also for the production of a number of important
food products. This has aggravated qualitative improvement of the Siberian popu-
lace's foodstuffs supply. Overcoming the indicated deficiencies is an important
= part of the long-term program for Siberia's social and economic development.
For clarification of the question of the ~effectiv,eness of Siberia's economy and the
trends in its development, it is not enough, in our opinion, to rely upon individu-
al industrial and regional indicators for the economic effectiveness of production.
The whole mechanism of the functioning of the given region as a single economic
complex must be studied. For this purpose IE and OPP SO AN SSSR is using a special
interregional model of the USSR's national economy, by means of which different
variants of Siberia's economic ties with other parts of the country are analyzed.
As a consequence of mathematical-economics modeling it has been established that
the inclusion of Siberia in the All-Union regional division of labor raises the
final effectiveness of the national economy (in terms of amount of national income
or of the fund for nonproductive consumption by the population) by 25-30 percent,
that is, Siberia's contribution to the final national-economic effect exceeds 2.5-
to3-fold its direct share in the country'sgross social product, national income, and
consumption fund (measured in existing prices). A retrospective analysis conduct-
ed by means of a model indicated also that reduction in the pace of development of
Siberia and the intensiveness of its interregional ties would have reduced consid-
ably the absolute level of the USSR economy's effectiveness.
The effectiveness of the modern economic complex of Siberia is confirmed also by
synthetic economic indicators. Thus, according to IE and OPP SO AN SSSR calcula-
tions, the productivity of social labor in Siberia is now 1.2-fold above the All-
Union average (where net output is measured at existing prices). The yield on
fixed productive capital for Siberia as a whole is lower than the All-Union aver-
age, but this is explained to a great extent by the higher share of especially
" capital-intensive industries (the extractive industries, power-engineering and
- transport) and also by t~he higher cost of evaluation of assets and the necessity
for a higher capital-labor ratio for purposes of savings of the work force, which
is in short supply.
When analyzing regional indicators of economic effectiveness, it should be borne
in mind that when existing prices are used~ the effectiveness of Siberia's econom-
ic complex is artificially understated. This is explained by the fact that the
wholesale prices that are in effect for fuel, materials, and many raw materials
produced in Siberia have been changed but little since 1967, and right now it is
understated considerably in relation to socially necessary expenditures. It should
be expected that, with conversion to the new wholesale prices being introduced dur-
ing the llth Five-Year Plan, the indicators for the region's share in the produc-
tion of gross output and national income of the USSR, and also the synthetic indi-
cators of economic effectiveness, will be increased appreciably, by 20-30 percent
- as a minimum.
ine main factor in the effective development of Siberia's production forces is the
presence here of the richest fuel-and-power resources, mineral raw materials, and
forestrv, water and land resources. They will enable the extraction and processing
of diverse mineral and biological raw materials to be performed on a broad scale,
and energy-intensive and water-intensive production facilities to be created, which
will considerably surpass similar production facilities of the European portion of
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of the USSR in their technical and economic indicators. Moreover, the high concen- ,
tration and the combining of diverse natural resources will facilitate the creation '
in Siberia of especially large production facilities and the use of more effective
forms of regional organization of the economy (regional production complexes and
industrial clusters), which will yield an additional agglomerating effect.
At the same time, attention must also be given to a number of objective natural,
geographic, econemic and social factors that complicate the economic development of ,
- Siberia and that reduce the efficiency of its development. These include:
Inadequate provisioning with labor :~esources in comparison with other parts of the
country and great complexities in acquiring them from other regions~;
More difficult natural and climatic conditions, which increase production costs
(especially in construction and agriculture) and expenditures for reproduction of
the work force and which complicate conditions for worker activity in some areas,
thereby requiring compensating social measures and higher expenditures for wages,
the social and personal-amenities infrastructure, the system of services, and so
on, in order to provide living conditions that are equal to those in other parts
of the country that have conditions more favorable from the natural and geographic
standpoint;
Poor economic development of some regions, which makes huge capital investment in
regionwide development and in social infrastructure a necessary condition for
industrial development;
The remoteness of parts of Siberia from the more economically and culturally devel-
oped centers of the country. This provokes increased expenditures for transporting
the means of production and finished output, as well as for travel by the popula-
tion, the creation of a system for services, and so on; and
- Reduced resistance of the natural environment against anthropological loads and
poorer capabilities for self-renewal of the air and water basins, the soil and
biocenoses.
However, the effect of the negative factors indicated is far from identical in the
different parts of Siberia, and in different industries and production activities.
They are manifested mainly in northern parts of Siberia, particularly in the Far
North--the arctic and subarctic regions of Tyumenskaya Oblast and Krasnoyarskiy
Kray. Construction costs are increased here 3-fold, and the full expenditures for
wages (taking northern privi.leges into account) are 2-fold to 3-fold those of the
country's central and southern regions; the buildup of facilities for one worker
requires up to 20,000 rubles; and the distance from economically developed regions
is up to 1,500-2,000 km. Therefore, in the absence of regular and reliable trans-
port communications, the share of transport expenditures in prime production costs
is increased by up to 60 percent, and full production expenditures grow according-
ly. Since Siberia's northern regions are, as a rule, narrowly specialized in the
extraction, primary processing and transporting of unique types of natural resour-
ces, the effect of the negative factors on economic development is localized to a
- great extent, not only geographically but also to a restricted number of production
activities.
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The exploitation of high-flow oil and gas fields in the Tyumen' North, of ore bod-
ies with a high content of nonferrous metals and rare-earth metals in the Noril'sk
region, of high-quality timber reserves in the Lower Angara region, and so on, is
economically justified even where there very high expenditures for the economic de-
velopment of these regions and for organizing haulage of the output.
A more typical example of the economic effectiveness of new production activities
in regions difficult of access is the establishment of the West Siberian oil and
gas complex, where oil recovery has reached 312 million tons, and natural-gas recov-
ery has reached up to 156 billion cubic meters in three five year plans. The
amount of capital investment embodied in this complex exceeds the total amounts
for large regions and industries. Durzng the Ninth Five-Year Plan alone more than
22 billion rubles were spent.* For the construction of just one strand of trunk
pipeline 1,420 mm in diameter, having a pressure of 75 atmospheres, to the central
regions of the country requires the expenditure of 3-4 billion rubles, including
more than 6 million tons of inetal. However, the energy capability of the gas being
transmitted exceeds here the capacity of all the GES's erected on the Yenisey and
Angara. The enormous expenditures for assimila~ing the oilfields of the Middle Ob!
are exceeded by ~:he economic advantages of the wells' high flow rate, which surpass
2-fold to 3-fold the average for the USSR's oil-recovery industry. According to
Academician A. G. Aganbegyan's evaluation, 1.7 billion tons of hydrocarbons (in an
estimate based on crude oil) were taken from West Siberian ground during the 10th
Five-Year Plan. Despite the exceptionally high capital investment, its economic
effectiveness was much higher than for the country on the average.**
The southern zone of Siberia comes close in its natural climate and level of eco-
nomic development to the environment of parts of the European portion of the USSR.
In particular, the wage coefficient here is 1.15-1.2, and the increase in construc-
tion costs does not exceed 10-15 percent, there is a fairly well-developed
infrastructure, and it has its own production base. Therefore, it is easier to
create economically effective production here on the basis of local natural resour-
ces and of the production, scientific and technical potential that has already been
accumulated here, as well as on the basis of production cooperation with the north-
ern regions.
Coal mining in the Ituznetsk and Kansk-Achinsk aasins, the production ef electricit,y
at large hydroelectric and thermal power stations, the integrated processing of
timber, the mining of ores and many types of quarried raw materials, the energy-
intensive production facilities for ferrous and nonferrous metals, and the large-
scale output of chemicals and petrochemicals have higher economic effectiveness in
the southern zone. An increase in Siberia's share in the production of these types
of output reduces average industry outlays considerably. For instance, bringing
the mining of Kansk-Achinsk coal up to 100 million tons reduces the average prime
cost of coal by almost one-fifth and increases by a fourth the average labor pro-
ductivity of the coal industry. Aside from the advantages of the indicated produc-
tion activities, the production of ca5t iron and steel, grain, meat, milk and pota- ~
toes is cheaper at present in Siberia's southern zone than it is for the country
*V. Filanovskiy. "The West Siberian Oil and Gas Complex: Results and Promise."
PLANOVOYE KHOZYAYSTVO, No 3, 1980.
**A. G. Aganbegyan. "Economic Problems of the Development of Siberia." EKONOMIKA
I MATEMATICHESKIYF, METODY [Economics and Mathematical Methods], Vol 15, No 5,
page 844.
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on the average. Computations for branches of the econ~my indicate the economic
feasibility of siting a number of machinebuilding facilities, especially metals- '
intensive ones, in Siberia.*
It should be recognized that under current conditipns the relative effectiveness of
developing production facilities in Siberia is reduced with the progression from
primary industries (the extraction of natural raw materials) to industries that ~
produce transportable output for final consumption. The economic desirability of
expanding the production of final output (for example, of light industry and ma- '
chinebuilding) is restricted also by the available labor resources and construction '
capacity. The effectiveness of the Siberiar~ economic complex can be provided for,
provi.ded there is development of:
The extraction and transporting of natural resources up to the levels requir~d for
satisfying the country's needs and for export;
Production facilities of All-Union specialization for the integrated processing of
natural raw materials--electric power, metallurgy, chemical industry, the wood-
processing and pulp-and-paper industries, and so on; and
Production facilities that integrate and supply the requirements of industries that ;
specialize for All-Union purposes and of the region's population (construction and
the construction industry, transport, the foodstuffs complex, certain machinebuild-
ing and repair production facilities, the production of certain types of c~nsumer
goods, and the services' sphere).
There are bottlenecks in developing the Siberian economic complex that hamper it
and reduce economic effectiveness.
A lagging sector in developing the region's economy is the construction complex.
In Siberia the construction cycle is longer than the average for the country, in
practically all branches, even in regions that do not lie in the northern belt, so
the amount of uncompleted construction grows swiftly. These faults are explained
oi~ly partially by objective conditions--the dispersion of facilities being built
and the more severe climate. Organizational factors (construction's isolation from
officialdom, the lack of a prime client in the regional complex and industrial
clusters being formed, and so on) and et~rors in interindustry capital investment
distribution are of considerable importance. The share of the latter in the Siberian
construction complex over an already lengtny period is at least 25 percent less
than for the country on the average. The lack of a construction base is especial-
ly telling on the regional production and social infrastructure, complicating the
situation with regard to transport support, engineering equipment for the region,
and housing, social and cultural facilities construction.
Despite railroad construction (the B~1M [Baykal-Amur Mainline], the Tyumen'-Surgut-
Nizhnevartovsk and Surgut-Urengoy lines, and others), and the construction of a
network of trunk pipelines and highways, which has been speeded up in recent years,
Siberia lags severalfold behind the Union-average level in transport provisioning.
The amount of unexported freight builds up, and the delivery of freight to final
*See G. Kurbatova. "Problems of Developing Machinebuilding in Siberia." PLANOVOYE
KHOZYAYSTVO, No 3, 1980.
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- customers is being slowed. The use of modern communications and of air transport
for large-scale hauYage in conquering the North greatly increases transport
outlays.
Siberia's machinebuilding does not adequately effect a rise in the technical level
of the region's economy, since it is poorly oriented to satisfying the needs of the
region's main industries, especially for machines and equipment adapted for opera-
tion under local conditions. More than 70 percent of all the machinebuilding out-
put produced is exported to other regions, although a portion of it is, in princi-
ple, needed for the effective assimilation of Siberia's natural riches. For exam-
ple, few enl;erprises that use electrotechnology processes are being created in Si-
beria, notwithstanding the economic desirability of doing so, while at the same
time Novosibirsk's Sibelektroterm [Siberian Association for the Production of Elec-
trothermal Equipment] is outfitting with its equipment enterprises that are being
built in energy-short regions of the European part of ~he country. It is obvious
that exporting from Siberia a substantial portion of the machinebuilding output
that is produced aggravates the deficit of labor resources. On the other hand,
equipment that is low in labor intensiveness but that is metals intensive, large in
dimensions, and poorly transportable is being imported from the western regions
(for the extractive industry, power-engineering, metallurgy, the timber and chemi-
cal industries, and agriculture), which, for a number of reasons, it would be de-
sirable to produce in Siberia. Thus, the structure of the modern Siberian economic
complex is not adequately balanced. The elimination of this deficiency is one of
the large reserves for raising economic effectiveness. Most important directions
for raising the effectiveness of Siberia's economic complex are also the systemat-
ic conduct of a labor-saving engineering policy, the execution of social measures
that will help to attract and to retain a skilled work force, and improvement in
regional planning and management, especially in regions being assimilated for the
first time. The problem of mobilizing reserves is common to the whole national
economy, which is taking up the path of intensive development. But in the Siberi-
an economy, the potential for intensification is identified more clearly, and the
realization thereof should yield relatively great benefit.
The pace and proportions of the social and economic development of Siberia, for
both the near and long terms, should be defined within the framework of the gener-
al concept of the country's regional development. This standard-procedure princi-
ple for regional planning is especially important for the Siberian economy since,
in the long term, the trend toward mutually related development of the USSR and
Siberia will be intensified. On the one hand, the pace and structure of the
Siberian economy react to changes in the factors and conditions of nationwide de-
velopment to a greater extent than other regions do, particularly to fluctuations
in energy and raw-materials requirements, a reduction in the inerease in labor and
capital-investment resources, the acceleration or slowdown of scientific and tech-
nical progress, and changes in the foreign-trade structure. On the other hand, the
dynamics and structure of the national economy are being determined to an increas-
ing extent by the pace and effectiveness of the development of Siberia's productive
forces, primarily by the intensity of bringing that region's natural resources into
use by the economy.
"The Main Directions for Economic and Social Development of the USSR During 1981-
1985 and During the Period up to 1990," which was adopted by the 26th CPSU Congress,
contains the fundamental rules on the strategy for developing Siberia's productive
forces within the system of a single national-economic complex: accelerated growth
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of the fuel industry, electric-power,nonferrous metallurgy, and the chemical,
petrochemical, timber, pulp-and-paper, wood-processing, microbiologicals and con-
struction industries, and strengthening in every possible way of the foodstuffs
base through an uplift of agriculture and of industries that process agricultural
raw materials.
A most important conclusion of the research that has been conducted can be formu-
lated as follows: in the interest of maintaining dynamic and balanced growth of
the USSR's economy, the Siberian economy must be developed at an outpacing rate.
Thus, numerous computations carried out by IE and OPP, by means of optimization
interregional, interbranch model (in which all regions and combined brancties of
the economy are represented), substantiate the fact that the average annual rate
of growth of production in Siberia should exceed the national average 1.2-fold to
1.4-fold. The indicated gap by which the pace of Siberian development should ex-
ceed that of the Union average is optimal, that is, it provides for a maximum level
of achievement of the main purposes of the country's social and economic develop-
ment (for example, maximization of the pace of growth of national income of the
consumption fund). This gap remains firm where there are considerable changes in
- the conditions of impending development.*
The following important circumstances were clarified in an analysis of the conse-
quences of deviating from the optimal ratios in pace of growth of Siberia's and the
USSR's production. Harm to the national economy from deviations in the pace of de-
velopment of Siberia are not identical in the various aspects. With rise in the
rate of Siberia's economic development, the optimum nationwide pace is decreased
insignificantly (because of the acquisition in Siberia of production facilities
that could have been sited in other regions with greater benefit). With a reduc-
tion in Siberia's pace below the optimum, the curve of the nationwide pace is re-
duced sharply. The latter circumstance is explained as follows. Reduction in the
pace of growth of Siberia's gross output (or of net output) is reflected almost at
once in the scale of development of industries specialized on a nationwide basis.
But since a reduction in the output produced by these industries in Siberia cannot
be completely compensated for by a decrease in the production in other regions, it
leads to a considerable reduction in the pace of the nationwide economy.
According to our computations, Siberia's share in nationwide production (in gross
social product, national income, and gross output of industry) will grow substan-
tially in the next 10 years. The prerequisites for this are an increase in Siber-
ia's share of nationwide capital investment, as well as the implementation of a
labor-saving engineering and social policy that will provide for a higher pace of
labor productivity, more rational distribution of the pace by branch and production
facility, and the retention of personnel. The computations indicate that labor
productivity growth will yield more national econoraic benefit in Siberia than in
other regions of the country (with the exception, apparently, of the Far East
_ alone), and this will also justify economically higher expenditures for machinery
*A number of "scenarios" of Siberian development within a single national-economic
- complek, which differ in hypotheses as to change in labor productivity, materials
intensiveness,capital intensiveness, population migration, and the organization of
transport ties between West and East, were studied. An outstrip.ping development of
Siberia's economy is the common feature of all the variants that were studied.
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and equipment, which releases work force. The same relates also to social measures
for stimulating labor productivity and for recruiting and retaining labor resources.
A11-Union specialization in Siberia should be intensified over the long term. In
accordance with "The Main Directions for Economi.c and Social Development of the
USSR Duriiig 1981-1985 and During the Period up t~ 1990," Siberia will provide~for
the country's entire growth in fuel through further development of the West Siberi-
an oil and gas complex and the Kuznetsk and Kansk-Achinsk coal basins, with the
later involvement of the oil and gas resources of East Siberia. The erection of a
series of high-capacity electric-power stations at KATEK [Kansk-Achinsk Regional
- Electric-Power Complex] and electric-power stations in Tyumenskaya Oblast that
operate on casing-head gas and surplus gas, and the introduction into operation of
the Sayano-Shushenskaya and the next GES of the Angara-Yenisey cascade will greatly
raise Siberia's share in the production of electricity. This will create favorable
possiblities for the development of energy-intensive production facilities and the
transfer of part of the energy to the Urals and to the country's European portion.
The siting in Siberia of an increasing portion of growth in the mining of mineral
raw materials and in logging will continue.
However, unlike the preceding period, when the preferential grow�h of the Siberian
economy was achieved mainly through the extracting and initial processing stages of
production, during the llth and 12th five-year plans the center of gravity will be
shifted to the stage of intense and integrated processing of raw materials--the de-
velopment of ferrous and nonferrous metallurgy (especially electricity-intensive
processes and conversions) and the chemical and pulp-and-paper industries. The
chemical industry will make the greatest contribution to the "Siberian speedup."
The main portion of the All-Union growth of diverse semifinished output and of fin-
ished products of organic synthesis will be obtained at the Tomsk, Tobol'sk and
Achinsk petrochemical giants, gas-treatment plants at Tyumen', and a~ other~ new
- enterprises. L. I. Brezhnev's report to the 26th CPSU Congress posed the question
of organizing the production of artificial liquid fuel based on Kansk-Achinsk Basin
coal. The establishment of production facilities for potash and phosphorus ferti-
lizers will be of great significance for intensification of Siberian agriculture.
The construction of large machinebuilding enterprises oriented to satisfying the
region's requirements for special machinery and equipment has started in Siberia,
and more is contemplated. These include the Krasnodar Heavy Excavator Plant, the
Abakan Plant for the Production of Load-Lifting Railroad Cars and Containers, the
plant for heavy-du�ty trailers for KamAZ trucks, a complex of enterprises for the
electrical-equipment industry near Minusinsk, plants for producing chemical and
oil-refining equipment, mining equipment for underground operations, power-gener-
ating boilers, and so on. During the llth and 12th five-year plans, along with
the construction of new enterprises, there is to be intense respecialization of
articles of the main machinebuilding centers, with a view to intensifying the role
of local machinebuilding in raising the effectiveness of the whole Siberian econom-
ic complex. ~
The program for speeded-up development of production in Siberia relies upon a sys-
tem that will provide scientific, technical, social, ecological and economi.c-
organization measures. The strategy for implementing this program includes such
elements as anticipatory development of the construction base for the transport
system and for the social infrastructure; a strengthening of the local foodstuffs
base; execution of a regional engineering policy that is adapted to specific
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Siberian conditions; anticipatory scientific preparation of the region being mas-
tered for the first time, including research, geological exploration, surveying,
- design and design-development, and industrial-test operations. In the area of so-
cial policy, certain preferences in the level of satisfying basic requirements are
to be created for the Siberian populace by a priority increase in income, the im- '
provement of commodity supply and of housing, social and cultural construction,
development of the services sphere, and so on.
The lith Five-Year Plan is an important step in executing the long-term program for
the accelerated development of Siberia's productive forces, raising its importance
in the single national-economic c~mplex. Durxng that period, major economic mani-
� pulations to concentrate resources at the decisive sections of the Siherian economy,
the elimination of bottlenecks that have been formed in the region's economic com-
plex, and the creation of the supply, equipment and social prerequisites for later
accelerated and balanved economic growth are called for.
COPYRIGHT: Izdatel'stvo "Ekonomika", "Planovoye khozyaystvo", 1981
11409
CSO: 1820/192 END
I
3!~
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