JPRS ID: 10228 KOREAN AFFAIRS REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000500010026-7
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: November 1, 2016
• Sequence Number: 26
• Content Type: REPORTS

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JPRS L/ 10228
31 December 1981
- E ast E u ro e Re ort
p p
ECONOMIC AND INDUSTRIAL AFFAIRS
- CFOUO 1 1 /81)
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L/10228
31 December 1981
EAST EU.ROPE REPORT
~ ECONOMIC AND INDUSTFcIAL AFFAIRS
(FOUO 11/81)
~ CONTENTS
CZECHOSLUVAKIA
~ Goal-Oriented Program To Reduce Fuel Consumption Viewed
(Ivan Kubec; ELEKTROTECHNICKY OBZOR, No 8, 1981) 1
- a - [III ~ EE - 64 FOUO]
~l1R l1RFT!'i A T T iCF l1Ni V
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CZECHOSLOVAKIA
~OAL-ORIENTED PROGRAM TO REDUCE FUEL CONSiJMPTION VIEWED
Prague ELEKTROTECHNICKY OBZOR in Czech No 8, 1981 pp 417-420
[Article by Eng Ivan Kubec, ScC, and Eng Jiri Chomat: State Goal-Oriented P;r.ogram
for Rationalization of the Cansumption and Utilization of Fuels and Energy"]
[Text] In its decision concerning main directions for the economic and social
deveiopment of tY.e CSSR from 1981 through 1985, the 16th CPCZ Congresg stipulated
vital tasks for rationalized consumption and utilization of fuels and energy, ~hich
it re~arda as an important source for the restoration of our fuel and energy balar.ce.
The effort to reduce energy conaumption in our nati~nal economy mi:~t not be under-
~ stood at the same time as a task for p~wer-engineering experts alone but ae a task
for all our citizens.
The Current Situation
On the world scale Czechoslovak natlonal economy still fi~ures among energy-intensive
economies dAspite the conceptual control of problems related to rationalized con-
sumption of fuels and power since the early 1970's and dsspite considerable accom-
plishments in that area. Our country still has untapped assets whose liquidation
will reault in lower energy consumption when creating national incc~me. We see the
. main sources of potential conservation in:
--More efficient valorization of the fuel and energy ir~puts in the entire process of
production; i.e., in higher technoJ,ogical standards of production and innovation on
the part of Czechoslovak manufacturers;
--Upgraded standards in utilizat�lon of fixed assets, which automatically impliea
higher economic outputs in those capacities;
--Lower material consumption in Czechoslovak national economy and, by extension,
also lower consumption of power in the production and processing o� materials;
--Reduced volume of manufactured enexgy-intensiv~ induatrial products to a level
that is absolutely r~ecessary for the further developmeRt of our national economy;
5
--More efficient use of energy in existing installations and capacities, particularly
boilers,, furnaces, electric drives, etc.;
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--The standard of fuel and energy conservation in every area of consumption.
The above outline discloses the macroeconomic as well as the narrowly technical
economic, or power-engineering, character of the unused potential.
Ways Toward Solution
The long-range process now being introduced in the Czechoslovak national economy is
focused on the use of every potential for conservation, which will affect to an
increasingly greater extent every area of our life and which is implemented in two
closely interrelated directions.
One is focused on the highest possible increase of efficiency in the entire pro-
duction sphere and, thus, also on the solution of problems related. to its consump-
tion of materials and energy. As an instrument for this process the management
uses the Set of Measures for Improving the Planned Management System of the l~stional
Economy after 1980, approved in early 1980 by the Presidtum of the CPCZ Centxal
Committee and by the. CSSR Government.
Accord ing to the principles articulated in the Set of Measures, the plan must
consis tently upgrade the quality of production and raise it to a level higher than
1 ever b efore, reduce energy and material consumption, utilize fixed assets to greater
advantage and step up labor productivity. In the economic climate at preaent and in
the fL ture, intensification of th~: khozrashchet methods of management implies that
every sector of management must strive to achieve the highest possible return on all
resour ces invested in the production, which applies to power engineering as well.
The other path to lower energy consumption in the Czechoslovak national economy is
a pro grammed goal-oriented approach combined with specific conservatior. measures
assigned to individual organizations.
- In view of the gravity of problems connected with the reduction of energy consump-
tion in our national economy, that particular approach had bE:en applied alread}~~
when the first symptoms of a world energy crisis were only beginning to emerge, in
other words, before the prices of crude oil and other fuels exploded.
, Early in 1972, the CS~R Government approved the r'irst State Program for Rationaliza-
tion in Fuel and Electric Power Economy, which stipulated that 10 key branches in
industry and transportation conserve during the 1972-1975 period 4.6 million tons of
specif ic fuels (tsf) at the 1975 level. Review of the implementation of this pro-
gram demonstrated that actual savin~s had exceeded the pro3ected targets with annual
savings of 6.4 million tsf on the 1975 level. During that period the consumption of
energy in the Cz.echoslovak national economv declined more than 12 percent; i.e., an
average 2.9 percent annually.
At that time structural changes in the Czechoslovak fuel and er.~argy balance dramat-
- ically contributed to a rapid reduction ef energy consumptioT~ by facilitating the
liquidation of low-temperature carbonization of bituminous coal in the chemical
plants in Zaluzi, and the introduction of the production of synthetic gas from
heating oils as we11 as higher inputs of liquid and gaseous fuels in technological
consumption and boiler economy. A very significant measure culminating during that
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particular period concerned the replacement of railroad steam traction with electri~:
and diesel traction.
The basic tasks for the second stage of the programmed goal-oriented solution for
reduced energy consumption in our ecoaomy were formulated in the Directives for
Economic and Social Development of Lhe CSSR in the 1976-19~0 Period, adopted by
the 15th CPCZ Congress in April 1976. The problems of a more efficient economy and
higher valorization of all types of fuels, power, materials and raw materials were
- presented there as crucial tasks for improving the efficiency of our national
economy; at the same time it was stipulated that from 2 to 2.5 percent of annual
savings of fuels and energy be conserved in industrial branches during the 1976-1980
perioci.
On rhe basis of the tasks outlined by the [CPCZJ Congress a new state program for
rationalization in the Sixth Five-Year Plan was drafted and adopted. It applied the
- experience gained ciuring the preceding five-year plan in resolving problems con-
' cerning lower energy consumption. This program was conceived on a substantially
broader basis; furthermore, it included a concept that resolved crucial problems by
higher orders of innovations focused on modernization and expansion of the produc--
tion of energy-saving appliances and on measures using incentives to stimulate the
interest of our w^rkers in conserving fuels and energy.
The task of the key industrial ministries to conserve 10.4 million tsf in 1980 as
compared with 1975 was exceeded by 22 percent; consequently, the consumption of,
- energy in creating national income was reduced an average 2 percent annually.
Although the assigned tasks were markedly exceeded, numerous shortcomings in the
pursuit of b~sic objectives have co~e to light.
State Goal-Ori~~nted Program 02 -
When planning the third stage of the programmed goal-oriented reduction of energy
consumption in our national economy, we were able to proceed from the experience ~
_ gained in the fulfilling the preceding two stages and from neu~ conditions stemming
. from the implementation Qf the Set of Measures. They are reflected in the planning
of the lonb range goal--oriented program for rationalized consumption, ~onservation
and utilization of fuels and energy in the 1981-1985 period and up to 1990.
~ The formc;lation of the ob~ectives of that program proceeds from comprehensive
assessments of all relevant social, ecoromic, scientific-technological, technical
~ and international factors and is focused on achieving the highest possible suciety-
wide effect in th2 shortest possible time.
The planning.of the long-range progr~m began in 1977 with the selection of areas for
potential conservation of fuels and energy and with compilation of specific pro-
posals. The main sources of the proposal far the fulfillment of the program during
that period were the confirmed achievement.s of scientific and t~chnolugical develop-
ment; introduction of international cooper.ation in the production of equipment;
application of patents, licenses and know~-how; proposals for the reconstruction
and modernization of the existing power engineering installations and of technolog-
icaZ processes, as well as the iniative of workers, innovators and comprehensive
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- rationalization teams, on which we may always count, particularly in terms of minor
measures of rationalization and technical organization.
When drafting the proposals, the branches and the Federal Ministry of Technological
and Investment Development availed themselyes of the work performed by our scientific
research base and focused on rationalization of fuel and energy consumptiun. In
particular, the results of the state research program at their disposal had been
resolved by the Research i.nstitute for Power Engineering in Prague and 40 cooperating
organizations of scientific research in several other ministries. It focused on:
- --An analysis of the state programs of scientific-technological development under
study and on their processing with estimates of their effects on the solution of
problems concerning reduction of power consumption in the Czechoslovak economy;
--An analysis of the development of specific consumption in the manufacture of
energy-intensive products with the specification of their potential reduction and
with proposa~s of specific measures that were simultaneously assessed in terms of
technology, power engineering, economy and investment;
--An analysis of the past, current and future trends in reducing energ~ consumption
in our national economy.
The solution of these prublems offereu a cotitinuous, constantly complimented source
of potential proposals for rationalization programs whose effects are beiizg assessed
in advance and which may be implemented at an opportune moment by means of the state
goal-oriented program and the state plan.
In addition to this cumulative solution that compiles data and proposes methods of
conservation, work is underway on specific technological research of new installa-
tion. Such programs are centralized in particular in the branches of inetallurgy
and construction.
The initial period of preparations was concluded in the spring of 1979 by Decision
No 36,of the Presidium of the CSSR Government, summarizing the areas of technolog-
ically and economically feasible conservation measures and stipulating further
_ operational programs.
In September 1979 the Presidium of the CPCZ Central Committee and the Presidium of
the CSSR Government adopted Decision No 240, by which they appro~ed the targets of
the state goal-oriented program for rationalized consumption and utilization of
fuels ynd energy, appointed the coordinating pro,~ect manager for the entire program
and proj~~ct managers for partial programs, determined the extent of the required
_ savings ai:d listed the most vital operations and measures.
The project served as the springboard for the planning of the state goal-oriented
program that was specified in cooperation with the coordinatir_g project manager--
i.e., the Federal Ministry of Technological and Investment Development--and the
State Planning Commission with appropriate ministries for several chronological
- stages for which the specifics of the program were gradually formulated. At the
same time our economic potential was considered in terms of the capacities of pro-
duction, international cooperation and scientific-tQChnological development, as well
as in terms of achiev~ing the pro~ected structure of the Czechoslovak fuel and
power balance.
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After consultations with the ministers of appropriate branches and with the chair-
men of the KNV [regional national committe%s] the pro~ect was submitted to the
Presiiium of the CPCZ Central Committee and the CSSR Government, which approved it
by Dec;ision No 247 of 1980 as a part of the planning for the~Seventh Five-Year P1&n.
The definitive version of the program is being drafted with the ob~ective to plan
specific significant and efficient measures of fuel and energy conservation for
inclusion in the state plan for the development of the national economy in the
Seventh Five-Year Plan comprehensively in all structures from the viewpoint of their
. implementatiion (in capital investment and procurement of machinery and equipment)
as well as of their impact on power engineering and economy.
tt specifies total savings for individual branches and KNV, investment limits for
their implementation and lists of spe~ific projects of the state and economic plans.
- Within the framework of annual plans the coordinating pro3ect managers ef partial
programs, or their subordinated organizations, are responsible for all savings
stipulated by the state goal-oriented program as concerns both the amount of savings
, and the amount of the required material, technology and investments. This applies
the principle based on the Set of Measures that the state plan considers and
im;~lements construction programs with budget costs over Kcs 10 million included in
~ the state goal-oriented program, while the state plan stipulatea the tasks and
limits in whose framework economic plans must secure specifically as a priority pro-
gram other construction, machinery and equipment not included in the conatruction
budget.
~ In other words, in addition to the state goal-oriented program that will be a part
of the Seventh Five-Year Plan, all investment pro~ects of the program with budget
costs over Kcs 10 million are specifically listed in the invEStment section of the
-I~ plan, furthermore, the decision allocates to individual branches and KNV and breaks
' down according to years the total amount to be saved by tY?e program.
The plan of the state goal-oriented program 02 lists specific tasks and means to
, conserve during the Seventh Five-Year Plan a total amount of 12.4 million tsf on the
level of 1985 as compared with 1980 and, moreover, during the Eighth Five-Year Plan
to t.rget.a saving of 27 million tsf on the level of 1990 over 1980. The over-
i
whelming majority of such savings will be achieved by specific pr~grams with invest-
I ments of Kcs 17.9 billion in the current five-year plan and additional Kcs 17.6
i billion during the next five-year plan.
I Structural changes in the concept of our national economic development (a lower
rate of the development of ferrous metallurgy and the change in the concept of
housing construction) will save 1.6 million.tsf and technl.cal organizational measures
will conserve 10.8 million tsf of the total savings in the Seventh Five-Ye2r Plan.
Measures specifically controlled on the level of the center will gen.arate 36.8
percent of the savings; the remaining 73.2 [sic] percent of conserved fuel and energy
will stem from measures specifically controlled on the level of rhe VHJ [economic
productian unitsj and enterprises.
Material Incentives ~ ~
Material incentives stimulate the interest of workers on various levels of manage-
ment, including managers in the enterprise sphere; in the fulfillment of the tasks
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