THE GROSS HARVEST OF GRAIN WAS 7.6 BILLION PUDS IN 1950, AS IT WAS IN 1949, OR 345 MILLION PUDS MORE THAN THE 1940 LEVEL.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700080375-6
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: September 8, 2011
• Sequence Number: 375
• Content Type: REPORT

Tine gross h~rrest oY grain was 7.6 b alion Dude in 1950, as it was in
1949, or 345 million pads more than the 140 level. The gross harvest of
potatoes in 1950 sux?i~asae3 the prewar level Ly 21 percent. In 1950 the pro-
duction of wheat increased 37(-. =*_z_licn pads, i%JCi' 1540, aad in iyyi 1t in-
crcnsed even more-, as did the production of rye. The gross harvest of cotton
increased 2.9 times during thr. first postwar Five-Year Plan; flex fiber, 2
ti.:~u; :agar beets, 2.7 tissa. The 1951 gross Y.arv?st of cotton, wool, and
au~ar bets surpassed the 1950 Leval. Our country is now raising sore ccr;ton
-than India, Pakistan, and Egypt corzbined, and three countries are famous for
their production of cotton. The prewar levPlr.,,s also been aurp~eeed with
regard to number of productive livestock and poultry. She tasks of raising
the yield~canacity of avrirultural crops end th^ productivity of anir.31 hus-
bandry are being perform~.d auccesafully.
7n trsnsportaticn, the volume eP operations has increased. over the grewnr
loyal. Tl:e averard daily freight handling on railroads in 1950 rose 21 percent,
aver 1940, end in 195.1, the freight turnover of railroad transport increased
12 pert=nt more. In river transport the respective increases were 26 and 13
percent; is maritime transport, 65 and 8 percent; 1950 automobile transport in-
cressed~2.3 tines over the 1940 level and in 1451 incres ;;d 20 percent o.er
1950.
T`~e develonuwut of goads turnover, reflect.ir.^ tho r+i:ght~: irrroa^^ oY ao-
cialiot`industry aad agriculture, proceeded et exceptionally rapid rates, The
increase in retail goods turnover (in f L?:ed prices) over the preceding year vas
17 percent in lyv'(; 20 percent in 1949' and 30 percent in 1950. In 1950 ti:e
volume of retail ,goods Turnover (ir fixed prices), in stet: and cooperative trade
and in kolkhoz trade, greatly surpassed the 1940 level. In 1951, 15 percent
more goods were aol.d to the population through ata:te and cooperative trade (in
fixed prices), than in 1950. Goods turnover also increased conaidersbly in
kolkhoz marlcete.
All these facts prove the conti~~uous, rapid, end universal growth of no-
cialist reproduction and the high rate of expanded reproduction of the Social
prednct in the USSR in the postwar period. This is best shc-au in the combined
general index of socialist production and national consumption, tine national
income of the USSR. The social product and the natious.l income of the USSR
have increased in the postwar period, as in the prewar period nt exceedingly
high rates from year tc year.
s
The first postwar Five-Year Plan for raining the national income was con-
siderably exceeded. In conformity with this plan, the prewar 1940 level was
to be Increased 38 percent in 1950. In fact. however, the national lncom4 of
the USSR in fined prices had increased almost ^c/3 (64 pe.rceut) over ].940. In
1951, the national income increased 12 percent more, and in fixed prices sur-
passed the 1940 level 84 percent, and the 1913 level more than 11 tiara.
Furthermore, in 1950, to satisfy their personal, material and cultural
needp, the workers of the USSR received 74 percent of the nati~ral ixiccme.
Tae remaining 26 percent remained at the disposal of the atatE?, kolkhozea,
and cooperative organizations for expanding socialist repioducts^n, and for
othr_r state-wisp and social needs. This distribution oY the national income
(about 3/4 to 1/4) was the a ^e in 1951. The uninterrupted increase in the
production of ,joint social product under socialism pr~vid~s Pnr a continuous
increase in the material e.nd cultural level of Lhe workers.
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An increase in socialist production inevitsDly leads to no increase in the
income oY the workers. 3n 1950, the total income of F~orkers and employees and
the incomr. oX peeee~ta increaae3 62 percent over 1940 (in flied prices), a~:d in
1951 increased 10 [~rcent over 1950. As a zvau+t. nY th> lnrrovau ?r m ne+_ ,.,,
and real wages cf uorleers a:d eQployees, and an increene in the incom'^cf poas-
anta both frok the social ecoaoa~y of the kolkhozes and from the personal plots
of the kolkhozes, the antional relfnre xore ccnciderably.
An i*_*purtnnt role in incracicg this celfara is played by the gnus vhich
the population derives from the steady ioaering of retail prices; thin ay:dnc-
tiou vas s:.de by the Soviet state after the abolition of th?~ ration card system
on the basis of increased production, an increase in the amount of co~aditiec,
and a lowering of the net coat of prediction.
T~n.^, first phase of retail price reduction gave the populatiou an annual
Qal.u of about 86 billion rubles. The second plisse, begun in 1948 and ccmplet..d
on 1 blanch 19~1y, produced nn additional gain over the course of a year of 71
billion rubles. The third, put into effect in blanch 1950, produced n gain over
the course of a year of no less than 110 billion rubles. In 1950 alone, ea a
aanult of t!?--~ retail price reduction on all z::ec consumption co^=riffles put
into effect on 1 blanch 1950, the real earnings of xorkers and employees in-
caL?ased 15 percent, and the expense to peasants of purchasing cheaper induc-
t; ial co:~?acrilities decreased 16 percent. A Bair. of tuns o;. hillic;,n of ::al?len
per year resulted from the fourth retail price a~.:..ction vhich xas put iato
effect on 1 F?Rarch 1951.
In the postwar period there has b:.on a sharp increaac in the number c*.
measures and the amount of exFenditures by the Soviet state for ooeinl security,
aecial insurance, education, public health, etc. During the 6 postwar years,
the state expended 643.4 b1111oa rubles Yor social and cultural measures.
Far instance, the income of the population was sizably increaeod in the
form of state nasistance and payments on social insumuce to workers and em-
ployees; social security pensions; state iaeuance of free or specially priced
passes to ssnitcriunn, rest brmea, and children's institutions; easistance to
mothers xith many children and to single mothers; free medical ai@; free train-
ing and technical educatien for xorkera aubsi~3lea to stadents; and a number o'1
other payments and privileges. All vorkers and employees, the number of whom
ranched about 41 milll.on persons by the end of 1951, receive annually, in addi-
tion to their earainga, n vacation of no less than 2 weeks, and xor:cers in a
number of trades receive longer vacations. In 1950, the total sum of all these
paymeata and privileges received by the population at the eacpanse of tlae gavarn-
msnt was mare than 1^cU billion rubles, or more than 3 times the 191:0 level. Sn
1951, thin sum amounted to~5 billion rubles.
As a x~sult oY these incresaea in industrial end agricultural production
and tar. increased income cf Soviet vorkers, the level of national consumptioa
hex been generally raised in the postwar, as compered with the prewar period.
The sale of goods at filed prices in state and cooperative atones (excluding
sales from local a~scurcea) increased in 1950 over 1940, as follevs: meat and
a?at rod+?cto 3Q percent; fish products, 51 percent; animal fate, 59 percent;
vegetable and other fats, 67 percent; auger, 33 percent; ccafectionery, 34 per-
cent; footwear, 39 percent; and fabrics (cotton, wool, silk, linen), 47 percent.
Correannndingly, in 1951, as compaaed with 1950, there ware the folloviag
increaeea in sale of Booze, at fixed prices, is the state and cooperative trade
network: meat, 32 percent; fish products, 14 percont; animal fats, 10 percent;
vegetable fate, 40 percent; milk and milk products, 35 percent; eggs, 20 percent;
sugar, 29 percent; fruit, 33 percent; leather footwear, 11 percent; cotton
fabrics, 18 percent; and silk fabrics, 26 percent.
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 ];specially widespread is the purchase of cultural co:~oditiea such as
nrir.u?_d material, musical instruments, radio receivers, photographic equii__nt,
etc. Thiv is an indication of the rise in the ivat~riel welfare pl the worlcer~
and in the cultural and technical level of the nnnnlnti rm.
In addition, household items, electrical. appliances, and sanitation and hy-
giene articles are entering everydry use very c;uickl.y. In 1950, 3.3 tim.:a more
cleckn were sold than in .l9!!0; aL3ost 3 tires Wore s?ouing c:cY.inco; 6 ti*_~-c r~orc
radio receivers; 2.9 ti::.es sore bicycles; end 16 tires more motorcycles. During
1851 alone, the sale of bicycles increased f36 percent, and the sale of ouch com-
moditles as ho?~ refrigerators, washing m:~chines, and vacuum cleaners iucreased
several ri*res.
A churact~rictic fact is the relatively Coro rapid lncrenee in the tun~over
of nzs>31 goals end the appr?: thing aimllnrity of lndustrinl co~..odities in urban
end rural trade, ehich e??ozrs the ever greeter reduc+,i on in differences betvee^
city and country with regard to the level and staucture of prraonal consumption.
Iu recent yearn the structure of consumgtlon hen improved considerably, and the
proportion of higher-grade comodities an3 oP Wore costly foodstuffs Lea in-
creoaed.
The variety of commodities is constantly being expanded and their quality
i~prc.-ed. lao chzr,: oP c:~at; will; products, fats, sugesa?, and coafectioaery is
rising, as against a reduction in the ehaae of rye bread, notatces, etc. After
the retail price reduction on 1 March 1950 (including prices for bread), the
couaumption of bread es a whole vas almost unchanged, although the purchase oP
wtaeat bread rose to offset a reduction in the purchase of rye bread. Sut, moat
important, a considerable part of the savings derived from the lowering in prices
of brand vas used to obtain sn additional anount of meat, fats, milk products,
canfactionery, a number oY industrial co+!~oditiea, etc.
The acquiuition of furniture increased sharply; this is evidence of the
~risiag welfare of ttse population, in whose budget the share of expenses for
consumption of commodlttes of long-farm use and for improving the peraon::l prop-
erty of the citizens is ever increasing. The purchase of f~:*niture in the stv~.a
and cooperative trade r.etxork (in fixed prices) increased 38 percent is 1950 over
the pa?Pcediag year, and 50 percent iu 1951. Flu ther evidence of thrs tendency is
tho increase in the share of nonfoodstuffs as compared witL foodstuffs commodities
in the over-all sum of retail turnover (with a rapid absolute riao in sale of foed-
atuff commodities).
? In m=dical and sanitary care in the posi.,rar yearn there was a further improve-
event. A network of public health establishments, hospitals, and sanitoriiaaa
vas establiened and expanded. The muubrr of hospital beds in city and rural
districts rose 25 percent in 195, as compared with 19$0. T'ne number of doctors
in the country increased q5 percent in 1950, as compared with 1940, and in 1951,
6 percent more. In 1951, there took place a further development of the network
of medical establishments, lying-in hoapi8sle, sanitoriuma, and rest hom?a.
During the summer of 1951, more than 5 million children end adolescents traveled
to resorts having nurseries, kindergartens, and children's hom-s, and spent the
entire summer period there.
The production of medicines, medical instruments, and equipment rose 36 per-
cent in 1951. As a result oP the rase in the welfare of the Soviet people and
the success of public health, the mortality rate in the USSR wan halved as com-
psred with 1940, and the infant mortality rate was cut even lover. TLe annual
net increase in population in ttx: USSR over the course of several years is al-
ready exceeding the increase in population in 1940 and now 1a more than 3 million.
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The cu~tur^1 level of tt?r, populatiou has risen exceptionally ir, the po:t-
xar psriod, mostly as a result of the btatz's increased seasures rand expendi-
tures for education and the developn~?ut of culture. In 1951, the number of
traia;.ee in all fields in the USSR ccmo~ised 57 million persons.
The network vi ca~t:rel^a odncaticaal institutions has been reestab-
lished and now exceeds the prewar Hopis. In 1950, there ware 15 percent trorc
clubs and public libraries i.r. the country than ir, 19,'0. In 1951, there uer:
core ibaa 350,000 .Libraries oP ail types under t're jurisdiction of state end
sx iel organizations, with more than. 700 million books. Friuting cf books in-
creased f34 percent in 1x50 over 19110. The number of movie projectors has rireu
e,Larply, and the plan for constructing radio broadcestirg stations during the
first postxar Five wear 'rlan was considerably exceeded.
Thin over-all systematic increase in national consumption and velfarn
xoiild have been impassible without corresponding hlgh rates of socialist
accuteulatioa. In the USSR, which does not knoll unemployment, sex xorke*s
az~ m~~bill2ed for the national economy every year. Both the level of coneump-
tivu p?r capit, of the populat'Con, rmd the number of the nopulntion pro in-
^"'~..~'?~-^, rapidly. iaia u::?ans ti:at cousumpiion capital xhich goes to satisfy
$'31s proving seeds of the population must correspondingly increase from year
to-year.
The steady increase in the mass of products directed toxards personal
consumption demands from year to year a coustant increase of the national
wealth in the Yorm of fixed and turnover production capital, nonproductlcn
capital, a Hasa of msnufncture3 products, and stocks of finished articles.
Accumulation, ns xe knox, embraces not only producers' goods, but consumers'
goods sa uell, xhich pre used to expand production (consumption for nsv pro-
duction workers, etc.1 Accumulation mesas building up of working capital,
sn increase in the sass of com?soditiea xhich go to the population. Pnvlously,
sention vas made of goods turnover. This yearly increase is effected at the
expene= of ar_r~mulation. Accumulation means an increase in nonproductioa
capital (housing rest?~~r o, thz neixor'r, of public health institutions, in-
stitutions for education, culture, communal economy, etc.). Mention vas
made previously of increasing this capitxiJ. ns a necessary condition for L?he
atsady raising of the material and cultural level of the population.
A bri113.ant indication of the increass of nonproduction capital in the
poatvor periet is the incresae in housing rnsourcea in the USSR. During who
period 194E - 1951, inclusive, the state and the population of cities and oY
workers settlements, aided by stn*.,~ crrdit, establishe3 and built homes xi.th
a total area of more than 127 million square =stars. Mornover, in rural lo-
calities, almost 3,100,000 homes xere built. During 1951 alone, in cities and
workers settls~ate, homes were built with a total area of 27 million square
meters,. or 3/4 of what was aimed at by the Third Five-Year Plan for its en-
tire period.
OP decisive and critical oignificanre for the development of the whole
national economy and for the increase of production and consumption is that
part of the national veaJ.th mtzde up of production capital, and primarily filed
and turnover p_*oduction cnpitzl, vixich is made up oP finished articles of
heavy industry -- machine-building, metallurgy, fuel, paver, chemical, con-
struction-materials, and other industries. Precisely upon the increase of this
production capital depends the uninterrupted increase in production of industry
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 agriculture and othor branches, the production, of producers' and consutArs'
gOCd6, a.[ul consequently, in the final analysis the increase of all nonprcduc-
tiou capital and circulating capital.
High rates of socialist accumulation in the postwax period have guaran-
teed a considerable increase in fixed capital in *,he nat?ional economy of the
ii55k. ?cnis has been posslbli: Duly be means o: a tr=c=ndoua develop_rt in
cap:.tul ccnstruction, a devalop~nt uuhaard of before. T'ae tote]. capital in-
veatz?:enta in the national eccuomy oY the USSP, increased in the prewar years
as folluaso First Five-Year F`an, 51 bil.Lion rubles; Second Five-Year ?lan,
115 b17.11on; and Third Pive-Year Plan (193b - 1941), including noncentrnlized
iuves~anta, "130 billion.. Accerdirg to the Pirst Pcstxer Five-Fenn Plan, n
higher total of caaitai inveatnwnts was uudert?Y.en than in all the proceding
Five-fear Plana. This plan was exceeded 22 percent.
The scope of capital construction iu the USS1,, which is ircreaning i;em
year to year, has far outstrl.ppod the prewar level. The volume of state
capital investments in 1951 rose more than 22 times es compared with 1940.
On this bas'_s, pra.7uction capital and primarily fixed production capital in
industry are increasing rapidly. Boring the years lg?.'6 ~?~ 1950, core than
E,9v0 industrial enterpriees, excluding small state, cooperative, and Y,oilchoz
enterprises. were restored. built. and nut Into nrwrn r.t nn.
Fixed production capital of industry in the USSR in 1950 increased 58 per-
cent over 1940. In 1951, it increased approximately 12 percent over 1950.
This means that socialist industry has at its 3lsposal et present 3/4 more
fixed production capital Lhan in 1940.
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A fact v: :;emendous economic importance is that. the rorrchine-tool pool
of Soviet industry more t'nan doubled in 1950, as compared with 1940, as n
result of supplementing it with nev; more hl6hly productive machine tools.
This attests to the exceedingly high rates of expanded reproduction of the
tools oi' labor 1n the socialist economy.
Socialist reproduction in the postxur period has guaranteed not only
restoration of ruiged enterprises in regions which had suffered, 3ut aloe a
considerable expending of their praluction. Mines of the Donbass and the
bloacov Basin, metallurgical giants oY the South, r*achine-Luilding plants,
petroleum fields, electric power stations, etc., here been reestablished on
a nev, much more nearly perfect technical basis wed have started to yield
more metal; coal, electric power etc., than before the war, 'i'he llonbass
again has bece~e the largest and most mechanized coal basin in the country.
Diauy nev first-quality enier^rrises have been built in regions which had suf-
fered Yrom the occupation.
At the name time that a considerable increase in production over the pre-
xar ).Duel vas taking place in regions which had suffered from the ?.aar; a
still greater increase in production vsa taking place i^ other regions, ea-
pacl&liy *.he e?st. The relative participation of eastern regions in the total
production of the country has increased. This shoos the essential chanties which
took place in the orccesc of reproduction relative to territory. 'ihe inr.reaae
in the relative participation of the eastern regions means furs;her aucceasea
in the distribution of industry, in linking production and the rich natural
resources of tare eastern regions more closely, in ioduatry's closer approach to
the sources of rev material, i'uel, power, wad in the achieverxnt of greater adrr-
ings to the national economy in transport of fuel and rev materials.
Thfs increase in the relative participation of the eastern regions, as com-
pared with the prewar period, vas the result of a rap td expansion in production
there both during and after the var. In the postwar years, further intensive
development of metallurgy has been going on in these regions. ins production of
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ferrous metals hna base organized 1n Central Asia and 1n the Transcaucasuo.
`.Che relative phrticipatlon of the tirala and Siberia in the production of p1g
*on, steel and rolled ~ -i Iiaa increased considerably. Mora than t?ire ?
Witch ^^?I ^" s:1-:ed iti :he east (the Urals, Kuzbass; the K:sngandn basin, etc.)
in 1550^than?in the pxexar period. A nes; coal base of the country, the Pechora
brain, has been greatly espandad.
i;et; *:etroleitn regions in the seat increasad considerably 1n inportanco.
TY~xthLr auccea3 xas achieved in developing a petroleum bass in the country b~-
~"'-' ''''_ ::. l~ ^^a the Volga ("Tae Second Baku"). As a result oP. successful
geological prospercing operations, coaaLuernbie indusL-rial reserved of pata?oleun
were @iscovaa~d and tapped, ror exauple, sex large-scale pc-trolo?>>n fields and
n:troleum plants we,-e ores?ed in Bashkir ASSR; extraction and refining of ps-
traleum is developing rapidly in Kuybyshev Oblast; sex large dr_pnsita oY pe-
troleuy; have bee^ loi.md in Tatar ASSR; and the petroleum industry is developing
et rap13 rvtco In T?arlu::en, Uzbek, and Kazakh SSRe. ~e relative particip;~tion
aP the eastern regions in the total extraction of petroleum inca~aaed frog 12
percent in 1~0 to 44 percent in 1950.
An exceedingly ia;.portant plsce in capital constnaction is occupied by
tho great Ste.lia coaotruction protects -- the hydroelectric installati.oas on
`~;z '~olga, Den, Dnepr, and Anu-Darya, which in their raze, technola~ry, vr1L~,
and rates of onsratior. r_re a^ao,ti~,ii^d ,_.,-_^?here in the c;o-_ld. ia~ p.__~w_~
assignmeate eatnblishe;d for 1951 on all these construction protects have been
successfully completed. In tlk; current year the first of these instnlletiona,
the Volga-Don xaterway, xhich unites all the seas of the European USSR int. a
single transport system, ie belug put into operation.
Expanded reproducti;,n of fixed production capital in socialist agricul-
ture is being effected et high rates. Heavy industry is sending to the rural
districts from year to year a tremendous qunatity of tractors, conbines,
'various egricuitural machines, trucks, electrical equipment, etc.
A tremendous and ever-g. awing role 1n the development of agriculture is
allotted to hydroelectric installations and to irrigating and sprinkling
sYBtems. The process of fulfilling the great Stalin plan Por the tran~forma-
tion of nature means an extremely intensive increase in fixed production cnpi.-
tal in agriculture. Proof of this is, in particular, ties successful execution
of the plan of. afforeatatlon to combat erosion in the steppe and forest-steppe
r3gioas of the European USSR. In carrying out the S+.alin plan far the tranafor-
matioa of nature, kolkhozea, sovldaozen, lPiS, timber managements, and erosion
stations planted and Boxed foa~st plantings to combat erosion over an area of
'-,350,000 hectares is the! first poatxar Five-Yeaa? Plan, sad in 1951, over an
area of 745,000 hectares.
In addition, during the last 3 }stars alone, in the steppe end forest-
ateppe regions of the >;uropean USSR more than 12,000 ponds and reservoirs have
been built on kolkhozes and sovkhozce.
In the poatxar period the geantity and capacity of producers' goods sent
by the city to the country hav= increasad considerably; the crass of consumers'
coa~oditlea received by the country has grown. The voluae of agricultural
products received Dy the city has expanded, xhich, in turn, has assured the
creation of a firm rax materials base 1;or the 113ht and food industries, ana of
the xorking pr~ductiun capital necessary for them.
During the 6 poatxar years, heavy industry has given to agriculture
67'3,000 tractors (expressed in 15-horaepover units) and 146,000 grain combined
(including 68,000 self-propelled). Moreover, during the last 3 years alone,
morn than 'S.3 million soil cultiveti~, eosins, and hn^resting machines aa1
trailer implements sad 205,000 trucks have been predated for agriculture.
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Dy lgk9 agriculture had received 3-4 ti!r~s more trnctors, trucks, and
a~ icultural machfres than in 1840. 'i'bis led to as accelerated growth o8
fixed production capital of sacis.~.ist agriculture. ~imFlarly, the process
~ rural. elertriYication of kol.khazea. 6iZ~_ Rn~ ~rtvUi,,..,aa .._ a-a_a
intensii`ied rate. Dy the end of 1950 the capacity of rural electric~po:rer
at.:.t:oaa surpassed the 19'v0 level 2.$ times. The amount of aineral ferti-
lizer~ whichaf{riculture receives' _?roa i:~duetry also increased sharply.
FrvoY o% tJe exgsnded reproduction of production capital cf arr~irultura
is the considerable increase in the mm~be.r of 1ivesteck. The nunioer oP 1lve-
e6ec>_ o~?'~ ~:::::;idv..o`vi;y iu 'roii:hozcs arci svvkhvses, ns did the number of livv-
a'tock privately owned by members of kolkhozes and by other workers. In 1951
alone, it increase3 14 millicn head, and the number of noul.try incrensed 60
million. The prewar level of all productive lives*_ock ar.3 pcultry wns nur-
psssed in all categories of entnbl.ichrents.
The nu~.b::r of li.veatocY. on kol'~cl:oz2s increased by thv following rntea
(in yearly percentages):
19!1a
X49
1950
1~
Large horned cattle
23
21
20
12
Pigs
75
7A
2$
,
~
n,.__,;7 c..._ ~_ ~..
&oraen ~
~
lv
15
1g
22
13
15
b
$
The. number of poultry ou kolkhozea doubled in 1~+9; in 1g5U, it increased
44 percent; is 1951, ]~ tima_a.
The prewar level in number of productive livestock and poultry on kol-
khazea was surpassed greatly by 1950: large horsed cattle, 40 percent; ahsep
and goats, 63 percent; pigs, 49 percent; and poultry, 2 ti~a. 7.n 1851, this
increase was still greater.
A necessary coaditicn for uninterrupted and rapid growth of tho social.
product, nntional income, naticn_nl consumption, and national wealth of the UorR
was tl~e regular and considerable ircreasc in the productivity of public eocin-
liat labor in the entire national econcmy uad the growing savings in meaae oi'
production.
The first postwar Five-Year Plan $itxd at an increase in lflr;or productivity
in induatay amounting to 36 percent over 1940. :!'his assignment was excee?ed:
in ~95a, labor productivity in industry eurpsssed the prewax? level 3'- prrcant.
Labor productivity in coaetruction increased 23 percent in 1950 aver with 19?+0.
This index lags behind the Five-Year Plnn, which bed aimed at an incroaae cf 40
p`rceat.
'she increase in labor productivity from year to year in socialist industry
has taaten place at the fa11o-sing rates (compared wits the preceding year): 13
percent in 1947; 15 in 194$; 13 in 1949; and 12 in 1950. In 1951, there was a
further 10-percent increase in labor productivity in industry. In 1951, labor
productivity in industry surpassed the prewar level ].~ times. Just how impor-
tant raining labor productivity ia, 1s shcwa by the fact that indue*.rial pro-
duction in the USSR increases basically thra~gh increase in labor productivity.
Almost ~/3 of the increase in industrial production in 1941 was derived Prom
increased labor productivity.
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rise in labcr pra~uctivity in lndustr?; Bras effected by r.=ans oY
technical proF3recs, raising tit? amount. r? technical eyuipn:cnt of labor,
Yurther Y~echanization, particularly in labox ~ans?ming and 'Heavy operations,
elactrificat',on, automatization of prc.luction, inculcation of advanced tcchnol-
Guh: seises ifchliyu8n; `uy uicisn~ bi ini5iug - d2 piEE O. .. . .-- ..--
era and raising their Cultural and technical level; by r.~nns of developing
aoeialiat com'm_tlticn oY the masses, developing creative initiative of workero,
angiueer.: and technicians; and by means of i,^.~provi.rg tn_ orgsuization oP pro-
duction. C.' t;aaandcus u=mificiace ii, the :ai:;irg of labor productivity ;_~:1
tL craving of resources was the wine introducticn of progressive nors..? in tho
postwar :?ars one ir. the sharp in:en;fficntion of their impert~nce.
Evidence of this izanrovenent in tho ntillzation of miens of production
arc the following facto: ut plnnts of the i;iniatry of Fexrous ??aallur~ry,
tine 195v utilization of the useful volua:e at blast furnaces; u,creasnu c5 po:-
crnt over 1940, and the y'leid of steel per syuare a^LCr of open-hearth fur-
ns.ces increased 33 percent. Luring 19ji alone, the prcductivity of sea? co3-
bires used by the tdini.stry of Coal Incrust,-y increased 19 DerCent.
The increase in labor productivity, the introduction of progressive tech-
nical and economic novas i'or the utilizaticu of orcductiou c_sns, th=_ atrangtL-an-
iag of material sevinga; a more rational, economical utilization of raw caterinln
fuel., oth>_x TM^'tnrlnls, ^iectric uc~'er production ?rea, eGuie~^eet, m3chi.nes an3
-h'..__ ,,,,~1.~ ,.__.... _..`tr._ i:. ,,_.-o': __ .,_ , _ iT-,,i otron~thenin_ eP scat
accounLing and the'stru~rgle to cut down an administrative and manage;n=nt a>-
penses have led to a considerable lowering of the net coat oY production. The
increase in production, the increase in labor productivity, and the lowering
of net cost of production have i.n 19j0 and on 1 Sauuary 1952 made it possible
to laver wholesale prices on a number of producer goods crud to lower freight
rates.
3~ntion was made previously of Lhe steady loveri.ng of retail prices. This
hsa considerably raised the buying power off' the ~vble. Zn 1950, an iucx~ase in
the rata of exchange of the ruble relative to foreign currencies took pines and
the nible vent on the gold standard. The international significance of the
fioviet ruble. the most firm acrd affable of ail currencies in th=_ world, vas in-
cresaed. Pnrticular evidence of the intensii'ication of the in?.ernationnl signs
ficance of the Soviet ruble are the a:c~etary reforrs in Poland and Rumania,
which compute tLe rote of exchange of their currencies on the basis of the ruble.
ins objective set by the first postwar Five-fear Plan of lowering the net
r, oat of industrial precluction 17 percent, as compared with the 19'+5 laves, h,is
been successfully completed. Incompletely fulfilled is the assign:li..nt in the
Pive-Year Plan concerning the loverir..g of the net coat of construction projects
12 percent, as compared with tiffs 19~:5 level. Tn this connection the state took
steps in 1950 to reduce the cost of construction. Evidence of the continuous
reduction in production tests in the USSR is the following data on the lowering
of net coat of comparable ccm^~odity productioc of industry in f LXed prices (com-
pared with the preceding year): 2 percent in 1947; 8.b in 19}8; 7.3 in 1949;
and 6 in 1950.
Zn 1950, there vas a i'urther lo?:crin~ in tl:e net scat of indust_*inl pro-
duction. The planned assignment with regard to this index wsa overfulfilled.
The octving from ttu~ lowering of the net cost of i.;u~d4risl production in 1951.
vas more than ?_6 billion rubles; not counting the savings from lowering of
wholesale prices. 'I`ns movement of the net cost of production in the socialist
scnnomy expresses the changes in socially necessary expenditures of the so-
cisliai ::~:.iety for the production of s unit of a particular finished good.
Therefore, the hweriug of net cost of a unit of production means, in the final
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analysis, a reduction 1^ social co=ts and in expenditures of living and social
~Abor in produ:.ing i*_ Th^ r~gits~ oz eccnery is the Soviet method of doing
business- a r.,t