JPRS ID: 8266 TRANSLATIONS ON USSR TRADE AND SERVICES

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6 FEBRUARY i979 CFQUO 2~79~ i OF i
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6 ~'ebruary 19 79
, ~
TRANSLATIONS ON USSIt Tf;ADE AND SERVICES
(FOUO 2/79)
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(lIULIOC,R,IPNIC DATA 1~ 1leport No. 2 Recipient's Aeceitiun No~
SNFET JPRS L/ 8266
, u� ~u,t~t ~ S~ epo~t ~te
TRANSLA7IONS ON U5SEt TRAI)E AND 5ERVICE5 ~ ( FUUO 2/ 79 ) 6 February 19 79
~ , b~
Amhurfs) 0~ Pertormins Org~ni:ation Repc. ~
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1S. Supplementuy Note~
ld. Abstr~cts
This serial report contains informaCion on international economic relations, _
cortwunications, consumer goods, domestic trade, transportation, manpower~ and
industrinl sociology.
17. Key Word~ ~nd Document Analysit. 170. De~eriptoti
USSR
International Relations
Commerce "
Consumer Goods
Domestic Trade
Economics -
Manpower
Telecommunications
Transp~r[ation
17b. Identifiers/Oprn-Ended Terms
17e. COSATI FirW/Group SC~ 5j~ 1)B
18. rlva~l~biluy ~tatement 19. Se~uricy Clis~ (This 21. Ko. of Paaes
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~ JPR5 L/8266
6 February 1.9 79
TRANSLAT~ONS ON USSR TRAp~ ANU SERVICES
(FOUO 2/79)
CONTENT~ PAGE
~NTERNATIONAL ECONOMIC RELATIONS
Soctalist Economic Integration Among CEMA Countries
(R. Yevatigneyev; VOPROSY EKOIJOMIKI, No 11, 1978~ 1
~ Sovie~-Polish Commiasion Meets on Isauea in the Economic
Sciences
(A. Arkhipov; VOPROSY EKONOMIKI, N~ 11, 1978) 10
i Structure of Multilateral Cooperation of CEMA Countries
` (Yu. Kormnov; VOPROSY EKONOMIKI, No 12, 1978) 14
I
TRANSPORTATION
Increasing the Efficiency of Bulk Freight Transport on
Railroads
( I .G . Kaza.khovskiy; RATSIONAI,IZATSIYA PF~EVOZOK
rra z~r.~zrnr~ noROG~, 1977) 30
- a - [IJI - USSR - 38 FOUO)
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.
INTERNATZ~N~L I,CONOM:[C RLI,~'~IONS -
.
~
~
80CIALI3T ECONOMIG INTP~GRATION AMONG CEMA COUNTR:FB ,
Moscow VOPROBY EK1~NOMIKI No 11, 1978 pp 109-1).1~
~rticla b 1"t. YevEitignayev: "Convergence aP Economic Mechaniema oP C~MA
Countries"
~TexJ The process oP intensification of aocisliet ecouomic integretion
and evening out of the levels of econ~mic development oP countrie~s of the "
felloWehip have put ~i~ on the agenda of the day convergence of economic ~
mechaniems of CE3~(A ~ountries ae a component part and a necessary eondition
oP these procesaes.
- Socieliat economic integra.tion intenaifies mutus~l relationshipa of the re-
productive structures of CF~IA countriea by xay oY develnpment of interna-
tional specislization and co~~peration of g:roduction, directed torrard rais-
ing the effectiveneee of the natione?1 econoiqy. The inteneification of co-
operation in product~on, ~ubstantiated by conteuporary scie~tific and tech-
nical revolution, requirc;e a eubstaatial iaiprovement of the earlier formed
- forms and methods of coc~peration Which cannot be indifferent to the national
systems oP economic am~n~xgement. I~provement of the mechanism oP integration
ia directly dependent c~n the development of national systeas of aanageaent.
The forms and methode of economic and scientific-LSChnical cooperation oi
eocialist countriee bave always been and still are under the inPlueace of -
the systems oP natiorsal economic management in those couatries. Until mid
1960's, even though the syeteme oP economic me?ne~gement i.n CENA cauntries
were very similar, fi,hey did not motivate eufficiently enough the rapidly in-
duetrializing economiee to realize international specialization n;~d coopera- -
tion of production vhoee development ~de headvay mainly through the
1 The principle of evening out the economic developaent of countries in-
cluded in it i.s inherent in the vorld eocialist syetem. But the closer
the levels of econom,/ of individual countries, the more readily the forma
of msnifeatat,lon of common principles of building sacialism converge. The
_ i~portance of the search for the moat effective international forms of -
their realization increaees. This refere, in particular, to the IDethode -
of managing the economic buildup." (M. Volkov, "lbpical Z1~eks of Econom-
ica," KOl~lUNI3T No 10, 1978, p 71)
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coordinatlon of mutua.t co~nociity turnover. Th~n the integrational proce~se
ae the procese of international eocialist cooperatir.~n oP natioaal lr~bor vae
~ only in Lhe stage oP inception. ~
~e adoption of the CoeRplex Prograna of Socie~liet ~conomic Tn~egration of CEMA
~ Countriee coin~;ided in time with th~ firBt years of economic reforme in thoae �
- countriee. I~provement of the methods of ~lanning, strengtheuing af economic _
gtimuli, crestion of lerge aesocie?tiQne--+~11 thie co~ntributed to the heighten- _
ing oP tihe countr:~ee' iatereet in tb~.^international cooperation oP production _
both on a mBaro e?nd on a micro ecal~.~
The centre~l l.ink of economic mena,gement of every aocic~liet cAUntry is plaa-
ning. Accordingly, ~oint planaing activities in the form oP ecordin~tion o~' _
five-year and long-term plane~ ~oint planning of the development of individual
- induetries snd types of produc~3.on, me~king forec~~tf, and excheuga of planning
experiecace occupy first place armng the inetrurnent~ oP cooperation of CEMA
~ countri.es. The rele?tionehip betkeen one and the other ie obvious. At tha
- same tieoc the improvement of ~oint planning activitiee of CEMA coun~tries is -
to a coneiderable degree datermined by the level of plaaatng in those coun-
tries. Indeed, intensi~ied program- and gosl-oriented interinciuatrisl ap-
provch to the development of national economic plans, accempanied by the vid-
ening of horizons of national planaing, has exerted influence also on the ap-
~ proach to the determination of goale of the coordination of plane of CSHA
countries: long-term goal-oriented programa o! ~ooperation (DTePS) in the
_ key complexae oF induetriea of physical production l~ve become a neW iapor-
' tant inatrument oP integration. At the 32nd meeting of :he seesion of CEMA _
- (19?8) three out of five DTsPS earmarked for developr nt aere approved: in _
the Pield of energy, fuel, and rew mat~rials; agriculture and Yood induatry;
machine Duilding. Preparation of DTeP3, embraciug cousumer goode production
- and transport, is coming to an end. Or another example: increa8ing the role _
of ministries and economic aesociations leade to i~p~vement ~P the organiza-
tion oP work in respect to the coordination of pLans, as Well ae to the in-
_ ception and development of such a proepective form of cooperation as ~oiat
pleaning in eeparate eectore of production.
These and other m~aeures to ad~uet the planning instrumi~nte of cooperation
to the new intergovernmental and external conditioas cenuot, es experience -
ahows, produ:p proper effect without reliable value ~~iteria of internation- ~
al epecialization. Tbe development oP cammodity-monetary relations in so-
cieliet countries in coc~ unction vith the growing role of program appraach
to planning and th~ creation of r.ost accounting production aseociatione mkes
2 Contrary to the facte, bourgeoie authors contend that economic reforma are
ellegedly "directed agalaet integration within the limite of CEMA" (P. Clen- ~
_ denning, "CONSCON: Progrese and Proepecte," NJ~TO RSVIF~1, Bruesels 19'T7,
, Vol 25, No 3, p 16). By charncterizing econonic refor~s as the rerison for
intensified in recent yeare ~conomic reletions of eoiae CEMA countriee with
the Weat, the cited author is distorting the truth. The expaasion of such
rels?tions is cauaed by co~pletely different reaeons, in pe~rticular, by the
utilization of some nex poeeibilitiee of cooperation with capitaiist coua- -
tries.
2
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- ro~t c~i~ i~ rc; r ni, usr, ~~Ni,Y
, -
it poeoible to reveal more accurately thQ directione of epecialization oP
pc~aiuctio.n, taking lnto 9CCOllil~ t$B needa oP the Whole socialiet fellorrehip. ~
The etrengthening of economic etimuli of internatir,nal apecialization on the
- macro ana miCro level of national economy :n the end contributes to tbe im-
- provement of the whole system of value ir~strumente of cooperation: ratee of
exchange, credit, ~rlces, and so Porth.
In our opinion, tbe point oY vi.ewy according to xhich "the effective use of
- the coordination of ple~ns, and all the more ot ~oint planniag ae instruments .
of the interc~tionel diviaion oP labor e.mong CEMA countries muet be pre~eded
by the creation oi a couaplex economic meclianism of integration. And only on
the basie ~.f this mechaniem oWing to the utilization oP ite stimulating et'-
_ fect caa the efPectivenese oP plsn coordination and ~oint plenning ~mnife~t
itself,"3 is invalid. Understanding the coordination of plane~ the Mbole
- ~oint planning activities ae a paesive reflection of the requiremente o! the -
law of value is actua],ly a call tn form international specialization in a
- roundsbout way, through the market, which in no ~ray can be recognized as e!-
- fective.
Plan-oriented nature of eocialiet economy makes it possibJ,e to realize eco-
r..omlc integration more rati.onally, by Way of putting the planuing, comm~o~~ity-
monetary, and organizational inetruments in operation aimultaneously. Fb.r
exa~ple, it ie adviasble to reorganize foreign trade prices ia the couree oP
developing D'PsPS and other plan-related documenta oP cooperation, aud not
separately.
'Ilaking the course of program- and goal-oriented app,oach to the introduction
and realiza.tion of integrational measures--auch are the ob~ective lavs govern-
" ing the development of the economic mechanism oP socialist integretion. Car-
rying out this course ie not impeded by the fact that the participants of the
integration are sovereign states who do not pass their prerogatives on to s
, aupernational organ. Speaking at the Fourth World Congrese of Rcononi4te in
Budapeat (1974), 0. Bogomolov pointed out in this comn~~c�~ion the co~feseion _
of a Western economist that an inter-3tate foxmula bi.nde each of the govern-
_ mente atronger than a super~xational Punction.4
~
3 C06POIlARKA PLANOiWA No 9, 197 3, p 592. Let us note, that in thie context
Lhe author underatands under the economic mechaniem only the set oP value
inatruments, i.e. interprets the economic mechaniem in the narrow sense
of the vord.
4 See MIROVAYA EKONOMIKA I MEZHDUNARODNYYE 0'I'f;~SIIENIYA No 11, 1974, p 29.
Herevitb let us note, that in the ~:ommon Market "a situation of unique -
'interregnum' hae formed itself when national mec:hanisms of foreigu eco- ~
nomic control are ~elready~ Lin itslic~7 partially deformed, but a uai-
~ fied international mechanism has not been created /yet/ ~n italicJ (and
~rhether it will be created, ia unknoxn)." (Yu. 3hishkov, "Dileu~a oP the
Coe~on Market," NOVOYE VREMYA No 44, 1974, p 19)
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- ~~c~~t ii~~~~ Ic;~n~, ii;;~; ~?N~,v
Economlc reforms ln CEMA countriee have etimulated the acceleration of the
procegses of lnternational socialist divlsion and cooperation of labor.
They have given impetua to the active and versatile incltusion of ne.tional
eysteme oP economic maaegement in the forming mechanism of internations?1
~oeialist integration. Gradual convergenc~ of national systema of ineu~sge-
c~nt ie a neceeeary condition Por further development of thie mechaniem and
deep mutual penetrntion oP the reproductive structures of CEMA countries. -
Thie convergeace ehould be envieioned not as automatic aversging of the
nethode of economic me~nagemen~ in individu,al countries and not es their re- ~
organizstion after the likenees of inethode effective in any one country. In
our opinion, convergence of the national gyetene oP manegement occurs as the
levels of economic developmsnt and accordingly the conditione of economic
operstions in CEMA countries even themselves out naturally. Obviously, the
procese of formgtion of the systems of management, adequate to a developed
socialiet econom~y, ehould be vieWed ae the genere?1 direction of coavergence
- of Lhe national systems of management. Of course, we are not epeakiaig about
a co~plete uniPication of eyetene, because thie Would mean ignoring the spe-
cific conditione of counbries and, ~herefore, not ueing the internal reoerves
- oP production to the f'ull.
Economic reforma launch~~d in all the countries from the very beginning pur-
sued the eame goals--inc~rease in the efficiency of public production and ~
trensfer to the intensiv~e type of expanded reproduction. Tt~t i~ vhy they
vent in the eame dixection: inereasing the role oP centralized plaaning,
� turning ].arge economic complexes into the me?in link of the nation,yl econo- -
- ~y, increasing the respansibility, and inteneifying the economic stimulue
- of economic links. But the approachea to the achievement of these goals
differed aoticeably smong ttae countries. Thi~ xas explained not only by ob- -
~ective conditions, although economic metk~:~:s react more keeuiy to the con- .
crete econo~?ic situation than administrative methods. Each country led ite
ovn eee?rch for optia~um solutions. In the course of this eea.rch paeitive ex-
perience was accumul.ated, snd Porme and methode of economic optrations Mhieh
have nat ~uetified themaelvee Were discarded.
At the present time in the European countriea-members of CEMA one can obeerve -
entry ae if into "the second rourid" of economic rePorma which is c}iaracter-
ized by a more succeesive (taking into account the e~cperience oP the pa,at de- -
cedej realization of the originally developed principles of i~provement of
planning and eeonomic management. Coacrete exa~ples of this new atage caa
be aeen in every couatry. In the CSSR, for example, a coc�plex experim~ent
rrae started on a large scale in February 1978 in the management of efYicien-
cy and quality, on the baaie of Which it is expected to develop measures to
i~prove mnnagement of the whole national econo~y in the years 1981-198~. In
the Hungarian People's Republic they are paying attention to the etrengthen-
ing of the e~onomic levsre oP optimization of the structure of public produc- -
tion; in particular, they are raisiag the stimul.e~ting Punction of the price.
In the Folieh People's Republic they are carrying out xork in respect to the
_ iaaprovement of a nev financial-economic eystem, kno~+a as the system oP large
economic o.rganizationa (KKhO). In the People's Republic of Bulgaria on the _
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i~~~i: ~~i~ i~ ic; i,~~, usi: ~~Nt,Y ,
basis of declalone of the Netiona~l Party Conference (April 19?8), dedicated
- to the improvement of socisliat organization of labor and planned management
of the econom~y, Central Committee of the Bul.garia? Communiat Party and the -
Council of M.inistera adopted in June 19r(8 a decree, directed "to surmount -
~ excesaivr~ centralizatlon of the operations mattagement of production, to con-
- eo~.idate and increase economic independence and initiative of aseociatione~
combines, agrarian-indwstrial and induetrial-agrarian complexes, and other
- economic organizstions."5 Ia the Socisliet Republic of Romania in the begin-
ning of 1978 they announced "the breaking of the obeolete mechaniem and its -
replacemcnt vith a new mechanism~ tsking into account the deme~nde of the
:apid progrees of productive forces, modern forma of financial-economic maa- -
agement, democratic limite af independence and eelf-government oP enter-
prises."~. Plenum of the Central Coromittee of the Romanian Communist Party, -
held in 1978, and the ~oint meeting of the Politiapolkom oP the CC of the
RCP, Permanent Bureau oP the Supreme $oviet of Socioeconomic Development,
- and the Council of M:~nisters of the Socialist Republic oP Romania have adopt-
ed a number of important decisione in respect to this question.
All this gives reasona for certain ::onclusione about th~ tendeacies of de-
velopment oP the forma and methoda of planned economic management in th~
European countries oP socialiet fellortehip. Firet of all chief Attention
ie given to the large economic orgaaizations Which are becon~ing the main -
_ link of the national econou~y. In the CBSR the concerns (of the type of pro-
, d>>ction aeaociations in the U53R) are gradually replacing the truets (of the
type of industrial associations in the USSR). In the Huugarian People's Re-
publlc State Enterprises Law aent in effect oa 1 Jan 78 Which declared ~s the
main link of the national economy an enterprise xhich upon the decision of a
constituent organ can enter a trust (as a ~uridical pereon) or voluntarily,
an asaociation. Although this laW did not revive the official etatutes of -
- the sn-called large industrial enterprise, created back in mid 1960's~ nor,e-
thelees lt took into account that such enterpriaes are actually Punctioning, -
embracing the greatest part of induatry.7 Chairman of the Planning Commis-
eion under the Council of Ministers oP the Polish People's Republic T.
Vzhashchik, commenting on the March (1977) deciaion of the government about -
the modification of the financial-economic eystem effective in I4Qi0, noted
that "the aystem of I4Ch0, put in effect in the middle of the past five-year
_ period, had paased thc test and contributed to the Pulfillment and over fLtl-
- fillment oP the 1971-1975 five-yeer plan."8 In the People'e Republic oP
Bulgaria the June (1978) decree on the "Exteneion of Rights and Duties of
_ Econamic Organizations" was addressed to large linka of the netional eeono-
my which are all economic organizations which, in turn, include the ao-calZed
production-economic linke (enterpriaes, plants, factories~ and so forth xhich -
_ 5 D RZAAVEN VFSTNIK No 51, 1978.
- 6 SCINTE?A 18 Feb 1978.
7 FTGYELO Na 51, 1977. -
_ 8?YCIE GOSPODARCZE No 19, 1977.
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t~~~tt ui~i~ icini, u~;i~, ~~Nt,~~
have internal coet accounting). In thia decree the economic combine was -
named as the moet succeeeful fma of direci organization snd managemeat of
� produc t1.on .
tn all the above-named countries measureB are being taken it~ respect to fur-
ther improvement of the financial-economic inetrumente of economic organiza-
tions mnnagement. Aa an exeurple we can give the search for the best vereion
- of uaing the indicator of net or conventional-net output as a basis of ~co- _
nomic etimulue. This refers firet of al]. to the for~mtion of the ~rage fund. -
Thus, in the CSSR at industrial enterprisea which participate in the above-
' mentioned e;veriment the accepted standard of Wage f1u1d formtion is calcu-
1Qted as a per^enta.~~ of the volwae of conventional-net output. _
In the Hungarian People's Republic eince the beginning of the previous five-
_ year plan at s number of enterprises the grorrth limit of the supplementary
rmge ie regulated by one accepted standard of dependence of the rrage on the
indicator of output (wage plue profit) ger vorker. This accepted standard
_ is not established by a directive, but is determined by the eystem of taxa-
tion of tbe grorrth of the average ~rage at e~n enterprise. Since 1976 at more ~
than half of all enterprises the groirth of the aver~ge rrege or the Mage f'und
depends within certain limits on the mentioned accepted etandard.
In the Poliah People'e Republic a norioa.tive method oP wage fund Yormation is
in effect. In moet organizations dif~erentiated standarda of ~rage fund in-
crement for every percent of additional (conventional-net) output are accept-
- ed. In eome organization6 the accepted atandard is established as a ehere =
of the wage fland in the volwae of edded output. _
Socialist Republic of Rome~nia this yeer announced transfer to the indicator
of net output as the criterion oP determiuation oP the m~gnitude of xage fluids
at the enterprises.
In the field of investment management growth of the share of oiru fLnds and
returnable loans in the common aourcee o~ eapital inveatment Pinancing con- _
tinues. In Hungary a principle is in ePPect since 1976, according to xhich
all capital i~nveatments, including those realized upon the decisioa of ceu-
tral organs, must be paid by e~�~rprises from their oWn funds, banlt loans or
special government retsrnable loana. In Hungary and Poland the a~ortization
oP ob~ects put in operation on credit becomes the source of repaycaent oP the
loans, and vhen there is not enov~,h amortization, al~o profit from the uee
of the eame ob~ecta. The mentioned profit also paye interest on loene, vhich
in some countries iras raised to 8 percent.
Auring the dietribution of profit, much attention is atte~ched to the increase
of the role of payments of cost accounting or~anizations to the atate budget.
= Praymenta connected with the volume of resources, used by the enterprises (pay-
ments for the fLnda, Por the use of land, ~rater, different kinda of set con- _
tributions to the etate budget to finance social in~urance benePits), have be-
c~me popular. _
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rc~~i c~rr rc; i nr, u,; i; (1N1,~~
The final allocution of profit between the etate budget t~nd the funds of '
- enterpriaes in the GDR and Socialisl; Republic c,t' Romania is realized vith
t6e help of a epecial payment whose p1a?nned rate ie determined in an ab�~
solute sum. Along with this in some countriea t2aey are looking for a~or- -
mula vhich would permit them to realize till the end the principlP of qwota ~
allocation oP profit, to bind the interesta oP individu,~l enterprises m~re _
cl~sely xith the intereste of the whole national economy. The experience
oP euch allocetion, which excludes net surplus of pmfit, has been accumu-
_ lated in partictil,$r in Hungary. ~
Our taek doea not include a detailed analysia of all the recent meaeurea in
respect to the improvement of economic m~chanisms in CEMA countries. Suf-
fice it to eay that they all eignify f1~z~ther development of the principle
of demQCratic cen~ralism appliceble to modern conditions, expansion of dem-
ocratic foundations of national economic m~nagement and, therefore, inten-
si~ication of a tendency to converge the economic mechanisms of socialist
countries.9
- Doe~ understanding the convergence of the uational eyeteme of ine~nagement
as an ob,~ective procees, connected With the ripening of the respective do-
meetic conditions, mean passive waiting for the convergence of syst~ms? '
~ Should the changea of external conditions of development, in the first ~
place the needs oP eocialist economic integration be reflected in the na- `
tional economic mechanisms? IP yea, then won't this upset the ob~ective
larrs of intraecor,~mic development of countries? In the ec~nomic literature
already quite def~.nite ansWere are Yorming to these questions. Ibr e~aaple,
Czechoslovak economiete L. Nlateyka and Y. Goleehek state in the article "In-
tegration and the Na;.+..oaal Systens oY Planned I~nagement" ~hat "the me?in pur-
pose of convergenc~ oP th~ national aystems of ine?nagement ia orientation tio~
- ward improvement in these syetems of prerequiaites Which promote the inten-
- sification of int~grational processes."10
Many participants of the international theoretical seminar, organized by the
IF.MSS AN 98SR LInatitute of Economica of the Wor1d Socialiet System under
the USSR Academy oP 8ciences7, also think that the iffiportant problem of in-
- provement ~f ,joint planning activities is further adaptation of economic
mechanisms of aocialist countries to the conditiona of economi.c integration~
creation of prere quieites Por their inclusion in this procesa. Bulgarian
actentlst T. Lyubikov focusea his attention on the fact that the process of "
convergence of national economic mechanisms needa management ~ust like the ~
9 A unique reaction to this tendency was an editorial in tbe Jan 1978 is-
_ sue of the magQZine SOVIET BTUDTE3 Which contained an appeal to Western
"Sovietologists" to accentuate their attention on the difPerences of eco-
nomic mechanisms oP socialist countries, to compare the experience oP
some countries in this Pield vith the experience of other countries.
10 H05POIlAK3lCE NOVINY No 36, 1976, p 3. -
7
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_ I~Uk Ul~l~'LCf~1L U~~I? UNI,Y
= proceee oi' lmpravearent oP the mechanism of iritegration.11 According to the
opinion of C. KrnPt (C3DH), in the process of itaprovement and convergence of
national eyetema of planning and manageme~it it is neceasary to reeolve the
Pollowing problt~me: dellmitst~ion and determination oP f'unctiona of all or- =
gans of ine.nagement in the national economy from the point oP viev of their _
_ activitiee rrithin the limits of eocialist economic itttegration; determina-
tion of coordinated indicatore of efficient development of socialist econo~
mic integration, taking into account the specific neede in diverae fields
of management; creatlon in the national economic eystem of management and
~ planning of condi~tions, eqeuring the activities of internxtional econonic
organizationa; development and introduction of common nomenclaturea, espe-
~ cielly oP a eingle cl,aesiPication of manufactured goods in CEMA countries.
Adaptation oP theae elemente which are a com~wnent part of the national s~d-
tema of planning, G, Kraft notes, can occur only gradually, as the internal -
conditions of production in individusl countrie~ converge and socialiet in-
' tegration deve~ops.12
tt should be noted that in the Soviet Union a seriee of im~portant measures
- w~ere taken in reepect to the adaptation of elemente of the economic mecha-
- niem to the requirements of integration. Fbr ex.~le, in Article 15 of the
Laa About the Council oP Minietere of the US9R it ia expressly pointed out
t~at the Council of Ministera "organis.Ds and directs the activities, con-
_ nected with participation of the US9R in eocialist economic integration and
international eocialist division of l.abor: takes measures to ensure coordi- `
- nation of the State plans of the i1SSR with t~he State plans of countries-
members of the Council of Economic Mutusl. Ass~stance, realize s~ecia~ization
and cooperation of production, develop and ree~lize long-term goal-oriented `
programa of cooperation rrith countries-members of the Council oY Fconomic ~
Mutual Asaistance."
The queation of picking out and aeparating in the national syeteae oP eco-
nomic management epecial blocks, vith the help of Which these systems link
up directly with each other, merita attention. Here, tho~ugh, We are speak- `
ing not about ~eome similar syetems of planning, organization, and s~imula-
tio:~ of foreign economic activitiea, but about the fact that auch syatems
- have been in principle cr~ated and are fluictioning. The fact~that "in some -
countriea in the course of economic reforma the independence of enterprisea
11 See Interactlon of Intergovernmental Planaing and Control Syetems With
the System of Joing Planning." "Materialy mezhdunarod.nogo teoreticheakogo
seminara" ~ldateria~ls of the International Theoretical $emina~, MIEP MS3
~Moscorr Institute of Economic Planning World 3ocialiet Syste , IEMLSS AN -
SSSR, Moscow, 1978, p 120. -
- 12 See "Inter~ction of Intergovernmental Planning and Control Systems Flith
the Syatem c~f Joint Planning," p 44.
~i
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_
~
~
= i~uii ~ ~i~~i~~ i~; i,~i i~;,i; nvi,ti~
i
und economic orgenir.p,tionn in the q~.here of foreigtt economic e~ctivitlea in-
creaacd more ~h~n ic~ othcr cvuntrieo~" uu~i ''therefore, gometimen in the course
of economtc cooperc?tion ther~ nriee certnin diPficultiea beceuse oP r~ le?ek nf
coinrtdence oY authority and diPferenc~o in the level of c:ot~crete partaers -
_ during the riegotietiona,"13 doee not eerve, !n the opinion of I~puty Chairmaa
oP (ioeplan 1J38R N~ Inozemtnev, ug c~n argwnent in favor of uniYieation of tbeee
ayg te~os .
While concurring with thig point oP viev, at the eame time it ie impoesible
, not to mention that the foreign economic block ia not isolated from the com-
u~n oyetem of economic e~aagement aad that in the fl,tture, ae the integration-
- nl proceeaee d~velop, there will occur "a steady broadening of the field for
maneuv~ring the rt~terial, Pinanciel, and lnbor reaourcee on an internationel
_ ecale, traneformation oP foreign economic activitiee into a component part oP
the whole intraeconomic liPe of eocialiet countxiea."14 That is ~hy the regu-
larity of convergence (not uniflcation:) oP the forms and methode of economic
_ management cannot help touching upc>n the extroeconomic activitiee proper ~e
_ Well.
Already at the preeent time in none of the C~IA countriee is the syetem of
extroeconomic relatione cmnsgement built without being reflected 1a apecial
or other eectione of national plans oP reeourcea, including capital invest-
?nent alloceted to carry out iategrational measures. In the economic mecha-
nieme of countries the relationships of production and Poreign trade e.nter-
prtees ere getting etronger, nnd the organizational forme of realizing state
_ monopoly on sll forme of extroeconomic reletions are ia~roving. A cloeer
dependence betveen Lhe effect from external economic activitiee snd the re-
sult of production-economic activitiee inside the couritry ia established;
tbis dependence ie reflected elso in the cost accounting stiauli oP produc-
tion.
- E'rom everything that has been eaid it can be seen that the convergence of
eeonomic mechanieme of countries o: socialist fellowship is e~ aultiflaetted
proceee ahich ie in constant indissoluble interrelationehip vith Lhe levela
of economic development oP individual countries~ mnche,niem of integration,
end the degree of development of integrational procesaes, as well ae witb
many other, lees eigniPicant factora. The convergence oP econonic mechanisms
has not only economic, but also great political ic~portence, being one of Lhe
aspects of the procese of all-round convergence of eocialist countries.
13 EKOtrOMiKA i OR(3ANIZAT3iYA PROMYSHZENNpCO PROIZVO~TVA No 2, 1976, p 95�
14 Yu. S.ShiryByev, "Ekonomicheakiy mekhanizm sotsialisticheskoy iategratsii"
LEconomic Mechaniem of Socialist IategraLio], Izdatel'etvo Ekunomika,
197 3, p 138.
COPYfiIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1~8
8502
- cSO: ia23
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i
FOk UNN'(CCAL U51: t)NLY
i
INT~ltNA'CIONAL ~CONOMIC ft~LATInNS
, ~
SOVI~'T-POLISN COMaQSSION ME,~7'PS ON I53tTF~ IN TI~ ECONOMtC 3CTENCES _
Moecoa VOPROSY ~iCONOI~QKI in Ruseign No 11, 1978 pp 157-159 ~
~Article by A. Arkhipov: "Fburth 3eesion ot the Soviet-fblieh Com~niseion on
- Cooperation in the Field of Eoononnio So.tencee"~
~Text] The fourth eeseion of the Soviet-Poliah Coramieaion of the U53R Academp? -
of Soionces and Poliah AaacYemy of Scienoee~ ~hiah wae devoted to a die~ueaion
of eocio-eaonomie problen~ of the efficiency of national produotion ur~der eo-
_ cialiem, wae held in May 1978 in Tallin. In opening the eeesion, Academiaian
T. Khaohaturov~ director of the Soviet unit in the Con~leeion, noted the urg~enoy
of the probleme which had been raieed for diecueeion~ pointed out the baeia di-
reetiono in reeeareh being done by 3oviet eoholere on the proble~ee of effioien-
cy, and oaat light on the importance of developing theoretioal queetiona of the
efficienoy of national produotion for practical uee in thr national eaonomiee
of the ~SR and Pblieh People'e Republia.
The reports by the partieipante in the eeesion can be tentatively broken dovn
ittto three groupe. The firet group of reporte wae devoted to the theoretiaal
- and methodological probleiae of th~e effiaiency of national production under ao-
cialiem.
~
The baeic questione of the theory of economic efficiency of eoaialiet produc-
tion, of economic efficiency ae a categ+ory in the politioal econo~ of eooial-
iem~ and of the national econodnic approach to the reault (impact) of eoaialiat
production were e~camined in a report by A. Notkin, correeponding member of the
IJSSR Acadea~y of Saienoea (Inetitute of Economica of the ~S3R Acadeny of Soi-
encea). The utilization of all varietiee of the inteneive type of expanded re-
production during the period of mature eocialiem has done much, in the opinion
of A. Notkin, to increaee the resulta from the input of living and embodied
_ labor that ie direated toward the ~owth of the national xell-beiag and aacom-
pliohment of other aocial taska. This correlation between input snd ite reault
tinde expraeeion in the politiarl eaonoiqy of socialiem in the categr~ry of eco- -
nomic efficiency of national production and reproduction, a categ+ory which char-
acterizes the relatione between a eocialiat society and the individual eeetore
of the econoc~r and production collectives and vithin them, relation8 which are
~
1Q
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I~UIt ~)I~I~ IC1~11, II;~I~, ONI.}.
direct~~cf towr~rd optimizritio.? ot' t~~e imp~~ct of production in renpect to input at
_ i~ll otf~en c~f ecunomic operFition nnd which ~r.e beinK implemented in the inter-
e:~t:~ of thr. er~tire ~ociQty. '1'he reporting npeaker ~rgued in favor .
- of the point of vi~zN ahich he huo bcen daveloping duririg reoent year:~~ wher~by
the n~ttionul economic impaat of the utilizmtion of' the reeourcan of nocialiot
_ natioru~.l production in expreooed by tt~e mngnitude of the net product of eoaiety
(nationnl income).
The head af the dele~tion of Polinh uchol~.re, II~ Chola~, a corresponding mert?-
ber of t1~e Faolinh Acuderqy of S~ienaen, pointed out in hi~ report the theoretieal
imrortnnce ~nd practicul meaning of the problem of efficiency of ru;tional pro-
duction t~nder conditionn of developed oooialinm~ ~hed light upon the proeeo~ of -
formr~tion and development of ~ theory of efficieney of soci~lint produotion,
the form~tion of viewc+ on the category of efficieney and proponed and eubatan-
~ tiated purtioular si~n~ of the category of efficiency of national production
that are peculiar to developed aocialiom. The specific cht;racter of the period
of developr,d d~ciulinm consioto, in pnrticular, of the fact that the interde-
i~endency between the go~l of eoci~lint production and effieiency ~n one of the
rnQan~ to re~lize thio goal ia deeper than before. One of the 3pecific tr~ite
of t}~r category of efficieney undar conditionn of developod cocialiem consiata
, 02' the fsct thnt n heightening of production efficiency beeomen an important
nopect h~.re of the conformity of economic growth to a lax. By expanding the
uphere of ito acope~ the categ~ory of effieiency exprec+ses more conoiatently the
eo~ence of oociulist production relations and takea on new forma to manifegt
- it~rlf. A~ ~ocinlinm motureD, in If. Chola~'n opinion, the eocial aspecte of
it~ developmer.t move up to the forefront. Aa a result of the growth in the im-
portlnce of the ~ocial aepeet in detezmining the effioienr;y of pmduetion, the
- concept of "economic efficiency" ie more and more fxequently replaced by the
concept of "e�ficiency of nntional production," ahich expresses the integral
charficter of the category of ef�iciency of national production. The reporting
~peaker noted that the period of developed 3ocialiam ob~ectively al-
tero the approc~ch to the apecific expreasion of the function of the goal of
production. If at periods preceding developed aociAliam, overriding signifi-
cunce Was attached to providing for the material xell-being, then the detnanda
of man nox reach cnore and more beyond the strictly economiQ framexork. Incort~-
p:~rably ~relter importance ia being a~eumed by aocial goale in development:
the fornuition nnd perfQCtion of the socialiet way of life, improvement of rrork-
ing condition~ rind the nature of labor, etc. Thu3, the impact of socialiet
~roduction munt rQO~nd to social demande. FLrther on, 11. Cho2a~ dxelt upon
aome di~c~is~ion queotiona~ in par�icular, upon queotions of the quantitatfve
definition of the criterion for efficiency of nationxl production. "
r. 1:-?jc~~;tka, correaponding member of the P~lish Acaderqy of Sciences, devoted -
hia report to an nnalysis of the problem of combining national economic effi-
ciency with the effieiency of economie organizatione (enterprioea). 5peaking
of the v:ilidity and unq~estionable advanta~ea of every kind of provieion for
nztior?al c~conomic efficiency, he noted t}uit the method of fLnetioning for a
aoci~li~t economic syatem hae 3ti11 not fully provided for efficiency on the
ncale of :~oci~list enterpriee~. At the earae time, exparience has shown that
11
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t~01t ctl~t~l~;lAl, Ilsl: ~NI,Y
tha very hi~heat n~tionul economia efi'iaiency aannot be aohieved without a firm
_ gxnurtding for it in th~ efficiene.y of enterprine~. Further on, J. ~eetka
~xaminod the mont important over-~11 mcoeuree that are direated toward aombiw
ing effiQienoy on the macro- aitd mioro~QOnomin ec~le.
In trie eeaond group of rQporte~ problume of ~oientifia-teohnioal progrene e?e
~ the baei~ for raieing produotion efficienay ar?d queetione of the oooio-eaonomio
effioiency of ner+ technology~ an well as of the rationa.l utilization of manporrer .
reaouraee aa a faator in raieing the efficienay of oconomia operation, were exa-
mined.
In the report by Aoademician A. Axakelyan of the Armenian SSR Acadea~y of Scion-
aee (Institute of ~oottomics of the Armenian 3SR Acgdecqy of Saienaen), the quali-
_ tative changee that are c+aaurring in the toole of labor~ in produotion techno-
logy cind the util!zation of energy were pointed out. He oast light on the ob-
~ective tie betWaen the developa?ent of soientifio-technieal progreee ar~d in-
areasing the qualifications of aorkere and he atreeaed the need to improve the -
adminietration of saientific-techni~al progreae' whiah envieag~ea a ~oore rapid
nseiruilation in production of the reeulte of ecientifio reeearch work whiah
hae glready been eompleted.
A llvely dieoueeion rrae provoked by the poeitions eet forth in the report by
Doctor of EQOnomic Sciencee M. Vilenekiy (Inetitute of Economioe of the USSR
Aca.denqr of Sciencea) on the queation of utilization of the category of eoaio-
econoa~ic effeativenoag in the adminietration of eaientific-technical progreea.
Tt~e speaker examined not only the objective need for evaluation of new
technology th rough a criterion and through indicators of socioeconomic
effectiveness, but also the real potential for such an evaluation.
. A. Melich (Polieh People'e Republic), corresponding member of the Polieh Aca^
denqr of 5ciencee, dwelt in his epeech on the probleme of the rational utiiiza^
tion of manpoxer reaources called for by the switch to inteneive methoda of
economic operation~ whiah has b;~on acquiring ever greater importance in reaent
timea. He gave a review of the eitu~tion in regard to manpoxer reeourc~e in
Poland, which io characterized by a growth of ehort aupply in the labor ,force.
In hie opinion~ one muet not exagg+erate the ecarcity of manporr~r in the eountry,
aince there are eubetantial internal resources in connection with thA policy
which hae been carried out for a long number of yeare of providing for ilill em-
ployment at enterprieea. Intereectorial ehifts aad a chang+e in ther etructure
of employment are important inetrumenta in tt~Q rationalization of employment. ~
In thia connecLion, A. Melich directed attention to the next point. If etress
- hae been laid on messures to combat peraonnel turnover in the policy of 3ob
placement until recently, then now the need to reaolve at the eame time the
queation3 of ~uetified chang+ee in one's place of work ie becoming ever more ur-
g+ent, eince goal-directed ehifta of employeea reapond to the intereata of aoci-
ety. The apeailcer aleo raieed the queation of giviag enterpriees and aollectivee
an incentive for the rational utilization of mar~poxer reeources. The eyatem of
providing incentives muat direct enterprises toxard replacing living labor with
embodied labor~ improveraent in ite organization, the utilization of material
~snd aaral incentivee, and improvement in the methoda of planning and forecaet-
ing ~ob placement. _
12
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~~ci~t c~~~ t~ tc: t ni, lisl: uNt,l~
'Phe third group of dpeeche~ wa4 da~oted to current problQmn of the efficiency
of cnpit~.l inveatmQntc~ and the effectivenenr~ of re~ional economic development.
'Cktr, report by Uoator of Lconomic Sciencea V. Krr~~ovnkiy (In~titute of ~conomion
of th~~ ~SEt Ac~dert~y of ~cienceo) nnelyzed the methodological problem~ in the
efficiency of capit~l invedtment~s retoolin~ of the national econorqy und th~
tiine fnctor~ ~ccounting tor the ntntintical lag in ~ planned economio ~ystem~
~;o~~l-directed econnmic programn, integral effect and giving it dynnmism~ ecien-
tific-technical progreen c~nd building cyclea. K. Seoomeki~ member of the Poli~h
Acndemy of 5ciQncee, along With t~n examination of the questions of micro- nnd -
macroecon~mia offioiency of capital inveatmente~ touched in hia report on the
problem of working up methodn for evulut~ting ~oint cupital inveatments beiag
carried out on the bnoin of the program for economic integration of the C~'MA
countrie~. Thih relaten to mr~~or ~oint conatruction pro~eet~, firgt and fore-
mo~t, in the extractive industry.
V. Tsirmi~to, correeponding membor of the Eatoniun SSR Acadert~y of S~iences (In-
otitute of ~:conomica of the ~:stonian SSR Acadert~y of Sei.encea), exemined the
problem~ of the OffectiveneBa of regional econnmic develop~ent of the Union
republics and of ma,jor economic region~s on the baeie of the euample of the
~otoni~~n SSH. In hin opinion~ theoe probleme must be resolved in more detail~
in.~nmuch ao one can take apecific local factora into account to a much
grQnter extent here.
Doctor of Economic Sciencea W. Welfe (Polinh People'o Republio) gave a report
or~ the utilization of econometric models in the proceen of planning for the
national econon~y of the Polish PQOple'a Republia.
In the concluding apeeches~ Aaademician T. Khachaturov and }i. Chola~, corre-
3ponding member of the P~lish Acadertly of Sciencea, noted the importance and
opportuneneas of thQ meeting that had been held for the further aucceesful de-
velopment of resenrch in the field of socio-economic probleme of the efficiency
of national production under eocialiem. M underatanding was reaohQd on hold-
ing the next ~eaeion of the commieoion in Wareaw during the aecond half of 1979~
where there will be a diecueaion of queetione of international economic inte-
gration of socialiat countriee and the economieo of teehnieal progrees.
COI'YRIGMP: Izdatel'stvo "Pravda", "Voproey ekonomiki", 1978
i;66 j
c~o: 1e23
~3
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~Ok ON1~'ICIAL USI: ONLY
~
Ii~T~RNATIONAL ECONOMIC RELATIONS -
STRUCTURE OF' MULTILATERAL COOPEIt~1TTON OF CEMA COUNTRIES
Moscow VOPftOSY ~KdNOMIKI in Russian No 12~ 1978 pp 66-74
CArticle by Yu. Kormnov in the section "Economics of the World -
_ Socialist System"~ "Development of the Organizational Structure
of' Multilateral Cooperation of the CEMA Countries"]
[Text] In January of the coming year the countries in the
socialist community ~nd all progressive mankind will mark the
30th anniversary of Cfl~+fA--the world's first organization for `
economic cooperation between socialist countries. The forma-
tion of CEMA which was effected by the wil l of the communist
and workers' parties of the socialist countries in Europe--
Bul~aria~ Hungary, Poland~ Romania~ USSR and Czechoslovakia--
has become a ma3or historical step along the path foretold by
V. I. Lenin~ in which as a counter balance to imperialism which
alienates nations against each other~ socialism is creating "new,
higher forms of human society, when the legitimate needs and
progressive aspirations of the working masses of /any/ [in bold-
face] nationality w~ll be satisfied for the f irst time in inter- -
national unity...."
During the past JO years from a re.;ional organization of coopera-
tion of European socialist countri~s CEMA has become an organi-
zation of the socialist countries of three continentss Europe,
Asia and Latin America. Twelve years after the GDR ~oined CF1~(A
(1950) the MNR [Mongolian People's Republic] became a member
(1962), and ten yea=s after that the Republic of Cuba also be-
came a member. At the 32d session held in the summer of 19?8
the Socialist Republic of Y ietnam joined CIIyIA. This great event
of international significance evoked the universal approval of
the fraternal countries and parties. A. N. Kosygin stressed at
the session that the "entry of Yietnam into CEMA shows the con-
tinuing solidarity of the countries of world socialism under the
banner of Lenin's ideas."
14
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F'Ult c)t'Ct.C1.~L 1151; c)NLY
`I'he mi~;ht of the C~f~1A cor~~munity whiCh is getting stron~er per-
~onil'ic;:~ the in~ten:3ific~ition of ~the entir.e nrg~.niLation~l ~nd
in~titutional Uystem of' their multil~t~r,~l r.ooperat~on as a
- com~~onen~ of' the mechani~;m f'or economic cooperation of' the
fraternal cotantrien~ ThiS ~y,tem h~;s withstood the test of' time
and on the whole is providing the proper conditions for effi~-
c ient and dynamic development of' thc mutual ties of the fr~ternal
countries, which does not by any means cancel the continuing im-
provement of it in light of the new probl~ms of cooperation at
the present stage of its development. The dec isions of the
32d CEMA ~es~ion have become an important step along this path.
, CLMA h~s laid ~own the foundations for forming a ramified orga-
nizational and institutional structure of multilateral coopera-
tion of the fraternal countries. This process is developing `
under the effect of' the progress of the productive forces and
international socialis~ collectivization of production. The
communist and workers' partiesand the governments of the Ck3VfA
count.ries are ~;uiding it taking into account the requirements
of the economic law~ of socialism as the advanced socia~ system
and a world s,ystem~
There is a close link between the internal government organiza-
tional systems for control of the economic structure in social-
ist countries and the structure for collective control of mu-
tu~l economic cooperation. The commonality of the direction of
the ~ocial and economic progress of the fraternal countries and
the problems being solved by them in building developed social-
ism and communism lies at the basis of the development of both
administrative structures.
The organizational structures for control of social and econon,ic
devel~pment have been formed and strengthened duMing the 30 years
in the countries of the community. This does not, however, pre-
clude their further progress, for as L. I. Brezhnev emphasize3
~t the 2~~th CPSU Congress "The improvement of a control system
is not a one-time measure, but a dynamic process for resolution
of problems being posed by life. " _
The development of the monopoly of a socialist state on foreign
trade into its monopoly on the entire aggregate of foreign eco-
nomic ties is being put into the f orefront among the fundamental
improvemen~s in the foreign economic ;phere. Reflected in this
is the developing foreign economic function of socialist states,
which now does not consist only of relations of trade exchange,
but is spreading also into the area of production-economic, con-
~truction~ transportation, scientific and technical~ monetary-
- credit and other relations in the economic sphere. This fact
was consolidated by legislation for the first time in the new
USSR Constitution. Article ?3 states: "The jurisdiction of the
USSR~ represented by its higher organs of state power and
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~
~
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~~dmini~tra~tion extends to. foreign trade an~ other fc:m~ of
fore ign economic activit;y on ~t;he basiy ~f ~ ti~~e monnpoly. " ~
The p1ur~lity ~f
concrete sub3ect~ of
foreign ~~conomic: ties of _
our country with other socialist countries doe~ not violate the _
unity of wi11 and th~ policy of a socialigt state since overall
direction o~' them i~ exerci~ci by the USSR Council of Minist~rs.
It has been conaoYid~ted in the USSft law on -~~e USSR Council of
_ Minister~ that the government of the Soviet Union "organize~ and
directs the a~tivity associated with the USSR participation iri
socialist economic in~egration and internat3.onal socialist divi-
sion of labor= ~nd tak~s ~teps to insure caordination of USS~
st~te plans with the state plans of the CEMA countries~ to ef-
fect specialization and conperation in production~ and to de-
velop and irrplement long-term special programs for cooperation..."
At the session of the USSR Supreme Soviet (6 July 1978)~ A, A. _
Gromyko said that "The significant expansion of the sphere of
in~ernational cooperation of the Soviet Union has required the
direct involvement of l~terally dozens of different ministries~ _
committees and departments in the work on making in~erstate
agreements." The same situation applies to all the CnVIA coun--
tries. It reflects an important feature of the current stage
of their economie cooperation.
Practically all state committees~ ministries~ departm ents and
administrativ~e organizations of the Soviet Union now have various
ties~ which have been defined bv law and decrees of the govern-
ment~ with their partners in the other socialist countries on
questions of scientific and technical~ economic and planning-
coordinating nature which occur in various organizational and
institutional forms. Also directly participating in them are
economic organizations such as foreign trade~ scientific and
technical~ transportation, industrial (from a number of CEMA
countries), construction and other organizations. This stems
from the fact that under the conditions of socialist economic
integration economic ties are more and more simultaneously and
interdependently encompassing science, technology, production~
supplyr and sales~ and exchange of services. It is quite natural
that a"comprehensive solution to problems ~eing coordinated
which embrace the quest~ons of science and technology~ capital
investment~ specialization and cooperation in prodt~etinn~ as
well as coordination on this basis of mutual deliveries and the
basic conditions for them" has evolved in the comprehensive pro-
~ram for socialist economic integration as a necessary condition
for the high efficiency of cooperation. Also reflected in this
arran~ement is the comprehensive nature of the internal state
plannin~ solutions on the social and economic development of
- these socialist countries~ and the requirements of the scientif ic
and technical revolution which is consolidating the mutual ties
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oP ~uch 1 ink;; in the unif ied cha:f of technical progress as
;~cient.if'ic r~;;earch---en~ineer�ing deve.l.opment--introdur.t.ion into
~~roduction--consumption.
'Phe growir~ ;~cale and complexity of the economic problems of
:~or,iali;;t economic integration especially now, when the realiza-
tion of' long-term special purpose programs of cooperation in
t1~e main areas of
production is becoming the core of al]_ work
in the CEMA agencie~, are inevitably adding an ever greater -
number oi' ministries and organizations subordinate to them of
the variou:~ cot~ntries to the work on preparation, coordination
~~nd realiLation of solutions and agreements un cooperation, `
mhe intensif ication of the role and significance of comprehen~ive `
integr~ited forms of cooperationz of the socialist countries is
leadin~; to a qualitative improvement and deepening of inter-
n7tior~~1 ~ocialist production relations. This requires setting
up and operating those international economic organizations
wt~ich would eff ectively promote the planned dev~lopment of co-
operation and p,^oduction, and ~h~ directidn of temporary shifts
in labor, material and financial resources in the CEMA community~
facilitating -~he optimum association of them ~o raise labar pro- -
ductivity and exploit through joint efforts the natural resources
located in the territory of one or another fraternal country. -
Used 1'or this within the CEMA countries ar~ those economic and
administrative measures which cannot ~e applied in the sphern af
ir~terstdte coordination owing to state separation of socialist
property and the full sovereignty of the fraternal countries~
including also in the resolution by them of the questions on
the use of natural resources. Therefore coming to the foreground
in the area of mutual cooperation of the CEMA countries is not
the administrative-managerial, but the planning-coordinating
- function, not some kind of "international" ministries~ but spe-
cific international economic organizations (MEO). It is pre-
cisely in this organizational f orm that the production relations -
of the process of socialist collectivization of pr.oduction in
the cooperation of the CEMA countries are now fir~ding their ex-
pression. Linking the plans of the cooperating countries at the
~ector and subsector level~ their economic xnterests, and the
conditi~n~ and norms of economic operation, the international
F~c.or~omi~: organizations are uniting the interests of trieir parti-
cipants into common interests despite the national-state se~ara-
tion of property.
, ~ocialism and social property in contrast to capitalism with all
thc~ varietie~ of private ownership are not separating~ but uniting
t.he owner:_; both on a state and on an international scale~ since
both the strate~ic (building of communism) and the everyday (growth
in laboc� productivity for a steady increase in the material and
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cultural 1evo1 of the life of ~he people) ~oals coincide. The
~ coincidence of these problems in principle by no means eliminatea
distinctions in detail~~ 8'GAg@S and me~ns of ~olving them in each
~raternal country. The moet important th3ng is that this is a -
di~tinction of concrete prac~ice~ and not one of fundamental
. principle of economic policy of the fra~ernal par~iee which is
- the firm doctrine of Marxism-Lenii?ism and its pol.itical eGOnomy.3
- Of course~ state separa~tion of property of the countries that
are participating in an MEO introduces much of a apecific na- _
ture into ~he relations of socialist owners of tlte various ~
countries in comparison to the relations of pr~perty wi~hin
the socialist countrieg. Cooperating in an MEO~ the countries- _
- partners mutually inform each other about various aspects of
production. An atmosphere of great mutual economic txust is _
' thereby created and the opport~anity emerges ta evaluate the e:f-
ficiency of alternatives in cooperation from both nat~o.Mal as
well as common (international) positions. This pertains es-
pecially to joint enterprises since this is where the nat.ur?~1, _
labor, material and f3.nancial resources of the int~rested coun-
tries are directly joined togeth~r.
As cooperation expands and relations on the division and coopera-
tion of labor spread into the area of sc ientif ic-technical ~ in-
vestment~ labor~ natural resources and othar factors Zn produc-
tion and into the area of its technolo~y ~nd organization and
_ the "post-production" (commerc ial-sales) spY?ere the necessity
arises for continuing predictive-an^lytic~ technical-technolo~i-
cal~ planning-coordinating~ and cammercial-economic work. All
this stimulates the process of creatin~ sectorial MEO's or new
structural subdivisions in CEMA~ and def ines their functions as
well as i;he crlteria for substantiating the establisltiment of them.
The international economic relations of the socialist countriea,
the most important feature of which is their conformity to plan~
also give rise to organizations whiah have been called upon to
strengthen and develop relations of direct regulation of coopera-
tion in prodaction economics and joint pl~nning activity.
The leading role in cooperation in pla;ining activity and espe-
cially coordination of plans~ as was con~oliddted in the compre-
hen3ive program of socialist economic integration~ belongs to
the central planning agencies of the CEMA countries "with broad
cooperation of the appropriate CEMA agencies~ ministries~ de-
partmer~ts~ associations~ and major enterprises and direct ties
- between sectorial state agencies and economic organizations."
The charter of C~+IA, the provisions on its agencies~ and the
- agreements on establishment of multilateral economic organiza-
tions def ine among t:~e main planning and coordinating functions
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coordination of th~ prosp~c~s i'or joint developmPnt of pro- -
duc~tion, and coordination o~' cooperation for be~ter use of
production capacity and f or elimination of shortages that may
occur in one or another product.
The chief and common aim for all the varie~t;ies of the MEO's ot'
- the socialist countries is to promote fas~er and fuller satis-
f'action of the needs of the national economy for specific pro- _
- ducts with the most efficient manufacture and mutually advanta-
- geous exchange of them, and with extensive use for this purpose
of the advantages of international socialist division and co- -
- operation of labor. The MEO's of the socialist countries in
the sphere of produc~ion are essentially organizational forms
of socialist intsrnational collectiviza~ion of production and
- f orms of organization of the internationalized labor of the
workers of the several friendly countries. They make it pos-
sible to put into action Lenin's instructions to "struggle
/against/ ~in boldface] petty national narrow-mindedness~
reserve, and isQlation, and f or consideration of the whole and
the universal...."~
The social nature of the international economic organizatinns of
the socialist countries is manifested in their basic functions
which reveal the specific aspects and features of international
socialist production relations. These are first of all the
relations of socialist division and cooperation of labor which
arP predetermined by sccialist ownership of the means of pro-
- duction~ the processes of concentration of production and demo-
cratic centralization of control of them. The entire 30 year
experience of multilateral cooperation of th~ CEMA countries
has shown that the deeper the cooperative ties in the scien~tif ic- -
production sphere, the more necessary i_~ an adequate form of
collective control in the form of the various forms of inter-
national economic organizations.
~ The organizational-institutional structure of the multilateral '
c ooperation of the soc ialist countries began forming 30 years
ago at the time CEMA was established. The functional agencies
of CEMA during the first years of its activity began to be sup-
plemen~hed by sectorial commissions in 1956. Substantial changes
in thestructure of the council occurred in 1962, and then at -
the beginning of the 70's in connection with the necessity for
better organizational support to the comprehensive program of =
socialist economic integration.5
The first interstat coordinating organizatior~s (MGKO) for the
sectors of industry~~ transportation a:~d communications? emerged
in the 60's. The experience of their activity, which had shown
a number of advantages, contributed to ~he establishment of new
organizations of this type in the 70's.
~g
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= The problems of purpo~eful. coordination of the r,teans for reali-
za~tion of major economic projects stirred the CEMA countries
, ~o take a new step in the development of the organizational- _
in~titutional structure of control. of mutual economic coopera- ~
tion and to pass to the establishment of international economic '
_ agsociations (MKhO) which was consolidated in the comprehensive
program of soc ialist economic integration. To date the CEMA ~
countries have set up six multilateral internati.onal economic
organizations.9 The founding documents of these organizations
specify that in addition to pl.anning and coordinating functions ~
they must also perform the directly economic functions of a
production, service~ and commerc3al-marketing nature~ which
~.t must be said has proved to be no easy ~task. -
The participants in these international economic organizations '
_ are both state agencies and the economic organizations of the -
countries~ while the founders are the states. The internal ,
- ~tate legal status in the field of activity of the ministries~
departments and economic organizations--the partic ipants in _
the MEO's~ and the range of their rights and functions largely
determine the limits of authority and functions of the varieties
of the corresponding organizations.
The international economic organizations of the CEMA countries -
perform the functions of control of cooperation basically within %
the framework of the sec~tors and subsectors in industry~ trans-
_ portation and commun~.cations and in the sphere of credit. Ques-
tions concerning scientif ic research~ technical developments~
production and sales are worked out within these frameworks.
The internationa.l banks of the CEMA countries--MIB [Inter-
national I nvestment B ank ] and th.e MBES [ International B ank for
E:onomic C~operation]--perform the functions specific to them.
They can locate their branches in one or several participant
countries and even outside of them. '
Both single sector ("Intermetall") as well as subsector (OSPP)
[Organization of Cooperation of Bearing Industry] organizations
_ currently exist. This reflects the sector principle of control
of the economy which has been established in the C EMA countries =
for years. Substantial measures to strengthen intersectorial
control of the economy and to enhance the role and significance _
of the program-target method of control of the leading complexes �
of production have been outlined for the current f ive-year plan
- and the future by the 25th CPSU Congress as well as by the party ~
: congresses in the other CIIVIA countries. ~
It was stated in the CC CPSU report to the 25th congress that '
under current conditions the "question on the improvement of the :
methods of a comprehensive solution to major state intersectorial
and territorial problems is ripe. Required here are unif ied ,
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_
c en tral ized pY~o�;r~ams ombrac ing a1.1 stages of work--fr. om des ign
t,o practica:l .implem~ntation. It i~ essen~ial that in each case ~
LtierE~ be speci~'ic agencies ~nd specific p~:ople bedring the full
weight of re~por.sibility and coordinating a11 efforts within ~the '
#'ramework of one or another program." Similar tasks have been
_ set also in a number of other CEMA countries. Such a direction
in improvement of internal state control systeins wi11 inevitably
be and is now being reflected in in~ernational economic relations -
of the fra~ternal countries, in intensification of multisectorial
comprehensive f orms of cooperation within the framework of CEMA,
and in the development ~nd realization by the CEMA countries of `
int~rnational long term target programs of cooperation (DTsPS). ;
Such a fundamentally new form of cooperation between the CEMA
_ countries in planning activity as the DTsPS may require organi-
zational forms of work appropriate to it in the agencies of CEMA
and other NIEO's. The possibility also cannot be excluded that
multisectorial MEO's will emerge in future to control the pro-
cesses of realization of ~these programs. Time will show the
justification for such a forecast inasmuch as the possibilities ~
which the CEMA agenc ies and the sectorial international organi-
zations now operating have today are far from exhausted.
The CIIvIA countries are currently using primarily the form of
interstate coordinating organizations (MGKO). This is d:~ze to
a number of c ircumstane es . The fac t is f irst of all that such
functions have been and are being performed by the Council for -
Mutual Economic Assistance and its permanent commissions from
which the currently operating MGKO's were detached. In a number
of areas t}ie consultative-advisory and major sectorial nature of
_ the work of the permanent commissions of CIIVIA and its sections
in time becarre inadequate to regulate the subsector operational
cooperation. Subsector MGKO's began to be created on the basis
of the sections and operating groups of the CEMA agencies to
eliminate bottlenecks which had formed.
The development of productive forces and improvemeat of
production relations in the socialist countries have moved pro-
duction (economic, industrial, agr~arian-industrial, etc.) associations to
the foreground within the CIIvlA countries since the middle of the
60's. "Experience shows," said L. I. Brezhnev at the 25th CPSU
Congress~ "that orily large scale associations are capable of
c onc entrating a suff ic ient number of sk il.led spec ial ists , in-
suring rapid technical progress, arid making better and fuller
use of all resources. The policy to create associations and
. combines must be conducted firmly--over the long term they must
become the basic self supporting links in socialist production."
Such a policy is typical of the last ten years for all the CEMA
countries.l~ In the USSR it was especially intensively conducted
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in 1971.-~975 when the decisions of the 2~th CPSU Congress were
implemented, Takelinto account wha~ has already been done =
the task of "comp].eting the work on creating prnduction associa-
tions and improving their activity" has been set in the new f ive- .
year plan by the 2sth party congress.
~ The ~nhanced roles of economic associations ard the strengthening
of the sectoria? principle of management has led to their be- -
coming participants in the international coordinating and econo-
mic organizations of the majority of the CEMA countries. Sov iet _
all-union industrial. associations also obtained that right in
197J.11
The formation and development ~f production an1 scientific-pro-
duction associations in the socialist coun~;~ies~ raising the _
direct cooperation of labor to a new higher level~ are stimu-
lating its development into international cooperation. Tn the =
process it is interesting to note that praduction (industrial) _
assoc iations of a number of CF~vIA countries are appearing in the
MEO's together with f oreign trade organizations. This insures
tY,ie comprehensiveness of consideration of problems from both
production-technological and commerc ial-economic positions,
The emergence of joint enterprises, particularly in sectors
dealing with raw materials, is stimulating the expansion of
cooperation. They have a great future for it is in them that
real and profound cooperation in labor and production occurs
directly and daily and the material, f inancial, labor and
nat::~�al resources of the cooperating countries are directly ' _
joined.
- In our view there are grounds to tie the establishment of an ;
adequate number of joint enterprises together with development -
of international economic associations. Organizing MKhO's with
the task of developing economic activity~ but without allocating
- real material-f inancial resources to them evidently is hardly ~
efficient. Self supporting activity is inherent only to enter-
a prises operating in the spheres of production~ technical develop-
ment and services. An organizational superstructure "over some-
thing that is not there" is unwarranted and no f ormal "conver-
sions of coordinating-administrative ac tiv ity into "economic"
by putting it on a payment-accounting basis instead of a mor e
responsive nature of management of estimate-budget financing~
in essence~ can change things. Rather the form of the MEO's
must be adjusted to the essence of the functions really per-
f ormed by them.
The successful activity and further improvement of the organi-
zational-institutional apparatus of economic cooperation of the
socialist countries largely depends on creating the organizational-
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cr, onom ic ~~nd le~;al prereqti i~ itea that are requ ired f or tr~ i:; in
th~~ count,ries~ The detr,~rmination o~' the CEMA couritries in t;hi~
i.;, unanimou~ ~,~nd thF~ com~~rchcr~;;ive pra~,,~tm oi' socialiat economic
ir~t~~~~r;~tic~n i;~ E~vi.dc~ncE~ oi' thic~~ }{owever th~ proce~~ of' creating
~uch prerec~ui:~ite:~ i~ nu simple nor fleeting ta~k. Many ~cien��
tiCic :~nd ~~ractir~l prob~em~ wi11 have to be ~olved on thi~ riat}i,
Unc ot' them concerns the relationship of' the interaction of the
sector~ial economic org~nizations of
CnVIA with the Council for
, Mutual Economic Assistanc~. C~vIA is the most universal multi-
:,ec torial and multifunctional international organization of the
;~oc ialis ~ countries. It regulate , the economic cooperation of
the countrie~ belongin~ to it practic~lly on the scale of the
national economy a~ a whol ~ Country delegations in CL'MA agencies
repre~ent tt?e t~tate level . ~2
Hence it follow~ thai, sectorial MEO's cannot be established with-
out a tie to CI~fA~ function without coordination with it~ and
much less duplicate the work conducted in it~ agencieU. Ex-
_ perience Uhows the objective necessity of such interaction. It
become~ apparent, for example~ in that the CF~v[A executive com-
mittee re~ularly considers in its ~essions the work of the sec-
toria.l economic organizations, the success of the activity of
which, as experience has shown, largely depends on thQ inter-
- action with the appropriate permanent commissions and c~epartments
of the CEMA secretariat.
The interaction of the C~VfA sectorial agencies with the sectorial
interna tional organizations is in no way characterized by re-
lation~hips of "command" and "subordination~" inasmuch as they
are all establish~~~ by sovereign states. Here we are speaking
as it follows from the decisions of the 32d CEMA session, about
the clear delimitation of the tasks within CEMA between its rep-
resentative agencies in the secretariat, as well as the MEO's,
about the definition of the priority directions of the work of
the latter, and about all international economic organizations
01' the CEMA countries being guided in their activity by the
norm~ of cooperation--both by those pertaining directly to them,
and by those being established by the normative and methodologi-
ca t documents adopted within the framework of CFIVIA, which~ by
the way~ has already become the norm.
Also pertaining to all the MEO's of the C II~1A countries is the
~;eneral requirement~ defined by the 31d CEV(A sessior~ to get
morc rc~ult~ from their activity~ and to focus attention on the
- :~olution to the problems of production-economic and scientific-
technical coo~eration, to the realization of ineasures stemming
f'rom the DT~PS, and to specialization and cooperation of pro-
duction.
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:
' There is ~om~time~ controver~,y in scientific di~cu~siong on the ;
inadequate pace of
est~bli~hing new MEO's and, consequently~ of :
the development of the organizational ~tructure of collective ~
control of the multilateral coopera~ion of the GnVIA countrien. ~
~xpcrience~ however~ ha~ ~hown that success in so?-~ing gpecific '
problem~ ~f cddp~ration is by no ~nean~ determined by the quan-
tity of
~uch or~anizations and th~ varietieg of them, On the :
contrary~ both the number and gpec i~ic f arm~ of M~0"s are de~ '
termin~d by ~the content and gc~le of the prnblems of cooppra- !
tion in the sphere~ of mttt~ri~l production~ gcientific resear~h '
~nd technical development, ~nd circulation. Cooperation of the ,
CEMA countries in 1.arge measure gains not so much from numberg
of
new nrgani~ations~ ag from quality, efficiency and evident '
unefulnean di th~ir ~ctivity. That ig why the requirements tn .
~ubstanti~te the advantageg of egtablishing new in~ernational
economic organizationg and on the 1eve1 of all preparatory work
on setting them up are being made more exac~ing~ Establishing
~n MEO in advisable only when the corresponding sector of
pro- ~
duction needs one and th~re are real conditions for successful
functioning of it and when th~ proposals f or establighing it
_ have thorough techniCal and economic substantiatinn, including -
an evaluation of the expected results of its~ activity~ me~-
sures f or insuring the economic~ organizational, legal and
personnel conditions for its effective operation~ precise
definition of the functions of the MEO being newly established '
~nd 3ustification as to why these functions cannot be performed ,
by CEMA agenc ies .
Expandin6 the scale and deepening the content of the coopera-
tion of the CEMA countries require further improvement in the
f'orm and methods of the activity of all the international eco-
nomic organizations and first of all of the Council for Mutual
Economic Assistance. At its 32d meeting~ the C~+IA session~
guided by the basic directives of the central comm ittees of
the communist and workers' parties and of the CEMA countries' -
governments, approved a document~ prepared by the C~iA executive
committee, which contains a complex of ineasures for further im-
provement of the organization of cooperation of the countries
and activity of the council. By this document the "work of all
CEMA agencies shall be oriented to the primary solution of the
problems of cooperation in the sphere of material production~
first of all those associated with realization of long term
target programs of cooperation, to further strengthening of '
plannin~ principles in the work of CF]NA, and to raising the ef-
fectiveness~ efficiency~ expeditiousness and coordination in the
acti~ity of all CIIytA agencies and the international organizations
of the CEMA member countries. "13
- Thi~ pertains to the integral program of specific actions for
the coming years which concerns all tt~e agencies of the council
_ 24
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..lricl tlie MI?,U';; oC t;h~ CL"MA memb~:r countrics~ In his addrF~ss at
thF~ ;;~~;;;;ion, A, N, Ko~y~,;in, t,he chief of the g oviet delegation~
not~~ci in thi:~ cor~nection th~ nec~~;;;ity uf focu~ing the a-ttention
of' the Ct.~V(A executive committee on the main key problem~~ on
_ coordir~ation of' ~;he work o� Ck~IA agencie~ and t;tie international
ecc~nomic or~anization, vf' the CIMA countries, on the monitoring
of' the f'ulf
illment of the compreherlsiv~ program nf
~n~i~list
ecoriomiC integration and the long term t~rget programs~ and on
- the systematic introduction into the practice of CnvIA of ex-
peditiou~ and efficient form~ and methods of work,
, mhe role ot" the CEMA committee on cooperation in planning ac-
tivity i~ also growing today. Not restricting itself to working
nvtall the problems and agreements on realization of the UTsPS~
it is called upon tn skillfully direct this work within the
framework of' the permanent sectorial commi5sions, the role and
i�e~ponsibility of which for it as the chief drafters of agree-
ments is sharply increasing. A~ N. Kosygin noted at the ;~2d
CF]VIA session that "the sectori~l international economic organi-
- rations must also be more actively included in this work."
The or~anizational-institutional system of cooperation of the
ceurrtiri~s i.rt the CEMA cdmmunity is steadily developing under
the influence not only of the internal state processes in the
socialist countries and their mutu~l caoperation~ but also under
the effect of factors external to the C~vIA community--the posi-
tive changes in the entire world. The cooPeration of CEMA with
countries that are not members of this organization hss ex-
panded in recent years.
On the basis of a special agreement cooperation between C~+[A and
the SFRYu [Socialist Federated Republic of Yugoslavia] has been
actively developing since 1964. This agreement has shown its
effectiveness as a flexible progressive f orm of cooperation be-
tween the CEMA countries and other countries within the fra.me-
- work of the council on the basis of observance of the principles
of f~l equality, respect for sovereignty, goodwill and mutual
- advantage. It has demonstrated the truly democratic nature of
CF1~lA and the possibility of individual countries cooperating on
_ a broad range of problems without becoming a CEMA member and
pr~.ctically on equal terms with the CEMA member c:ountries. The
a~reernent to no little degree promoted the growth in trade turn- `
over of Yugoslavia with the CF1~1A coun�ries, which in the last
five-year plan was about 10.2 billion rubles, double that of -
the previous five-year plan. It is also expected to more than
double in the curi�ent five-year plan.14
Alon~ with representatives of the LNDR [Lao People's Democratic
- Republic] ~ the participation in the work of recent CEMA sessions -
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oi' dele~ationg f'rom nuch countries of revolutionary Africa as ;
the People'~ R~public of Angola and Social.ist ~thiopia is very
~ignifi.cant. The propen~ity of the countries being liberated
i'rom the yoke of imperi~lism f
nr active cooperation with the i
countri~~ in the CflvIA communi~y both o n a bilater~l ~nd on
~ coordina~~d mul~il~teral basis ig increagi~g from y~~r to y~~r.
This is also being reflec~ed in the organi~a~ional f'orme of ~
cooperation with the Council f or Mutual Ecanomic Asgistance. ~
We me~n the ~oint commi~gions of CEMA-Tr~q and CEMA-M~xico.
The open~ nondiecriminatory and mutually advantageous nature of ~
cooperation with the Council for Mutual Economic Agsigtance at-
tracted Finland~ which hag traditionally maintained a peaceful
and constructive po~.icy in ~conomic buginess tieg of countries
wi~h a different social system~ to it. This year the community
of' the CflVtA countries and Finland noted with satisfac~ion ~h~
- fifth annivereary of the activity of the commission of CEMA-
. Finland. During ~he~e years (from 19?3 to 197?) the trade
tur.nover between the C IIVfA countries and ~inland increased by
?nore than 2.~-fold, reaching 2.6 billion rubles, and the ~hare
of the CEMA countries in the foreign trade of Finland grew from
1~ percent in 1973 ~0 23 percent in 19??�
CEMA ties with nonmember coun~rieg are assuming ever greater i.m-
portance and more varied forms. The experience of them ig await-
ing its generalization. It shows that coopera~ion with CFNfA or
with other countries within its framework requires not simply -
a desire to cooperate or to "3oin" CDNA~ but proper preliminary
preparation of the partners f nr this. It requires an accumula-
tion of experience of mutually advantageous cooperation on
specific economic projects on a bilateral and a coordinated
multilateral basis with the CFMA countries. And it requires
making and meeting mutual commitments including material ones.
- The recognition and authority of CIIvIA is also gzvwing ~the international
organizations of th~ wo: ld. :n lyr ~ ~rlY?ti had regular contacts -
with more than 30 international organizations including the UN.
CEMA delegations participated in sessions of the UN General
Assembly in 197? and 1978. CF1vIA has extensive contacts with the
European Economic Commission~ UNESCO and ECOSOC.
The 30 years of CFNtA has coincided with a crucial period in
cooperation of the fraternal countries. The first three long
term specific-purpose programs of cooperation in fuel and raw
materials, the food industry and machine building were adopted
- at the 32d C~iA session. Full scale prep~ration is underway
on the remaining two special purpose programs of cooperation on
transportation and production of manufactured consumer goods.
The next CEMA session, the 33d~ which will be held in Moscow
ten years after the historic 23d (special) session~ which
26
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aerin~a the path for :3oci~list economic integration, will be
f'~tced with working out ~ind ini-tiating execu~tion of a number of
agreements tht�ougti whic:h the long- term ~~,cia.l-txrpa:>e ~rams of c o- _
operation will be re~liL~d, ~.nd with putting the first import~nt
mea.~ur. e;3 into effect f'rom the complex of' me~sure~ on impr~v~ng
_ the activity of ~11 the elements of' the organi~~tional-inst;ity
utional gtructure of the multilateral cooperation of the C~MA
community coutttries~
F'OOTNOTES
1. V. I. Lenin~ "Cnmplete Collection of Works~" Vol 26~ p 40.
2~ The~e include f'irst of a11 the joint eonstruction of facili~
ties so that the p~rticipants may obtain products or ser-
vicest production-trad~, scientific-technical cooperation
and spec i~li2ationj ~oint operation o~ f~cilities in the
form of joint enterprisest and ~cientific-production acti-
_ vity within the framework of international asgociations.
3, mhe accession to power i.n the PRC of politicians who have
d~ser~~d M~rxism-L~ninism h~s ~mbng ~he ~vid~n~ foreign
_ economic consequences of the betrayal of the cause of
socialist internationalism the virtual severance also of
econnmic relations with the CFMA countries~ direct, un-
- disguised provocations against such CEMA countries as
Vietnam, the MNR [Mongolian People's Republic], and the
USSR, and the chauvanistic overemphasis of its great power
interest. It must be stated that at the present time the -
leaders of the KPK [Chinese Communist Party] and the PRC
have betrayed both the strategic and the everyday interests
of their people and the world socialist system.
4, V. I. Lenin~ "Complete Collection of Works," Vol 30, p 45.
5. In addition to the main agencies--the Session and the Ex-
ecutive Committee, the following agencies are currently
operating in CEMA~ CflvfA committees (on cooperation in
planning, on supply of materials and equipment, and on
scientific and technical cooperation); permanent commissions
_ ;on ~tatistics~ foreign trade~ monetary and financial prob-
lems~ electric power~ on the use of atomic energy for pe~ice-
ful purposes~ geology~ gas and petroleum industry~ coal in-
dustry~ chemical~ non-f errous metallurgy~ ferrous metal-
lurgy~ machinP--tool building~ radio engineering and elec-
tronics industry~ construction~ transportation~ civil avia-
tion~ telecommunications and postal services, standardiza-
tion~ light industry~ food, agriculture~ and health);
~7
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Conference~~ of' ~epartment heads (on priceg and invention~)a -
of w~ter management ~nd 1~bor agen~~e~; of country repr~gen-
tative~ on leg~l problems and ministers of intern~l trade
of the CENIA member countri~s.
b. Yn 1~64 ~rg~ni~~;tidns were cr~~ted f'or c~~p~ration in the
bearing indugtry (OSPP)~ ferroun metallurg,}r ("Intcrmeta~.l")~
production of machines for v~ etable growing, horticulture
- and grap~ growing ("Agr~mash"~. An ittt~rgovernmental cdm-
m ission on cooperation nf the soci~~.igt c~untries on cdm-
puter technology wag formed in 196q.
7. Organization for cooperation of the 5ncialis~ Countries in
T~1a~ommunications and Pn~ta1 Serviceg (OSS) and the Common
Freight Car Pool (OPY)--in 196~~
8, Thes~ include the in~~rnational gectorial organizations set
up in 1971 on cooperation in gmall-batch chemigtry ("Inter--
khim")~ the electrical equipment industry ("Interelektro")
and 'the ~oint use of containers--the Council of the SPK
(1.974 ) .
9. They are the 3nternational economic associations on nuclear
instrument making "Interat omi:nstrument" (1972)~ on produc-
tion of industrial equipment for the textile indugtry
"Intertekstil'mash" C1973)~ on organization of cooperation
in making deliveries of equipment and rendering technical
assistance in the construction of atom3c power stations
"Interatomenergo" ( i 973 in the f ield of chemical f ibers
"Interkhimvolokno" (1974), and the ittternational economic
association "Intervodoochistka" (19?7)~ and "Internefte-
produkt" (1978).
10. For more details eee "Sovershenstvovaniye upravleniya
ekonomikoy stran SEV" [Improving Control of the Economy -
of the CEMA C ountries], Izdatel'stvo "Nauka'~ 1974. _
11. See the decree of the CC CPSU and the USSR Council of
Ministers of 2 March 1973~ "On certain measures for further
improvement of control of industry~" (PRAYDA~ 3 March 19?3)�
- 12. As a rule the chiefs of the delegations of the countries at
meeting~ of the session are the heada of governments~ at
_ meetings ef the CFi~iA executive committee--deputy chairmen
of tt~cour~cils of ministers and at meetings of permanent com-
missions--ministers.
13. "Communique on the 32d Meeting of the Session of the Council
for Mutual Economic Asaistance," (PRAYDA~ 30 Junz 1978).
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1~~ ~ :;ec~ VdpR~SY EKONOMIKI, No 9, 1977 ~ p 111 ~ ^
_ COPYRIC}{m~ Izdatel'gtvo "Pravda"~ "Voprosy ekonnmiki", 1978
a5~5
Csc~ ~ 18z3
_
:
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ra?: or~trini, 1?Sr hNT,Y
'CaAN5 E'OItTAT I ON
- LNCtt~ASItvG Tt{~ ~~~ICI~NCY OF' BULK ~It~IGHT TitAN5p0itT ON ItAILIt0Ab5
Moscow ItATSIONALIZA'TSIYA P~~~VOZOK GItIJ'LOV NA zN~L~ZNYKH DOROGAKH
(Increaging ehe ~fficiency of Freight Trangport on Rail~raadg"~ in Itu~sian
1977 pp 191-197
(Cl~apter S from book by I. G. Kazakhovskiy, "Trnnaport" Publishersj
(mext) Chapter 5. Rntionnliz~tion of gulk FreighC Transport
I~'reight f1oWS on the railrond network are made up of several thousand de-
gcriptions of various types of freight. The alphabetical list of the
Standnrdized ltate and Statistical Productg LisC alone enumeraCes gpproxi-
mntcly 5,000 descripCions of typeg of freight. If they are ranked indi-
vidually within this diversity by freight turnover in railroad trgnsport,
the following fuel frei~hta Would be first: coal, petrol~um and petroleum
prodUCCS, peat and fuel ehaleg. itanking eecdnd would be the metal nres:
iron nnd manganese ore, nonferrous ore and raw eulfur, ferrous metalg, flux-
es and scrap metal. The third gronp would include construction freight,
heat ieEractoriea, industrial raw materials and molding (foundry) materials,
granular slaga and cement.
Accounting for ~ne-fifth of the railroad freight turnover are agricultural,
lumber and chemical typca of freight. In arder to aimplify the planning _
of crnn~port and the operational accounting of fulfilling the plan, the
entire diversity of producta hauled by the railroads has been grouped
together in 43 producta-liat groupa. The proportion of each productg-
list Rroup in the total amount of freight ehipped out and 1n freight turn-
over varies. The importance of transporting this or that freight is
determined noc only by its volume in hauls. Individual typea of products
with a relatively modeat volume of hauls are generally the most valuable
in terms of coats and in urgency of delivexy.
Measures to streamline transport must first of all concern bulk freight,
which determines the volume and direction of the freight f1oWe making
up the interregional exchange. Such consolidated groups must include fuel
Ereight~ metal ores, conatruction minerals~ lumber, agricultural produce,
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_ chc~mic~l c~i~d min~ral fertilizerg (gee Table 45) ~ In total shipment~ the
fir~t aix conAOlidated groups dccupy npproxi.mately ~8 percent and in frei~h~
turnover ~tbout 80 perCent.
1. [~uel Crei~ht
'Phr l~~r~;e~t nhare in the tr~tt~port operutioct of railruady is o~~upied by
fuel freigltt. MeaHUre~ promulgated by the party and the governmenC have
permitted ~n incre~g~ in the extrac4idn of fuel. If during the ~ighth
F'ivc--Ycnr ~'lan the average unnual increase in its extractton amounted to
S1 million tony, tlien in the Ninth ~ive-Year plan it roge to 7~.7 millfon
tons. The extraction of petroleum and natural g~g developed aC the most
rarid rate. buring tt~e last 15 years when the total extraction oE ~uel
increased 2.3-fold, tt~e extraction of petroleum grew 3.3-fold, whereag tl~at
of natural gas incre~~sed 6.3-Eold.
'Che he,tidlon~; development of the petrochemiCal ~nd natural gas indusCry
brnught ~~bout a signiHc~nt increage in the proportion of liquid fuel
~nJ natural g~s in the country's ener~y supply.
'Che proportion of petroleum and n~~tural gas has increased 1.7--fold over the
15--year period ~nnd has reached 2/3 of the fuel balance. The porportion of
;~olid fuel, primarily in the form of coal, has decreased accordingly.
'~able 45
Con1~oviticm and I'roportion oL Cvnsolidated E'reight Groupa Hauled on itailroads
Consulfdated Make~up by Products--list Croup Proportion, ~
hrright Groups oE i'lan and A~rount ~reiKht
_ _ Outgoing ~urnaver
Nuels Coal, coke, petroleum and petro- 33.0 32.2
leum products, peat and peat pro-
ducts, shales
Metal ~~rey Iron and m.~nganese ores, non- 16.6 16.5
Eerrous ore and raw sulfur, fer-
rus metals, Eluxes, ferrous
scrap metals
C~~nstruction Construction materials, heat 26.1 13.4
minerals r.eEractories~ industrial raw -
materials, and molding materi-
als, granular sl~gs, cement
I.umbrr Lumber 5.2 9.6
A~;ric~ult~ir:~l (:rain, flour, sugar bcets. 4.6 5.4
pr~,Jucc pocatoes, vegetables and fruits,
cocton
Cl~emlcal ancf Ci~emical and mineral fertilizers 2.8 3.1
mineral Eerttlizers
Oclirrs I Misc. Freight 11. 7 19.8
31
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The IndiCated rh~ngee in the ~tructure of the Euel balance have been re~
Ftertc~d in Freight Crungpor~ nnd in trunsport-economic tiea.
Cosl. Uespite tlie derrea~e df coal in tl~e fu~l Ualuncc its extrareion h~~
bec~n in~rc~a~ing from yenr to yenr. If in 1965 5~7.7 million tong were ex-~ -
tr~cted~ nnd in 1970--624.1 millidn tdng, then in 1975 701~3 millidn tdng
aere extr~rted. `
.
Along with the growth in coal extraction ies transport by railroad ha~ in-
creased acror~fingly. Moreover, if in the ~ighti~ ~ive~Ye~r plan th~ annu~l
increage in coal shipmeneg amount~d to gdmewhgt mare than 12 million tons,
then in rhe Ninrh F'ive-Year Pl~n it exceeded 20 million tons. Coal h~ul~
in the e~gtern p~rt oE the network grew on a pgrticularly l~rge ecale.
With dn gvernge ~rnwth in tntal cogl ~hipmenC~ of 16.5 percent in 1975
compared with 1970 in K~z~khat~n thig growth c?mounted to 54.'~ percent, in
Siberia 23.7 percent, in the Northern Caucasug only S percent.
Coal 1~aulg ~re characterized by a high degree of concentration with regard
to shipping out nnd by a degree of dis~ergion with r~gard to delivery. Of -
thc 1390 statians whicli ship out hard coal 107 stations account for 75 per-
cent of the total shipping out. At the snme Cime coal ie unloaded at 1100
stations, or almoet evexy one which is open for freight operationa.
Despite a certain decrease in the porti~n of Che Donets-Dnieper region in
tl~e network shipping out of co~l, its proporcion aCi11 continues to remain
tiif;h--nbout 35 percent. Nevertheleas, the outstripping growth of coal
extraction in the reginns of Westprn and Eastern Siberia nnd Kaankhgtan
_ is constantly inereasing their role in ~upplying coal to the national -
economy. IE in 1965 Che proportion of these regions in the network's ahip-
- ping out oE coal amounted to 32 percent. then in 1975 it reached 40 percent.
Five economic regions--Donets-Dnieper, Northern Caucaeus, Western Siberian,
- ~astern Siberian and Kazakhst~n--account for 90 percent of all the inter-
regional exchange of coal. buring the ~ighth and Ninth Five-Year Plgns we
observed an uninterrupted increase in the proportion in the interregionel
exchnnge oE coal from Siberia and Kazakhstan as Well as their replacement of
bonetB cd~l. Uuring thie p~riod coal ~hipped out of the Donets-Dnieper
region and the Northern Caucasus to other regions Was reduced by 18 million
cong or 22 percent While their proportion in interregional exchange de-
crenseJ from 46 percent in 1965 to 30.6 percent in 1975. ?fore and more
Donbass codl remains aithin the borders of this region. The proportion of
t~aule of bonets coal by loral tranaportation Within the Donets-Dnieper
re~ion has already excee~ied 81 percent~ and it continues to increase.
A consc;~nr tncrease in the shipment of coal frqm Siberia and Kazakhstan is
r~~~li~~in~ Uone[s coal from year to year, and the proportion of this coal in
interregi~nal exchnnge roee from 45 percent in 1965 to 60 percent in 1975.
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roiz orrictnt, ~ISr oNi.Y
Ay ci re:+ult tficre I~as Ueen cotl~ldcr~ble expansion in Che zone oC distriU~~
tlc~i~ uf 5iberien coal in we~terly direction rip,ht into the 5outhwestern,
Ceritr;il-Chr.rt~ozem, and ,lorthwestern region~; of K~zakhgt~~n coal to the
_ Urr~ts; nnJ l:netcrn Siberi.hn coal to t1~e Car Cnmt.
'L'r~~iiKp~~rt h~hg begun oC Kuznetsk, Karagand~ and Intin:~k ca~~l for the eleC~
tric power ~tations of the Ukrainiatt 55I2 ~g we11 as Kuznetsk coking coal
Eor the co~l-t~hr chemical enterprises of tlie UOt1bA55 and Unieper reginn.
'Cr~zngport has begutt of the brown co~l of the Chelyabin~k deposit for the
peat~Eired eleCrric power geations of tt~e Gor'kiy ~nd Kalinin oblasts.
Alon~ witt~ tt~ig there I~as been a 2.5-fold increase in the long-digtance
hauls of coal from ~astern 5iberia to the ~'ar ~agt and a doublin~ of the
~hmount Erom Knzakhstan to Central Asin ~nd the Urals.
'Che volume of long hauls above the average distence re~ched 18.2 million
- ton~ in October 1975, and it increa~ed by almogt 30 percent in comparison _
with October 1975; moreover, for distances in excess vf 2,Or0 km, 8 mil-
lion tons of coal were I~auled, or about 10 percent of the total nmounts
sl~ipped out as compared to 3.9 million tons in October 1965. The con-
siderable increase in long~distance hauls has brought about a growth in -
the average diqtance of coal hauls from 680 km in 1965 to 698 km in 1975,
c~r .nn incrense oE 18 km,
A number of inefficient hauls are linked to shortcomings in the estab-
llst~ment of Euel systems at individu~l elecCric power stations. ThuB, most of
oE the electric poKer qtatione of the Volga region uCilize closely situated
resources of fuel oil ~nd natural gas, in connection with which other eler- -
tric power stations~ in particular those of Mosenergo and Lenenergo, are
compellect to operate on coal brought in from long distances.
TakinY into consideration the trend toward a constan[ expansion of the zone
w}~ere Kuznetsk and Kazakhstan types of coal are consumed, the most important
condition Eor curtailing the unproductive operation of railroad transport
as Well as outlays by the natinnal economy for hauling coal consista of the
ration~~l delineation oE the regions where this coal is consumed and those
wli icti use the Donets coal .
In tlic first piace we must speed up the soluCion of the problem of converting
tl~e clectric poWCr stations of the Volga region as well as those of the
_ Central and Central-Chernozem regions to the combustion of Kuznetsk coal
:m d to the combustion oE Moscow-re~ion coal and to gas-fuel oil. This will
r~rmi~ cuctin~; do~+n the transport of Donets coal in the same direction as
tt~at i'rom the Kuznetsk region.
It ~;cem cxpcdicnt to reexamine the fuel syste~:s of t1~e eleceric power sta- _
tions wttl~ a parsicular viec+ to conver[ing individual elec[ric power sta-
tions oF tlic Vol~a rc~ion to the combustion of Juznetak coal instead of
Cuel oil and increasing, because of this, the delivery of fuel oil to the
electric poWer atationa oE tt~e centrnl regions. Taking into acco~nt the
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EEict th~~t the he~r vulue d~ ~uel oil is twice as high ag Chat of co~l, Chis
would p~rmit tt significnnt curt~ilment of long-digt~nce cnal haulg along with
c~ reduction in the extremely heavy londg carried by ttie railrouds connecting
the center rekions with the Urnl~.
M~agure~ mugt be promulg~eed to increa~e tt~e extraction of coking coal in
th~ Uol~etg nasin in order to curtail its being shipped in to pl~nte of the
Minigtry of ~errou~ Met~llurgy of Che Ukr~ine from Karagnnds ~nd Che Kuzb~ss.
An imporCant Cask ig tt~e maximum increase of peat extraction in Belorusgi~
and tt~e Vol~o-Vyatka region~ which will permit a reduction in long-digtance
hnuls df cnnl to Chese regiona from the Ur~ls. In connection with the =
_ ghort~ge oE peat resources, measures muet be tnken to ensure the eupply of
el~ctric power arations in Chese regidna with ~uel oi: gnd naCur~1 gna as
well as to provide n maximum supply of L'vov-Volynsk conl to the c~naumers
oF Ilelorusgin and the Baltic region~ so thaC gas-type gnd long-flame Cypes
oF co~l from thc Conbass do not have to be aent to Chese regions.
We must incrense the extrdction vf local types of coal in Centrnl Aaia nnd
speed up the conversion of municipal services (public utilities) of Chese
republics to ga~-fuel oi1 in order to curtail as much as possible the ship--
pin~ in of Juxnetsk coal.
In the ~ar East we mugt also increase the extraction of maritime and Raychi-
kl~insk types of coal up to amounts whirh would ensure the curtailment of
tl~e shipping in of brown coal of the Kharanorsk deposiC for electric power
stations and consumers of the Amur area of the Khabarovsk and Maritime
Krays.
In connection with the increasing flow of coal from the eastern regions in
a westerly direction an important problem is the more complete utilization
of river modes oE transportation. Special measures musC be promulgated to
increase the handling capacities oE river ports and stations of Perm'Kambar-
ka, Cfa~ U1'yanovsk~ Kuybyahev, Tol'yatti in order to augment aignificantly
the volume of coal haule in direct-combined railroad transportation.
Pertoleum freight. H~uls of petroleum freight on railroad traneport have
been increasing to ~n ex[ent which is coneiderably greater than the total
- volume of hauls. If in 1975, as compared to 1965, the total freig}it shipped
in~reased by SO percent, and freight turnover by 66 percent, then the ship- _
men[ and �reight turnover of petroleum freight increased by 75 percent.
fhe proportion of petroleum freight in the total amount of shipments grew
from 9.2 percent in 1965 to 10.8 percent in 1975, while in freight turnover
{v increaRed accordingly frocn 14.4 percenc to 14.9 percent; i.e., it ap-
proacl~ed [I~e freight curnover of coal. The average distance of petroleum
frei~ht 1�ul~a in 1975 re.~checl 1241 km and exceeded by 1.4 times the average
Ji~t.~nre of all freight hauls by railroad transport. Although the relative
outlay~ spent by thc national economy on transporting petroleuu and petrole-
um products nre grndually decreasing in connection With the increase in che
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~
t~~tt ~~rt~'rctnt, usr orrt.v
proportion of Ine:cpc:n~tve pipeline tr~nspnrt, there are :~ti11 extensive
poyHtbilitics Eor curtaili�~; them by menc~s of ~ereamlining Cr~nsport- ~
econom.tc t icg .
In t~nul~ uE petroleum Creighr the greatest proportion is occupied by petro-
leum~ fu~l oil, ~tnd die~el ruel. In 1975 rIIE~C thc'ec� consolidated groups
~ccountad Eor 70.6 perCenC o~ the total volume shipped and 71 percent of
Che freight turnover of petroleum freighC. At the same time the proportion
oE rnilrogd hauls of diesel ~uel nnd oCher, clear petroleum produCCs h~s
gradu~lly decreased over the l~st few years.
'Ctie ch~~nge ict th~ structure of peCroleum freight transport has accurred
bngically becnuse oE petroleum nnd fuel oil.
l.xtremely long-distance hauls oE u11 the bnsic Cypes ot petroleum products
a~re conytantly incrensittg, Approximately 20 milliotts Cons per year of fuel
~il, more tt~an 8 million tons of diesel f uel, more ~han 8 million tons of
f;asoline ~nd more than S million tons of keroaene were transported over
clistances in excess of 2,000 km.
TneCEiCient tr~~ntirortof petroleum products comes basically because of a
_ lar.k ot cnordin~~Cion between the variety of petroleum products which are
turtied out by a number of oil refineries, ehe needs of the economic regions
wl~ict~ are dependent on them, as well as those of the oil-refining installa-
tions at individual oil refineries for the quality of petroleum which can
be extracted at the nearest deposits.
~1tr~number ot 5iberi.n's nil refineries a large surplus of sulfurous fuel
otl i:~ Cormed, ancl it is shipped westward to the Urals, the Volga region,
Ka�r.akhst~hn, and Central Asia over distances ranging from 3,500 to 5,000 km.
At tt~e same time low-sulEur fuel oil is shipped in the reverse direction
- Erom the Northern Caucasus, the Volga region and the Urals to Siberia and
the Far F~st. -
l;xcessively long-distance hauls are also permitted for fuel oil for ships--
from the Novogor'kiy oil refine~ty to the Ukraine and from the ilrals for
ronsumers in the North-western economic region.
'fhc oil-refinin~ industry like no other manifests closely interrelated
r.auses wtiict~ brin~ about the emergence of inefficient transport ties.
'Cl~us~ low-sulEur St~aimsk petroleum is shipped out from Voynovka to the
Northern Caucasus over a distance of almost 3,0~0 km. By organizing the
~e~arat~ rro~~ssil,~ oE I~igh-sulfur and low-sulfur petroleum oil-refining
and ttie cteilvery of Shaimsk petroleum to this combine we could have elimina-
ted ti~e super~'luous, long-distance hauls of crude petroleum from Voynovka
tc~ tl~e Northern Caucasus and curtailed the shipment in the opposite direc-
tion oC low-SUlfur fuel oil [o the regions of the Urals and Siberia.
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I~OIt U1~1~.[CCAL U5L ON1.Y -
'Thc gu~r~ntee of th~ interchungeabiliry of A-66 ~nd A-72 gasoline wi1L per-
mir the eliminntion of excessively long-distance and counCer hauls in a -
ti~mber nf ciirecCions.
~ '1'he str~amlining of perroleum-prnducC hauls must a].so be carried oue by
me~t~s nt� redistributing Che hauls by types of transport,and primarily, by
- L~c:reasing the role of pipeline trunsportaCinn; the latter's proportion in
peCrolcum-product haula is sti11 less thnn 10%.
Along witli steppin~ up the construcC3on of main product p:ipelinea and the
full utilization of the capacities of exisCing ones we need to expand the -
network oF locul pipelines to pump fuel oil from oil refineries to the -
nearesC electric power plants, as well as to transporC aviaCion kerosene to
airports. Tl~ere tnusC be a significanC increase in Che scope of petroleum
frei~;i~t t~uuls by river transporC, incluriing Chose from Che Bashkir plants
c~lang the Delaya and Volga Rivers, from Omsk along the Irtysh River, from -
tl~e city of Cor'kiy along tlie Volga River and by maritime transport from
Kherson to Odessa. _
'lt~e Ereeing oE the railroads from shorC-range hauls of peCroleum products
requires u step-up in the conatruction of distribution units at oi1-refining
enterprtses in order to transfer the finished products to motor vehicle
- transport. `
The basic condition for the rational distribution of the production of in-
dividual types of petroleum products is satisfying the needs of the nearby
re~;ions f.or Chem. Depending on this, we must operationally regulate the
- output volumes of petrole~~m products by variety of assortment and even by
the seasons. More rapid rates of growCh must be attained in the production
of petroleum products in the Ukrainian SSR, the Baltic region, Kazakhatan
and in Che i'ar East.
In ttie regions of Siberia where ttiere is a great need for clear petroleum
products, production volumes of these items must be raised at Che expense
of fuel oil.
- COPYRICHT: Moscow "Transport", 1977
2 384
CSO: R144/0514 E~
_ ~
_ 36
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