JPRS ID: 10608 USSR REPORT ECONOMIC AFFAIRS

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JPRS L/10608
24 Ju~E 1982
USSR Re ort
p
- ECONOMIC AFFAIRS
~ (FOUO 61~2)
~
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JPP~S L/10608
24 June 1982
USSR REPO~T ~
. ~ ,
ECONOMIC AFFAIRS
- (FOUO 6/82)
CONTENTS
ECONOMIC POLICY, ORGANIZATION AND MANAGF.MEN'P
Balanced Development of National Economy
(E. Gorbunov; VOPROSY EKONbMIKI, Apr 82) 1
Effectiveness of Gonsumption, Intensification of Social
Production
(V. Pavlyuchenko; VOPROSY EKONOMIKI, Feb 82) 14
Conversion of Economy to Inten~ive Path of Development
(L. Abalkin; VOPROSY EKONOMIKI, Feb 82) 25
Improving Economic Management Techniques
~ (V. Ivanchenko; VOPR05Y EKONOMIKI, Feb 82) 38
= Improving Economic Mechanism Based on Example of Moldavian SSR
_ (Yu. Kanna; VOPROSY EKONOMIKI, Mar 82) 51
Collections Devotied to Current Problems of Management Theory,
Practice
(A. Polezhayev; VOPROSY ERONOMIKI, Mar 82) 58
- a- LIII - USSR - 3 FOUO]
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ECONOMIC POLICY, ORGANIZATION AND MANAGEMENT
BALANCED DEVELOPMENT OF NATIONAL ECONOMY
Moscow VOPROSY EKONOMIKI in Rus~ian No 4, Apr 82 pp 102-112
[Article by E. Gorbunov]
[Text] The materials af the 2bth CPSU Congreas articulated concrete tasks
regarding the dynamic a.nd balanced development of the Soviet economy as
a unified national economic complex, the proportional growth of all its
branches and of the economies of the union republics, the progressive modific-
ation of the atructure of the n~ltional economy, anc~ the improvement of
interbranch and intrabranch proportions. They particularly emphaeize the
need for balanced growth in the volume of capital construction as th? nation's
economy developa, for closer agreement between the increase in the prod-
uctivity of social labor and the population's aggregate incomes and between
the latter and the increase in the production of conaumer goods and services,
for balance in the development of the manufacturing and extractive '
branchea of industry, and for closer conformity between the needs of the
national economy and the work of transport, and the functioning of the
complex of branches belonging to the production and social inirastructure.
They advance the following demand: "To impiement a coinprehensive approach
to planning the development of interconnected branches of the national
economy and the country's economic regions. To eneure the dr~fting of
plan targets that are balanced in all indicators. To use progresaiv?
technical and economic norms to thia end."
In the light of. the taska posed by th2 26th Party Congress, the investigation
- of the methodological basis of the halanced structure of social production
per se and its realization in the national economic plan, in socialist
economic management acquires great theoretical and practical importance.
The degree to which these problems are elaborated in large measure determines
the efficacy of ineasurea designed to improve the economic mechanism and
to promote the conversion of the nation's economy to the path of intensive
_ development.
Balanced social production under developed socialism is a concrete manif-
estation of broader categories of regularity and proportionality and ~is
determined by changes in the correlation of basic factors of production
(means of production and labor power) whtch in turn influence the proportion8
of expanded reproduction. .
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Intensification has a decisive influence ~n the dynamics of proportionality
of the basic factors and proportions of reproduction. We can identify,
first, the partially intensive type of reproduction in which part of the
production resources are economized, capital per worker growa and there
~ ie an increase in material expenditures in the atructure of the social
product and in the total'quantity of embodied labor whereas the output-
capital ratio declines. Second, we can point to the predominantly intenaive
type of reproduction in which the economy of expenditures of certain production
resources is coupled with additional expenditures of others but exceeds
~ the latter. Third, there is the totally intensive type of reproduction
~ on the scale of the entire national economy, in which the economy of the
means and objects of labor is a means of economizing labor resources as
well, i. e., the lowering of the capital-, materials- and labcr-output
ratios ia achieved simultaneously*. This in turn alters the proportions
~ of social production with regard to value--between expenditures of embodied
and live labor--which promotes the relatively more rapid growth of all
indicators of effectiveness of resource utilization.
The conditions of realization of the social product under the intenaive
tyPe of reproduction according to the resource-saving variant are characterized
by the fact tha~ national income and society's final product i.ncrease faster
than the gross social product. At the same time, the ahare of productive
accumulation in national income stabilizes or declines and there is corresponding
change in the share of the replacement fund, the growth of which requires
~ an increase in the growth rat;es of implements of labor and a synchronous
increase in the production of consumer goods. The share of the work force
in material production stabilizes or begins to diminish and the development
of social production is secured primarily through the growth af labor product-
ivity. The structure of social production changes: the share of branches
producing the final product grows and the share of the raw-materials and
extractive branches diminishes accordingly. The population's consamption
of consumer goods and services grows at a rapid rate and the: share of the
work force and output in the nonproductive sphere grows. Ar; a result,
the conditions of intensive reproduction according to the resource-saving
variant simultaneously become conditions to the balanced structure of the
nation's economy on the whole.
The structure of social production is manifested in various combinations
of types of productive and nonproductive use values, in relationships that
' form a complex system of interbranch and intrabranch proportions. The degree
of complexity of these r.elationships, their dynamicity and stability depend
on the level of development of the productive forces, on the effectiveness of
social production, on technical progress, etc. The entire complex of the
biven factors forms the requirements of socialist society, in accordance with
which society's working time is distributed among vari.ous spheres of production.
~See "Voprosy intensifikatsii i sUal ansirovannosti i~asshirennogo
vospr~izvodstva v period razvitogo sotsializma" [Problems of Intenaification
and Proportionality of Expanded Reproduction in tYxe Period of Developed
Socialism], Izdatel'stvo "Nauka," 1981.
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This characterizes the socioeconomic aspect of the effectiveness of the
actual structure of thP national economy and the ability of a given socio-
economic ayatem to make full use of society's production and labor resources
as well as to realize the economic ob3ectives that stem from its social
nature. "Effectiveness," T. S. Khachaturov writes, "expresses the quality
of economic management that is characteristic of a given formation and
the correlation between expenditurea of social labor and the return realized
on them."*
The structure of social production under modern conditions is extremel~
complex. In industry alone, more than 12 million indicators are used to
determine the volume of production in phyeical terms. There is a certain
hierarchy of structural economic relations, of their co-ordination and
sequence. The macrostructure of social production, which comprises a system
of the most important national econom3c proportions in the process of expanded
reproduction on the social scale, forms the upper level Qf these relations.
It ie possible to identify the baeic macroeconomic proportions of reproduction
~ which determine the proportionality of the economy in general. These
proportions exist (1) between the quantities of embodied and live labor
(technical and organic structure of aocial production) applied in the production
~ process; (2) between spheres of social production: production proper,
distribution, exchange and consumption; (3) between expenditures and final
national economic results, intermediate and final forms of the aggregate
- aocial product; (4) between the parts of the social product that are accumu-
lated for the expansion of production and that are consumed by the population:
the funcl for productive and nonproductive c~naumption of the final social
- product, production of the means of production and consumer goods (gooda
and aervices); and (5) between the parts of the gross social product that
- are replaced in t:~e process of simple reproduction and the parts that are
accumulated f'or the needs of expanded reproduction.
The macrostructure of social production organically combines indicatora
of the final national economic resalts (realizec~ ~ocial requ~rements) and
expenditures made on the acale of all society in order to attain (satisfy)
them. The level of expenditures and results and the proportion between
them will in the future also predetermine the magnitude of society's productive
and nonproductive requirementa that must be eatiafied.
All of society's economic requirements are internally connected to form
a single system. This system is determined by the laws of social production.
"Production," Marx wrote, "creates oY,jecta that corres~ond to requirements,
distribution distributes them in accordance w~th social laws; exchange
once again already distributes that which has already been distributed
in conformity with individual requirements; finally, ln consumption, the
product is removed from this social movement, directly becomes the sub,~ect
*T. S. Khachaturov, "Effektivnost' kapital'nykh vlozheniy" [The Effective-
- ness of Capital Investments], Izdatel'atvo "Ekonomika," 1979, p 2~+.
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rvn vrr~a,i,ya, voc vi~i.t
and servant of an individual requirement and satisfies it in the process
of consumption."* Therefore, while the resources of socia? production
- are determined by the level of economic development and technical progress,
by demographic factors, by the development of science anc~ by the degree
of its utilization in production, the level of satisfaction of the needs
of production and the nonproductive requirements of society in the future
will also be economicallv predetermined by these same factors.
Final national economic results of the current period (which are contained
in the macrostructure of social production) will in future perioda
predetermine the levels of capital-, materials- and labor-output ratios,
i. e., the necessary volum~ of increase in capital investments, means of
production (fixed productive capital, raw materials, suppltes, fuel, ene.�rgy)
and manpower and thereby predetermine the degree of satisfaction of society's
production requirem~nta. In the sphere of nonproductive consumption, the
existing volume of production in Department II determinea (with due regard
to the effectiveness of utilization of productian resources) the degree
of satisfaction of requirements and the growth of the volume of personal
and social consumption on the basis of existing norms depending on the
le~~el attained in the preceding period. It is for this very reason that
proportionality of social production is also manifested in the balance
of the basic factors of production (means of pr~duction and labor fore2)
and proportions of expanded reproduction. The Iowering of expenditures
- on the satisfaction of society's productive an3 nonproductive requirements
leads to a higher degree of proportionality in the economy. The "Basic
Directions of Economic and Social Development of the USSR in 1981-1985
and the Period Up to 1990" pose the following task: "To secure the most
- rational use of material, labor a~d financial resources as the most
important condition to improving the proportionality of development of
the national economy, the creation of the necessary reserves and ~he attainment
of high final results." The decisive role here belongs to measures in
the realm of economic policy especially at the level of the economy's
macrostructure.
Since it possesses a certain volume of finar.ciaZ, material and labor
resources earmarked for productive and nonproductive use, society can use
- them in various combinations of ineans of production and labor power. This
on the one hand forms various levels of capital per worker, capital-intensiveness,
material-intensiveness, and labor-intensiveness of production and normative
nonproductive consumption and on the o~her hand, forms the volume of the
replacement and accumulation funds and the gross social product consumption
fund. Hence the need for greater centralization in national economic planning
at the upper "levels" is a natural consequence of the highes maturity of
socialist production in the period of developed socialiam.
~rom this follow the special demands that are made on the planning of indicators
of the gross, finai and net sociai product. The indicators reflect both
~'K. Marks and F. Engel's, "Sochineniya" [Works], Vol 12, p 715.
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the structure and the objective magnitude of society's economic requirements.
~he orientation of national economic planning toward the realization of
the total aggregate of productive and nonproductive requirements preaupposea
that the calculation uf the balanced structure of the economy is a kind
of supporting pillar for the entire national economic plan--a pillar on
_ which its remaining assemblies and unite ar~ built.
A balanced economy is characterized by an optimal correlation between
levels of satisfaction of nonproductive requirementa and the requirements
of current production anc~ accumulation. At the same time, all types of
economic reyuirements are divided into two large groups: productive and
nonproductive requirements. The satisfaction of nonproductive requirements
(the population's peraonal consumption of ineans of suhsistence in the form
of goods and services and consumFtion in organs of government) is the final
, objective of society which is attainable given the realization of the
national economy's requirement for manpower, equipment, raw materials,
- fuel, energy, etc.
The degree to which each material good promotes the attainment.of the goal
of society determines its social utility under socialiam. From thie point
of view, the difference between consumer goods and the means of production
consists solely in the fact that the former perform their given function
directly while the latter perform their function indirectly. Therein also
- lies the difference in the useful effects of their application which must
be taken into account in the process of distributing social labor between
various apheres of social production.
On the basis of all the foregoing, the following schema can be proposed
regarding social economic requirements in a socialist society.
Schema 1. Society's Economic Requirements Under Socialiam
' I. Society's nonproductive requirements
1. The population's personal requirements (food, clothing, housing,
co~zsumer and cultural services, etc.).
~ 2. The population's social requiremente (health care, medical care,
education, sociocultural requirements, public service requirements,
etc.).
II. Society's Current Productive Requirements
1. The requirement for means of production and labor resourcea for the
satisfaction of the population's personal and social requirements
(the productive requirement of Department II of social production):
~ a) for current production of consumer geods and services; and
bi for servicing the personal consumption process.
2. Requirement for meane of production and labor resources required
in order to satisfy the producti~ve requirement of Department II
- (the.productive requirement of Subgroup II of Department I).
3. The productive requirement of Subgroup I of Department I
- (production of ineans of production for the production of ineans of
production).
III. Productive Requiremente of Expanded Reproduction*
IV. Aggregate Social Requirement for Coneumer Goods, Services and Means
- of Production**
*For the same points as in II.
*~I+II+III. 5
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Since society's economic requirements take not only physical form, but
also the form of servi.ces of a material and nonmaterial nature, there
is, an integral unity of social labor ~hat satisfies the requiremente of
society as a whole irrespective of whether the labor is expended in the
production of material goods or in the performance of material or non-
services. A definite quantity of social labor required for the satisfaction
of social req*iremer.ts must correapond to the total aggregate of these
requirements.
Proceeding therefrom, society's final national economic results (national
income) can be depicted as the total surplus product created in branches
of material and nonmaterial production and the necessary product for workers
in these same spheres of social production. When we consider the purpose
of products relative to the satisfaction of society's productive and non-
productive requirements, we can identify the following subdivisions in
utilized national income: (1) the productive accumulation fund, including
the growth of p~oductive capital in the sphere of material production;
(2) the nonproductive accumulation fund--the growth of nonproductive funds
in the service sphere and in branches of the superstructure; and (3) the
population's personal consumption fund--consumer goods and the value of
services.
Proportionality of social production in accordance with the structure of
society's economic requirements and the planned magnitude of final national
economic results (national income) is expressed in value and physical form.
_ In the process of satisfying society's requirements, there is full rea~ization
of the products of Department I and Department II of social production;
the satisfaction of the population's personal requirements presupposes
the use of the most effective means of proauction; the necessary reserve
of production of the means of production is created in order to insure
future growth of consumer goods and services sufficient to meet the population's
higher requirements.
Calculation of the necessary resources and anticipated national economic
results of production makes it possible to determine the possible correlation
between social requirements and expended social working time and to secure
rational distribution of the latter between various spheres of its applic-
ation. Thereby, planning based on society's requirements influences the
magnitude of socially necessary expenditurea corresponding to the satis-
faction of ~~ery given production need, i, e., influences the magnitude
- of the value of a product (resource).
*Conc;erning the question of the need to include the value of service branchea
in national income, Ya. Kvasha and V. Krasovskiy wrote: "There is no reason
for embarrassment over the fact that such changes do not agree with the
usual concepts. Least of all should one fear the lack of comparability
of series because there is nothing more menacing to the comparability of
_ a dynamic series of a rapidly developing economy than the preservation
of branches of unchanging composition in the classification of production
facilities" (see Ya. Kvasha and V. Krasovskiy, "Long-Range Planning and
Economic Measurements," VOPROSY EKONOMIKI, No 4, 1968, p 72).
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Marx was the first to describe the mechanism underlying this r~gularity.
He deter;nined the value of a commodity on the basis of expenditures of
socially necessary working time and attached great ir~portance to ascertaining
the correlation bet~ween expenditures of aggregate w~rking time and its .
- diatribution in proportion to the volume and atructure of society's require-
ments. Marx considered the correspondence of expenditurea of social working
*,ime to the aggregate of society's requirements to be the most developed
expresaion of the "law of value in general"* which measurea the value of
a commodity as part of socially necessary expenditures.
Thus the balanced structure of the economy presupposea (1) the correapondence
of the distribution of individual spheres of application of social labor .
to the quantitatively determined requirementa of society and (2) minimal
expenditurea of social labor per unit of satiefaction of society's require-
ments. These points are specifi.cally taken into account in the determin-
ation of the final results of the functioning of the socialist economy.
The improvement of national economic planning in the direction of sec~aring
a balanced economy also presupposes the reclassification of a number af
elements in the structure of social production.
The elaboration of the scientific classif;cation of the structure of social
production has major significance both in the scientific aspect and as
effective instrume:~t in the planning and substantiation of ineasures of
structural policy, and in the management and orRanization of the national
economy. At the�present time, there is a need for in-depth research in
this area, particularly in connection with processes involved ir, the formation
of production and science-production asaociations, territorial production
complexes, and special programs of an interbranch character.*~
'~K. Marka and F. Engel's, "Sochineniya" [Works], Vol 25, Part II, p 186. We
_ note that in our view, our literature devotes unconacionably little attenti.on
- to problems regarding Marx's "law of value in developed form." In A. Ye~nov's
words, this area is a"blank space" in the atudy of value and price pracesses.
' In his research, the author showa that socially necessary expenditureP
of labor are directly determined by social requirements and deviations
of the latter from demand (and vice versa) are a factor underlying the
formation of prices and their deviation from socially necessary expenditures
of labor (see: A. N. Yezhov, "Factors Underlying the Formation of
Socially Necessary Expenditures of Labor," IZVESTIYA AKADEMII NAUK SSSR,
SERIYA EKONOMICHESKAYA, No 5, 1979, p 32)�
*'~The classification of the national economy's branches contained in the
"Guidelines on Drafting State Plans for the Development of the National
Economy of the USSR" Mas.been repeat�dly sub3ected to ,~ustified criticism
in the economic literature. No classification of branches of the national
economy ia contained in the latest edition of Guidelines.
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rvK ~rr~~.~wL u~r. t~~�~~.x
Shortcomings in the elaboration of problems in the classification of the
national economy are pririlarily associated with their branch orientation
which corresponds to the existing scheme of management of the national
' economy. At the same time, most global zconomic tasks of a structural
nature in the present stage stem not so much from various probl2ms of a
purely branch nature as from inte.rbranch problems arising at the interface of
several branches, which is ~ccasioned by the higher level of social
division of labor under the influence of the acientific and technological
revolution.
I^ calcu].ations of the interbranch balance [input-output tables], it is
necessary to single out pure branches that incorporate only the apecialized
products characteristic of a given branch. The practice of compiling inter-
branch balances indicates the increasing fragmentation of the "pure" branches.
Thus, the interbranch balance for 1959 covered 83 "pure" branches of social
produc:tion and 157 types of products; the balance for 1966 was compi~ed
for 110 branches and included 237 types of products. The interbranch balance
_ for industry in 1959 was compiled for 73 branchco; in 1966--for 95 branches.
The interbranch balance for 1972 was also characterized by a further increase
in the number of branches
Given the increasing diversification of products, raw materials and tech-
nological processes, it is important to determine the economic criterion
for establishing a unit in the classification of the structure of the national
economy. This in turn will make it possible to substantiate the inclusion
of production that spec~.fically meets the given criterion in its structure.
For all tile importance of the commonly accepted "three-aspect" criterion
' of classification ef branches of the economy (uniformity in the intended
use of the product, in the use of certain types of raw materials and of
technological processes), the role of each of the indicated aspects (features)
is not uniform. Thus the significance of the technological feature diminishes
in proportion to the ever increasing diversification of technical processes
in modern production. It essentially holds unconditional significance
only for the group of "old" branches and for certain production facilities
whose formation into an independent branch is still continuing. On the
whole, however, for such branches as machine building and the chemical
industry, technological homogeneity is gradually losing its significance
as a classification criterion.
Obviously, with the increasing complexity of the raw material base of
production, the role of the corresponding criterion in the classification
of branches will also diminish. Their uniformity with regard to the intended
use of the praduct, i, e., relevance to the satisf action of various economic
requirements of society will serve as the basic cr~terion to the transformation
of homogeneous production facilitiea into a branch.
The proportion between productive and nonproductive requirements dues not
provide an exhaustive characterization of the complex process of their
- satisfaction on the whole. The products that are earmarked for productive
use (the same also applie3 to productive servicea) can be used to realize
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_ the requirements of capital construction, to create or replace resourcea
in the fuel-energy complex, and to satisfy nonproductive requ~rpments.
Branches form as an independent element in the syatem of social ~roduction
against the background of the growing significance that the so-called infra-
structure holds for the development of branches in Lhe modern economy.
Their economic role consists in prcviding productive services to b^anches
of material production (freight transport, electricity-fuel supply, sewage,
communications, etc.) and sociocultural, communal, and consumer services
to the population. Thus, this group includes branches of the productive
and social-service infrastructure. The former participate directly in
the reproduction of the social product while the latter aervice the population's
consumption process and are closely aesociated with the reproduction of
labor power. As an organic element of the social reproduction process,
these branches play a subordinate role with regard to branches of material
- production proper since their development is determined by the increase
~ in the volume of production ~n industry, construction and agriculture,
by the technical level of these branches, by their interbranch and intrabranch
relations, etc.
The realization of a balanced economy requires certain rhanges in the planning
of interbranch proportions of the national economy. The basic means of
resolving interbranch problems is the elaboration and imp~ementation of
special comprehensive programs that can be clasaified as ir~terbranch programs
for the development of branches of material production and as social and
territorial production programs. With the expansion of the aphere of
application of program-goal methods in planning, there is increased emphasie
on their relationship with the methods of purely branch-oriented planning,
- which promotes the elimination of shortcomings in the latter. Thie also
depends in large measure on surmounting the mental block regarding new
methods of management.
It is occasionally said that the process of "apportioning" capital investments
on the basis of national economic programs rather than 4ccording to branches
means "supplanting the branch by programs" thereby violating the system
of production relations.* In our view, such conti�asting of the program-
goal method to the principles of branch planning is inappropriate. A rational
- national economic program must c~nsider the interests of branches of
- ma~erial production participating in its implementation and of other entities--
territorial organs, cities, enterprises and ministries in the nonproductive
sphere, etc. Programa for conserving fuel and metal, for the development
- of the BAM zone, for reducing the application of manual labor, and for
increasing the production of new consumer goods--programs in whose imple-
~ mentation tens of branchea of social production participate in keeping
with the decree of the CPSU Central Committee and USSR Council of Ministers
on improving the economic mechanism--can serve as an example. As T. S.
Khachaturov correctly observes "the application of program-goal planning
does not mean that it replaces branch planning. At the same time that
program-goal planning makes it possible to make full use of the production
capacities that are created and.permits their rational coordination, it
- also makes possible a significant saving in capital investments and
*See "Sotsial'no-ekonomicheskaya effektivnost' perspektivnykh vlozheniy"
~ [The Socioeconomic Effectiveness of Long-Term Investments], Izdatel'stvo
"Mysl"', 1979, pp. 60-61.
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current expenditures."# Therefore, the decisive criterion in the clasai-
. fication of branches of social production is the functional significance .
of their products. This makea it possible to combine them to form large
national economic complexes (see Schema 2) and to use the classif ication
to increase the effectiveness of interbranch planning.
Schema 2. Consolidated Schema of the Functional Structure of Social Production
Spheres of social production Branches of social production~*
I. Social sphere of social
production
of which:
1. Food complex (final 1. Agriculture, Food industry, food production
. product) in other branches; subsidiary farms of
enterpriaes; personal houaehold plota
2. Complex for consumer 2.
goods production
~ a) goods in everyday demand a) production of clothing, textiles, footwear,
hygiene, sanitation and toilet articles
b) durable goods ~ in branches of light, local and heavy
industry and other branches of the
national economy
b) production of consumer durables, vehicles,
construction materials and housing for the
population in branches of induatry and
other branches.
3. Social and service infra- 3. Retail trade, public catering, consumer
structure complex and communal services for the population;
. passenger transport, communications,
housing, health care and physical
culture, social security, environmental
protection, etc.
*T. S. Khachaturov, "Effektivnost' kapital'nykh vlozheniy'," p 253. The
transition from the existing system of branch planning and management to
the combination of the branch principle with program-goal planning given
the predominance of the latter holds major significance not only for the
agro-inciustrial but for all other types of interbranch complexes (see V.
`I'ikhonov, "The Essence of the Agro-industrial Complex," VOPROSY EKONOMIKI,
No 8, 1980, p 12).
~*The list of branches is based on "Klassifikatsiya otrasley narodnogo
khozyaystva" [Classification of Branches of the National Economy] and
"Metodicheskiye ukazaniya k razrabotke ga~:~.darstvennykh planov razvitiya
narodnogo khozyaystva SSSR," Izdatel'stvo "Ekonomika," 1974.
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4., Nonmaterial production complex 4. Education, training, science a;~d
scientific activity, culture, art,
social organizations (CPSU, Komsomol,
_ trade unions, etc.).
~ II. Productive sphere of social
- production
1. Agro-raw materials complex 1. Crop production, animal husbandry,
- p^oduction of raw materials on
subsidiary farms of enterprises and
personal household plots
2. Fuel-energy comp3ex 2. Oil, gas, coal, shale, timber and
other branchea of the fuel induatry,
electric power production
3. Material-producing complex 3., Extraction of nonmetallic raw material,
production of inetals, materials of
chemical origin, glass and ceramic
materials for proceasing, other
materials
4. Machine tiuilding complex 4. Production of inetalware and metal
components, machine building for
_ branches of the national economy,
electrical equipment and instrument
making, repair work of a machine
building character
5. Construction complex 5� General construction, installation,
specialized and other organizations
performing conatruction and install-
. ation works on a contract and direct
labor basis, organizations engaged in
operational drilling
6. Geological prospecting complex 6. Organizations engaged in geological
surveying, hydrogeological, geological
engineering, topographical-geodetic,
geophysical, geological explaration and
prospecting for all types of useful
minerals; organizations and enter-
prises engaged in deep exploratory
drilling for oil and gas
7. Production infrastructure 7. Irrigation and reclamation, prot-
complex ection, conservation and reprod-
uction of animals and plants, land
and forest management, freight
tranaport, roadbuilding and transport,
communications, wholesale trade,
. material-technical supply, procurement,
11 etc.
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� V~~ V\ l/~.~~~V VwIY VL\LJ�
8. Foreign trade complex I 8. Export and import organizations,
. all-union export asaociations of
the Ministry of Foreign Trade, the
State Committee for Foreign Economic
Relations of the USSR Council of
Minieters, and the USSR Foreign Trade
Bank
9. "Science and science services� 9. Scientific research, design, project-
complex planning organizations, organizations
- engaged in the servicing of research
aubdivisions, experimental plants,
= hydrometeorological aervice
10. "Finance and credit" complex l0. Finance-credit institutiona belonging
to the Ministry of Finance, Gosbank
and Stroybank, and the USSR State
Committee for Inaurance
11. "Government" complex 11. State-administrative organs, cooper-
ative organs of government, 3udicial,
legal organa, MVD and state security
organs
In accordance with the classification of social requirements, all branches
of social production are divided into two spherea: the social aphere
which satisfies society's nonproductive requirements and the production
sphere !ahich is the basis for satisfying the production requirements of
- tre national economy. The classification of the eocial aphere of aocical
production includes the following major interbranch complexes: food, consumer ,
goods (including items in everyday demand and durable goods), the social
and service infrastructure, and nonmaterial production. ~'he production
- sphere is divided into agro-raw materials, fuel-energy, metal producing,
machine building, construction, infrastructural and other interbranch complexes,
each of which includes a certain number of social production branchea.
The indicated complexes of branchea encompass the entYre system of social
productionof both final and intermediate producte that are realized in
final national economic resulta. For example, the material-producing and
agro-raw materials complexes for the most ~art produce raw materials and
supplies in national economic complexes that create products earmarked
for. final use. The separation of the first group of complexes from the
_ secon