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A. KURSKY
THE PLANNING
of the
NATIONAL ECONOMY
OF THE U.S.S.R.
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A. KURSKY
THE PLANNING
of the
N A TIONAL ECONOMY
OF THE U.S.S.R.
FOREIGN LANGUAGES PUBLISHING HOUSE
Moscow 1949
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Printed in the Union of Soviet Socialist Republics
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re
CONTENTS
Page
THE ROLE AND TASKS OF PLANNING TIIE NA-
TIONAL ECONOMY OF THE U.S.S.R. ,
Prerequisites for Socialist Planning 7
Planning Is the Law of Development of Soviet
Economy 22
The Fundamental Tasks of Socialist Planning . . 31
THE DEVELOPMENT OF NATIONAL-ECONOMIC
PLANNING IN THE U.S.S.R.
The First Years of Socialist Planning 41
The GOELRO Plan?a Single Economic Plan . . 49
Planning in the Period of the Restoration of the
National Economy 58
The Three Prewar Stalin Five-Year Plans . . . 62
Planning During the Period of the Great Patriotic War 84
The Postwar Five-Year Plan for Restoring and Devel-
oping the National Economy of the U.S.S.R. . . . 91
THE PRINCIPLES OF DRAFTING THE NATIONAL-
ECONOMIC PLAN
The Economic and Political Tasks and Main Links of
the National-Economic Plan 110
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The Plan and the National-Economic Balance Sheet . 120
The Divisions and Indices of the National-Economic
Plan 142
The Planning Bodies and the Manner in Which the
Drafting of the National-Economic Plans Is Organized 160
THE STRUGGLE TO FULFIL THE NATIONAL-
ECONOMIC PLAN
Verifying Fulfilment of the Plan 173
Economic Levers for Fulfilment of the Plan . . . 183
The Masses of the Working People in the Struggle to
Fulfil the Plan 197
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THE ROLE AND TASKS
OF PLANNING THE NATIONAL ECONOMY
OF THE U.S.S.R. ?
PREREQUISITES FOR SOCIALIST PLANNING
The Great October Socialist Revolution opened a
new era in world history, the era of Socialism. It
saved our country from economic disaster and foreign
bondage that threatened it. For the first time in his-
tory the working class, headed by the Communist
Party, created a genuinely democratic state of a new
type and started on the planned construction? of so-
cialist economy.
The planning of the national economy of the
U.S.S.R. is a tremendous gain of the October Socialist
Revolution; it is the concrete embodiment of the
ideas of Marxism-Leninism, a mighty weapon in the
hands of the Party of Lenin-Stalin in the struggle for
the victory of Communism.
Planned national economy is one of the decisive
advantages of the Soviet socialist system, one of the
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most important indices of its superiority over capi-
talism.
The fact that socialist national economy is planned
precludes the possibility of crises, unemployment and
economic upheavals. By planning the national econ-
omy the Soviet State, in the prewar years, attained
an unprecedentedly rapid rate of growth of productive
forces and continuous, socialist, expanded reproduc-
tion. By carrying out the Lenin-Stalin plans of great
undertakings, the Soviet people, led by the Bolshevik
Party, transformed our country in an exceptionally
brief historical period into a mighty industrial power
and land of collective farming, the largest-scale and
most highly-mechanized farming in the world. During
the Great Patriotic War the planned character of the
national economy was one of the most important
means of creating a smoothly-functioning and expand-
ing war economy in an exceedingly short space of
time, and of gaining economic victory over the enemy.
Today, after the victorious termination of the war, so-
cialist planning enables the problems pertaining to
the restoration and further development of the nation-
al economy to be successfully solved and the great
difficulties of the postwar period to be surmounted.
The political and economic prerequisites for social-
ist planned economy were created by the conquest of
political power by the working class, by the abolition
of private capitalist property and by the establishment
of public ownership of the means of production.
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Already in the Manifesto of the Communist Party
Marx and Engels proclaimed: "The proletariat will
use its political supremacy to wrest, by degrees, all
capital from the bourgeoisie, to centralize all instru-
ments of production in the hands of the state, i.e., of
the proletariat organized as the ruling class, and to
increase the total of productive forces as rapidly as
possible."
In describing how the contradictions of bourgeois
society would be solved by the proletarian revolution,
Engels pointed out that "the proletariat seizes the
public power and by virtue of this power transforms
the social means of production, slipping from the
hands of the bourgeoisie, into public property. By
this act, the proletariat frees the means of production
from the character of capital hitherto borne by them,
and gives their social character complete freedom to
assert itself. A social production upon a predetermined
plan now becomes possible."'
Basing himself on the requirements of scientific
Socialism, Lenin included in the program of the Corn.
munist Party (Bolsheviks) as one of the fundamental
tasks of the Soviet government "the maximum unifica-
Karl Marx, Selected Works, Two-Vol. ed., Vol. I, Moscow
1946, p. 129. (All references in this book are to English
editions unless otherwise stated.?Ed.)
2 Frederick Engels, Herr Eugen Dub ring's Revolution in
Science [Anti-Diihring], Moscow 1947, p. 423.
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tion of the entire economic activity of the country
according to a single national plan."
The establishment of the Soviet system and the
building-up of the new, socialist system of production
made the planning of the national economy not only
possible but necessary. Whereas private capitalist
ownership of the means Of production disunites the
economically interconnected parts of the national-eco-
nomic organism, engenders competition, irreconcilable
contradictions and crises, socialist ownership unites
the entire national economy of the country, strengthens
the connections between the various branches and
makes it necessary to conduct the economy of the coun-
try according to a single plan.
As Lenin pointed out, Socialism, which presup-
poses large-scale social production, is unthinkable
without planned state organization, which requires
that tens of millions of people should strictly adhere
to a single standard in the production and distribution
of products.
All the conditions, internal as well as external, in
which Russia found herself on the eve of the October
Socialist Revolution dictated the necessity of passing
to the regulation of production and distribution in
the national economy as a whole. Without this Russia
could not be saved from the economic disaster which
threatened it.
But such a task could be successfully undertaken
only by the new, Soviet government, which could con-
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sistently carry out a program for the revival of
the country and its transformation on a socialist
basis.
After abolishing the rule of th6 capitalists and
landlords and after seizing the economic key positions,
the working class, led by the Communist Party, start-
ed on the planned organization of social production
and distribution in the interests of the entire people,
with the aim of building up Socialism.
Planned economy did not emerge ready-made im-
mediately after the October Socialist Revolution. It
arose and developed in the midst of fierce battles
against the internal and foreign enemies of the Soviet
State and social system, and had to overcome the tre-
mendous difficulties that stood in its path. The recon-
struction of the economic life of the country on the
basis of planned economy called for a search for new
forms of organization of the national economy, and
the testing of these new forms by the experience of
the revolutionary changes, by the creative activity of
millions of people, the builders of socialist society. It
called for a profound scientific working out of prob-
lems of the management and organization of the na-
tional economy, the formulation of Bolshevik princi-
ples of socialist planning. Lenin and Stalin blazed new
paths in socialist construction, directed the enormous
revolutionary activity of the Soviet people and worked
out the principles of the management and planning of
Soviet economy.
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Lenin and Stalin devoted enormous attention to
the scientific solution of the problems of socialist
planning from the first days of the Socialist Revolu-
tion. Lenin was the inspirer and organizer of the first
long-range state pletn of great undertakings known as
the plan of the GOVRO (State Commission for the
Electrification of Russia). Subsequently, socialist
planning received further constructive development and
was placed on a profoundly scientific basis during the
period of the Stalin five-year plans of great undertak-
ing. The Soviet five-year plans constitute a masterly plan
of socialist expanded reproduction, all the principles
and many of the details of which are the handiwork
of the great master of revolution, Comrade Stalin.
A great part in the working out of problems of
socialist planning was also played by the comrades-in-
arms and pupils of Lenin and Stalin?Molotov, Dzer-
zhinsky, Orjonikidze, Kuibyshev and others. In their
works we find a profound generalization of concrete
experience, solutions of the most important problems
of management and, planning of socialist economy.
With each step in socialist construction state plan-
ning embraced the national economy more and more
fully and became enriched with ever new forms that
were engendered in the struggle to accomplish the
tasks of building and developing Socialism with the
utmost speed. The enhancement of the role and signifi-
cance of the plan in the national economy was con-
ditioned by the growth and consolidation of socialist
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relationships, the increase in the might of the Soviet
State, the development of the material and technical
base of the national economy and the growth of the
cadres of builders of Socialism.
Socialist planning developed in an intense and
acute struggle against class enemies, against petty.
bourgeois anarchy and against the survivals and in-
fluences of capitalism.
The establishment of public, socialist ownership of
the means of production as the unshakable foundation
of the Soviet system of economy, the elimination of
the capitalist elements, and the establishment of the
new class relationships of friendship between the
workers and peasants, as registered in the Constitution
of the U.S.S.R., all served to enhance immeasurably
the role of national economic planning in the U.S.S.R.
The state plans became a tremendous organizing force
of Soviet economy, covering all branthes of the na-
tional economy, all sides of socialist reproduction.
At the present time the socialist plan, which is a
mighty force in the economic development of the Land
of Socialism, has deeply permeated the life and habits
of the many millions of Soviet people.
The political supremacy of the exploiting classes
and the private capitalist ownership of the means of
production make planned national economy impossi-
ble, and all the laborious planning efforts and ma-
noeuvring of bourgeois politicians and economists
have inevitably ended, and always will end, in failure.
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"If you don't free yourselves of capitalists, if you
don't abolish the principle of the private ownership
of the means of production, you will not create a
planned economy," said Comrade Stalin in his conver-
sation with the British writer H. G. Wells.
"For what is planned economy, what are some of
its manifestations? Planned economy aims to do away
with unemployment. Let us assume that it is possible
to reduce unemployment to a certain minimum while
retaining the capitalist system. But no capitalist will
on any account ever agree to the complete abolition
of unemployment, to the abolition of the reserve ar-
my of unemployed, the function of which is to bear
down on the labour market, to ensure the supply of
cheaper labour. Here you already have one rent in the
'planned economy' of bourgeois society. Furthermore,
planned economy presumes increased production in
those branches df industry, the products of which are
especially needed by the masses of the people. But
you know that under capitalism expansion of pro-
duction takes place for altogether different motives,
that capital flows into those branches of industry
where the rate of profit is higher. You will never
compel a capitalist to act to his own detriment and
agree to a lower rate of profit for the sake of satis-
fying the needs of the people."
J. V. Stalin, Problems of Leninism, 10th Russian ed.,
p. 600.
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In every capitalist enterprise the labour of the
workers is organized by and is subordinated solely to
the will of the proprietor so that he may receive a
higher profit. But as far as the national economy as
a whole is concerned there is planlessness, anarchy of
production. This leads to constant disproportion, dis-
parity in the development of different industries and
branches of industries. As capitalism develops, an
ever larger number of workers are concentrated in
large enterprises. The market relations between these
enterprises as regards supply of raw material, auxil-
iary materials and equipment and the sale of finished
products continually expand. Capitalism unites, so-
cializes labour in the national economy as a whole;
but the product of this socialized labour is the private
property of the capitalists. Thus, under capitalism,
there is an irreconcilable contradiction between the
social character of production and private capitalist
appropriation. This fundamental contradiction of cap-
italism manifests itself in periodic crises of over-
production, when huge quantities of commodities can-
not find a market, because the bulk of the population
lacks sufficient purchasing power, and are destroyed
in order to raise prices; when there is a sharp drop
in the level of production, many enterprises are closed
down and unemployment and poverty increase among
the masses of the working people.
The supremacy of capitalist monopolies in the pe-
riod of imperialism creates the possibility of regulat-
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ing production, but at the same time it increases and
intensifies the chaos inherent in capitalist production
as a whole.
"Imperialism," said Lenin, "complicates and in-
tensifies the contradictions of capitalism, it 'entangles'
monopoly with free competition, but it cannot abolish
exchange, the market, competition, crises, etc."
The reorganization of the national economy on a
war footing in capitalist countries during the Second
World War and its preparation, took place with the
active intervention of the state in the economic life
of these countries; but the measures for the state reg-
ulation of the national economy during the war did
not signify that capitalism had set up a planned-econ-
omy. Capitalist relationships, the foundation of cap-
italism?private ownership of the means of produc-
tion, exploitation, anarchy of production, and com-
petition?remained intact. The basic principle of
economic life under capitalism is profit. It is precisely
in wartime that the profits of the monopolies soar to
exceptional heights. Anarchy, and competition among
capitalist monopolies and individual capitalists, re-
main inseparable and inherent characteristics of the
capitalist system in every period of its existence, and
under every form of state regulation and control, in-
cluding state war-monopoly capitalism.
V. I. Lenin, Selected Works, Vol. VI, Moscow-Leningrad,
p. 110.
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State intervention in economic life, the regulation
of the national economy in capitalist countries, was
practised during the war in the interests of the cap-
italist monopolies and to the detriment of the
masses of the working people, to whose shoulders the
main burdens of the war were shifted.
With the termination of the war and the transition
to peace the various regulatory and control measures
characteristic of the developed war economy of cap-
italism were severely curtailed or completely abolished,
with the result that the planlessness and anarchy
inherent in the very nature of capitalism were even
more aggravated. State control (rationing of raw ma-
terials and labour power) in the sphere of produc-
tion, construction and distribution was abolished. In
the United States price control was introduced during
wartime, but afterwards it was completely abolished.
Numerous factories built by the state during the war
fell into the hands of the monopolist organizations
for next to nothing.
In capitalist countries postwar reconversion of the
national economy resulted in a sharp contraction of
the market, a drop in production, a rise in prices and
an increase in unemployment. In the United States,
the industrial output index, which in 1943 stood at
219 compared with 1939, dropped to 186 in 1945, and
to 156 in 1946. At the beginning of 1946, according
to official statistics, there were about three million un-
employed in the United States, not counting the mil-
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lions partially employed. Amidst conditions of tem-
porary postwar economic revival in that country the
prerequisites oi an economic crisis are rapidly matur-
ing. Reductions in pay, the accumulation of large
stocks of goods, the drop in stock market quotations?
all these are clear signs of the approaching economic
crisis in the United States.
The efforts of monopoly capital in the United States
to avert this inevitable crisis by subjugating other
countries and commodity markets in Europe gave rise
to the so-called "Marshall Plan." The political pur-
pose of this new "planning" manoeuvre of the Amer-
ican capitalists is to restore imperialist Germany un?
der the aegis of the United States and to form a bloc
of the Western European powers against the Soviet
Union and the New Democracies.
Great Britain is experiencing a chronic and con-
stantly deepening crisis in spite of the measures taken
by the Labour government to nationalize several
branches of the country's industry and to regulate its
economic life. Before the war, Britain held first place
among the coal-exporting countries; after the war she
is unable to ensure the home requirements of fuel.
During the winter of 1946 many factories were closed
down because of lack of fuel and electric power; as a
result, the number of unemployed rose to three mil-
lion at that time.
Coal production remained at a very low level also
in 1947. Britain's balance of payments shows an enor-
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mous deficit. While curtailing imports of vitally im-
portant commodities, the British government is shift-
ing the burden of the economic crisis onto the shoul-
ders of the working people by increasing the burden
of direct and indirect taxation borne by the people
and keeping down the wages of the workers. Britain is
seeking a way out of the crisis by means of Amer-
ican loans and is, thus subordinating her economic de-
velopment more and more to the interests of Amer-
ican capitalists.
Nor has bourgeois France been able to plan the
restoration and development of her national economy.
The so-called "Monnet Plan," current in France, is one
of the innumerable projects in the sphere of planning
which in no way encroaches upon private capital-
ist relationships and the huge profits of the capi-
talist monopolies. The authors of this "plan" cite in-
dices of economic development which are in no way
binding upon anybody, and at the same time they
try to solve the problem of expanding France's
industry by resorting to foreign credits to the
detriment of the national independence of the
country.
Thus, the various postwar "planning" projects and
manoeuvres of the governments of capitalist countries
do not aim at eliminating the supremacy of the cap-
italist monopolies and advancing the economy in the
interests of the people of their countries. On the con-
trary, they are plans for strengthening the capitalist
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monopolies, for protecting their exorbitant profits;
they are plans for an attack on the vital interests of
the broad masses of the people.
In contrast to these "planning" illusions and ma-
noeuvres, planning in the New Democracies can suc-
cessfully solve the problems of the postwar restoration
and development of these countries on the firm foun-
dation of their political and economic independence in
the interests of their peoples.
The new state and social system in the People's
Democracies which arose in the countries of Eastern
and Central Europe as a result of victory over fascist
Germany, enabled them to start planning their national
economy, although in level of development and other
features their planned economy differs from the so-
cialist planning in the U.S.S.R. The fact that power is
in the hands of the working people, that large-scale in-
dustry and the banks are nationalized and that radical
land reforms have been effected, has enabled the New
Democracies to start planning, in the interests of the
broad masses of the people, the most rapid restoration
of the national economy, the elimination of economic
and technical backwardness and the ensurance of the
independence of these countries.
Czechoslovakia has successfully carried out a two-
year plan for the years 1947 and 1948, which pro-
vided for the restoration of her national economy
and for raising industrial output above the prewar
level. In 1949 the country started on the fulfilment
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of a five-year plan of development of the national
economy (1949-1953).
Poland is successfully carrying out a three-year
economic plan, covering the years 1947, 1948 and
1949, which provides for a considerable increase in
industrial and agricultural production compared with
prewar. Simultaneously with the struggle to fulfil the
three-year plan ahead of time, the working out of a
new six-year national economic plan is nearing com-
pletion. This plan, which covers the period 1950-1955,
aims at building the foundations of Socialism in Po-
land. Bulgaria's two-year plan, for 1947 and 1948,
had for its aim to expand heavy industry, to carry
through electrification and to raise industrial and
agricultural production considerably above the prewar
level. These aims have been in the main achieved. At
the present time there is in operation a new five-year
economic plan (1949-1953) that was passed by the
Great People's Assembly of the People's Republic of
Bulgaria in December 1948.
Basing themselves on the state and cooperative
sectors, which hold the leading place in their economy,
and also on close ties with the Soviet Union, the dem.
ocratic governments of the East and Central Euro-
pean countries are successfully utilizing planning as
a mighty lever with which to develop their new- state
and social system in their struggle for independence
from the imperialist states and for the transition- to
Socialism.
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PLANNING IS THE LAW OF DEVELOPMENT
OF SOVIET ECONOMY
The victory of the Soviet system and the consoli-
dation of the socialist ownership of the decisive means
of production put an end in our country to the laws
of capitalism, to the relationships of exploitation of
man by man, changed the operation of economic laws
such as the law of value, and established new laws
of economic development.
The economic laws of Socialism are laws cognized
and consciously applied by the Soviet State. These
laws are determined by the economic policy of the
Bolshevik Party and the Soviet government and are
embodied in the state national-economic plans. The
laws of economic development operate through the
energetic activities of the Soviet people. In the
U.S.S.R. the state plans for the development of the
national economy have the force of economic laws.
The socialist mode of production, based on social
ownership, cannot develop spontaneously, it requires
planned development.
The huge national economic organism of the So-
viet Union, based on the social (state, kolkhoz-cooper-
ative) ownership of the means of production, is
developed according to a single state plan.
The principal economic base for planning is state
property?the property of the whole people. At the
time the Patriotic War broke out, the state owned tens
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of thousands of big industrial enterprises, more than
10,000 agricultural enterprises, over 170,000 km. of
rail and water ways, and over 350,000 trading enter-
prises.
The socialist reorganization of agriculture neces-
sitated the direct state planning of agriculture.
Comrade Stalin said:
"A large agricultural enterprise embracing hun-
dreds and sometimes thousands of households can be
run Only on the basis of planned management. With-
out that it will inevitably go to rack and ruin."'
The state systematically guides the activities of more
than 200,000 kolkhozes, which cultivate land received
from the state free of charge and for use in perpe-
tuity. Through the medium of machine and tractor
stations, the state renders the farms organizational and
technical assistance which is combined with the activ-
ities of the kolkhozniks themselves in building up
their collvive farms.
Planning makes it possible to conduct large-scale
collective farming on scientific lines, and properly to
combine the interests of the state and those of the
collective farm. The "Rules of the Agricultural Artel,"
the fundamental law of collective-farm life, state:
"The artel undertakes to run its collective farm accord-
ing to plan and scrupulously to carry out the plans
I J. V. Stalin, Problems of Leninism, Moscow 1947, p. 432.
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for agricultural production laid down by the organs
of the Workers' and Peasants' Government and the
artel's obligations to the state."
Planning ensures a rapid and uninterrupted
growth of socialist production, its development with-
out crises, a steady improvement in the material well-
being of the Soviet people and an increase in the pro-
ductivity of social labour. The plan is also the medi-
um for realizing the cardinal principle of Socialism?
payment for work according to its quantity' and
quality.
Socialist planning of the national economy is based
upon the profound scientific prevision of social
development that rests on a knowledge of the econom-
ic laws of Socialism. As Comrade Stalin said, in its
practical activities the Party is guided not by chance
motives, but by the laws of development of society,
by deductions drawn from these laws. "... if it is not
to err in policy, the party of the proletariat must both
in drafting its program and in its practical activities
proceed primarily from the laws of development of
production, from the laws of economic development of
society "1
Basing itself on its knowledge of the economic
laws of development of society, the Soviet State em-
ploys the plan to give conscious effect to these laws.
1 History of the Communist Party of the Soviet Union
(Bolshetiks), Short Course, Moscow 1949, p. 149.
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For example, industrialization was an economic
necessity for the development and triumph of the So-
cialist mode of production in our country. The inter-
nal and external conditions of existence of the Soviet
Union at the time demanded that this task be carried
out in the shortest historical period. But this could be
effected only on the basis of the Soviet method of in-
dustrialization. Whereas in capitalist countries indus-
trialization began with light industry, the accumula-
tions from which served as the basis for developing
heavy industry, in the U.S.S.R. the Party rejected this
"usual" path of industrialization and started the
latter directly with the development of heavy industry.
Planning made it possible to mobilize the means
required for carrying out this task, to redistribute all
the resources of the national economy for the purpose
of founding and rapidly developing heavy industry,
Thus, in the U.S.S.R., the principle of private profit,
the elemental law of the average rate of profit, was
superseded by the principle of national-economic profit,
by the planned distribution of social labour.
The profound revolution that took place in Soviet
society, viz., the collectivization of agriculture, also
testifies to the role the socialist plan plays as the eco-
nomic law of development of Socialism. All the chief
prerequisites and conditions for collectivization?the
growth of socialist industry which ensured the supply
of machines for agriculture, the development of the
initial forms of cooperation, and the restriction and
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elimination of the capitalist elements?were created
according to plan. Taking into account the specific
features of the different districts of the country. the
Soviet State provided for different schedules of collec-
tivization for the various districts. All this made it
possible to convert collectivization into a movement of
the broad masses of the peasantry who were fighting
against kulak bondage and for a free kolkhoz life.
Socialist planning rests on the firm foundation of
the political and economic might of the Soviet State.
In capitalist countries, it is not the state that manages
the national economy; on the contrary, capitalist econ-
omy, the interests of the capitalist monopolies, de-
termine the activities of the state which is controlled
by ihese monopolies. In the U.S.S.R. planning is a
new., economic organizational function of the state
that is unknown under capitalism.
As Comrade Stalin pointed out, the Socialist State
passed through two phases in the course of its devel-
opment. The first phase was the period from the
October Revolution to the elimination of the exploit-
ing classes. "The principal task in that period was
to suppress the resistance of the overthrown classes,
to organize the defence of the country against the
attack of the interventionists, to restore industry and
agriculture, and to prepare the conditions for the elim-
ination of the capitalist elements." In that period
the Soviet State fulfilled two principal functions: it
suppressed the overthrown classes inside the country
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and defended the country from foreign attack. The
third function?the work of economic organization
and cultural education?did not attain any considera-
ble development in that period.
The second phase of development of the Soviet
State was the period from the elimination of the capi-
talist elements in town and country to the complete
victory of the socialist economic system and the adop-
tion of the new Constitution.
"The principal task in this period was to establish
the socialist economic system all over the country
and to eliminate the last remnants of the capitalist
elements, to bring about a cultural revolution, and to
form a thoroughly modern army for the defence of
the country." In this phase the economic-organizational
and cultural-educational functions of the organs of the
state were fully developed. At the same time, the
function of defending the country against foreign at-
tack remained in its entirety; a new function arose?
the protection of socialist property.
As the economic role of the Soviet State was en-
hanced, the possibilities for socialist planning increased
also. The elimination of the capitalist elements and the
triumph of the socialist system of economy created the
conditions for bringing the entire national economy
within the orbit of the state plan, for direct state plan-
ning of all branches and spheres of production.
The plans for the development of the national
economy of the U.S.S.R. are state plans, directive plans,
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obligatory for all economic organizations and enter-
prises.
At the Fifteenth Congress of the Communist Party
of the Soviet Union Comrade Stalin emphasized the
state, directive character of our plans. He said: "Our
plans are not forecast plans, not guesswork plans, but
directive plans which are obligatory for the leading or-
gans and which determine the direction our economic
development is to take in the future on a nation-wide
scale."1
The chief driving force in socialist planning is the
Bolshevik Party, which is equipped with the theory
of Marxism-Leninism and is the leading core of all
the working people's organizations, social as well as
state.
The Bolshevik program of economic development
finds concrete expression in the long-range and current
national-economic plans, which ensure the solution of
the current problems connected with the building of
Communism and the strengthening of the economic and
military might of the Soviet State. Lenin pointed out
that the program of the Party "is a political program;
it is an enumeration of our tasks, it is an explanation
of the relations between classes and masses.... Our
Party program cannot remain merely a program of the
Party. It must be converted into the program of our
Lenin and Stalin, Material for the Study of the History
of the C.P.S.U.(B.), Vol. III, Russ. ed., p. 246.
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economic development, otherwise it will also be value-
less as a program of the Party."1
The policy of the Bolshevik Party--the vital foun-
dation of the Soviet system?is the basis for state
planning. It defines the fundamental problems, the
main links and concrete tasks of the national-eco-
nomic plan, it stimulates the productive activity of
the broad masses of the working people in their strug-
gle to fulfil the plan.
The state national-economic plans are a tremen-
dous mobilizing force in the work of building Com-
munism.
In defining the purpose of the GOELRO plan,
Lenin spoke of the need for "enthusing the masses of
wo?kers and politically conscious peasants with a
great program extending over a period of ten to
twenty years."2
It was precisely the constructive activity of the
masses of the working people that decided the suc-
cess of the GOELRO plan, the targets of which were
reached considerably ahead of schedule. The Stalin
plans of great undertakings mobilized the Soviet peo-
ple for the purpose of carrying out the gigantic pro-
gram of industrializing the country and collectivizing
agriculture and made it possible to master the huge re-
I V. L Lenin, Selected Works, Vol, VIII, Moscow-Lenin-
grad, p. 275.
2 V. I. Lenin, Collected Wyrks, Vol. XXIX, Third Rasa.
ed., p. 432.
2.9
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serves latent in socialist production for the successful
fulfilment of the program.
Socialist planning has nothing in common with
groundless projectmongering; it takes concretely into
? account the actual possibilities that exist for carrying
out the plans. At the same time, however, it takes into
account the reserves that are latent in the socialist
mode of production and the utilization of which en-
sures the most rapid achievement of the objects of
the national-economic plans. V. V. Kuibyshev once
said: "To draw up a five-year plan without taking as
a necessary premise the systematic raising of technical
and cultural standards and managerial skill, without
taking fuller stock of all the resources and advantages
that our system of economy possesses, etc., etc., means
busying oneself with trifles, indulging in idle and use-
less pastimes. For on the very next day life will al-
ready be far beyond all these 'good' and 'realistic'
projects."
The socialist plan is a Bolshevik plan, a plan that
is based on progressive science and technology which
ensures a rapid rate of socialist reproduction. The
plan is orientated towards the leading people in pro-
duction?the workers, engineers and technicians who
reveal what enormous possibilities exist for increas-
ing productivity of labour. The tasks and indices set
? V. V. Kuibyshev, "Drafting the Five-Year Plan," Pia-
novoye Kkozyaistvo, No. 1, 11)36, p. 38.
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by the state plan are based on the technical and eco-
nomic standards achieved by the leading enterprises,
factory departments, sections and teams. Mobilizing
the masses of the working people, the whole people,
for the purpose of carrying out the tasks set by the
Party and the decisions of the Soviet Government, the
state national-economic plans serve as the motive force
of Soviet economy. The successful fulfilment and over-
fulfilment of the state plans is determined by the peo-
ple, by the creative activity and initiative of the mil-
lions of Soviet people.
"What makes our plan real," said Comrade Stalin,
"is the living people, it is you and I, our will to work,
our readiness to work in the new way, our determina-
tion to carry out the plan."'
THE FUNDAMENTAL TASKS OF SOCIALIST
PLANNING
As. defined by the Constitution of the U.S.S.R., the
economic life of the Soviet Union "is determined and
directed by the state national-economic plan, with the
aim of increasing the public wealth, of steadily rais-
ing the material and cultural standards of the work-
ing people, of consolidating the independence of the
U.S.S.R, and strengthening its defensive capacity."
1 J. T. Stalin, Problems of Leninism, Moscow 1947, p. 377. .
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In addition to giving legal recognition to the vic-
tory of Socialism in the U.S.S.R., the Stalin Constitu-
tion defined the fundamental tasks to be carried out
by planning in order to promote the further develop-
ment of Socialism.
A fundamental task of socialist planning, the fun-
damental condition for the existence and development
of Soviet economy, is to strengthen the sovereignty
and independence of our national economy against the
surrounding capitalist world.
The Great October Socialist Revolution opened the
way for the independent economic development of our
country and created the political prerequisites for elim-
inating Russia's technical and economic backward-
ness. It was of vital importance to Soviet Russia to
accomplish this task with the utmost speed. As Lenin
said, we have to overtake and outstrip the principal
capitalist countries economically. "The war is inex-
orable; it puts the alternative with ruthless severity:
either perish, or overtake and outstrip the advanced
countries economically as well.. . Perish or drive
full-steam ahead. That is the alternative with which
history confronts us," wrote V. I. Lenin in Septem-
ber, 1917)
In describing the Party's general line at the Four-
teenth Congress of the Party Comrade Stalin said:
V. I. Lenin, Selected Works. Two-Vol. ed., Vol. II, Mos-
cow 1947, pp. 117-18.
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"We are working and building in a capitalist encircle-
ment. ... Hence the conclusion: we must build our
economy in such a way that our country shall not be-
come an appendage of the world capitalist system,
that she shall not be drawn into the general system
of capitalist development as an auxiliary enterprise,
that our economy shall develop not as an auxiliary
enterprise of world capitalism but as an independent
economic unit, relying mainly on the home market,
resting on the bond between our industry and the peas-
ant economy of our country."
The technical and economic independence which
safeguards the U.S.S.R. against becoming an append-
age of capitalist world economy was attained by the
socialist industrialization of the country and the ac-
cumulation by the state of large reserves for economic
manoeuvring. Achievement of this fundamental task
of socialist planning served as the basis of the Stalin
five-year plans..
As a result of the fulfilment of the five-year plans,
the Soviet Union became a technically and economi-
cally independent country, supplying all the technical
equipment needed for our national economy and for
purposes of defence.
The task of consolidating the sovereignty and
technical and economic independence of Soviet econ-
Political Report of the Central Committee to the Four-
teenth Congress of the Russian Communist Party (Bolsheviks),
Russ. ed., 1926, pp. 27-28.
3-703
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omy as against the surrounding capitalist world is
directly connected with that of enhancing the defen-
sive power of the U.S.S.R.
During the whole period covered by the prewar
five-)ear plans the internal resources of the U.S.S.R.
were systematically mobilized and the material, labour
and financial resources were distributed according to
plan with the view of developing primarily the heavy
and armament industries.
Simultaneously with the establishment and rapid
development of the machine-building and armament
industries a mighty metallurgical, fuel and power base
for the national economy were created. Large-scale,
technically up-to-date food and light industries were
built up at the same time. Local industry and produc-
ers' cooperatives were extensively developed in all re-
publics, territories and regions. This developed social-
ist industry served as a reliable basis for the defensive
power of our country, and fully ensured the needs of
the armed forces during the war.
The planned organization of the national economy
strengthened the defensive power of our country by
facilitating in every way the development and tech-
nical equipment of kolkhozes and furthering the de-
velopment of sovkhozes and the machine and tractor
stations. The triumph of the kolkhoz system was of
decisive importance in consolidating the Soviet system
and in enhancing the defensive power of our country.
During the war the kolkhoz system demonstrated what
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tremendous vitality it possessed. The problem of sup-
plying the armed forces and the population with food,
and industry with agricultural raw materials was
solved on the basis of kolkhoz production.
Planned organization of the national economy
strengthened the defensive power of our country by
rationally distributing the productive forces over the
country. The chief new trend in the distribution of
the productive forces was to the East, where new
mighty industrial centres were established. Socialist
industrialization of the country called for the estab-
lishment of a second coal and metallurgical centre
based on the rich deposits of iron ore and coal in the
Urals and Siberia.
Abundantly equipped with up-to-date machinery,
the kolkhozes opened up new agricultural areas in the
regions of the Volga, the Urals, Siberia, Kazakhstan
and Central Asia. New railway lines connected the
Eastern regions with those in the Centre and the
South. A change took place in the distribution of the
population of the U.S.S.R. New cities and workers'
settlements sprang up in the eastern regions, and the
population in the non-Russian republics and regions
grew rapidly. The new distribution of productive forces
made it possible, during the war, successfully to trans-
fer industry to the East and to put the evacuated
equipment into operation quickly.
Planned organization of the national economy
strengthened the defensive power of our country by
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mobilizing forces and resources for raising the cultural
level of the population, for training specialists and
skilled workers. The training of personnel for indus-
try, agriculture and transport developed on a mass
scale. The Stakhanov movement which arose as a
result of the victories of Socialism, the fundamental
technical reconstruction of the national economy and
the improvement in the material well-being of the
working people, all served as a striking demonstra-
tion of the successful solution of the skilled-labour
problem. The factory apprenticeship, and the voca-
tional and railway training school system that was
set up in 1940, ensured the training of large state
labour reserves, which proved to be a very important
source of labour power for replenishing industry
during the war.
Thus, during the period of peaceful construction
socialist planning made it possible to create a solid
foundation for the military and economic might of the
U.S.S.R., which was used successfully during the war
for achieving victory over the enemy.
In the postwar period, too, consolidation of the
independence of our country and enhancement of
her defensive power remains a fundamental task of
planning. The new five-year plan meets this task
by giving priority to the restoration and develop-
ment of heavy industry, and the distribution of the
national-economic resources has been planned ac-
cordingly.
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The second task of planning during the period
of Socialism is to consoliaate the undivided sway of
the socialist system of economy and to close all the
sources that give rise to capitalist elements.
As Comrade Stalin pointed out, Soviet society
differs from all other f mins of society in that it is
interested not in any kind of growth of the productive
forces, but in such growth as will ensure the develop-
ment and consolidation of socialist economy.
The growth of socialist economy, the increase in
social wealth also makes it possible to carry out suc-
cessfully the task of raising the material and cultural
standards of the working people. The Soviet people
regard the Bolshevik plans not merely as mighty
instruments for strengthening the independence of
their country, but also as powerful levers for steadily
raising their well-being and culture.
Socialist reproduction, which is determined by the
national-economic plan, is the expanded reproduction
of productive forces and of socialist relationships. The
Soviet State has utilized all the levers at its command
steadily to increase and strengthen socialist relation-
ships.
As a result of the fulfilment of the Stalin five-
year plans, the socialist system acquired undivided
sway in the national economy of the U.S.S.R. Under
these conditions the central task of planning was to
consolidate this predominance of the socialist system
of economy, to complete the building of socialist so
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ciety and gradually to accomplish the transition from
Socialism to Communism. To close all possible chan-
nels for the rise of capitalist elements, steadily to
ensure the elimination of the survivals of capitalism
from our economy and from the minds of the people
and to proceed further along the road to Commu-
nism?such are the tasks that face the Communist
Party and the Soviet State in the period of So-
cialism.
During the Great Patriotic War the Soviet people
waged against fascist Germany, the socialist economic
system demonstrated its immense vitality with excep-
tional clarity; it made it possible successfully to solve
the highly complex problems of war economy, to en-
sure the steady consolidation of the Soviet rear and to
achieve economic victory over the enemy.
The further development of the socialist economic
system and of the military and economic might of the
U.S.S.R. during the new five-year plan period requires
a steady growth of socialist industry, the preservation
of its leading role in the national economy, the organ-
izational and economic consolidation of the kol-
khozes, sovkhozes and machine and tractor stations, the
consistent application of the socialist principle of
distribution according to quantity and quality of work
performed, and the strengthening of the socialist meth-
od of organizing work.
The third task of planning is to prevent dispropor-
tion in the national economy, and to eliminate it if it
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does arise, by increasing existing and creating new
state reserves.
Under capitalism, where private capitalist owner-
ship is in crying contradiction to the social character
of production, the development of the economy pro-
ceeds by means of constant disproportion. In capital-
ist economy proportion is restored only by periodic
crises.
Complete harmony between the social ownership of
the means of production and the social character of
production precludes the possibility of economic cri-
ses in the U.S.S.R.; and planning makes it possible to
develop the entire national economy and ensure the
necessary proportion between its various branches.
The absence of economic crises does not mean
that occasional, temporary disproportions may not
occur in the national economy of the U.S.S.R. Dispro-
portions of this kind in Soviet economy in the postwar
period are primarily due to the damage inflicted by
the war. The state plan is the principal instrument foi
eliminating these disproportions.
Planned guidance makes it possible to prevent par-
tial disproportions in Soviet economy, to prevent them
from affecting the development of the national econo-
my as a whole, and to pull up the lagging sectors. To
be able to do this, the Socialist State must have large
reserves of fixed and circulating funds and of labour
power. To create such reserves is one of the cardinal
tasks of national-economic planning.
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The First Five-Year Plan for the development of
national economy provided for a considerable increase
in reserves of goods and currency.
The creation of large state reserves, particularly
of fuel, electric power and a number of products re-
quired for defence, was one of the main tasks of the
Third Five-Year Plan.
The creation of growing material and labour pow.
er reserves during the postwar five-year plan period
is necessary for uninterrupted reproduction in the na-
tional economy and also for ensuring the defensive
power of our country.
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THE DEVELOPMENT
OF NATIONAL?ECONOMIC PLANNING
IN THE U.S.S.R.
THE FIRST YEARS OF SOCIALIST PLANNING
Th:e initial steps in planned economic development
along lines leading to Socialism were determined by
the economic platform of the Bolshevik Party that
was drafted on the eve of the October Socialist Revo-
lution. This platform was a most important component
of Lenin's plan for building Socialism in our country.
Lenin's April Theses' contained a theoretically
grounded and concrete plan for the transition to the
Socialist Revolution. Adopted by the April (1917)
Conference of the Bolshevik Party, this plan provided
for the nationalization of the land and the confiscation
of the landed estates, the amalgamation of all banks
into one national bank to be controlled by the Soviet
of Workers' Deputies, and the establishment of work-
1 Lenin's Theses appeared in his article "The Tasks of
the Proletariat in the Present Revolution," V. I. Lenin, Se-
lected Works, Two-Vol. ed., Vol. II, Moscow 1947, p. 17.
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crs' control of social production and distribution. The
Sixth Congress of the Party (July 26 to August 3,
1917), which approved the Bolshevik economic plat-
form, especially stressed the importance of the strug-
gle for workers' control as a transitional measure pre-
liminary to the nationalization of industry.
On November 7, 1917, the Second All-Russian Con-
gress of Soviets, backed by the victory of the October
armed insurrection in Petrograd, proclaimed that
power had passed to the Soviets, and formed the first
Soviet Government?the Council of People's Commis-
sars, headed by V. I. Lenin.
One of the first decrees issued after the victorious
October Revolution was the Decree on Land that was
adopted by the Second Congress of Soviets. This de-
cree abolished landlord ownership of land without any
compensation, declared the right of private property
in land abolished forever. All land was taken over
without compensation and made the property of the
whole people to be used by those who work on it; all
mineral wealth as well as forests and waters of nation-
al importance were reserved for use by the state.
The Soviet State embarked upon its constructive
activity in economic organization by developing the
young shoots of the new, socialist system. The initial
form of the Soviet State's planned economic activity,
the first practical school in which the working class
learned to manage industry, was workers' control of
production.
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To carry out the planned regulation of the national
economy, the Regulations on Workers' Control laid it
down that in all industrial, commercial, banking,
agricultural, transport, cooperative trading, producers'
cooperative, and other enterprises employing wage
workers or home workers, workers' control was to be
established of production, the purchase and sale of
products and raw materials and the warehousing of
Same, and also of the finances of such enterprises.
The enemies of the Socialist Revolution greeted
the introduction of workers' control of production with
howls to the effect that this measure would mean the
ruin of industry, that workers' control would fail be-
cause the working people lacked the training and abil-
ity to regulate and manage production. The capital-
ists in every way sabotaged the measures taken by the
Soviet State for effecting workers' control. ?
But life itself refuted all the inventions of the
enemies of the revolution and the learned lackeys of
the capitalists. Workers' control proved to be a
thoroughly effective measure for successfully operating
industrial enterprises under the conditions existing at
that time, and as a weapon for combating the sys-
tematic economic sabotage of the capitalists.
Workers' control steadily grew into workers' man-
agement of industry. Large enterprises and whole
branches of industry became state property. This stage
was completed with the nationalization, in June 1918,
of the large enterprises in the mining, iron and steel,
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textile, electrical, saw-mill and woodworking, cement,
glass and ceramic, leather and flour-milling industries.
One of the most important prerequisites for so-
cialist planned economy was the nationalization of
the banks.
As was stated in the decree on the nationalization
of the banks, with the object of establishing a single
national bank that would genuinely serve the interests
of the people, banking was proclaimed a state monop-
oly, and all the existing private joint stock banks
and banking offices were amalgamated with the State
Bank. This was done with the view to ensuring the
proper organization of the national economy, to
thoroughly eradicating financial speculation, and to
completely liberating the workers, peasants and all
the working people from exploitation by bank cap-
ital.
Another highly important foundation for the
planned development of socialist national economy
was the nationalization of foreign trade, decreed by
the Soviet Government in April 1918.
At the same time, the new system of Soviet eco-
nomic bodies was being created. In December, 1917,
the Council of People's Commissars set up the
Supreme Council of National Economy to be under
its direct control. The function of the Supreme
Council of National Economy was to organize the
national economy and state finances. With this end in
view, it was instructed to draw up a plan for regu-
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lating the economic life of the country and to coor-
dinate and unify the activities of the central and local
regulatory bodies. As the nationalization of industry
and transport was progressively carried out, the
S.C.N.E. increasingly assumed the function of man-
aging state enterprises. The regulations governing the
Supreme Council of National Economy that were
adopted in August 1918 imposed on that body the
functions of regulating and organizing all produc-
tion and distribution, and also of managing all the
enterprises of the Republic.
During the first half of 1918 the economic power
of the bourgeoisie was broken. The Soviet State
gained command of all the key positions in the na-
tional economy and thereby laid a firm foundation
for Soviet planned economy.
By the spring of 1918, the confiscation and na-
tionalization of the capitalist enterprises had been
completed in the main and the transition to the new
stage of socialist construction began.
The content of socialist planning at this stage was
determined by the struggle to introduce the account-
ing ?and control of production and distribution, to
implant labour and civic discipline, to give effect
to the economic plan of the Socialist State and
to eliminate petty-bourgeois speculation and prof-
iteering.
"The organization of accounting, of the control
of large enterprises, the transformation of ?the whole
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of the state economic mechanism into a single huge
machine, into an economic organism that will work
in such a way as to enable hundreds of millions of
people to be guided by a single plan?such was the
enormous organizational problem that rested on our
shoulders,"1 said Lenin.
In April 1918. Lenin placed before the Academy
of Sciences the task of drawing up a plan for reor-
ganizing Russia's industry and reviving her econ-
omy. This plan was to provide for the proper dis-
tribution of industry, for the rational amalgamation
and concentration of production in a few large-scale
enterprises in conformity with the standards of up-to-
date large-scale industry; for supplying the Russian
Soviet Republic of that time (exclusive of the
Ukraine and other regions that were occupied by the
Germans) with a maximum of the principal raw ma-
terials and manufactured goods, and for the electrifi-
cation of industry and transport and the introduction
of electricity in agriculture.
At this period the planned guidance of economic
activity was exercised through directives issued by the
Communist Party and the Soviet Government.
Planned nation-wide organization of work de-
pended on the stimulation of the constructive activi-
ties of the broad masses of the working people. In
V. I. Lenin, Selected Works. Two-Vol. ed., Via. II, Mos-
cow 1947, p. 294.
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January 1918 Lenin wrote: Now that a bociahst
Government is in power our task is to organize com-
petition." Lenin attached special importance to the
wide participation by the workers and peasants in the
work of solving. the principal economic problem of
the day, viz., the organization of accounting and con-
trol. "You yourselves must set to work to take ac-
count of and control the production and distribution
of products?this is the only road to the victory of
Socialism, the only guarantee of its victory, the guar-
antee of victory over all exploitation, over all pov-
erty and want!"
Foreign military intervention and the civil war
which then commenced brought up new problems of
planning, which was a mighty instrument for mo-
bilizing the whole of the country's resources and all
the people's efforts for defence.
The work of mobilizing the national economy to
meet the needs of the front was directed by the
Council of Workers' and Peasants' Defence, headed
by Lenin and Stalin. Priority was given to the tasks
of supplying the front with replenishments of food-
stuffs, equipment and armaments, of organizing war
production, of procuring and making rational use of
fuel and provisions, of maintaining the transport serv-
ices.
I Lenin, Selected Works, Two-Vol. ed., Vol. II, Moscow
1947, pp. 259-60.
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The conditions created by the war, the fact that
Soviet Russia was cut off from the most important
industrial, raw material, fuel and grain areas, the
economic blockade and the economic ruin prevailing
in the country called for strict centralization in the
planning of production and distribution.
In conformity with the policy of War Communism,
further nationalization was effected not only of large-
scale industry, but also of medium and small industry.
This measure made it possible to increase the stocks
of mass consumption goods for supplying the army
and the countryside. In agriculture the surplus-appro-
priation system was introduced, and this served to in-
crease the states stocks of grain for supplying the
army and the workers.
The planned distribution of the means of produc-
tion and articles of consumption made it possible to
concentrate forces and resources in branches of indus-
try and enterprises that were of primary importance
for the country's defence. That was a decisive condi-
tion for creating an organized and strong rear.
During the stern period of civil war and foreign
intervention the Soviet State and the Communist Party
proceeded with their planned work of construction,
although the scale on which this work was conducted
was still small. Scores of new industrial enterprises
were built during the war years, and construction
work was conducted on the transport system. Simul-
taneously, restoration work was conducted in the re-
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gions liberated from the enemy. All this consolidated
the development of Socialism in Soviet Land and tes-
tified to the mighty strength of the young Soviet
system.
THE GOELRO PLAN-A SINGLE ECONOMIC PLAN
The task that Lenin set as far back as 1918 of
drafting a single, state national-economic plan cover-
ing a number of years rose in all its magnitude be-
fore the Party and the Soviet Government during the
civil war and the struggle against the interventionists,
and particularly after the rout of Denikin, Kolchak
and Yudenich, when the possibility for the country
to turn to extensive peaceful construction became defi-
nitely revealed.
In February 1920, the All-Russian Central Ex-
ecutive Committee, on Lenin's .proposal, adopted a de-
cision that work be started on the drafting of a sci-
entific plan for the entire national economy and that
this' plan be consistently put into effect. On Febru-
ary 21, 1920, the State Commission for the Electrifica-
tion of Russia (GOELRO) was formed, and this com-
mission proceeded to draft a plan for the electrifica-
tion of the country.
The Ninth Congress of the Communist Party, in
March 1920, resolved that "the fundamental condition
for the economic revival of the country is the unde-
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viating execution of a single economic plan designed
to cover the immediate historical period." The Con-
gress deemed it necessary that the plan should envisage
the extensive utilization of electric power and indi-
cated the following very important stages of the
planned electrification of the country.
"1. Drafting the plan for the electrification of the
national economy and the execution of a minimum
program of electrification, i.e., designation of the prin-
cipal power supply points, utilizing for this purpose
the existing electric stations and also some of the dis-
trict stations in course of construction under the first
part of the plan.
"2. Construction of the principal district electric
stations scheduled in the first part of the plan and of
the main transmission lines, with a corresponding ex-
pansion of the scale of activities of the plants produc-
ing electrical equipment.
"3. Erection of the district stations scheduled in
the next part of the plan, further development of the
electric power network and consecutive electrification
of the more important production processes.
"4. Electrification of industry, transport and agri-
culture."
In December 1920 the "Plan for the Electrification
of the R.S.F.S.R.," in the drafting of which some two
hundred of the country's best scientists and specialists
took part, was approved by the Eighth All-Russian
Congress of Soviets.
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The GOELRO plan was a scientific program for
laying the foundation of socialist economy. The key-
note of this program was electrification, because the
solution of the fundamental problems of Socialism re-
quired an accelerated development of large-scale in-
dustry, which, in turn, required extensive construction
of electric power stations and the introduction of elec-
tric power in the national economy.
The basis for the GOELRO plan was Lenin's pre-
cept that large-scale machine industry is the material
foundation of Socialism. "The only material basis that
is possible for Socialism," said Lenin, "is large-scale
machine industry that is capable of reorganizing agri-
culture. But we cannot confine ourselves to this gen-
eral thesis. It must be made more concrete. Modern
large-scale industry, capable of reorganizing agricul-
ture, means the electrification of the whole country. We
had to undertake the scientific work of drawing up
such a plan for the electrification of the R.S.F.S.R.
and we have accomplished it."
This thesis, more than once developed by Lenin,
found expression in the formula that reveals his gen-
ius: "Communism is Soviet power plus the electrifica-
tion of the whole country." Conceiving electrification
as the material foundation of the new society, Lenin
stressed that this was not merely the only correct way
V. I. Lenin, Selected Works, Two-Vol. ed., Vol. II,
Moscow 1947, p. 735.
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to restore the country that had been ruined by the
first imperialist war and the civil war and to build up
the material base of Socialism, but also the most econom-
ical way as regards expenditure of labour and time.
Electrification made it possible quickly and effec-
tively to solve the most important current economic
problems that faced the country, viz., fuel, transport
and food. For example, electrification made possible
extensive use of local fuels, particularly peat, in the
national economy, and utilization of water resources.
The mechanization and electrification of coal mines
ensured a consideratle increase in productivity of la-
bour in the coal industry. The new distribution of pro-
ductive forces, the new territorial division of the coun-
try, and the execution of the program for electrify-
ing the railways, solved the transport problem in the
best possible way. At the same time, the revival of
heavy industry and transport and the gradual intro-
duction of electric power in agricultural production
were to create the material foundation for re-equip-
ping agriculture, for tearing out the roots of capital-
ism in the countryside, and for fundamentally solving
the food problem.
In a letter to Lenin, Comrade Stalin appraised the
GOELRO plan as "a skilfully drafted outline of a sin-
gle and really state economic plan, without ironical
quotation marks. It is the only Marxist attempt made
in our times to place under the Soviet superstructure
of economically backward Rus,ia a really practical
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and, under present conditions, the only possible, tech-
nical-industrial basis."
The economic and political tasks of the GOELRO
plan were embodied in concrete targets. for the sepa-
rate branches of the national economy. The GOELRO
plan, covering a period of ten to fifteen years, provid-
ed for an 80 to 100% increase in industrial produc-
tion compared with prewar, and for more than a ten-
fold increase compared with 1920. The output of pig
iron was to be brought up to 8.2 million tons com-
pared with 4.2 million in 1913, and steel to 6.5 mil-
lion tons against 4.2 million in that year. Coal prod-
uction was set at 62.3 million tons compared with 29.1
million, and cement at 7.75 million tons compared
with 1.5 million in 1913. The output of the metal in-
dustry was to be nearly double the prewar output.
A highly important part of the GOELRO plan was
the program for the construction of large electric pow-
er stations. The first part of the plan provided for
the building of thirty steam and hydroelectric sta-
tions with a total capacity of 1,750,000 kw. The capac-
ity of the district stations was to increase almost ten
times compared with 1913.
As regards agriculture, the GOELRO plan aimed at
exceeding the prewar level of production and outlined
extensive measures for mechanization, for the intro-
duction of progressive agricultural techniques and for
Lenin and Stalin, Material for the Study of the flistory
of the C.P.S.U.(B.), Vol. II, Russ. ed? p. 365.
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the initial steps in the electrification of agriculture. The
plan also included the gradual preparation of condi-
tions for the socialization of agriculture. "The Soviet
government," the plan stated, "will have to exert sys-
tematic influence on the will and production conditions
of the working peasantry, and lead it with reasonable
gradualness to increasingly higher forms of socialized
agricultural labour and to a high level of igricultural
technique."
In the sphere of transport the plan provided for an
increase of 80 to 100% in freight traffic in comparison
with 1913. An extensive program of new railway con-
struction was drawn up, including the electrification
of a number of lines on which the freight-traffic strain
was heaviest.
The GOELRO plan was a superb example of con-
structive Socialist planning. For the first time in history
a scientific long-range state plan was drafted, which
became a mighty instrument for the socialist transfor-
mation of the country. This first state plan of great
undertakings gave concrete expression to the tenet of
the Party of Lenin and Stalin tLat the complete victory
of Socialism is possible in one country.
The economic and political aims of the plan were
placed on a profound scientific basis of the latest
achievements in modern technique that were embodied
in it. Its assignments were determined after a thorough
study of the country's natural and labour power re-
sources.
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In drafting the GOELRO plan the condition of the
economy of prewar Russia was carefully studied,
but not for the purpose of taking the prewar ra-
tios of social production as the criterion for the fu-
ture.
On the contrary, in conformity with the economic
and political tasks that were set, the GOELRO plan
provided for a change in the proportions between the
various branches of the national economy and for the
establishment of new proportions corresponding to so-
cialist economy.
A most important feature of the plan was that its
principal assignments were based on an appraisal of
the country's resources. It contained the elements of
a combined balance sheet for fuel, and balance sheets
for metal, equipment and building materials. In addi-
tion to balance sheets for the main materials, a finan-
cial balance sheet for electrification was drawn up,
allocating the funds to be used for carrying out the
program of building electric power stations and of
restoring and developing industry and transport, and
indicating the sources of revenue to cover the required
expenditures.
One of the chief merits of the GOELRO plan was
the profound way in which it worked out the problems
connected with the economic territorial division of the
country.
For the purpose of electrification the country was
divided into eight major economic districts: Northern,
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Central industrial, Southern, the Volga, the Urals,
West Siberian, the Caucasus and Turkestan. Complex
interlinked plans were drafted for each of these dis-
tricts; these plans made it possible to appraise correct-
ly the future prospects of the division of labour
among the districts.
The GOELRO plan not only set general targets for
electric stations to be built by the end of the planned
period, but also projected the targets for each year,
thus laying the foundation for calendar planning.
The plan for the electrification of the country?a
scientific program for building the foundation of
socialist economy?could not but evoke the furious
attacks of the enemies of Socialism, who attempted to
disrupt the drafting of the plan and its fulfilment.
Lenin and Stalin exposed the anti-socialist sorties of
the Trotskyites, who, in opposition to the socialist plan
for restoring and reorganizing the country's economy
on the basis of modern technique, put forward their
own "plan" for the economic revival of the country
with the aid of labour armies. Concerning this "plan,"
Comrade Stalin wrote in a letter to Lenin: "What a
paucity of ideas, how backward compared with the
GOELRO plan. A medieval craftsman imagining him-
self an Ibsen hero called upon to 'save' Russia with
the aid of an ancient saga...." The Party shattered
1 Lenin and Stalin, Material for the 'Study of the History
of the C.P.S.U.(B.), Vol. II, Russ. ed., p. 365.
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the defeatist line of the Trotskyites and Rykovites who
were hindering the work of the State Commission for
the Electrification of Russia and howling that the plan
was impractical. Lenin and Stalin mercilessly exposed
the falsehoods uttered by the Trotskyites and Rykov-
ites about the plan and rejected the "learned" prattle
and ignorant conceit of the bureaucratic officials who
concocted a host of "single plans."
Waging a determined struggle against the enemies
of Socialism, the Bolshevik Party secured the fulfil-
meht of the plan for the electrification of Russia ahead
of time. The GOELRO plan, which covered a period
of ten to fifteen years, provided for the opening of
new district power stations with a total capacity of
1.5 million kw. Actually by the end of 1935, in fifteen
years, stations with a total capacity of 3.8 million kw.
were opened. The Stalin five-year plans developed the
Lenin electrification plan, and outlined a still grander
program of socialist construction.
The basic ideas contained in the plan for the elec-
trification of Russia were further developed in the
course of the tremendous creative work undertaken by
the Soviet State and the Communist Party in subse-
quent years in planning the campaign to restore the
national economy and to effect the socialist industriali-
zation of the country.
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PLANNING IN THE PERIOD OF THE RESTORATION
OF THE NATIONAL ECONOMY
On the border line of two periods in the develop-
ment of Soviet Land, when victory over the interven-
tionists and Whiteguards had been consummated and
the peaceful work of restoring the national economy
was undertaken, the State Planning Commission of the
Council of Labour and Defence was set up. The regu-
lations governing the functions of the State Planning
Commission, which embodied Lenin's ideas on plan-
ning, formulated the following tasks for the Commis-
sion:
"a) To draw up a single national-economic plan
and define the methods by and order in which it is to
be carried out.
"b) To examine and coordinate with the general
state plan the production programs and planning pro-
posals of the various government departments as well
as of regional (economic) organizations covering all
branches of the national economy and to define the
order in which the work is to be carried out.
"c) To work out measures covering the whole
country for developing the sciences and organizing the
research necessary to carry out the plan of state econ-
omy, and also for employing and training the re-
quired personnel.
"d) To work out measures for disseminating
=nog large suctions of the population information
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concerning the national economic plan, the methods
of carrying it out, and the corresponding forms of or-
ganization of labour."'
With the transition to the peaceful work of restor-
ing the national economy and with the institution of
the New Economic Policy, the conditions and forms of
planning the national economy underwent a change.
The Socialist State extensively employed methods
of economic regulation by developing commodity and
money relations, prices, taxes, credit and? other eco-
nomic measures; State industry reorganized its work on
the basis of cost accounting.
V. I. Lenin emphasized that "the New Economic
Policy does not change the single state economic plan
and does not go beyond its framework, but changes the
approach to its fulfilment."2
In the initial period of the New Economic Policy
the work of the State Planning Commission was con-
centrated mainly on current planning. On Lenin's in-
structions plans were worked out for separate branches
of the national economy which ensured solution in the
first instance of problems concerned with food, fuel,
transport and the development of electrification.
During the first years of the New Economic Policy,
considerable success was achieved in creating the pre-
1 V. I. Lenin, Miscellany, Vol. XX, Russ. ed., p. 25.
-1 V. L Lenin, Collected Works, Vol. XXiX, Russ, ed.,
p. 463.
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requisites for national-economic planning under the
new conditions. These prerequisites were a follows:
1) establishment of a stable currency, 2) organization
of Soviet credit, 3) accumulation of material resources
sufficient for manoeuvring purposes, 4) establishment
and consolidation of such forms of economic organi-
zation as Soviet trusts and syndicates, 5) operation of
a number of separate current plans, primarily budget-
ary plans, drawn up on the basis of experience. An
intense class struggle developed on the economic front.
The capitalist elements in town and country attempted
to take advantage of the New Economic Policy to
bring about, with the aid of the reactionary circles of
the capitalist countries, the liquidation of the Soviet
system and the restoration of capitalism. In their
struggle against the dictatorship of the proletariat, the
agents and hirelings of foreign Intelligence Services?
the Trotskyite& Zinovievites. Bukharinites and Rykov-
ites?attempted to disrupt the plans of the Soviet
State and to convert the New Economic Policy, the
object of which was to facilitate the building of
Socialism, into a policy for the restoration of capi-
talism.
Holding the key positions in the national economy,
the Socialist State very quickly effected the planned
restoration of the national economy and fought suc-
cessfully to ensure the predominance of the socialist
sector among the numerous systems of economy that
existed at that time, by restricting and forcing out
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the capitalist elements and directing the develop-
ment of the national economy along the road to So-
cialism.
By the end of the restoration period, the growth
and consolidation of socialist relations in the national
economy had created the conditions under which it
was possible to pass from working out plans for in-
dividual branches to drafting annual plans covering
the entire national economy. The first plan of this
kind were the control figures (estimates) of national-
economic development which the State Planning Com-
mission drew up for the financial year 1925/26. But
these control figures, as well as? those for 1926/27,
were compiled with the aid of bourgeois economists,
Bukharinites and Trotskyites, who had wormed their
way into the State Planning Commission, and there-
fore did not give a correct perspective. The Party and
the Government rejected them.
In August 1927, a combined plenary session of the
Central Committee and Central Control Commission of
the Communist Party of the Soviet Union adopted gen-
eral directives for drawing up control figures for
1927/28. These figures, worked out on the basis of the
directives of the Party and the Government and ap-
proved by them, not only gave the national economy a
correct orientation, but came very close to being a
national-economic operative plan. In the following
years the role of the annual control figures as direc-
tives steadily increased.
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Owing to the fact, however, that small commodity
farming still existed and that the capitalist elements
had not yet been eliminated from town and country,
direct planning did not yet cover the whole of the
national economy. In 1928, Comrade Stalin said with
reference to the grain difficulties: "It would be an er-
ror to belittle the role and importance of planning.
But it would be a still greater error to exaggerate the
part played by the planning principle, in the belief
that we have already reached a stage of development
when it is possible to plan and regulate everything.
It must not be forgotten that in addition to elements
which lend themselves to planning there are elements
in our national economy which do not as yet lend
themselves to planning; and that, apart from every-
thing else, there are hostile classes which cannot be
overcome simply by the planning of the State Plan-
ning Commission."
TIIE THREE PREWAR STALIN FIVE-YEAR PLANS
The successes attained in industrializing the coun-
try and in collectivizing agriculture created the condi-
tions which made it possible to pass to the direct plan-
ning not only of industry, but also of agriculture.
Beginning with 1931, the annual national economic
1 J. V. Stalin, Problems of Leninism, Moscow 1947, p. 206.
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tasks were no longer adopted as control figures, but as
a national-economic plan. This was a most striking
indication of the progress that had been made in plan-
ning the national economy.
"Formerly the annual national-economic tasks
were called simply control figures," said Comrade
Molotov, "now, however, we call them the national.
economic plan. That in itself emphasizes the growth of
the elements of planning in our national economy as a
whole. Indeed, the planning methods that are employed
in industry are now to a certain and ever-increasing
degree being employed also in agriculture; and
this has become possible only thanks to the immense
success of socialist production in agriculture."
To strengthen the planning principle in the nation-
al economy a credit reform was effected in 1930/31
which abolished commercial credit and its concomi-
tant non-planned distribution of circulating funds
among enterprises. This measure finally established
cost accounting in industry as a most important lever
for socialist planning. At the same time, the role of the
People's Commissariats and of the local administrative
bodies in planning and in directing enterprises was
enhanced.
The division of the People's Commissariats into
smaller units, the development of the production-terri-
V. M. Molotov, The Struggle for Socialism, Russ. ed.,
1935, p. 91.
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tonal principle of administration and the division of
territories, regions and districts into smaller units?
all had the aim of eliminating red tape and bureaucracy
from the administrative apparatus, of bringing the
People's Commissariats and the local organizations in
closer contact with the enterprises and converting the
People's Commissariats into production and technical
headquarters for directing the enterprises.
At the same time an improvement took place in the
planning of production in each individual enterprise.
Out of the experience of the leading enterprises in
mastering the new technology arose the technical-in-
dustrial-financial plan, a system of planning within
each separate plant in which the production, technical
and economic indices dovetail and which call, for the
wide participation of the workers and the engineering
and technical staff in the work of planning.
The successful restoration of the prewar level of
the national economy and the steady progress made in
socialist industrialization of the country confronted
the planning authorities with new problems. The execu-
tion of huge construction projects created the necessity
of five-year plans of national economic development in
addition to the yearly plans. Proceeding from the fact
that the planning principle had become established in
the national economy, and setting the task of launching
a systematic socialist offensive against the capitalist ele-
ments in all sections of the national economy, the Fif-
teenth Congress of the C.P.S.U. (B.) endorsed directives
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for drafting the First Five-Year Plan for the develop-
ment of the national economy. Comrade Stalin said:
"The very fact that we decided to bring up at this
Congress the question of a five-year plan of economic
development shows that the Party has made consider-
able progress in the matter of planned direction of our
economic construction in the local districts as well as
in the centre."
The basic tasks of the First Five-Year Plan that
.Comrade Stalin proposed were as follows:
a) To transfer our country with its backward, and
in part medieval, technology to the bases of new, mod-
ern technology.
b) To convert the U.S.S.R. from an agrarian and
weak country into an industrial and powerful country,
fully independent of the caprices of world capitalism.
c) Completely to eliminate the capitalist elements,
to widen the front of the socialist forms of economy,
and to create the economic basis for the abolition of
classes in the U.S.S.R., for the building of socialist so-
ciety.
d) To create such an industry as would be able to
re-equip and reorganize not only industry and trans-
port, but also agriculture, on the basis of Socialism.
e) To transfer small and scattered agriculture to
the lines of large-scale collective farming, so as to en
-
1 Lenin and Stalin, Material for the Study of the History
of the C.P.S.U.(B.), Vol. III, Russ. ed., p. 245.
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sure an economic basis for Socialism in the rural dis-
tricts and thus eliminate the possibility of the restora-
tion of capitalism in the U.S.S.R.
f) To create in the country all the necessary tech-
nical and economic prerequisites for increasing to the
utmost the defensive power of the U.S.S.R.
The First Stalin Five-Year Plan was a comprehen-
sive program of struggle for the victory of Socialism
in our country and for the elimination of its tech-
nical and military-economic backwardness.
In the period in which the First Five-Year Plan
was being drafted the Party exposed the numerous va,
riants presented by the wreckers, Trotskyites and Right
opportunists. In opposition to Stalin's policy of ac-
celerated socialist industrialization, the Trotskyites,
concealing their designs by prattling about "superin-
dustrialization," proposed a defeatist scheme for a
steadily diminishing rate of capital investments and
industrial development. In opposition to the Bolshevik
five-year plan, the Rights, who were bent on restoring
capitalism, presented a "two-year plan," the keynote
of which was the development of the kulak sector in
agriculture and aimed in every way to reduce the ap-
propriations for industrializing the country. All these
attempts of the enemies of the people to thwart the
plan- of great undertakings were defeated. The Six-
teenth All-Union Conference of the C.P.S.U.(B.), held
in April 1929, rejected the "minimal" variant of the
five-year plan advocated by the Right opportunists
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and adopted the Bolshevik plan of an all-out socialist
offensive.
The most important element of the First Five-Year
Plan was its construction program. The total amount
of capital to be invested in the whole of the national
economy was set at 64,600 million rubles as against
26,500 million invested during the preceding five-year
period. More than three-fourths of the capital invest-
ments was allotted to industry, primarily to the
branch that manufactured means of production.
The vast scale on which construction was planned
made it possible to allow for a rapid rate of indus-
trial growth. Gross industrial output was to go up
from 18,300 million rubles in 1927/28 to 43,200 mil-
lion in 1932/33, or more than a threefold increase com-
pared with prewar output. The output of heavy indus-
try was to increase much faster than light industry.
The five-year plan provided for a big advance in the
socialist sector in town and country to be achieved by
squeezing out the capitalist elements in the national
economy. By the end of the five-year period the share
of the socialist sector in gross output was to reach 92 %
in industry, 15% in agriculture and 91% in retail trade.
The drafting of the First Five-Year Plan marked a
further advance in socialist planning of the national
economy. Prime importance in this plan was attached
to the planning of the process of socialization. Whereas
the first long-range plan, the GOELRO plan, could not
specify concrete targets in the socialist reconstruction
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of industry and agriculture, the First Five-Year Plan
set the ratios between the various socialist sectors in
industry and the level of collectivization of agriculture
for the planned period. This meant that the state plan
was more and more fully embracing socialist re-
production in definite perspective for several years
ahead.
The second essential feature of the First Five-Year
Plan that distinguished it from the GOELRO plan was
that the planning of capital construction proceeded on
a considerably higher level. The construction program
covered jobs in every part of the national economy and
the targets for the principal construction jobs were
definitely specified. Planning, therefore, became much
more concrete.
The third feature that distinguished this five-year
plan from the GOELRO plan was the further develop-
ment of calendar planning. The First Five-Year Plan
was based on five annual plans drafted on the basis
of the five-year assignments and on the progress in
fulfilment to be made each year.
The struggle for the fulfilment of the First Five-
Year Plan was a bitter struggle waged by Socialism
against capitalism. As a result of the self-sacrificing
labours of the masses of the working people, the firm
leadership of the Party and the Government and the
utilization of the advantages of the Soviet system of
economy, the First Five-Year Plan was carried out
ahead of time?in four years instead of five.
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As Comrade Stalin said, in carrying out the First
Five-Year Plan the Party pursued the policy of accel-
erating the development of industry to the utmost by
rousing and organizing the enthusiasm and fervour of
the masses for the new construction jobs. During the
First Five-Year Plan period the following huge plants
were built and put into operation: the Magnitogorsk
and Kuznetsk iron and steel mills, the Ural Copper-
Smelting and Volkhov Aluminum works, the Dnieper
Hydroelectric Power Station, the Berezniki Chemical
Works, the Stalingrad and Kharkov tractor plants and
the automobile plants in Moscow, Gorky and Yaroslavl.
A new coal and metallurgical base was established in
the East.
?
The average annual increase in industrial produc-
tion during the First Five-Year Plan period was 22%.
The main accomplishments of this plan as regards in-
dustry were the creation of new and highly important
branches of heavy industry and the complete elimina-
tion of the capitalist elements from industry as a
whole. Socialist industry became the sole form of in-
dustry in the U.S.S.R.
By the end of the fourth year, the five-year pro-
gram of industrial production was fulfilled 933%,
while the plan for heavy industry was exceeded by 8%.
Fulfilment of the five-year plan increased the share
of industrial production in the gross output of the na-
tional economy from 48% to 70%. Soviet Land was
converted from an agrarian into an industrial country.
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In the sphere of agriculture, the Party succeeded in
organizing more than 200,000 collective and about
5,000 state farms. In the course of the four years it
succeeded in enlarging the crop area by over 21 mil-
lion hectares.
The kolkhozes united more than 60% of the peas-
ant farms, which accounted for more than 70% of
the land cultivated by the peasants; this was a three-
fold fulfilment of the five-year plan. In accelerating the
rate of collectivization, the Party, on the basis of sol-
id collectivization, secured the elimination of the ku-
laks, the last capitalist class in the country. As regards
improving the material conditions of the working peo-
ple, the chief results of the First Five-Year Plan may
be summed up as follows: unemployment was abol-
ished and uncertainty about the morrow among the
workers was removed;.almost all of the peasant poor
joined the collective farms and on this basis the proc-
ess of differentiation among the peasantry into kulaks
and poor peasants was checked; as a consequence, an
end was put to impoverishment and pauperism in the
rural districts.
These, Comrade Stalin pointed out, were tremen-
dous achievements, of which not a single bourgeois
state, be it even the most "democratic," could dream.
During the period of the First Five-Year Plan
socialist emulation developed on a mass scale; the
activity and self-sacrifice, enthusiasm and initiative of
millions of working people constituted the chief force
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that ensured the historic victory of the First Five-Year
Plan. As Comrade Stalin stated, these results were of
tremendous international importance, inasmuch as they
mobilized the revolutionary forces of the working class
of all countries against capitalism.
As a result of the successful fulfilment of the First
Five-Year Plan the foundation of socialist economy
was laid and the U.S.S.R. was definitely and finally es-
tablished on the road of Socialism. The Soviet Union
was changed from a backward agrarian country into
a mighty industrial power.
The drafting of the Second Five-Year Plan was
a new step in the planning of the national economy
of the U.S.S.R.
The principal political task of the Second Stalin
Five-Year Plan was completely to liquidate all exploit-
ing classes, completely to eliminate the causes of the
exploitation of man by man and of the division of
society into exploiters and exploited.
The principal economic task of this plan was to
complete the technical reconstruction of the whole of
the national economy. The accomplishment of this
technical reconstruction of the national economy creat-
ed the conditions for solving the fundamental problems
of further socialist construction.
The Second Five-Year Plan of national-economic
development, which covered the years 1933 to 1937,
was approved by the Seventeenth Congress of the
C.P.S.U.(B.). The production program provided for
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raising the volume of industrial output in 1937 to
92,700 million rubles as compared with 45,000 million
rubles in 1932, i.e., a more than twofold increase.
Compared with prewar output, large-scale industry
was to show an eightfold increase.
Gross agricultural output was to go up during this
five-year period from 13,100 million rubles to 26,200
million, i.e., be doubled. Railway freight traffic was
to be increased from 169.000 million ton-kilometres in
1932 to 300,000 million in 1937.
The Congress approved a program of capital con-
struction amounting to 133,400 million rubles for the
Second Five-Year Plan period, compared with 50,500
million during the period of the First Five-Year Plan.
The program for raising the material and cultural level
of the working people provided for a 26% increase in
the number of industrial and office workers in the
national economy, a 55% increase in the wage fund,
and the doubling of real wages.
Considerably larger state funds were allotted for
the cultural and welfare service of the workers; pub-
lic catering was to be expanded and the volume of
sales by the state and cooperative trading organiza-
tions was to be increased.
The drafting of the Second Five-Year Plan of great
undertakings was made possible by the tremendous ex-
perience the Party and the Soviet people had gained
in drafting and carrying out the First Five-Year
Plan.
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As V. V. Kuibyshev observed.: "The triumph of So-
cialism considerably enlarged the basis of planning.
The Second Five-Year Plan shows that in our system
of planning we have gone so far and deep that literally
not a single section of our economic, cultural and scien-
tific research work is left out of the plan and of ?the
range of planning."
The higher planning level achieved in the period of
the Second Five-Year Plan compared with the first,
found expression, firstly, in the fact that state planning
more fully embraced all branches of the national
economy. Definite state assignments? were given not
only for industry, but also for agriculture, which was
the result of the triumph of Socialism in the country-
side.
Industry and transport were covered more fully in
the plan. Whereas the First Five-Year Plan set targets
for large-scale industry and railway and river trans-
port, the Second Five-Year Plan covered the whole of
industry and all forms of transport.
Secondly, in the Second Five-Year Plan the assign-
ments for the separate branches of the national econ-
omy were defined more specifically than in the First
Five-Year Plan. For instance, the industrial output plan
covered a larger range of branches of industry and a
larger list of items of industrial products.
V. V, Kuibyshev, Articles and Speeches,. Russ, ed., 1935,
13. NO,
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Thirdly, the fundamental feature Of this five-year
plan was the higher level of technical and economic
planning, as was manifested by the plan's wide sys-
tem of technical-economic indices. This highly im-
portant feature was due to the plan's main economic
task, that of completing the technical reconstruction of
the national economy. Fourthly, and lastly, the draft-
ing of the Second Five-Year Plan was based on a high-
er level of balance sheet planning than in the First
Five-Year Plan. In working out the plan's assignments
an elaborate system of balance sheets was employed
which included material and financial as well as labour
power resources.
An exceptional part in drafting the Second Five-
Year Plan?the great program that marked the
triumph of Lenin's ideas?the plan for building So-
cialism, was played by Comrade Stalin.
"It is his brilliant perspicacity and splendid leader-
ship of the struggle of the working class that has en-
sured the posing of the majestic and epoch-making
tasks of the Second Five-Year Plan," said V. V. Kui-
byshev at the time. Besides definitive policies and di-
rectives, Comrade Stalin outlined a number of con-
crete plans for developing the more important branches
of the national economy during the Second Five-Year
Plan period.
V, Y. Kuibyshev, Articles and Speeches, Russ. ed., 1935,
p. 229,
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Like the first, the Second Five-Year Plan was ful-
filled ahead of time.
The results of the successful accomplishment of the
Second Five-Year Plan was that in our country, So-
cialism, the first phase of Communism, was established
in the main. The U.S.S.R. emerged as a mighty So-
cialist State; it accomplished, in the main, the tech-
nical reconstruction of its national economy, and as
? regards technical level of industry and agriculture, it
became the foremost country in the world. The most
difficult task of the Socialist Revolution was solved:
the collectivization of agriculture was completed, the
kolkhoz system was definitely consolidated.
This world-historic victory was registered in the
Stalin Constitution of the U.S.S.R., the articles of
which reflect the majestic picture of the new, socialist
state and social system.
The victories of Socialism that were achieved with
the fulfilment of the Second Five-Year Plan intensified
the hatred.of the enemies of the Soviet State. In 1937
new facts were brought to light concerning the activ-
ities of the Trotsky-Bukharin gang. This agency of the
Intelligence Services of the imperialist states was
smashed and liquidated. With his program of meas-
ures for heightening political vigilance, Comrade
Stalin had armed the Party and the entire Soviet peo-
ple for the struggle against the enemies of the people.
With the successful accomplishment of the Second
Five-Year Plan the U.S.S.R. entered a new phase of
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development, the phase of completing the building of
classless socialist society and of the gradual transition
from Socialism to Communism.
As a result of the completion, in the main, of the
technical reconstruction of the national economy, the
country's production and technical apparatus was, as
the Eighteenth Party Congress noted, thoroughly reno-
vated. More than 80% of the industrial output came
from plants which had been newly constructed or
completely reconstructed during the period of the first
two five-year plans. During the Second Five-Year Plan
period gross industrial output increased 120.6% as
against 114% set by the plan. The average annual rate
of increase of industrial output for the five-year pe-
riod was 17.1% compared with 16.5% provided for
in the plan.
The growth of industrial cadres, the success
achieved in mastering the new machines and techno-
logical processes and the rise in the material and cul-
tural level of the people were vividly reflected in the
Stakhanov movement, which brought about an immense
increase in labour productivity. In the period of the
Second Five-Year Plan productivity of labour in in-
dustry increased 82%, as against 63% set by the plan.
Accomplishment of the construction program of
the Second Five-Year Plan brought into being the
huge Ural and Kramatorsk heavy engineering plants,
large plants producing transport equipment, machine
tools, and new electric power stations. Hundreds of
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new coal mines were opened up and dozens of blast
and open-hearth furnaces started operations. The first
sections of the big Tashkent and Barnaul cotton mills
began to function; construction of large meat-packing
houses was completed, new railways were opened to
traffic, and two big waterways, the White Sea-Baltic
Canal and the Moscow Canal, were completed and put
into operation.
Another task set by the Second Five-Year Plan,
viz., of raising the material and cultural level of the
working people, was also achieved. Consumption by
the population more than doubled. While the number
of workers and office employees increased 17.6%, aver-
age annual wages increased more than twofold, and
the wage fund increased two and a half times. A veri-
table cultural revolution took place in the U.S.S.R.
during the period of the Second Five-Year Plan. In all
the Union Republics considerable success was achieved
in industrialization, in raising the material and cul-
tural level of the people and in training Bolshevik
personnel from among the non-Russian nationalities.
Culture, national in form and socialist in content,
flourished.
With the Second Five-Year Plan successfully ful-
filled, the Eighteenth Congress of the Communist Party
set before the couqtry the fundamental economic task
of the U.S.S.R.?to overtake and surpass the most de-
veloped European countries and the United States of
America economically, i.e., in respect of output of in-
-
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dustrial products?pig iron, steel, fuel, electric power,
machinery and other means of production and articles
of consumption?per head of population.
This fundamental economic task of the U.S.S.R.
was to have been embodied in a general national-eco-
nomic plan to cover a period of fifteen years. At the
beginning of 1941, the State Planning Commission of
the U.S.S.R., on instructions from the Party and the
Government, set to work to draft this plan, but the
work was interrupted by fascist Germany's treacherous
attack on the U.S.S.R.
The Third Stalin Five-Year Plan marked a further
and higher stage of socialist planning, primarily be-
cause the national-economic plan was based on the com-
plete triumph of the socialist system of economy in
our country. The long-range plan gave comprehensive
expression to the laws of development of socialist so-
ciety, which is marching onward to Communism. The
Third Five-Year Plan differed from the first and sec-
ond in that it was intended as part of a general plan
designed to solve the fundamental economic task of the
U.S.S.R.
The Third Five-Year Plan aimed at raising the
volume of industrial output in the U.S.S.R. to 184,000
million rubles in 1942, compared with 95,500 million
rubles in 1937, practically a twofold increase. Agri-
cultural production was to increase by more than 50%.
Railway freight traffic was to go up from 355,000 mil-
lion ton-kilometres to 510,000 million.
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The volume of capital construction was fixed at the
sum of 192,000 million rubles, as against 114,700 mil-
lion expended during the Second Five-Year Plan pe-
riod.
The Third Five-Year Plan provided for the com-
pletion and new construction of large metallurgical
and engineering plants and electric power stations in
the Eastern regions, and for the development of another
major oil field, a "Second Baku," in the region be-
tween the Volga and the Urals.
This plan signified another big step forward in the
development of a strong material foundation for the
Soviet State, and in the improvement of the well-being
and culture of socialist society.
The assignments of the Third Five-Year Plan for
the prewar period were successfully carried out despite
the hostilities that raged on the borders of the Soviet
Union at that time.
Industrial output during the period of the Third
Five-Year Plan increased by 13% annually. During
the first three years of the five-year period the output
of means of production increased more than 50% and
that of machine building 75%. Industry in the East-
ern regions of the country developed rapidly. A huge
.granary of the Soviet Union was created in that area.
During three and a half years of the Third Five-Year
Plan period 130,000 million rubles were invested in
the national economy; more than a third of this sum
was allotted to the Eastern regions. Substantial sue-
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cess was also achieved in improving the standard of
living and culture of the peoples of the U.S.S.R.
Comrade Stalin said: "This unprecedented growth
of production cannot be regarded as the simple and
ordinary development of a country from backwardness
to progress. It was a leap by which our Mcrtherland
became transformed from a backward country into a
progressive country, from an agrarian into an indus-
trial country."
The following table indicates the level of develop-
ment reached by the national economy of the U.S.S.R.
in 1940.
Unit
1913
1940
Ratio of 1940
output to 1913
(1913 taken
as 1)
National income
thous. million
rubles
21.0
128.3
6.0
Gross output of
all industry
16.2
138.5
8.5
Output of means
of production
5.4
84.8
15.5
Output of articles
of consumption
10.8
53.7
5.0
Pig iron
million
tons
4.2
15.0
3.6
Steel
4.2
18.3
4.4
Coal
29.0
166.0
5.7
Oil
9.0
31.0
3.4
Electric power
thous. million
kilowatts
1.9
48.3
26.0
Machine building
and metal working
thous. million
rubles
1.5
50.2
33.0
Marketable surplus
grain
million
tons
21.6
38.3
1.8
Raw cotton
0.74
2.7
3.6
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The basis of all three five-year plans was the gen-
eral line of the Party of Lenin and Stalin?the socialist
industrialization of the country.
Socialist industrialization was dictated by the entire
internal and international situation in which the Soviet
Union had developed. It made it possible to eliminate
the contradiction between an advanced state and so-
cial system and a backward technical and economic
foundation, and it ensured the country's economic in-
dependence and defence capacity.
Unlike capitalist industrialization, the Soviet policy
of industrialization was based on the growth of socialist
industry, primarily of heavy industry, and on the con-
solidation of its leading role in the national economy
of the U.S.S.R. This made it possible to solve the task
of industrialization in a much shorter period, and this
3- was of decisive importance for the defensive power of
the country and for ensuring its economic independence.
Another specific feature of the Soviet policy of
industrialization was the fact that in our country in-
dustrialization was achieved with the aid of internal
sources of accumulation. Unlike the capitalist coun-
tries, the U.S.S.R. could not resort to such sources
of accumulation as colonial plunder, enslaving loans
and concessions. The advantages of the Soviet system,
the fact that the Socialist State occupied the economic
key positions enabled us to rely on our internal forces
and made the internal sources adequate for accomplish-
ing the country's industrialization.
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As a result of socialist industrialization, industry
within a brief historical period advanced to the lead-
ing position in the gross output of the national econ-
omy. Of decisive significande here was the increase
in the proportion of output of instruments and means
of production to total industrial output. Whereas in
1913 output of means of production constituted a
third of the industrial output. in 1940 it was almost
two-thirds.
The results of the five-year plans have shown that
for rate of development, socialist industry holds first
place in the world. Utilizing her enormous advantages
in rate of development, the Soviet Union was able to
attain a high level of industrial development, partic-
ularly in the manufacture of means of production.
Whereas in 1913 Russia stood fifth among the coun-
tries of the world in respect to industrial output, the
U.S.S.R. had moved to third place by the beginning of
the Second Five-Year Plan period, and by the begin-
ning of the Third Five-Year Plan period it had ad-
vanced to second place in the world and first place in
Europe, having forged ahead of Germany, Britain and
France in total industrial output.
Heavy industry's rapid rate of development was the
key to the reconstruction of agriculture. The policy of
collectivizing agriculture made it possible to remove a
situation wherein the Soviet system and socialist con-
struction rested on two different bases?socialist
industry conducted on the largest and most inte-
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grated scale and scattered small-commodity farm-
ing.
The transformation of small-commodity production
on the basis of the collectivization of agriculture made
it possible to establish a socialist base in the country-
side and to eliminate the capitalist elements from it.
Collectivization created the conditions for expanded so-
cialist reproduction in agriculture and made it pos-
sible to provide the country with food and agricultural
raw materials in ever-increasing quantities.
As Comrade Stalin said, the method of collectiviza-
tion proved to be an exceedingly progressive method
not only because it did not call for the ruination of
the peasants, but also, and particularly, because it
enabled us in the course of several years to cover
the entire country with large collective farms capable
of employing modern machinery, of utilizing all the
latest achievements of agricultural science and of pro-
viding the country with the largest possible quantity
of market produce.
To fulfil the five-year plans successfully it was
necessary to expose and destroy the Trotskyites and
the Right would-be restorers of capitalism, who at-
tempted to disrupt the policy of industrialization and
collectivization and drag the Party over to the "usual"
path of capitalist development. "It is to the Party's
credit," said Comrade Stalin, "that it did not adjust
itself to the backward, that it was not afraid to swim
against the stream, and that all the time it held on to
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its position of the leading force. There can be no
doubt that if the Communist Party had not displayed
this staunchness and perseverance it would have been
unable to uphold the policy of industrializing the
country and of collectivizing agriculture."
The three Stalin five-year plans ensured the coun-
try's preparedness for active defence and created the
conditions under which it was possible to beat off the
attack of the German fascist hordes and later to achieve
an immense military and economic victory.
PLANNING DURING THE PERIOD OF THE GREAT
PATRIOTIC WAR
The Great Patriotic War that the Soviet people
waged against the German-fascist invaders ushered in a
new period in the development of the U.S.S.R.; it was
a turning point in the life of our country.
Comrade Stalin said at the time: "The war ... has
compelled us to place all our work on a war foot-
ing. It has converted our country into one all-inclusive
rear, which serves the front, our Red Army and our
Navy.
"The period of peaceful construction has come to
an end. A period of war of liberation from the Ger-
man invaders has begun."
1 J. V. Stalin, On the Great Patriotir War of the Soviet
Union, Moscow 1946, p. 19.
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After Hitlerite Germany's attack on our country,
the Government approved a national-economic mo-
bilization plan for the third quarter of 1941, which
set the task of sharply increasing the output of the
War industry and to strengthen the war-economic bases
in the interior areas of the U.S.S.R. In August 1941 a
war economy plan was approved for the fourth quarter
of 1941 and for 1942, covering the regions of the
Volga, the Urals, Western Siberia, Kazakhstan and
Central Asia. The subsequent national-economic annual
plans, as well as the quarterly and monthly plans, were
also devoted to the successful prosecution of the war.
Socialist planning during the war differed in a
number of ways from peacetime planning. The differ-
ences consisted in the following: 1) enhancement of
the role and importance of centralized distribution of
the means of production and articles of consumption
as well as labour power and finance, called forth by
the necessity of giving priority to the requirements of
the armed forces, 2) increase in current planning,
particularly quarterly and monthly planning, called
forth by the abruptly changing wartime conditions,
3) increase in complex planning by districts called
forth by the temporary occupation of a portion of the
country's territory, the shifting of industry to the East
and the work developed during the war years to re-
store the economy of the liberated areas.
During the first stage of the war, Hitlerite Germany
was able to profit by the advantages of her sudden
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attack on the Soviet Union, but these advantages were
lost as the war went on. The course of the war began
to be determined by permanently operating factors,
foremost among which being the firmness and stability
of the Soviet rear.
After overcoming the difficulties of the first stage
of the war, the socialist system of economy steadily
developed, increasingly revealing its potentialities and
advantages.
This clearly demonstrated that the economic
foundation of the Soviet State possessed incomparably
more vitality than the economy of the enemy states.
The growth of the war economy was due to the
utilization of the immense advantages of the planned
socialist system of economy and rested on the material
and technical foundation that was created during the
period of the Stalin five-year plans.
The Soviet Government and Communist Party suc-
cessfully utilized the material potentials for develop-
ing the war economy that had been created during the
period of the Stalin five-year plans and ensured the
Soviet armed forces of the necessary supplies of
armaments and the accumulation of reserves for in-
flicting complete defeat upon the enemy. The State
Committee of Defence, headed by Comrade Stalin,
that was formed at the very beginning of the Pa-
triotic War, rapidly and resolutely mobilized all
the forces of the peoples of the U.S.S.R. to ensure
victory.
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The progress of the war economy of the U.S.S.R.
was reflected, primarily, in the successes achieved by
the war industry, as a result of which it was possible
to eliminate the German army's quantitative superior-
ity in war equipment. Production of war equipment
increased during the war years severalfold.
The chief source of the growth of the war econ-
omy in the initial period of the war was the concen-
tration of material, labour power and financial re-
sources for the purpose of serving war needs. Planned
economy enabled this problem to be solved very
quickly. The proportions between the various depart-
ments of socialist production were fundamentally
changed. The share of the national income used to
cover war expenditure increased threefold as compared
with prewar times.
During the first period of the war, when parts of
.Soviet territory were under enemy occupation, the re-
distribution of the national income to meet war needs
was brought about by reducing the share of accumula-
tion and of consumption in the aggregate national in-
come. At the same time the ratios in the distribution of
the material elements of production?fixed and cir-
culating funds, the distribution of labour power and
financial resources, were radically altered in favour of
war industry.
One of the most important sources of growth of
the war economy was expansion of production in the
Eastern areas of the country.
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When the war broke out and the German fascist
troops temporarily seized important industrial areas
of our country, it was industry's task, first of all, to
ensure the uninterrupted production of war supplies
in the regions located deep in the rear. This task was
successfully accomplished, firstly, because of the
mighty war-economic base that had been established
deep in the rear in peacetime, and, secondly, because
of the planned evacuation of enterprises to the Eastern
regions of the country that had been carried out at
the beginning of the war.
In the first half of 1942. over 1,300 large indus-
trial plants were evacuated to the East, and most of
them were put up and set going. The success of this
migration of industry, unprecedented fol its magni-
tude and speed, was due to the fact that it was
planned, to the tremendous organizational work that
was carried out under the guidance of the State Com-
mittee of Defence.
The evacuated plants, and also the new ones that
were erected in the Urals, Western Siberia, Kazakh-
stan and the Volga area, gave rise to new branches of
industry, new industrial centres were ci eated, and
those that had been created during the period of the
five-year plans were strengthened. During the war,
industrial output in the Eastern regions of the
U.S.S.R. doubled in comparison with their prewar
output. The armaments industry in particular grew
considerably in the Eastern regions, and its output
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increased 5.6-fold compared with prewar. The war
enormously increased the war-industrial capacity of
the Urals, which bore the main burden of supplying
the front with armaments. Industrial output in the
Urals increased more than 3.5-fold during the four
years of war.
The growth of the war economy went closely hand
in hand with the expansion of the production appa-
ratus of the national economy.
In addition to creating the means for meeting war
expenditure, the expansion of the national economy
of the U.S.S.R., due to the growth of the country's
war economy, made it possible to increase the scale
of accumulation and of capital construction during
the war. The volume of capital investments in the
national economy grew all through the war.
The exceptional speed with which the new enter-
prisos were put into operation during the war was
due primarily to the planned concentration of capital
investments and material resources on the construc-
tion of the most important branches of industry and
priority jobs.
An immense task of the war economy was to
ensure the expansion of socialist agriculture as the
source of food supplies and of raw materials for in-
dustry. The kolkhozes and sovkhozes had to carry
out the tasks set them at the time when a number of
important agricultural regions were temporarily
under enemy occupation, and when a considerable por-
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tion of the workers and of the mechanical and
animal traction facilities had been diverted to serve
the needs of war.
The kolkhoz system successfully came through the
test of war. Large-scale socialized production, the ex-
tensive assistance rendered by the state and the mighty
patriotic enthusiasm of the kolkhoz peasantry rendered
possible, under war conditions, the extension of the
crop area and an increase in socialized livestock
breeding.
Transport played an immense part in the develop-
ment of a smoothly-working war economy. During
the Great Patriotic War the railways of the U.S.S.R.
carried a load that the railways of no other country
could have handled. This was greatly facilitated by
the assistance the state rendered the railways, by the
planning of military, evacuation and ordinary freight
traffic.
The successes of the war economy of the U.S.S.R.
were due to the patriotic enthusiasm of the workers,
kolkhozniks and the intelligentsia, to their heroic,
self-sacrificing labours, to the development of mass
socialist emulation, to the great increase in the pro-
ductivity of ,labour, and also to the economy exercised
in the distribution of material resources. By means of
centralized and operational planning, planned distribu-
tion and economy in the expenditure of material
resources (strict rationing of raw and other materials
and fuel) was effected.
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Thanks to the growth and efficiency of the war
economy of the U.S.S.R. a number of essential condi-
tions were ?created during the war for accelerated
peacetime construction after the war. These conditions
for the successful accomplishment of the postwar
tasks were: expansion of the industrial capacity of
the Eastern regions of the U.S.S.R., the vast scale of
activity in restoring the economy of the areas of
the U.S.S.R. that had been occupied by the enemy and
development of an advanced technology and organiza-
tion of production.
THE POSTWAR FIVE-YEAR PLAN FOR
RESTORING AND DEVELOPING THE NATIONAL
ECONOMY OF THE U.S.S.R.
As a result of the victorious consummation of the
Great Patriotic War, the Soviet Union entered a new
phase in its historical development. The Soviet peo-
ple were faced with the task of consolidating the
positions won and of proceeding further to achieve a
still higher economic and cultural level. Comrade
Stalin said:
"The Five-Year Plan Law for the Restoration and
Development of the National Economy of the U.S.S.R.
in 1946-50 that has been adopted by the Supreme
Soviet of the Soviet Union opens new prospects for
the further growth of the productive forces of our
Motherland, for the growth of its economic might,
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?and for the promotion of its material prosperity and
culture."
The chief economic and political task of the new
five-year plan is to rehabilitate the devastated regions
of the country, to raise industry and agriculture to
the prewar level and then considerably above that
level.
The German invaders inflicted enormous damage
on the national economy of the regions they had
temporarily occupied. The fixed funds of industry,
socialist agriculture and transport, and also housing,
suffered especially great damage. The Extraordinary
State Commission for the establishment and investiga-
tion of the crimes of the German fascist invaders
estimated the total loss resulting from direct destruc-
tion of the national wealth of the U.S.S.R. at 679,000
million rubles.
In the occupied areas, some 32,000 industrial
enterprises employing about 4,000,000 workers,
65,000 km. of railway track, 4,100 railway stations
and 13,000 railway bridges were destroyed; tens of
thousands of collective farms and thousands of state
farms and machine and tractor stations were ruined
and plundered; millions of head of cattle were killed
or stolen. An enormous number of dwelling houses
as well as cultural, art and health institutions were
I Order of the Day of the Mini-ter of the Armed Forces
of the U.S.S.R., May 1, 1946, No. 7.
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reduced to ruins. Millions of Soviet people were tor-
tured, killed, or driven into slavery in Germany.
The work of rehabilitation that was conducted
while the Great Patriotic War was still in progress.
was only the beginning of the huge task of restoring
the national economy in the regions of the U.S.S.R.
which had been occupied by enemy armies. During
the war about a third of the fixed funds in these
regions were restored. Consequently, in the new five-
year plan period over two-thirds will have to be re-
stored, and most of these are the plants that were
most heavily damaged.
Industrial output in the devastated regions is to
reach prewar level in the course of the first four
years of the five-year plan period. By the end of
the fifth year the prewar level is to be exceeded
by 15%.
A most important task set by the fiveyear plan
as regards restoring the economy of the liberated
regions is that of speedily reviving the Donbas, the
leading coal and metal centre of the U.S.S.R.
The five-year plan provides for complete restora-
tion of the network and traffic capacity of the rail-
ways, water transport and motor highway system, so
as to ensure that the prewar level of freight traffic is
attained and then surpassed. Huge tasks lie ahead in
restoring agriculture in the formerly occupied regions.
One of the most important tatks set by the five-year
plan is that of restoring normal economic and cultural
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life in the liberated areas and of exceeding the prewar
level of consumption.
To restore the devastated regions, the Soviet people
will have to exert tremendous effort. In the course of
the five-year plan period the volume of industrial
output in these regions is to be increased 3.9-fold,
railway freight traffic 2.3-fold, grain production 87 To,
and livestock population by 52 % ?
For the purpose of restoring and further develop-
ing the economy of the devastated areas, 115,000 mil-
lion rubles have been allocated, approximately half
the amount allotted to the national economy as a
whole.
In addition to providing for the complete restora-
tion of the economy of the formerly occupied regions,
the five-year plan set the task of attaining the prewar
industrial level of the U.S.S.R. as a whole and then
of surpassing it considerably.
During the war the Eastern regions of the U.S.S.R.
considerably surpassed the prewar output level. They
will be developed on a still vaster scale in the current
five-year plan period, for they will serve as the base
for the restoration of the economy of the formerly
occupied regions.
The development of the national economy of the
U.S.S.R. during the present five-year plan period is to
proceed in conformity with the laws of expanded so-
cialist reproduction, which means, primarily, a steady
growth of production in industry and agriculture.
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In the course of the 1921-26 restoration period,
the average annual increase in industrial output was
2,000 million rubles; during the First Five-Year
Plan period it was 5,500 million; during the years
of the Second Five-Year Plan it was 10,400 million,
and for the three years of the Third Five-Year Plan
period it wits 14,300 million. For the 1946-50 period,
however, the average annual increase is to be 15,600
million rubles.
The following table indicates the level of national-
economic development to be attained by the U.S.S.R.
in 1950, as outlined by the five-year plan.
Unit
1940
1950
1950
perc.
of 1940
National income
of the U.S.S.R.
Gross industrial
output
Gross agriculmral
output
Freight traffic of
railway, water and
motor transport
State and cooperative
retail trade
Labour productivity
in industry
Wage fund in the
national economy
thous. million
rubles in
1926/27
prices
thous. millions
of ton-km.
thous. million
rubles in state
retail prices
per cent
thous. million
rubles
1 In comparable prices.
128.3
138.5
23.2
483.0
175.1
162.0
177.0
205.0
29.5
657.5
275.0
252.0
138
148
127
136
1281
136
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The new five-year plan sets the task of raising the
industry of the U.S.S.R. to the prewar level in the
course of three years, or twice as fast as the restora-
tion process in the period following the termination
of the civil war and foreign intervention.
In 1950, the prewar, 1940, level in gross agricul-
tural production is to be exceeded by 27%.
In 1937, the gross agricultural production amount-
ed to 153% of that of 1932, the year when the reor-
ganization of agriculture was nearing completion. Gross
agricultural output in 1940 amounted to 177% of
that of 1932. In 1950 it will amount to 225%.
Expanded socialist reproduction also means a
steady growth of socialist accumulation, characterized
primarily by an increase in the amount of cap-
ital investments in the national economy of the
U.S.S.R.
During the First Five-Year Plan period, capital
investments in the national economy amounted to
about 50,000 million rubles; during the Second Five-
Year Plan period they amounted to 115,000 million
rubles; during the 1946-50 period they are to amount
to 250,000 million rubles. Thus, the capital invest-
ments provided for by the plan for restoring and de-
veloping the national economy in the period 1946-50
will be five times the amount invested during the First
Five-Year Plan period, and more than twice the
amount invested during the Second Five-Year Plan
period.
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In the course of the new Stalin five-year plan
period, 5,900 state industrial enterprises are to be
restored or newly built and pul into operation.
Of these, 3,200 are 10 go up in the devastated
regions. During the First Five-Year Plan period
1,500 industrial plants were put into opera-
tion, during the Second 4,500 and in the three
years of the Third Five-Year Plan period about
3,000.
Continuing the line laid down by the Eighteenth
Congress of the C.P.S.U.(B.), the postwar five-year
plan puts a stop to the craze for building gigantic
plants and to every kind of extravagance in the field
of construction: it provides for the building of me-
dium and small factories in different branches of the
national economy. This will enable new capacities to
be put into operation more quickly and building costs
will be reduced.
Fulfilment of the capital construction plan is to
result not merely in the restoration of the fixdO funds
of the national economy of the U.S.S.R. to the prewar
level, but in an increase above that level. In 1950
these funds are to reach the amount of 1,130 billion
rubles "(at present state prices), or 80/0 above the
prewar level.
The tremendous volume of capital construction
outlined for the new five-year plan period raises the
task of rapidly developing the production of equip-
ment and building materials. Accordingly, the plan
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provides for the output of equipment and machinery
to be brought up in 1950 to twice that of the prewar
level, output of cement to 1.8 times, and sawn timber
to 1.6 times. The building industry is to be extensive-
ly developed.
Expanded socialist reproduction means a steady
improvement in the people's standard of living, both
material and cultural. Increased production, the wider
circulation of commodities and larger expenditures on
housing and cultural and welfare services as provided
for in the five-year plan will not only raise the stand-
ard of living of the working people to the prewar
level, but increase the national income by more than
30% compared with prewar.
The national income of the U.S.S.R. (at un-
changed prices) increased from 21,000 million rubles
in 1913 to 128,300 million in 1940; the plan raises it
to 177,000 million rubles in 1950.
The five-year plan law pointed to the necessity of
"ensuritit priority to the restoration and development
of heavy industry and railway transport, without
which the rapid and successful restoration and devel-
opment of the national economy of the U.S.S.R. will
be impossible."
The prewar output of the principal branches of
heavy industry is to be reached within two or three
years, and at the end of the five-year period is to be
exceeded as follows: pig iron, steel and rolled metal
35%; coal 51%; electric power 70%; plant equip_
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ment is to show a twofold increase, and the chemical
industry a 50% increase.
One of the decisive conditions for the rapid resto-
ration and development of the national economy is
the further improvement of transport. Freight traffic
by rail, water, and motor transportation in 1950
is to be a third higher than the prewar level, almost
half as much again as the 1937 level, and more than
three times the 1932 level. Of extreme importance is
the expansion of railways, the freight turnover of
which is to be 28% above the prewar level.
Laying stress on heavy industry and railway
transport as the main links in the restoration of the
national economy, the five-year plan concentrates
? large material resources on the development of these
branches and thereby ensures a rapid rate of restora-
tion and development of the entire national economy.
To ensure the material well-being of the peoples
of the Soviet Union and to create in the country an
abundance of the principal articles of consumption,
agriculture and the production of means of consump-
tion must be raised to a higher level.
The speediest restoration and further development
of agriculture in the postwar period are indispensable
for the successful development of the entire national
economy of The U.S.S.R. The Central Committee of
the C.P.S.U.(B.) stated in the resolution it passed
at its plenary session held in February 1947: "Now
that we have turned to peaceful construction, the
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Party and the state are again faced with the extremely
urgent and pressing task of ensuring such an expan-
sion of agriculture as will ensure in the shortest pos-
sible time an abundance of food for the population
and raw materials for light industry, and the accu-
mulation of sufficient state reserves of foodstuffs and
of raw materials."
The new five-year plan provides for the complete
restoration and further development of agriculture
and livestock breeding in the regions formerly occu-
pied by the Germans, and for the raising of the total
agricultural output in the U.S.S.R. above the prewar
level.
In order to enlarge the material and technical
base for agriculture, the five-year plan provides for
a considerable increase in the supply of tractors,
agricultural machinery and mineral fertilizer. For
this purpose the output of tractors is to be increased,
the mass production, of agricultural machinery is to
be resumed and further developed, and the output of
mineral fertilizers is to be almost double the prewar
output. The electrification of agriculture is to be car-
ried out on a wide scale. Provision is also made for
the training of large numbers of specialists and skilled
personnel for agriculture.
The five-year plan provides for an ave-rage annual
increase of 17% in the output of food products and
articles of mass consumption; to achieve this it will
be necessary not only to raise agriculture to a higher
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level but also to enlarge the production facilities of
the light, textile and food industries.
To accomplish this aim provision has been made
for more extensive capital construction in these indus-
tries and for increasing their share in the total
volume of capital construction. Output of factory
equipment is to be considerably increased, new, up-
to-date equipment will be provided and repair facil-
ities for the light and food industries improved. To
ensure larger supplies of raw materials for industries
manufacturing articles of consumption, the production
of artificial silk and long-staple fibres is to be organ-
ized on a large scale and the manufacture of synthetic
tannin and imitation leather is to be developed.
In view of the increase in the output of articles of
consumption, the plan provided for the abolition of
rationing and for the expansion of Soviet trade within
the first two years of the five-year period.
The fulfilment of the five-year plan tasks calls for
further technical progress in the national economy of the
U.S.S.R. as this is an essential condition for a large
increase in production and in productivity of labour.
Without further rapid technical development in all
branches of the national economy, it will be impos-
sible to achieve the tempo and scale of expended so-
cialist reproduction provided for in the five-year plan.
The new five-year plan continues the technical
policy that was pursued in the period of the three
previous five-year plans, viz., to mechanize to the
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utmost all processes entailing a great deal of labour,
to extend the employment of automatic machines and
electricity, and to develop new branches of engineer-
ing and production.
The technical level of the national economy can
be further raised by developing the machine-building
industry. This, in turn, calls for a larger output of
metal-cutting machine tools. During the period of the
preceding five-year plans the old machine tools in use
were completely replaced by more up-to-date types,
and the total number increased enormously. Of the
machine tools in operation at the beginning of 1932,
two-thirds were installed after the revolution and more
than 40% during the last three years of the First
Five-Year Plan period. Between 1932 and 1940, the
number of these machines in the industry of the
U.S.S.R. increased 3.5-fold. At the end of the post-
war five-year plan period the number will rise to
1,300,000, which is 30% more than the United States
had in 1940.
This is the surest foundation for the technical and
economic independence of the U.S.S.R. and for fur-
ther technical progress in all branches of the national
economy.
Further technical progress in the national econ-
omy of the Soviet Union calls for the all-round de-
velopment of science so that it may in the near future
not only overtake but surpass scientific achievement
cri:,ide the U.S.S.R. The five-year plan gives effect
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to Comrade Stalin's injunction to build extensively
every kind of scientific research institution that will
enable science to develop its forces to the full.
The restoration and further development of the
national economy calls for further changes in the
socialist distribution of the productive forces. These
changes are reflected firstly in a more equable distri-
bution of the most important branches of industry:
iron and steel, coal, power stations and machine
building; secondly, in the further promotion of in-
dustry in the East; thirdly, in the complex develop-
ment of the economy of the Urion Republics and
economic districts based on extensive utilization of
local resources.
The new five-year plan provides for the further de-
velopment of the economy and culture of the non-Rus-
sian republics and regions of the Soviet Union. Special
attention is paid to economic progress in the territories
that were recently incorporated in the U.S.S.R.
A most important condition for achieving expand-
ed socialist reproduction during the present five-
year plan period is that the national economy be
ensured of a permanent, skilled labour force. This
can be accomplished by the further mechanization of
production, by systematically improving the organi-
zation of labour, and by improving the supplies
and housing conditions of the workers. The chief
means of increasing production is by increasing the
productivity of labour. The plan provides for an in-
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crease in the productivity of labour in industry above
the prewar level. This is to he achieved by -increas-
ing the technical equipment per worker 50% com-
pared with prewar times, by utilizing the eight-hour
working day to the full, by carrying out an extensive
program of measures for raising the cultural and
technical level of the workers and by further improv-
ing the conditions of the working people.
The rapid tempo of socialist accumulation provid-
ed for in the five-year plan cannot be attained with-
out a systematic reduction in cost of production.
During the five-year plan period, reduction in cost
of production in the national economy is to result
in a saving of about 160,000 million rubles. The
five-year plan law obliges economic organizations to
pay more attention to the mobilization of internal
resources, to the exercise of economy, and to the res-
olute elimination of waste due to mismanagement and
to unproductive expenditures.
The successful fulfilment of the postwar five-year
plan of great undertakings requires a high ideologi-
cal level and wide-scale educational and cultural ac-
tivities, a wide campaign to increase communist con-
sciousness and to overcome the survivals of capital-
ism. This task is defined in the decision on the mag-
azines Zvezda and Leningrad and in a number of other
very important decisions that have been adopted by
the Central Committee of the Communist Party of the
".oviet Union. A. A. Zhdanov said: "To he a politi-
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cally conscious Sqviet citizen means understanding the
policy of the Party and the Soviet State and striving
with all one's might to give effect to it. Socialist
consciousness accelerates the progress of Soviet society,
it multiplies the sources of its strength and might."
The new Stalin five-year plan, for the fulfilment
of Which the entire Soviet people is working with the
greatest enthusiasm, follows the path of development
of Soviet society indicated by the Eighteenth Congress
of the Communist Party, the path of completing the
building of socialist society and of the gradual tran-
sition from Socialism to Communism.
In defining Socialism and Communism as two
stages in the economic maturity of the new society,
Marx showed that the transition to the higher phase,
viz., Communism, requires a very high level of pro-
ductive forces, at which, along with the all-round
development of the individual, all the springs of coop-
erative wealth will flow abundantly. The "birth-
marks" of the old society can be completely removed
by the extremely rapid development of the productive
forces of Socialism, the creation of an abundance of
products, and the development of Communist con-
sciousness. Only then can society inscribe on its ban-
ner: "From each according to his ability, to each ac-
cording to his needs."
1 A. A. Zhdanov, The Twenty-Ninth Anniversary of the
Great October Socialist Revolution, Russ. ed., 1946, p. 17.
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The founders of Marxism could not, of course,
foresee the concrete path of transition from Socialism
to Communism. This was done by Lenin and Stalin
who founded the political economy of Socialism.
Comrade Stalin developed Lenin's doctrine that the
victory of Socialism is possible in one country, and
worked out a scientific program for the transition
in our country to Socialism and to the higher phase,
Communism.
In describing the development of the Socialist
State during the period from the elimination of the
capitalist elements from town and country to the
complete victory of the socialist system and the adop-
tion of the new Constitution, Comrade Stalin stated
at the Eighteenth Congress of the Party: "... develop-
ment cannot stop there. We are going ahead, towards
Communism."
The building of Communism in one country, es-
pecially in a country like the Soviet Union, is quite
possible, as Comrade Stalin remarked in answering
a question put by a correspondent of the Sunday
Times. The development and consolidation of the so-
cialist system are preparing the prerequisites for the
gradual transition from Socialism to Communism.
These prerequisites are being created primarily
by the growth of the productive forces of the Land
of Socialism. The level of productive forces required
1 J. V. Stalin, Problems of Leninism, Moscow 1947, p. 637.
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for producing an abundance of products and for pass-
ing over to their distribution according to needs must
be much higher than the present level in any of the
most highly economically developed capitalist countries.
As Comrade Stalin has pointed out, the economic
power of a country is not expressed by the volume of
industrial output in general, but by the volume of
industrial output in direct relation to size of popula-
tion. The population of the Soviet Union considerably
exceeds that of the United States of America and is
several times as large as the population of Britain.
Hence, the volume of industrial output must be cor-
respondingly greater.
Thus, in the period of gradual transition from
Socialism to Communism, the Soviet Union is faced
with new and tnemendous tasks in promoting econom-
ic development. Its fundamental economic task is to
overtake and outstrip the principal capitalist coun-
tries economically, i.e., in respect of volume of in-
dustrial output per head of the population.
In describing the long-range plans Comrade
Stalin said that "... our Party intends to organize
another powerful uplift of our national economy that
will enable us to raise our industry to a level, say,
three times as high as that of prewar industry."
J. V. Stalin, Speech Delivered at an Election Meeting
in the Stalin Election District, Moscow, February 9, 1946,
Moscow 1946, p. 20.
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Comrade Stalin urged the necessity of obtaining
a yearly output of up to 50 million tons of pig iron,
60 million tons of steel, 500 million tons of coal and
60 million tons of oil. "Only when we succeed in
doing that can we be sure that our Motherland will
be insured against all contingencies."
When this program is accomplished, our country
will come close to the per capita industrial output of
the United States, and as regards volume of indus-
trial output in general, the Soviet Union will be the
most powerful industrial country in the world.
The most important prerequisite for fulfilling the
fundamental economic task of trie U.S.S.R. is a fur-
ther increase in socialist accumulation, primarily in
industry, the leading branch of the national economy.
A further vast increase in industrial production
to the level that would make it possible to overtake
and surpass the leading capitalist countries in per
capita output requires 'an enormous expansion of in-
dustry's fixed funds, a severalfold increase in the
number of plants.
Another prerequisite for the speedy execution of
the fundamental economic task is a further rise in
the technical level of industry: Technical progress in
the national economy will to an ever-increasing de-
gree determine the acceleration of the rate of expand-
ed socialist reproduction. The issue in the economic
1 Ibid.
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contest between Socialism and capitalism in the forth-
? coming epoch will be decided primarily in the sphere
of science and technology.
Still another prerequisite for the speedy execution
of the fundamental economic task is an increase in
skilled personnel in all branches of the national econ-
omy.
The transition to Communism requires that the cul-
tural and technical level of the ?workers be raiSed to
that of engineers and technicians; this will make it
possible to undermine the basis of the distinction
between mental and manual labour, and will ensure
high productivity of labour. The process of elimina-
tion.of this distinction will enormously accelerate the
development of the productive forces of. socialist
society.
. .Of extreme importance for the successful execu-
tion of the fundamental economic task is a further
increase in the productivity of labour. Thanks to the
system of planned economy, the Soviet Union has
considerably surpassed the capitalist countries in
respect of rate of increase of productivity of labour.
As Comrade Stalin said: "... the higher our produc-
tivity of labour becomes, and the more our technique of
production is perfected, the more rapidly can we ac-
complish this cardinal economic task, and the more
can we reduce the period of its accomplishment."
J. V. Stalin, Problems of Leninism, Moscow 1947, p. 611
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THE PRINCIPLES OF DRAFTING
THE NATIONAL-ECONOMIC PLAN
TIIE ECONOMIC AND POLITICAL TASKS AND
MAIN LINKS OF THE NATIONAL-ECONOMIC PLAN
The purpose of the state plan for the development
of the national economy of the U.S.S.R. is to achieve
definite political and economic tasks. Pursuit of, a
political purpose is a cardinal feature of the Bolshe-
vik plans, which express the law of development of
Soviet Land toward Communism. The political tasks
of the plan also determine the economic tasks that
are set for a definite period. At the same time, char-
acteristic of the socialist plan is the unity of the
political and economic tasks. For example, the fun-
damental political task of the Second Five-Year
Plan?completely to eliminate the exploiting classes--
was most closely bound up with the plan's main eco-
nomic task?to complete the technical reconstruction
of the national economy. As Comrade Stalin pointed
out, "Without reconstruction, it would be impossible
to complete the offensive of Socialism along the whole
front, for the capitalist elements in town and country
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had to be fought and vanquished not only by a new
organization of labour and property, but also by a new
technique, by technical superiority."
The fundamental tasks of socialist planning of the
national economy arc embodied in the concrete tasks
of the national-economic plans for the given period.
Hence, a correct appraisal of the internal and inter-
national situation and an analysis of the fulfilment of
the plan for the preceding period are the starting point
for drafting the national-economic plan. The Bolshe-
vik plans have nothing in common with groundless
projectmongering, they are not divorced from reality;
they carefully take into account the existing class rela-
tions and the level reached in the development of pro-
ductive forces.
Current economic and political tasks of the nation-
al-economic plan are put forward when the economic
foundation for their successful accomplishment has
been or is being created. For example, the task of
industrializing the country that was set by the First
Fire-Year Plan was formulated in full magnitude when
the conditions necessary for its attainment had already
been created by the restoration of the national econ-
omy.
? The economic and political tasks of the plan also
determined which main links are to be given priority
1 History of the Communist Party of the Soviet Union
(Bolsheviks), Short Course, Moscow 1949, p. 385.
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in the plan for the given period. The Leninist-Stalinist
principle of the main link is a cardinal principle of
socialist planning.
The main links that are given priority in the plan
are those branches and sections of the national econ-
omy, the accelerated development of which during
the ensuing period is essential for the successful ac-
complishment of the plan's fundamental tasks.
Among such branches are also those which lag be-
hind the requirements of the national economy, and
the rapid development of which is essential for the
uninterrupted progress of the entire national economy.
The economic and political tasks set in the long-range
plans that cover one or more five-year periods, also
determine the particular tasks that are included in the
current annual or quarterly plans. The current plans,
in their turn, create the conditions necessary for the
successful fulfilment of the tasks set in the long-range
plan.
The main link in the GOELRO plan?the plan for
building the foundation of socialist economy?was the
electrification of the country. Electrification rendered
possible the restoration and development of the nation-
al economy on the basis of the new, modern tech-
nology of large-scale machine industry.
The electrification plan served as the basis of tasks
for developing individual branches of the national
economy and for fixing new proportions within the
national economy. Of extreme importance was conse-
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cutiveness in the execution of the basic tasks of the
long-range plan. Lenin linked fulfilment of the electri-
fication plan directly with the current economic tasks
which were then shaping tiTe country's destiny, prima-
rily those concerned with food and fuel.
The main links in the development of the nation-
al economy in the initial period of the New Economic
Policy were trade and agriculture. The restoration of
agriculture by means of the revival of trade between
town and country, the increase in the country's food
resources and the revival of the transportation system
and the fuel industry, made it possible to set to work
to develop the metallurgical industry, the key branch
of heavy industry.
The restoration of the most important branches of
heavy industry created the conditions for carrying
out the program of socialist industrialization of the
country.
Describing the fundamental task of the First Five-
Year Plan Comrade Stalin stated that the execution
of such a grand plan could not be started haphazardly,
just anywhere. In order to carry out such a plan it
was necessary first of all to find its main link; for
only after this main link has been found and grasped
could all the other links of the plan be pulled up.
This main link was heavy industry, with machine
building as its core.
To fulfil the fundamental economic task of the
Second Five-Year Plan?completion of the technical
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reconstruction of the national economy?it was
necessary to accelerate the further development of the
machine-building and allied branches of industry.
In conformity with the basic economic task of the
U.S.S.R., the Third Five-Year Plan fixed a ratio in the
rate of development of the various branches of indus-
try that would ensure the speediest growth of the
machine-tool and a number of other branches of the
machine-building industry, the manufacture of high-
grade steels, electric power stations and the chemical
industry.
When the Great Patriotic War broke out the acceler-
ated development of the various branches of the ar-
mament industry became the main link of the plan.
The main links in the war economy were also the fer-
rous and non-ferrous metallurgical industries, the fuel
industry and electric power stations. The accelerated
development of these industries in the East and their
rapid rehabilitation in the regions liberated from the
Germans created the necessary conditions for the ex-
pansion of the war economy.
Thanks to the advantages of planned economy it
was possible to overcome the unprecedented wartime
difficulties and to solve the tremendous problems of
the war economy: metals, fuel, electric power in the
Urals, transport and food.
To solve the iron and steel supply problem dur-
ing the war, at the time when the enemy occupied the
southern coal and iron and steel centre, it was neces-
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sary, first of all, to change in a planned manner the
kinds of iron and steel to be produced, sharply to in-
crease the proportion of high-grade metals in the total
production of metals' and to increase the output of
metals for manufacturing tanks, aeroplanes and muni-
tions. It was necessary to change the specialization of
the steel-smelting and rolling mills in the East to the
manufacture of these metals and to work out and apply
a new technology for them.
This made it necessary to give the iron and steel
industry priority in the matter of material and techni-
cal supplies and to ensure it regular and adequate
supplies of coking coal, iron and manganese ore, scrap
metal and refractory materials.
To incrcase the metal resources it was necessary
to accelerate the expansion of the production capacities
of the iron and steel industry in the East. This was
accomplished by a rigid concentration of resources
of metal, timber, cement and other building materials
and labour power, and also by capital investments for
extensive construction of metallurgical plants. The
overwhelming portion of resources allotted for con-
struction was designated for the iron and steel indus-
try. In addition to making use of the evacuated equip-
ment, the manufacture of new equipment for the met-
allurgical industry was expanded.
It was also necessary to plan the redistribution of
metal resources in favour of the armament industry.
In order to develop the war economy, in addition
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to supplying the armament industry, the neces-
sary metal resources were allotted to meet construc-
tion needs and to restore the machine-building in-
dustry.
Of exceptional importance in solving the metal
problem was the economizing of metal, the establish-
ment of strict norms for its consumption, the fullest
utilization by plants of their internal resources, ?the
introduction of new, advanced technology and organ-
ization of production.
To satisfy fuel requirements during the enemy oc-
cupation of the Donbas, very extensive measures were
taken to develop the eastern coal fields, to restore the
Moscow coal field, to supply the coal industry with
equipment, materials and labour power, to increase
the supply of firewood, to replace mazut by hard
fuels, to centralize the distribution of fuel and to re-
duce the rate of fuel onsumption.
In the Urals, where a shortage of electric power
was felt as a result of the influx of a large number of
evacuated enterprises and the rapid expansion of in-
dustry, the starting of new electric power stations was
accelerated.
To ensure the uninterrupted operation of the rail-
ways it was necessary to give them priority in fuel
supplies, strictly to plan railway traffic, in every way
to develop local industries, to distribute plants proper-
ly and organize cooperation among them with a view
to curtailing superfluous or long haulages.
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In view of the extreme importance of agriculture
in supplying food for the armed forces and the civil-
ian population, and also in providing raw materials
for industry, the war-economic plans provided the nec-
essary material resources for its development. This
helped socialist agriculture enormously to overcome its
wartime difficulties, particularly at the time when the
agricultural regions of the Ukraine, the Donets Basin
and the Kuban were temporarily occupied by the
enemy.
Planned manoeuvring with existing resources, the
work performed by the business organizations and
enterprises to fulfil the plans, the mobilization of the
efforts of the working class, the kolkhoz peasantry and
the intelligentsia to carry out the priority tasks, were
all of decisive importance in surmounting the wartime
difficulties and in creating a smoothly-functioning and
expanding war economy.
Heavy industry and railway transport play a deci-
sive role in solving the fundamental economic and
political task of the new five-year plan. The main link
of the postwar five-year plan is the priority task of
restoring and developing heavy industry and railway
transport, without which the rapid and successful res-
toration and development of the entire national econo-
my of the U.S.S.R. will be impossible.
A rapid growth of heavy industry will make it pos-
Sible to restore and develo agriculture, transport and
the light and food in I, es. The five-year plan pro-
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vides for supplying the national economy with equip-
ment and materials on a scale considerably exceeding
the quantities supplied during the period of the Sec-
ond Five-Year Plan.
The priority restoration and development of heavy
industry during the present five-year plan period
is needed to strengthen the technical and economic
independence of the country, to enhance the defensive
power of the U.S.S.R. and to equip its aimed forces
with the most up-to-date armaments.
The postwar five-year plan creates the conditions
necessary for the rapid restoration and development of
heavy industry. More than half the capital invest-
ments in the national economy during the five-year
period is allotted for heavy industry. Provision has
been made for the priority restoration and develop-
ment of that part of the machine-building industry
which produces equipment for heavy industry, prima-
rily for the metallurgical, electric power, coal and
oil industries, the output of which by the end of the
five-year period is considerably to exceed the prewar
level. To attract workers to the heavy industry, par-
ticularly to the coal, metallurgical and oil industries,
and to create permanent cadres for them, a higher rate
of pay is provided for workers, as well as for engi-
neers and technicians, in those industries.
One of the decisive conditions for the rapid res-
toration and further development of the national econ-
omy is improvement in transport.
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The five-year plan ensures the railways the mate-
rial supplies required for the improvement of traffic.
They are to receive large replenishments of locomo-
tives and cars, and to provide these it is proposed to
develop their production on an immense scale. The
railways are also to be provided with large quantities
? of rails, fishplates and sleepers.
. A necessary condition for the successful execution
? of the postwar five-year plan is the elimination of the
lag of a number of branches of industry due chiefly to
the grave consequences of the war and the poor har-
vest of 1946.
In view of this, the state plans for .1947 and 1948
devoted special attention to the further development
of the fuel industry and agriculture. Expanded repro-
duction requires that the fuel industry shall keep ahead
of the development of the other branches of industry
and of the national economy as a whole. Consequently,
the most important task of the past few years has been
to increase the output of coal and oil to the utmost.
Measures, such as the expansion of coal production in
the Kuzbas, Karaganda and the Urals and the acceler-
ation of the erection of oil refineries in the East, were
directed towards the achievement of this task.
A central link in the state plans for 1947 and 1948
was the speediest restoration and further expansion of
agriculture, which is indispensable for the successful
development of the national economy and for ensur-
ing a further improvement in the well-being of the
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people. In conformity with the decisions of the plena-
ry session of the Central Committee of the Communist
Party of the Soviet Union held in February 1947, the
expansion of agriculture is to be obtained by consider-
ably increasing the supply of tractors, agricultural
machinery, spare parts, fertilizers and fuel, by improv-
ing the work of the machine and tractor stations, by
the employment of improved agricultural techniques
in the kolkhozes and sovkhozes, by organizing on an
extensive scale the training of skilled personnel for
agriculture, by strengthening the kolkhozos in every
way and by eliminating all violations of the Rules of
the Agricultural Ariel.
The Soviet State is utilizing the mighty lever of
planning to direct all the country's resources and the
efforts of the working people to the task of developing
the leading branches of the national economy and is
thus creating the conditions for a high rate of expand-
ed socialist reproduction.
THE PLAN AND THE NATIONAL-ECONOMIC
BALANCE SHEET
The state plan for the development of the national
economy is a single national-economic plan, the tasks
of which are interlinked ?and directed to wards the
achievement of economic and political objectives.
Lenin said: "The plans of the various branches of pro-
duction must be strictly coordinated, combined and
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together made to constitute that single economic plan
of which we stand in such great need."1
To establish correst ratios in the development of
the different branches of industry and to prevent dis-
proportion in the national economy is one of the prin-
cipal tasks of planning. Social reproduction calls for
a definite proportion in the distribution of social la-
bour among the branches of production. Marx said:
"this necessity of the distribution of social labour in
definite proportions cannot be done away with by a
particular form of social production but can only
change the form in which it appears."2
The distribution of social labour among the vari-
ous branches of production is determined by the state
plan for developing the national economy. The pro-
portions in the national economy of the U.S.S.R. are
fixed in accordance with the economic and political
tasks and the main links of the state plan.
The Regulations governing the State Planning
Commission of the U.S.S.R., state: "The State Plan-
ning Commission is invested with the task of linking up
in the national-economic plan of the U.S.S.R. the work
of allied branches of socialist production, the mining
and manufacturing industries, agriculture and indus-
try, transport and the national economy, of linking
up the growth of production with the growth of con-
V. I. Lenin, 'Selected Works, Vol. VIII, p. 272
2 Karl Marx, Brieje are Kugelmann, German ed., Moscow
1940, p. 61.
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sumption, the financing of production and supply of
materials for it, of securing the proper territorial dis-
tribution of enterprises so as to avoid long hauls and
cross shipments, of establishing enterprises near to
the sources of raw materials and to the districts where
their products are consumed."
Thus, the state plan has to establish proper pro-
portions: firstly, for the separate spheres of reproduc-
tion (production, consumption, accumulation and cir-
culation) ; secondly, for the basic branches of the na-
tional economy (industry and agriculture, transport
and the rest of the national economy) ; thirdly, intra-
branch ratios (allied branches of industry, mining and
manufacturing, etc.), and fourthly, for the territorial
distribution of production.
During the period of the Stalin five-year plans, the
proportions of social reproduction that had arisen
under the conditions of a backward economy were
altered in accordance with the policy of the socialist
industrialization of the country and the collectivization
of agriculture. The new proportions in the national
economy were determined primarily by the redistri-
bution of the basic resources in favour of heavy in-
dustry.
Fulfilment of the prewar five-year plans resulted
in the predominance of industry in the national econ-
omy; the relative proportions between output of
means of production and output of articles of con-
sumption were changed. The share of industry in the
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total volume of output of large-scale industry and
agriculture in 1937 was 77.4% compared with 42.1 %
in 1913. As a result of the rapid growth of the output
of means of production, its share in the output of
large-scale industry as a whole increased from 42.9%
in 1913 to 62.8% in 1940, and the share of machine
building went up in the same period from 6.8%
to 31%.
The Fifteenth Congress of the Communist Party
of the Soviet Union stated in its resolution that in
drafting an economic plan for a more or less lengthy
period it "is necessary to strive to achieve the most
favourable combination of the following elements: ex-
panded consumption by the masses of workers and
peasants; expanded reproduction (accumulation) in
state industry by expanding reproduction in the na-
tional economy as a whole; a rate of development of
the national economy more rapid than in capitalist
countries and, without fail, a steady increase in the
share of the socialist economic sector, which is the de-
cisive and chief factor in the entire economic policy
of the proletariat."
As a result of the execution of the Stalin five-year
plans these tasks were successfully accomplished. Si-
multaneously with an enormous increase in capital
construction there was a considerable rise in the level
I Resolutions and Decisions of Congresses and Conferences
of the C.P.S.U.(B.) gnd of Plenary Sessions of Its Central
Committee, Part II, Russ. ed., 1940, p. 235.
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of consumption by the people. Growth of socialist
accumulation and an increase in consumption by the
people, while maintaining a rapid rate of development
of the national economy as a whole, were achieved as
a result of the steady growth of the socialist system of
economy which is supreme in the U.S.S.R.
The role of the plan was particularly enhanced
in the redistribution of social labour during the Great
Patriotic War. The war called for an alteration of the
prewar proportions in production, a redistribution of
all national economic resources in order fully and be-
fore all else to meet the needs of the war. The propor-
tions in the distribution of fixed and circulating funds,
labour power and financial resources were changed.
As a result of the wartime reorganization of the
national economy, the overwhelming portion of the
country's fixed funds were converted according to plan
to serve war needs. An enormous part in this was
played by the planned specialization and cooperation
of industrial plants.
Simultaneously with the conversion of industry to
the mass production of war supplies, resou,tces of raw
materials, fuel and auxiliary materials were redistri-
buted according to plan to ensure the fulfilment of
war orders. In conformity with the state plan, the
transportation system ensured the shipment of war
supplies as well as of the most important national-
economic freights. The centralized distribution of
foodstuffs and manufactured goods solved the problem
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of supplying the needs of the armed forces and the
civilian population.
At the same time, the labour resources were re-
distributed according to plan for the purpose of de-
veloping the war economy. The most important source
of labour power for war production in the main
branches of heavy industry were the trainees of the
state labour reserves schools. New labour resources
were drawn into industry to meet pressing war needs
by organized recruiting in town and country, by mobi-
lizing the urban and rural population.
To fulfil the tasks raised by the war it was neces-
sary, in addition to planning the distribution of ma-
terial and labour resources, also to plan the distribu-
tion of finances. This was achieved by means of the
state budget. Thus, new proportions in the distribu-
tion of social labour were created, such as were re-
quired for the development of a smoothly-functioning
war economy.
The change in national-economic proportions in
the postwar period was primarily the result of the
reconversion of the national economy to a peace basis.
Postwar reconversion was one of the tasks of the new
five-year plan. The advantages of socialist planned
economy ensured the successful accomplishment of
this task.
Already in the second half of 1945, the civilian
factories which had been engaged in war production
stopped producing war materials. The output capaci-
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ties of plants in the armament industry that were freed
by the curtailment of war orders were used primarily
for the purpose of increasing the output of the most
important types of equipment required by the national
economy.
In the course of 1946, the postwar reconversion of
industry in the U.S.S.R. was in the main completed.
The new proportions in the distribution of social
labour in the postwar five-year plan period are also
determined by the concentration of resources for the
speediest elimination of the disproportions caused by
the war. Proper proportions between branches of the
national economy are established and disproportions
and lagging sectors in the economy are brought to
light and corrected by means of the balance sheet
method in planning, in particular by means of balance
sheets for raw materials, fuel, other materials, equip-
ment, labour power and finances.
The national-economic plan determines the produc-
tion and construction program and at the same time
determines the distribution of the material, labour and
financial resources needed for ensuring fulfilment of
the assignments set in the plan.
The balance sheet method has always been impor-
tant in planning the national economy. Already at the
time when the GOELRO plan was being drafted, Lenin
characterized as a tremendous achievement in socialist
planning the fact that the GOELRO plan was the first
to contain "...a material and financial (in gold ru-
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bles) balance sheet of electrification (about
370,000,000 working days, so many barrels of cement,
so many bricks, so many poods of iron, copper, etc.,
the power of turbogenerators, etc.). The balance sheet
provides for an expansion Cat a very rough estimate')
* of manufacturing industry in ten years by 80 per cent,
and of the mining industries by 80-100 per cent."1
The enemies of the people?the Gromanites, Baza-
rovites and the Trotskyite-Bukharinites, would-be re-
storers of capitalism?repeatedly tried to use the bal-
ance sheet method for their counter-revolutionary
ends, to convert it into a weapon in their struggle
against Socialism, to prevent the creation of new pro-
portions in expanded socialist reproduction by fitting
the plan to the "bottlenecks" in the national economy.
By causing disproportion in the development of the
different branches of industry, these enemies of the
people wanted to disorganize, to dislocate the national
economy. Under the leadership of Comrade Stalin the
Party thwarted these efforts of the enemies of the
people and countered the hostile theories with the
Marxist-Leninist theory of reproduction.
As the national economy grew and the production
bonds between its separate branches expanded, the
planning of the distribution of the material resources
acquired increasing importance. The balance sheets of
the national-economic plan more and more extensively
1 V. I. Lenin, Selected Works, Vol. VIII, Moscow-Lenin-
grad, p. 301.
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covered the interlinking of the various branches of
the national economy.
With the very first steps in planning, ba!ance sheets
were drawn up for grain, fodder and fuel. The devel-
opment of heavy industry and of machine building,
its key element, enhanced the importance of balance
sheets for equipment, metal and electric power. The
vast scale of capital construction lent great impor-
tance to the planning of material supplies for the
capital construction jobs.
The reconstruction of the light and food industries,
the socialist reconstruction of agriculture and the de-
velopment of production bonds between industry and
agriculture, increased the importance of balance sheets
for agricultural raw materials. The development of
Soviet trade enhanced the importance of planning the
distribution of means of consumption and called for
the drafting of plans for consumption of manufac-
tured goods and food products. ?
The redistribution of finances for developing hea' vy
industry, the growth of Soviet trade, the firm estab-
lishment of cost accounting and the consolidation of
the Soviet ruble required systematic elaboration of fi-
nancial balance sheets.
With the growth of the national economy problems
of labour power distribution acquired tremendous im-
portance. During the period of the Third Five-Year
Plan this task was posed by Comrade Stalin as one of
the most important tasks of socialist planning. A pow-
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erful lever for the planned training and distribution
of labour resources for the entire national economy
was the state labour reserves system that was institut-
ed before the war.
During the war, the -importance of balance sheets
in the national-economic plan and of the planned dis-
tribution of materials, labour power and financial re-
sources grew because of the need for the rigid con-
centration of all national economic resources to meet
the requirements of the front.
The balance sheet method of planning is of enor-
mous importance in the postwar period. This is to be
explained by the fundamental change in the national
economic proportions that was made during the war,
by the necessity to eliminate existing disproportions,
and also by the division of many economic ministries
into smaller units, which, in turn, sharply enhanced
the role of interbranch planning.
For the purpose of improving the work of pre-
paring balance sheets, the State Planning Commission
of the U.S.S.R. has been reorganized. Furthermore,
the Government has instructed the Commission to
make it a rule, when submitting the national-economic
plan, to propose at the same time measures for pre-
venting disproportion in the national economy.
The balance sheets and distribution plans as drawn
up at the present time include: firstly, material bal-
ance sheets (in kind) showing the proportions of the
material elemants of reproduction; secondly, value
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(price) balance sheets showing the proportions in the
distribution of financial resources and ensuring prop-
er proportion in the distribution of the social product
in respect of its material form and its value; thirdly,
balance sheets for labour power.
Material balance sheets (in kind) consist of the
following: 1) balance sheets of industrial products
which, considering the main purpose for which they
are to be used, represent the elements of the fixed
funds of the national economy that ensure fulfilment
of the construction program of the national-economic
plan (equipment and building materials), 2) balance
sheets of industrial and agricultural products, which,
considering the main purpose for which they are to
be used, represent the elements of the circulating funds
of the national economy that ensure fulfilment of the
production program of the national-economic plan
(metals, fuel, electric power, chemicals, agricultural
raw materials), 3) balance sheets of industrial and
agricultural products, which, considering the main
purpose-for which they are to be used, represent arti-
cles of individual consumption.
The material balance sheets and distribution plans,
which are approved by the Government, cover prod-
ucts of national-economic importance as well as prod-
ucts which require centralized distribution because
of their shortage. During the war the number of items
of funded products, i.e., products distributed by the
centre, had to be considerably enlarged.
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Value balance sheets consist of the following:
1) balance sheet of the population's money income and
expenditure, 2) the State Bank's cash plan, and 3) the
state budget.
The income side of the balance sheet of the popu-
lation's money income and expenditures covers the
wage fund of the workers and office employees and
other incomes of the urban population, as well as the
money income of the rural population; the expendi-
ture side covers expenditure by the population in buying
goods at state and cooperative stores, paying for serv-
ices, and other money expenditures. The chief purpose
of this balance sheet of the population's money income
and expenditure is to ensure proper proportion in
planning the volume of trade, the wage fund and the
money income of collective farmers. This balance sheet
serves as a basis for drafting the trade plan and also
for planning the wage fund in the national economy.
The State Bank's cash plan serves as an important
means for planning money circulation. The income
side accounts for money received by the State Bank
from trade turnover and payments by state organiza-
tions; the expenditure side accounts for payments
made against the wage fund and other money expend-
itures. The State Bank's cash plan makes it possible
to determine the volume of currency emissions required
?for the ensuing period.
The state budget is a most important financial bal-
ance sheet which determines the distribution of the
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bulk of the national income. The main items of revenue
in the state budget are accumulations of the socialist
economy in the form of profits and turnover tax,
and money received from the population in payment
of taxes, subscriptions to state loans, etc. The expend-
iture side of the state budget consists of disburse-
ments made in financing the national economy (pro-
duction and capital construction), social and cultural
development, administrative expenses and expenditures
on defence. The function of the state budget is to
ensure the financing without deficit of the national
economy with the aid of the country's internal fi-
nancial resources.
The labour power balance sheets include: 1) the
balance sheet for labour power in the state economy,
which determines the demand for labour power and
skilled personnel in the various branches of the
national economy, and the principal sources for
recruiting labour for it (training in the state labour
reserves schools, organized hiring of labour), 2)
the balance sheet of labour power in the collective
farms, which determines the utilization of col-
lective-farm labour resources for carrying out the
plan of agricultural production and for work in
industry.
The balance sheets system in the national-economic
plan makes it possible correctly to solve the problems
of planning resources, consumption and distribution in
the national economy.
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The central task of the national-economic plan is
to mobilize all the resources available to the national
economy for carrying out the economic and political
tasks of the plan.
The chief source of resources is the volume of pro-
duction projected for a given branch of the economy.
The second source are stocks of finished goods remain-
ing at the point of production (coal at the pitheads,
stocks of metal at metallurgical plants). A third
source is the unused raw materials, materials, fuel and
equipment at the point of consumption. The tasks of
the national-economic plan are based primarily on
the utilization of the country's home resources. For
certain types of production, however, the balance
sheets include foreign resources (imports, etc.).
The registration and redistribution of stocks and
unused resources at the disposal of the various minis-
tries and at plants assumed exceptional importance dur-
ing the war for meeting the needs of the war economy.
Together with determining the resources, the
balance sheets also indicate the requirements of the
national economy in various kinds of products, labour
power and also financial resources.
Requirements in means of production are deter-
mined on the basis of the technically-established stand-
ards of consumption of raw materials, materials, fuel,
electric power and equipment in conformity with the
proposed program of production and capital construc-
tion.
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The requirements in articles of consumption are
determined by computing the quantity of goods re-
quired to ensure the planned volume of trade and also
to ensure non-market supplies (consumption by the
armed forces, various establishments and those for in-
dustrial processing).
The requirements in labour power are determined
on the basis of the established labour productivity
indices and on the proposed program of production
and construction. _
Distribution of resources for various economic
purposes and also among the various industries, minis-
tries and organizations is planned after ascertaining
the resources and requirements in conformity with the
targets of the national-economic plan.
The material form of the product of a given
branch of economy enables it to be used for different
economic purposes. The plan determines what econom-
ic purpose the given product is to be used for in
conformity with the proportions of expanded socialist
reproduction laid down in the plan.
Of most importance is the distribution of material
resources in the two principal directions? for produc-
tion and operation needs, and for capital construction
(iron and steel, timber, cement and equipment). This
distribution makes it possible properly to correlate
and combine the tasks of the expanded reproduction
of fixed funds and the current needs of the national
economy.
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Simultaneously with the distribution of resources
for production and operation purposes and for capital
construction, it is necessary to distribute resources
among the various branches of the national economy
and the ministries. It is here that the tasks of ensuring
supplies for the leading links of the national economy
are met.
An extremely important task of the planned
distribution of resources is to ensure that the various
branches of the national economy receive the supplies
they need in complete sets. Complex plans for the
development of individual branches of national
economy, providing for the supply of all the necessary
material resources and labour power, were of extreme
importance during the war and are so in the postwar
period.
The provision of state reserves and stocks is of
particular importance in planning distribution.
The distribution of material resources must also
provide for exports in conformity with the plan for
developing foreign trade.
The drafting of the district plans of the national-
economic plan calls for the compilation of balance
sheets for economic districts as well as for republics,
territories and regions. Compilation of district balance
sheets for fuel, electric power, building materials, tim-
ber and cement makes it possible? to coordinate
production and consumption within economic districts,
to extend the utilization of local resources and to
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reduce long haulages. It is particularly important to
compile district balance sheets of labour power.
To establish proper proportion in consumption,
resources and distribution when compiling the national-
economic plan and in carrying it out, the following
measures are taken:
a) Possibilities are explored for expanding pro-
duction by making better use of production capacities
or by increasing them, by the better utilization of
raw materials, and also by raising productivity of la-
bour.
b) Resources are manoeuvred with within the limit
of the proposed volume of production; for example,
the share of high-grade rolled steel in the total rolled-
steel output is increased so as to ensure fulfilment of
the plan for machine building; the share of sawn-
timber shipments in the total timber freights is increased
to ensure fulfilment of the building program, etc.
c) Wider utilization of consumers' internal re-
sources and producers' surplus stocks.
d) Reduction of norms of consumption of materi-
als, raw materials, fuel and electric power; increased
utilization of equipment and higher targets for raising
productivity of labour.
e) Utilization of idle material and financial re-
sources, mobilization of the funds of the population,
price adjustment.
Linking up the plan's sections and indices and
compiling the balance sheets of the national-economic
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plan results in the compilation of the planned balance
sheet of the national economy of the U.S.S.R. The
state national-economic plan, linked up in all its parts,
constitutes the balance sheet of the entire national
economy. It takes the form of a combined table drawn
up on the basis of the indices and the individual
balance sheets of the national-economic plan. The table
of the planned balance sheet of the national economy,
based on an analysis of the preceding balance sheet
of plan fulfilment, gives in a system of interlinked
indices the level and main proportions of expanded
socialist reproduction for the ensuing period. The
combined balance sheet of the national economy is
drafted, on the basis of Marx's scheme of reproduc-
tion.
The following elements of Marx's schemes of
reproduction are applicable to socialist economy:
1) Division of the social product into means of
production and articles of consumption.
? 2) Division of the social product into funds for
productive consumption, individual consumption and
accumulation.
3) Distribution of the national income into a fund
for expanding production, a resefve fund, a fund for
the communal satisfaction of needs, a fund for distri-
bution according to amount of labour performed
(Marx's scheme, given in his Critique of the Gotha
Program).
Marx's schemes, however, being abstract schemes
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of reproduction, must be concretized when used in
compiling the national-economic balance sheet of the
U.S.S.R. The scheme of the balance sheet of the
national economy of the U.S.S.R. must reflect, in
conformity with the specific features of Soviet society,
the following elements:
1) the two forms of socialist property, 2) division
of the social product into three subdivisions?means
of production, articles of consumption, and armaments,
3) division of the national economy by branches,
4) not only a material, but also a financial balance
sheet.
The combined balance sheet of the national
economy of the U.S.S.R. includes: a balance sheet of
the social product divided into a balance sheet for
means of production and balance sheet of articles of
consumption, financial balance sheet, balance sheet of
the national income, balance sheet of the national
wealth, and labour-power balance sheet. The balance
sheet of the national economy is drawn up in the
prices actually prevailing in the given year (this does
not apply to the labour-power balance sheet). In
comparing balance-sheet indices for a series of years,
prices are calculated in terms of those prevailing in
the initial year.
The balance sheet for the social product is a
combined balance sheet of materials, a summary of the
entire system of balance sheets of the materials (in
kind) of the national-economic plan.
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The balance sheet of the social product shows the
volume and branch structure of the social product,
its division according to the form of property,
its composition in terms of material (in kind) and
value.
The balance sheet of means of production is a
summary of the balance sheets of equipment, raw
materials, other materials, fuel and electric power used
in compiling the national-economic plan.
This balance sheet gives comparative figures for
the total resources of means of production, their use,
and also their accumulation in the form of fixed and
circulating funds and state reserves.
The balance sheet for articles of consumption is
a summarized expression of the balance sheets of food
products and manufactured goods in the national-
economic plan; it compares the general resources of
articles of consumption with their consumption by
the population, the armed forces and various establish-
ments, and also the portions used for accumulation of
stocks and reserves.
Unlike the separate financial balance sheets of
the national-economic plan (the .state budget and the
balance sheet of money income and expenditure by the
population) the combined financial balance sheet has
to show the distribution of the social product and the
national income as a whole. The financial balance sheet
shows the relation of the socialist enterprises, other
establishments and the population to the financial sys-
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tem, the ratio of income of those engaged in produc-
tion to those in non-productive spheres. The financial
balance sheet covers the balance sheets of income and
expenditures of state enterprises, kolkhoz-cooperative
enterprises, establishments not engaged in production,
and of the population.
The balance sheet of the national income has to
show the ratio of the production of the national income
of the U.S.S.R. for the ensuing period to its ultimate
consumption by the population, the accumulation and
growth of the state reserves.
The balance sheet of the national wealth -of the
U.S.S.R. covers the movement of the fixed and circulat-
ing funds, reserves, state and individual property of
the population. The balance sheet shows the amount
of social wealth at the beginning of the planned period,
its accretion and decretion and its amount at the end
of the planned period. The balance sheet of national
wealth is closely linked with the balance sheet of
national income of the U.S.S.R. inasmuch as accumu-
lations and reserves of the national income are a source
for increasing the fixed and circulating funds and
reserves, and consumption of the national income is
the source for increasing the individual property of
the population.
The combined balance sheet of labour power shows
the total labour-power resources (able-bodied popu-
lation), the change in the number of working people
engaged in the national economy, the volume of new
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requirements in labour power and the sources from
which they can be met, such as the state labour
reserves, drafts on the non-working population, redis-
tribution of labour between town and country and
between the production and non-production spheres.
The ratio of the total number engaged in the national
economy to the movement of the social product shows
the change in the productivity of social labour for the
ensuing period.
The plan of expanded socialist reproduction drawn
up in the form of a balance sheet of the national
economy must reveal all the reserves of the national
economy and guard it against bureaucratic maximal-
ism.
It is impossible to draft the plan of development
of the national economy of the U.S.S.R. correctly
without first drafting the national-economic balance
sheet. The starting point is to determine the funda-
mental economic and political tasks for the coming
period. Once that is done, the drafting of the plan
must start with the drafting of the balance sheet. That
means that it is necessary to define not only the rela-
tions and proportions actually taking shape, but also
the relations and proportions that are necessary to
straighten out the situation and to direct the develop-
ment of the national economy in conformity with the
plan's economic and political tasks.
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THE DIVISIONS AND INDICES OF THE
NATIONAL-ECONOMIC PLAN
The indices of the national-economic plan embrace
all aspects of socialist reproduction and must ensure
that the plan maintains unity and proper proportion
between production, consumption, accumulation and
circulation.
The basis of the plan is the production program
which sets the targets for industrial and agricultural
production as well as for freight turnover on all types
of transport. The production plan sets the targets for
capital construction, labour power, volume of trade
and for other divisions of the national-economic plan.
For instance, expansion of production capacities and,
hence, the volume of capital construction in a given
branch, are determined by the industrial production
plan. At the same time, the production program
determines the targets for increasing the number of
workers, making allowance for the possibilities of
increasing productivity of labour.
The leading place in the production program is
held by the production plan for socialist industry,
primarily the branches which manufacture means of
production, the basis for the technical re-equipment of
the national economy as a whole and the most impor-
tant source for the expansion of production in other
branches of the national economy.
The production program for heavy industry ensures
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the supply of materials required for fulfilling the
national-economic plan; the production program for
the light and food industries, however, is the material
basis for the growth of consumption by the popula-
tion.
A component of the production program is the
plan for agricultural production, which includes
targets for grain and industrial crops, increase in
livestock breeding, introduction of the crop-rotation
system, improvement in agronomic techniques and
irrigation, for the work of the machine and tractor
stations, the state farms, and the technical equipment
of agriculture.
The agricultural production program is a most
important basis for the improvement of the material
well-being of the population, for it determines the
increase in the supply of food for the population, of
raw materials for light industry, and the accumulation
of the necessary state reserves of foodstuffs and raw
materials.
As is known, the principal elements of the process
of production are the instruments of labour, the subject
of labour, and labour power. Consequently, the volume
of industrial production is determined by planning
the material and technical base (production capacities,
technical level) for supplying the given branch with
raw and other materials, fuel and electric power, for
increasing labour resources and productivity of labour.
The state plan determines all these factors for increas-
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ing production and allots to the given branch the
required material, labour and financial resources in
accordance with the requirements of the national
economy.
The plan for agricultural production is linked
directly with industry's production program as regards
ensuring supplies of raw materials for the light and
food industries. On the other hand, the plan for indus-
trial production is linked with the plan for agricultur-
al production as regards the manufacture of agri-
cultural machinery, tractors and spare parts, and the
products of the chemical and oil industries all of
which are required in agricultural production.
To ensure proper proportion between the plan for
the development of industry and that for agriculture
is a highly important task of the state plan for develop-
ing the national economy.
Comrade Stalin has stated: "Socialist society is
the association of workers in industry and agriculture
for the purpose of production and consumption. If,
in this association, industry is not linked with agri-
culture, which provides raw materials and food and
absorbs the products of industry?if, accordingly,
industry and agriculture do not form a single national
economic whole, then we shall not get Socialism."
The production program includes a plan for car-
J. V. Stalin, Leninism, Vol. I, Moscow-Leningrad 1934,
p. 230.
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riage by all forms of transport?rail, water, motor
and air.
The freight turnover plan is drafted in conformity
with the volume and territorial distribution of
industrial and agricultural production.
The connecting link between production and con-
sumption is the plan for material and technical
supplies for the national economy which determines
the circulation of means of production, and also the
trade turnover plan, which determines the circulation
of articles of consumption. The material and technical
supply plan covers the distribution of means of
production among industries and economic organiza-
tions and is drafted on the basis of the materials
balance sheets. The volume of state -and cooperative
trade is determined by the production of means of
consumption by industry and agriculture and their
division into market and non-market funds. The volume
of trade, which is a most important index of the level
of consumption by the population, is directly connected
with the labour-power plan as regards the number of
workers employed in the national economy and the
total wage fund. -
One of the chief divisions of the national-economic
plan is the program of capital construction, which
determines the expanded reproduction of fixed funds
and the development of the material and technical
basis of the national economy.
The capital construction plan is drafted in conform-
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ity with the production program and with the plan
for social and cultural development. Production and
distribution of equipment, metal, cement and timber,
in their turn, determine the supply of materials for the
volume of capital construction laid down in the plan.
Component parts of the capital construction
program are the plan for capital investments and for
the plants to be put into operation in the various
industries and in the national economy as a whole, and
also the title list which contains the names of the
principal capital construction jobs for the ensuing
period and indicates the specific targets for each job.
A leading element of the capital construction pro-
gram is the plan of the production facilities to be put
into operation. The total production capacities to be
put into operation in the ensuing period directly deter-
mines the growth of production. Hence, a most impor-
tant index of the effectiveness of capital construction
is the increase in the fixed funds put into operation
Compared with the volume of capital investments. The
Government's decision on the plan for 1947 registered
the non-fulfilment in 1946 of the plan for starting
new production capacities in a number of industries,
particularly in the coal and iron and steel industries.
This non-fulfilment led to an increase in the number
of incompleted construction jobs, to higher building
costs and to the freezing of considerable state funds.
One of the main tasks of the state plan for restoring
and developing the national economy of the U.S.S.R.
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is to expedite the starting of additional production
capacities by restoring damaged plants and building
new ones primarily in the fuel industry, electric power
stations, in the iron and steel, textile and machine-
building industries, and railways.
The starting of additional production facilities
in the national economy is accelerated, firstly, by con-
centrating capital investments and material resources
on construction in the most important industries and
priority construction jobs, and, secondly, by reducing
the time schedules for restoration and construction
jobs; this calls for the extensive introduction of indus-
trial methods in building operations (up-to-date or-
ganization of work, extensive mechanization, etc.).
In addition to the maximum acceleration of the
starting of new production facilities, one of the very
important tasks of planning capital construction is to
provide for such a development of this work as will
ensure the necessary carry-over for the development of
construction in the next period. The plan for capital
construction for a given? period provides for the
completion of a definite cycle of construction work
and the beginning of a new cycle. The ratio of capital
investment in carry-over construction to new construc-
tion is decided concretely for each industry in accord-
ance with the targets in the sphere of production.
Directly connected with the capital construction
plan is the plan for the development of the building
industry, which covers the distribution of construe-
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Lion and installation work among the building organi-
zations, the program of contracts for the ministries
engaged in construction, and the targets for the mecha-
nization of building operations.
A very important division of the national-economic
plan is the labour-power plan, which includes targets
for productivity of labour, the number of workers to
be employed, the training of skilled personnel and
for the total wage fund. The labour-power plan indi-
cates the principal source for the expansion of the
production and construction program and for an
increase in socialist accumulation and consumption.
The planning of productivity of labour in industry
is based on a rise in the level of technical equipment
in the various industries, an increase in the workers'
technical skill in production, an improvement in
material conditions and social services for the work-
ers, and on the achievements in increasing productivity
of labour of the leading enterprises and Stakhanov-
ites. The level of productivity of labour and the
expansion of production planned for the ensuing period
serve as the basis for calculating the necessary increase
in the number of workers in the various industries
and in the national economy as a whole.
Closely connected with the labour-power plan is
the plan for housing and municipal development,
public health and education, which, together with the
volume of trade, determines the improvement in the
material welfare and culture of the Soviet people.
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This section of the state plan also lays down an
extremely important basis for the growth of productiv-
ity of labour.
One of the chief divisions of the national-economic
plan is the technical plan, which reflects the technical
policy of the Soviet State, viz., to promote technical
progress, to introduce the latest achievements of
science and technology into the sphere of production
at the speediest rate.
The state national-economic plans are plans for
the technical reconstruction of the national economy.
The production program must be based on sound
technology. The scientific and technical basis of the
plan was of exceptional importance in the period when
the Second Five-Year Plan was drafted and carried
out.
Stressing the need for strengthening the technical
side of the plan V. V. Kuibyshev said: "We are now
about to embark upon the fundamental reconstruction
of the national economy. In the sphere of industry,
agriculture, transport, etc. ... we set the -task of
introducing new, modern technology at the speediest
rate'. We are starting on tremendous construction jobs
that will take years to complete and will mould the
shape of our economy for many years to come. It is
quite obvious, therefore, that our technical approach
must now be especially emphasized so that we may
keep on the level of really the highest and foremost
achievements in science and technology."
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During the period of the Third Five-Year Plan
and of the Great Patriotic War the further rise in the
level of planning was reflected in the drafting of
technical plans which provided for the introduction
of up-to-date types of equipment and the latest
technological processes in the different branches of the
national economy?industry, agriculture and trans-
port.
During the postwar five-year plan period, the rate
of socialist reproduction will to an ever-increasing
degree be determined by technical progress. Comrade
Molotov said:
"In our time of high technology and the wide
application of science in industry, when it has already
become possible to utilize also atomic energy and
other great technical discoveries, prime attention must
be given in our economic plans to problems of technol-
ogy, to problems of raising the technical level of our
industry and of developing highly-skilled technical
personnel."
Consequently, in the postwar period, the state
technical plan acquires especially great importance
as an organic part of the national plan. The task is
not only to put the targets of the national-economic
plan on a sound technical basis, but also to plan the
development of technology itself by utilizing the
V. M. Molotov, The Twenty-Eighth Anniversary of the
Great October Socialist Revolution, Russ. ed., 1945, p. 28.
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achievements of science and technology in our country
and by taking into consideration advanced technical
experience abroad.
The technical plan covers targets for the different
branches of industry, agriculture, transport, communi-
cations and construction as regards the designing and
introduction of new types of machines and equipment
and new technological processes (the scale of technical
measures and schedule for introducing them). The
? technical plan also sets targets for economizing metals
and utilizing substitutes.
A component part of the national-economic plan
is the cost-of-production plan, which determines the
percentage of reduction of cost of production and the
total saving to be effected in the various branches,
as well as the planned cost of production of the more
important kinds of manufactures.
In determining the quantity of means of production
and labour power required to ensure fulfilment of the
? production program, the national-economic plan
defines the expenditure, expressed in money, needed
? for the purpose. The cost-of-production plan is a
connecting link between the production plan and the
indices for utilizing raw and other materials, fuel and
equipment, and also for productivity of labour. Cost
of production determines the sources of accumulation
in the national economy and at the same time links
? the production program with the financial program
of the national-economic plan.
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The national-economic plan is drafted not only
according to branches of industry, but also according
to districts. Plans for the development of local industry
and industry under the control of the given republics,
agriculture, volume of trade, housing and municipal
development, cultural development and public health
are endorsed for republics, territories and regions.
The district division of the national-economic plan also
makes it possible to coordinate the branches of the
national economy in the various republics, territories
and regions, as well as in the various economic
districts.
The U.S.S.R. is at the present time divided into the
following economic districts: Northern, Northwestern,
Central, Volga, North Caucasus and the Crimea, Urals,
West Siberian, East Siberian, Far East, Kazakhstan
and Central Asia, Transcaucasus, Southern, and
Western. District economic planning is very important
for effecting the socialist distribution of productive
forces, for the elimination of uneconomical and extra-
long hauls, and for the further economic and cultural
advance of the non-Russian republics and regions of
the Soviet Union.
Thus, the national-economic plan must ensure the
unity of the interbranch and interdistrict division of
labour in the U.S.S.R.
The targets of the national-economic plan are ex-
pressed in a series of quantitative and qualitative in-
dices,
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The quantitative indices for industrial production
cover targets for the volume and variety of products
according to branch of industry.
The list of items of industrial products changes in
the plan owing to the expansion of industry, the
development of new industries and lines of production
and the need for centralized planning of the production
and distribution of products of which there is a
shortage, or which are of special importance for the
national economy.
For example: the list of items of equipment to be
produced was determined by the task of introducing
new machinery in all branches of the national
economy; the increase in the variety of metals provided
for by the plan was determined by the task of satisfying
more fully the needs of the machine-building industry.
Nanning the output of a more extensive assortment
of articles of consumption is connected with the task
of raising the level of consumption by the working
population and of developing Soviet trading.
The state national-economic plan sets the targets
for the most important kinds of industrial products;
?the plans for the ministries and enterprises, however,
enumerate all the items of industrial products to be
manufactured.
The qualitative indices of the national-economic
plan are technical-economic and economic indices.
The technical-economic indices include, firstly,
indices fpF ;the utitization of equipment, as, for exam-
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pie, the coefficient of utilization of blast-furnace
capacity in the iron and steel industry, the performance
per tractor in agriculture, and the loadings per
freight car on the railways. Secondly, they include
indices for the utilization of raw and other materials,
fuel and electric power as, for example, the consump-
tion of pig iron per ton of smelted steel, consumption
of fuel per kwh. of electric power, etc.
The technical-production indices make it possible
to determine the volume of production as regards
the utilization of its main factors?production ca-
pacities, raw and other materials, fuel and electric
power.
In addition, the technical-economic indices of the
plan serve as a connecting link between the various
divisions of the plan, between the various aspects of
reproduction. For example, in determining the degree
of utilization of existing capacities, the technical
economic indices for equipment indicate what new
capacities have to be put into operation to ensure
fulfilment of the production program and thus serve
as a connecting link between the production plan and
construction plan. The indices for the utilization of
raw and other materials, fuel and electric power serve
as a connecting link in planning the output of allied
branches of social production: ore mining, and the
fuel and metallurgical industries; the metallurgical
and machine-building industries; the light and food
industries and agriculture.
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The technical-economic standards are a most
important basis of planning. The task of the state plan
is to introduce advanced technical-economic standards
in production processes. As Comrade Stalin has pointed
out, "Technical standards are a great regulating force
which organizes the masses of the workers in the
factories around the advanced elements of the working
class. We therefore need technical standards; not
those, however, that now exist, but higher ones."
The state plan cannot be based on the standards already
attained in production; it must be orientated towards
the most advanced technical-economic standards. "The
state plans must be Bolshevik plans; their calculations
must be based not on the average arithmetical standards
already attained in production, but on the average
progressive standards, i. e., they must be equal to the
most advanced standards.
"The successful fulfilment and overfulfilment of
the state plan is decided by people; the plan must
orientate itself towards the leading workers, engineers
and technicians who show what enormous possibilities
exist for achieving progressive standards in utilizing
machines and mechanisms, and thus ensure the over-
fulfilment of the state plans."2
The fixing of advanced technical-economic
standards in the plan makes it possible to reveal
J. V. Stalin, Problems of Leninism, Moscow 1947, p. 535.
2 The State Plan for the Restoration and Development of
the National Economy for 1947, Moscow 1947.
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reserves for the expansion of socialist production, to
ensure a high tempo of economic development and
the fulfilment and overfulfilment of the plan.
In its decision on the 1947 plan, the Council of
Ministers of the U.S.S.R. instructed the ministries and
departments to take measures to introduce in their
enterprises advanced technical-economic standards for
utilizing machines, mechanisms and production units
and also norms of consumption of electric power, fuel
and materials. To effect this, the ministries and depart-
ments: a) ascertained and took account of what the
advanced technical-economic standards were in separate
shops, sections, production units and workers' brigades
in their plants, and b) on the basis of the advanced
technical-economic standards they fixed for each
enterprise the average progressive standards for the
utilization of machinery and consumption of materials
calculated to ensure 'fulfilment and overfuifilment of
the state plan.
The economic indices comprise those for pro-
ductivity of labour, cost of production and profit.
The productivity of labour index determines the degree
of utilization of human labour power for the ensuing
period. Reduction in the cost of production determines
the degree of utilization of crystallized labour (equip-
ment, consumption of materials), as well as the ratio
of growth of productivity of labour to the average
wage. The profit index determines the ratio of cost
of production to accumulation in the given industry.
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The planning of social production is achieved by
means of the material and value indices of the plan.
The proportions of the material elements of reproduc-
tion are determined by a series of indices in kind. But
these indices do not help to determine the distribution
of the total expenditure of social labour, to compare
the results of the activities of the separate branches
of industry and enterprises. The planning of the total
volume of production of the separate branches of
industry, the volume of construction, socialist accumu-
lation, volume of trade and economic indices can be
done only in the value form.
The production program of industry is expressed
in indices for gross and market output which are deter-
mined by pricing the various types of products
according to actual sale prices and in the unchanged
prices of 1926/27. The volume of capital construction
is planned in the actual estimate prices and also in
the unchanged prices of the 1945 estimates which are
taken as the basis at the present time. The volume of
trade is determined in actual retail prices and also
in the unchanged prices of the year that is taken as the
basis.
The value indices of the national-economic plan
help to determine the volume and branch division of
social production and the distribution of the social
product according to economic requirements.
The indices' of the national-economic plan are
drawn up in conformity with the organizational
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and branch division of the national economy. The
targets in the national-economic plan are given for
the ministries and organizations in the different repub-
lics that are responsible for the fulfilment of the
state plan.
A branch of the national economy as a whole,
however, is not coterminous with a branch under the
control of particular ministries and departments. For
instance, output of electric power is planned for the
Ministry of Power Stations and also for all other
ministries which control electric power stations. The
plan for output of steel and rolled metal is fixed not
only for the Ministry of the Iron and Steel Industry,
but also for the ministries of the machine-building and
armament industries. The same applies to the timber
industry where, in addition to the Ministry of the
Timber Industry, other economic organizations engage
in the felling and hauling of timber.
To establish proper proportion in the production
of the different types of products, the national-econom-
ic plan must cover production in the national econ-
omy as a whole. Thus, in addition to fixing targets
for the various economic organizations, the state plan
sets targets for the different branches of the national
economy, which make it possible to determine the
production links and proportions in social produc
tion.
The state national-economic plan is a plan for so-
cialist expanded reproduction. In planning the national
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economy, however, account is taken of the existence
in the U.S.S.R. of different forms of property?state
property, kolkhoz-cooperative property, the garden
plots of the kolkhozniks, as well as the private econ-
omies of individual peasant farmers and of artisans
who do not belong to cooperative societies.
The plan for industrial production covers the tar-
gets for state and cooperative industry. The plan for
agricultural production is drafted for the kolkhozes,
sovkhozes, and machine and tractor stations. This
makes it possible to take strict account of the special
features that arise from the two forms of socialist prop-
erty. For instance, since the state has complete com-
mand of the products of state enterprises, it plans the
distribution of all the products of state industry and
of the sovkhozes intended for the market. As regards
kolkhoz market produce, state distribution covers only
obligatory deliveries and state purchases. The rest of
the kolkhoz market produce remains at the disposal
of the kolkhozes and their members and is sold by
them in the kolkhoz market.
An exceptionally important place in the state plan
for the development of agriculture is occupied by
measures for strengthening the organization and im-
proving the farming methods of the kolkhozes and for
maintaining proper proportion between their social
and auxiliary sectors.
Thus, planning according to the forms of property
makes it possible to accomplish one of the fundamen-
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tal tasks of socialist planning?the development and
all-round consolidation of socialist property?the eco-
nomic foundation of the U.S.S.R., while guaranteeing
the growth of state property, the property of the whole
people.
THE PLANNING BODIES AND THE MANNER
IN WHICH Tim DRAFTING OF THE NATIONAL.
ECONOMIC PLAN IS ORGANIZED
The planning bodies are an organic part of the
Soviet State apparatus. As is stated in the Constitution
of the U.S.S.R., the highest organ of state power in
the Soviet Union is the Supreme Soviet of the U.S.S.R.,
one of the functions of which is to adopt the national-
economic plans, and also to approve the unified state
budget of the U.S.S.R. The Supreme Soviets of the
Union Republics approve the national-economic plans
and budgets of the Republics. The highest executive
and administrative organ of state power in the U.S.S.R.
is the Council of Ministers of the U.S.S.R., which co-
ordinates and directs the work of the all-Union and
Union-Republican ministries of the U.S.S.R. and other
establishments within its jurisdiction. The Council of
Ministers of the U.S.S.R. takes measures to carry out
the national-economic plan and the state budget, and
to strengthen the currency.
The administration of and planning for the most
important branches of the national economy, those of
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heavy industry and the armament industry, transport,
communications, foreign trade and state purchasing,
are effected through the all-Union ministries. The Un-
? ion-Republic ministries control the industries that
produce articles of consumption, also the timber in-
dustry, the building materials industry, agriculture,
trade, finance, education and public health. Thus, the
branches of the national economy and of social and
cultural development that come under Union-Republi-
can jurisdiction are mainly branches directly connected
with meeting the needs of the population. As a rule,
the Union-Republican ministries direct their respec-
tive branches through corresponding ministries of the
Union Republics. Local industry, municipal economy,
social welfare and motor transport come under
the jurisdiction of the ministries of the various
republics.
? The work of planning the entire national economy
of the U.S.S.R. is conducted directly by the State Plan-
ning Commission (now called Committee?Ed.), which
is a permanent body under the Council of Ministers of
the U.S.S.R. Planning for the Union and autonomous
republics is done by the State Planning Commissions
of those republics. Planning for territories, regions,
districts and cities is done by the planning commis.
sions of the respective Soviets of Working People's
Deputies.
? The threads of planning lead down from the State
Planning Commission of the U.S.S.R. through the plan-
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fling apparatus of the ministries and central adminis-
trations of republican, regional and district organiza-
tions to the industrial enterprises, the sovkhozes, the
machine and tractor stations and kolkhozes.
According to the regulations governing the State
Planning Commission of the U.S.S.R., the functions
of that body are:
a) To draft and submit to the Council of Ministers
of the U.S.S.R. for approval, national-economic long-
range, annual, quarterly and monthly plans.
b) To submit to the Council of Ministers of the
U.S.S.R. conclusions on the long-range, annual, quar-
terly and monthly plans submitted by the ministries
and departments of the U.S.S.R. and of the Union
Republics.
c) To verify the execution of the national-economic
plans of the U.S.S.R. that have been approved by the
Council of Ministers of the U.S.S.R.
d) To work out, on instructions of the Council of
Ministers of the U.S.S.R. or on its own initiative, var-
ious problems of socialist economy.
e) To direct socialist accounting in the U.S.S.R.
Under the new rules for drafting the national-eco-
nomic plans that were introduced in August 1947, the
quarterly and monthly plans are not submitted to the
Council of Ministers of the U.S.S.R. for approval, but
the annual plan is divided up into quarterly indices.
The ministries and departments, and the Councils of
Ministers of the Union Republics have also to adopt
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for the enterprises under their control quarterly and
monthly plans based on the targets of the annual plan.
The new system of drafting the natiohal plan makes
it possible for the State Planning Commission and the
ministries to concentrate their attention on checking
up on plan fulfilment and to prevent disproportion in
the national economy.
As is stated in the regulations governing the State
Planning Commission of the U.S.S.R., "The main task
of the State Planning Commission is to ensure that
the national-economic plan of the U.S.S.R. provides
for proper proportion in the development of the differ-
ent branches and for the necessary measures to pre-
vent disproportion in the national economy?on the
basis of socialist property." The structure of the State
Planning Commission is designed primarily to enable
it to carry out this task.
In all its work connected with the drafting of the
national-economic plan and checking up on its fulfil-
ment, the State Planning Commission relies on statis-
tics and accounting. The body that handles state sta-
tistics is the Central Statistical Board of the Council
of Ministers of the U.S.S.R.
For the purpose of verifying the execution of the
national-economic plan, the State Planning Commis-
sion of the U.S.S.R. has repreSentatives in the various
republics, territories and regions whose staffs utilize
the data collected by the regional, territorial and re-
publican organs of the Central Statistical Board.
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In the work of drafting the national-economic
plans and of verifying their fulfilment, the State Plan-
ning Commission relies on the planning apparatus of
the ministries, central administrations and enterprises,
as well as on the ramified network of planning bodies
of the republics, regions, territories, cities and districts.
V. V. Kuibyshev said: "It would be absurd to
think that the national-economic plan can be drafted
by a few hundred persons sitting in the offices of the
State Planning Commission of the Union. The national-
economic plan can be drafted only ... when all the
outer districts of the Soviet Union take part in the
planning, when the entire planning system from top
to bottom is strengthened, when tens of thousands of
planners from among the workers are drawn into the
work of drawing up the plan."1
The work of drafting the national-economic plan
falls into a number of consecutive stages.
After the economic and political tasks for the ensu-
ing period have been defined, the first stage in the
drafting of the national-economic plan is to sum up the
fulfilment of the plan for the preceding period (five
years, one year).
In this work the State Planning Commission of the
U.S.S.R. uses the data collected by the Central Statis-
tical Board; for summing up their plan fulfilment
results, the ministries use the material prepared by
I V. V. Kuibyshev, Articles and Speeches, Russ. ed.,
Moscow 1935, p. 83.
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their statistical bodies that are directly connected with
the enterprises.
Inasmuch as plan fulfilment results are summed
up before the expiration of the given year or quarter,
the State Planning Commission and the ministries draw
up preliminary estimates of fulfilment; this requires
a detailed and concrete study of plan fulfilmeht by
each branch of industry, enterprise and district, and
of the proportions taking shape in the national econ-
omy.
The summaries of fulfilment of the national-eco-
nomic plan make it possible to determine the level of
development reached by the national economy and to
ascertain which sections are leading and which are
lagging behind, and also what reserves are available
for the further growth of the socialist national econ-
omy.
The second stage in drafting the plan is the draw-
ing up by the State Planning Commission of the
U.S.S.R. of preliminary balance sheets, which make it
? possible to determine the main proportions in the
national economy and to draw up the basic indices of
the national-economic plan.
The ministries, enterprises and the various repub-
lics, territories and regions draw up plans both for
branches of industry and for districts.
The third stage in drafting the plan is the drafting
of the national-economic plan by the State Planning
Commission of the U.S.S.R., the working out of the
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final balance sheets and distribution plans, and dis-
cussion of the draft with the ministries and Repub-
lic organizations.
The participation of the ministries in the work of
drafting the national-economic plan ensures for it a
sound technical-economic basis, a fuller consideration
of the requirements and resources of the various
branches, departments and enterprises.
The wide participation of Republic and local or-
ganizations in the work of drafting the plan ensures
fuller consideration of the needs and requirements of
the Union Republics; it helps to reveal more clearly
the possibilities for utilizing local resources and to
specify more accurately in the national-economic plan
the targets for the economy of the various republics
and localities.
The single state plan includes targets for the var-
ious branches of the economy and the ministries; but
the national-economic plan is not a mere compilation
of the plans of the various branches and ministries.
The plans that are drafted by the ministries are in-
cluded in the state plan only after they have been inter-
linked and checked to see whether the various targets
fit in with the tasks of the national-economic plan. The
various ministries draft plans for their respective
branches, concretizing the targets of the state plan in
conformity with the approved national-economic plan.
In addition to the targets for the branches and min-
istries, the national-economic plan of the U.S.S.R. de-
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fines the main economic tasks of the Union Republics
and localities. Division by republics is a necessary
component of the national-economic plan. Further-
more, complex plans based on the national-economic
plan are drafted for the republics, territories and re-
gions and for the minor districts; these are a necessary
supplement to and a concretization of the national-
economic plan.
The fourth stage in the work of planning is consid-
eration of the national-economic plan and its approv-
al by the Government of the U.S.S.R. and detailing
it for the respective enterprises.
After the national-economic plan has been ap-
proved by the Government it acquires the force of law
and is obligatory for the ministries and enterprises.
The approved state plan serves as the basis for the
final drafting of the plans of the ministries, republics,
territories and regions, which are then detailed into
plans for the particular enterprises.
The national-economic plan is detailed for each
region, territory, district and enterprise, and in this
all the specific features of the given administrative
and economic units are taken into account. This
ensures the unity of the plan for each enterprise with
the plan for developing the national economy as a
whole.
The plans of the ministries and enterprises differ
from the national-economic plan in that, firstly, they
cover a wider range of indices and thereby concretize
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the assignments of the state plan; secondly, they ate
based on more detailed technical-economic ealculations
for the various enterprises; thirdly, they include a
detailed plan of organizational and technical measures
ensuring fulfilment of the plan.
The technical-industrial-financial plan of an in-
dustrial enterprise, which is drawn up by the plan-
ning department of the enterprise with the active par-
ticipation of the workers and engineering and techni-
cal staff, covers: a) the production program, which
defines the types of products the enterprise is to spe-
cialize in and volume of output, b) the production
schedule, c) the plan for the output of new types of
products, d) the norms for utilizing equipment, factory
floor space, raw and other materials, fuel and electric
power, e) the plan for labour and wages, f) the plan
for supplying the enterprise with raw materials, fuel,
materials and equipment and satisfying labour-power
requirements, g) the estimates of production and cal-
culation of cost of production of the various types
of products, h) the plan for the sale of products, and
i) the financial plan.
A most important feature of the technical-indus-
trial-financial plan is the elaboration of technical and
organizational measures for ensuring fulfilment of the
targets set by the state plan. For example, to increase
productivity of labour it is necessary to mechanize
processes that require the expenditure of much labour,
to introduce up-to-date technology and line produc-
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tion methods, to improve the organization of work
and set up technical norms.
The technical-industrial-financial plan serves as
the basis for the operational planning of production
which includes the following: a) division of the pro-
duction plan into plans for each shop, and the division
of the latter into plans for each section, indicating the
assignments for each worker, b) drafting a production
plan for each month and ten-day period, and defining
the assignments for each day and night shift, c) de-
fining technical norms, the production cycle, amount
of stock and the quantity of parts to be processed at
a given time, d) current regulation of production and
ensuring that the necessary tools, blueprints, techno-
logical charts, etc., are available for every worker.
In drafting the plan at the plant, extensive use is
made of the proposals suggested by workers, engineers
and technicians.
The wide enlistment of the leading men and worn-
en in production for the work of drafting the plan
is one of the cardinal principle's of socialist planning.
Of great importance is the wide enlistment of the
? workers and office employees in the work of drafting
the plan for developing the cultural and welfare ser-
vices.
An active part in the work of the ministries in
drafting the Five-Year Plan for the Restoration and
Development of the National Economy was taken by
the trade unions, which paid special attention to ques-
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tions of improving the cultural and welfare services
for the workers and office employees, the building of
apartment houses, dining rooms, clubs, stadiums,
aquatic sports stations, nurseries, schools, hospitals,
public baths and laundries.
Of great importance in the organization of plan-
ning at the factories are the collective agreements con-
cluded between the factory administrations and the
factory committees, which represent the workers and
office employees of the given plant.
The collective agreements are bipartite obligations
covering an extensive program of measures to facilitate
the successful fulfilment of the plan and to improve the
cultural and welfare services for the working people.
The production plans for the collective farms, state
farms and machine and tractor stations are drawn up
on the basis of the state plan for the development of
agriculture.
For the planning of agriculture it is very impor-
tant that the state plan for the development of agri-
culture should be detailed for each kolkhoz. This calls
for a careful study of the conditions in each district
and agricultural enterprise, and for the enlistment in ?
the work of drafting the plan of a large circle of ac-
tive kolkhozniks.
The annual production plans serve as the basis
for drafting the working plans for the various agricul-
tural operations. The working plans are then detailed
into production targets for the kolkhoz brigades and
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teams. Here is an example of how the plan for the
spring operations for 1947 was worked out by the
Kommunar Kolkhoz in the Ramenskoye District, Mos-
cow Region. The Management Board of the kolkhoz
appointed a commission to draw up the plan; the com-
missi,n consisted of brigade and team leaders and oth-
er active members of the kolkhoz, presided over by
the kolkhoz agronomist. The commission held produc-
tion meetings with the brigades and teams. The mem-
bers of the commission enquired of practically all the
members of the kolkhoz how they planned to organize
their work for the current year. The brigade and team
leaders, aided by the agronomist, then drafted the plan
for the spring operations of the kolkhoz as a whole;
in this they were guided by the observations and sug-
gestions of the men and women kolkhozniks. The draft
was discussed first at a board meeting, and later at a
general meeting of the kolkhoz, at which new pro-
posals and amendments to the working plan were
made.
With the introduction of the crop rotation system,
the carrying on of construction and reclamation work
and a number of other big tasks for improving social-
ist agriculture, it became very important to draw up
long-range plans for the collective farms. The Five-
Year Plan Law for the Restoration and Development
of the National Economy of the U.S.S.R. gave a tre-
mendous impetus to the drafting of five-year plans for
collective farms.
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For instance, the five-year plan for 1946-50 for
the Komsomolets Kolkhoz, in the Saratov Region,
was drawn up at the collective farm itself by the bri-
gade leaders, livestock farm managers and other ac-
tive kolkhozniks under the guidance of the local agron-
omist; it was discussed at production conferences,
was adopted by the board, and then approved by a
general meeting of the kolkhozniks.
All the collective farms in Novo-Annensk District,
Stalingrad Region, have long-range plans, adopted at
general meetings of the collective farmers, which pro-
vide for the complex development of the main and
auxiliary branches of collective-farm production. The
long-range plans of the various collective farms
served as the basis of the five-year plan for the devel-
opment of agriculture in the entire district, in the
drafting of which agricultural experts, leaders of the
district organizations and a large number of kolkhoz-
niks took part.
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THE STRUGGLE TO FULFIL
THE NATIONAL?ECONOMIC PLAN
VERIFYING FULFILMENT OF THE PLAN
A very important task of socialist planning is ver-
ification of the fulfilment of the state plan and utili-
zation of the reserves which are discovered in the
course of its fulfilment.
Lenin and Stalin emphasized that drafting the plan
is only the beginning of planning, and that real
planned guidance develops in the process of carrying
out the plan.
All this follows from the organizational princi-
ples of the Bolshevik Party. "After the correct line
has been laid down, after a correct solution of the
problem has been found, success depends on how the
work is organized; on the organization of the struggle
for the application of the Party line; on the proper
selection of personnel; on the way a check is kept on
the fulfilment of the decisions of the leading bodies."
J. V. Stalin, Problems of Leninism, Moscow 1947, p. 509.
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The importance of verifying plan fulfilment follows
from the role and importance of planning in socialist
economy. The laws of socialist economy are laws
consciously applied by the Soviet State in exercising
planned guidance. It is precisely for this reason that
the plan cannot be fulfilled spontaneously, but only
by fighting to carry it out, by keeping a daily check-
up on its fulfilment, by rallying the masses of the
working people for the purpose of carrying out the
tasks set by the plan.
Concerning the GOELRO plan Lenin wrote: "It
must be amplified, further developed, corrected and
applied to the facts of the situation on the basis of the
indications afforded by practical experience after it
has been carefully studied."
Lenin was of the opinion that the time sat for car-
rying out the GOELRO plan could be reduced in the
course of the struggle for its fulfilment. "We must
follow the experiments of science and practical work,
and we must steadfastly strive to have the plan ful-
filled in the localities sooner than designated, in order
that the masses may see that the long period which
separates us from the complete restoration of in-
dustry can in practice be reduced. It depends on us.
Let us improve our methods of work in every work-
shop, in every railway depot, and in every sphere,
1 V. I. Lenin, Selected Works, Vol. VIII, Moscow-Lenin-
grad, pp. 305-06.
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and we shall reduce this period. And it is being re-
duced."'
Lenin followed the course of fulfilment of the
GOELRO plan with the greatest attention and took a
direct part in solving problems connected with the
construction of the electric power stations outlined by
the GOELRO plan: the Kashira and Volkhov and
other firstlings of the GOELRO plan were under his
constant observation.
Comrade Stalin daily directs the struggle of the
Soviet people for fulfilling and overfulfilling the na-
tional-economic plans. He said.
"Only bureaucrats can imagine that the work of
planning is concluded with the compilation of a plan.
The compilation of a plan is only the beginning of
planning. Real planned guidance develops only after
the plan has been drawn up, after it has been tested
on the spot, in the course of its application, by correct-
ing it and rendering it more exact."2
The Eighteenth All-Union Conference of the Com-
munist Party of the Soviet Union defined the main
direction in the struggle for the fulfilment of the plan
as follows:
? "To struggle for the fulfilment of the plan, to
ensure the plan's fulfilment, to work in accordance
with the plan, means:
Ibid., p. 271.
2 J. V. Stalin, Leninism, Vol. II, Moscow 1933, p. 326.
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"a) to fulfil the annual, quarterly and monthly
output plans not on the average, as has been the case
hitherto, but evenly, according to the plan, according
to a schedule worked out beforehand for the output
of finished products;
"b) to fulfil the plan not only on the average for
a branch of industry as has been the case hitherto, but
to fulfil it for each separate enterprise;
"c) to fulfil the plan not only on the average for
the enterprise, as has been the case hitherto, but to
fulfil it daily in every shop, by every brigade, at every
station and by every shift;
"d) to fulfil the plan not only for the quantitative
indices, but without fail also qualitatively, in com-
plete sets, for all the items planned for, and in con-
formity with the established standards and cost of pro-
duction set by the plan."
A very important task in verifying plan fulfilment
is to prevent disproportion, to eliminate disparities
in the development of the national economy. Verifica-
tion of plan fulfilment should disclose new reserves in
socialist economy. Furthermore, in the course of ful-
filling the plan new problems arise to solve which it
is necessary to obtain supplementary resources and to
alter branch and district plans, as well as the origi-
nally planned proportions for the development of the
national economy.
For instance, in the process of fulfilling the First
Five-Year Plan huge reserves were discovered in the
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socialist economy which Made it possible to ensure Tut,
filment of the five-year plan in four years.
In the course of fulfilling the First Five-Year Plan
the Party and the Government introduced a number of
changes in it. For example, the First Five-Year Plan
provided for a reduction in unemployment but did not
anticipate its complete elimination. As a result of the
rate attained in socialist industrialization and in the
collectivization of agriculture, however, unemployment
was eliminated in 1930/31.
In the course of fulfilling the First Five-Year Plan
the task arose of establishing in the East a second cen-
tre of the coal and metallurgical industries and this
was carried out, although the plan did not provide for
anything on so large a scale.
The collectivization of agriculture and the devel-
opment of the state farms proceeded at a faster rate
than had been provided for in the five-year plan. The
Party's enormous organizational activity in the social-
ist reorganization of agriculture made it possible to
complete collectivization, in the main, during the
First Five-Year Plan period.
. A number of changes were made in the five-year
plan in connection with the task of ensuring the de-
fensive power of the country. In his report on the re?.
sults of the First Five-Year Plan, Comrade Stalin said:
"... in order to improve the defences of the country.
in view of the refusal of neighbouring countries to
sign pacts of non-aggression with us, and in view of
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the complications that arose in the Far East, we were
obliged hastily to switch a number of factories to the
production of modern weapons of defence. And since
this involved the necessity of going through a certain
period of preparation, these factories had to suspend
production for four months, which could not but affect
the fulfilment of the general program of output pro-
vided for in the five-year plan during 1932. As a re-
sult of this operation we have completely closed the
breach in the defences of the country."'
The Stakhanov movement arose in the course of
the fulfilment of the Second, Five-Year Plan. It shat-
tered the old technical standards that had served as a
basis for planning, and called for the establishment of
new, higher technical standards, larger production ca-
pacities and production plans of greater scope. Thanks
to the higher level reached in the utilization of produc-
tion capacities as a result of the Stakhanov movement,
production targets of ,the Second Five-Year Plan were
reached ahead of schedule, despite the fact that the
plan for starting new capacities fell short of fulfil-
ment.
The Stakhanov movement could not have been fore-
seen when the Second Five-Year Plan was drawn up,
but the fulfilment of this plan, which ensured the
technical re-equipment of the entire national economy,
I J. V. Stalin, Problems of Leninism, Moscow 1947,
pp. 402-03.
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the development of skilled personnel and the improve-
Trxent in the material and cultural conditions of the
working people, created the prerequisites for the rise
and rapid development of the Stakhanov movement.
The victory of Socialism and the expansion of the
national economy as a result of the fulfilment of the
Stalin five-year plans enhanced the role of socialist
planning and very urgently brought to the front the
task of organizing the verification of fulfilment of the
national-economic plan. The Eighteenth Congress of
the Communist Party of the Soviet Union stated in its
resolution: "The central task in reorganizing the work
of planning is to organize the verification of plan ful-
filment so as to prevent the rise of disproportion in
the national economy, to disclose new reserves to be
used in fulfilling the plan, and, when actual results in
plan fulfilment warrant, to amend the plans in respect
of separate branches or distriets."1
The fulfilment of the postwar five-year plan has
again posed the task of improving the methods of ver-
ifying fulfilment of the plan as the central task in
raising the level of planning.
A serious defect in planning was the multiplicity
of current plans which had to be approved by the Gov-
ernment, with the result that the efforts of the plan-
I Resolutions and Decisions of Congresses and Conferences
of the C.P.S.U.(B.) and of Plenary Sessions of Its Central
Committee, Part II, Russ. ed., 1940, p. 744.
12*
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ning bodies were concentrated mainly on drafting
plans and not on the verification of their fulfilment.
The new method of planning, which requires Gov-
ernment approval of only the yearly plans, and quar-
terly divisions of the main indices instead of sepa-
rate quarterly and monthly plans, each of which had
to be approved by the Government, makes it possible
for the ministries and departments to improve direc-
tion of the various enterprises as regards_fulfilment of
the state plans, and for the State Planning Commis-
sion of the U.S.S.R. to pay greater attention to verify-
ing the fulfilment of the national-economic plan.
Verification of plan fulfilment is a most: important
task of the State Planning Commission of the U.S.S.R.,
whose duty it is to prevent the rise of disproporlien
in the development of the various branches of econo-
my and to help the ministries and enterprises in car-
rying out the plan.
In verifying plan fulfilment, the Commission relies
on the work of theCentral Statistical Board as well as
on the network of its own representatives in the repub-
lics, territories and regions. These representatives
work in close contact with the regional, territorial and
republican organs of the Central Statistical,Board, and
this makes it possible extensively to employ statistics
and accounting as an instrument for verifying plan
fulfilment.
One of the principal tasks of Socialist planning is
to disclose reserves in time national economy in the
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process of fulfilling the plan. This task comprises, pri-
marily, a struggle for economy, improved utilization
of equipment, systematic reduction of rates of con-
sumption of raw materials, fuel and other materials,
reduction of non-productive expenditures, and efforts
to increase productivity of labour.
Large reserves are obtained in the course of ful-
filling the plan by improving production techniques.
Planning makes it possible to utilize the creative
initiative of Soviet scientists in combination with the
daring innovations of Stakhanovites, and widely to ap-
ply the achievements of the leading industries and
plants in solving economic problems.
In the course of carrying out the plan it is neces-
sary to ensure the strict coordination of the work of
all branches and sections of production and the opera.
tion of plants strictly to schedule, without spurts and
last-minute drives.
Working strictly to schedule acquired special im-
portance during the war owing to the development of
mass line production, and to the necessity of providing
uninterrupted supplies for the front. In the case of
many industries and enterprises, the Government used
to approve ten-day and even daily output schedules.
In the postwar period, the reconversion of indus-
try to civilian production upset the even pace of-pro-
duction in a considerable number of industries.
To eliminate the unevenness and last-minute drive
methods that obtain in a number of industries it is
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necessary to improve intraplant planning, to accumu-
late the necessary stocks of raw and other materials,
to produce the necessary preparatory stock of parts
and sets in the shops, to arrange for supplying the
enterprises with the equipment they need in proper
time and in complete sets and to organize precise
cooperation in production.
Successful fulfilment of the national-economic plan
calls for steady output from quarter to quarter, and
the prevention of the winter seasonal drop in output,
which applies particularly to the iron and steel and
coal industries, electric power stations and the rail-
ways. This requires the timely accumulation of winter
stocks of raw and other materials and the overhauling
of equipment.
One of the cardinal functions of verification of ful-
filment of the national-economic plan is to ensure strict
discipline at the plants in carrying out the assign-
ments of the state plan. It is necessary ruthlessly to
expose such anti-state practices as deliberately draft-
ing output plans for enterprises below their capacity,
setting crop targets below capacity, and fulfilling
plans quantitatively at the expense of quality. Some
business executives are prone to fulfil the plan for
gross output by producing articles that require the
expenditure of less labour, while failing to produce
the planned assortment of articles, or else fail to reach
the target for reduction of cost of production, or turn
out inferior-quality goods.
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It is the function of the planning bodies to expose
such cases in good time and to secure the fulfilment of
the state plan in respect of all its indices. Strict finan-
cial discipline in the course of fulfilling the plan is
of immense importance. It is the function of the Min-
istry of Finance and of the banks strictly to see to it
that financial resources are expended for the purpose
assigned by the plan (for example, on capital construe-
or for accumulating circulating funds).
In this way, verification of the fulfilment of the
state plan prevents the rise of disproportion in the na-
tional economy and ensures that -its branches and en-
terprises develop in conformity with the interests of
the state as a whole.
ECONOMIC LEVERS FOR FULFILMENT OF THE PLAN
The state organizes social production and distri-
bution according to plan and utilizes economic cate-
gories like value, money, price, wages and credit.
The role and significance of these categories in So-
viet economy differ in principle, however, from what
they are under c,apitalism. In the Soviet system of
economy they are used as instruments for planning
the socialist national economy.
For the purpose of consolidating and developing
socialist production the state planning of the national
economy makes use of the law of value, with this dif-
ference, that in Soviet economy the possibility of
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value being converted into capital for the exploitation
of labour is precluded.
The value of commodities in Soviet economy is
established by the planned ascertainment of the social-
ly necessary expenditure of labour power expressed in
money. In the process of carrying out the national-eco-
nomic plan, the strictest account must be kept of the
expenditure of labour power in the socialist enterprises;
this expenditure must be brought down to socially
necessary expenditure and be systematically reduced.
This is achieved in the struggle to carry out the plan
for productivity of labour, rate of consumption of raw
materials, fuel and other materials and utilization of
equipment, and for reducing cost of production. The
systematic reduction of cost of production is a law of
socialist production, a source of socialist accumulation
and of increased consumption by the population.
In 1946, the Government adopted a number of
measures to give the enterprises an added economic in-
centive to reduce cost of production and to increase
accumulation. Among those measures were the follow-
ing: bonuses for the managerial and engineering-tech-
nical staffs of industrial enterprises for reaching the
state targets for cost of production; the establishment
of a "director's fund"1 in plants on account of fulfill-
A special fund at the disposal of the director of a plant
to be used for improving the housing, cultural and welfare
conditions of the workers in the plant (in particular, for grant-
ing indivitlaal Innuses and grants).-----Ed.
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lug and overfulfilling the profits plan and reduction
of cost of production assignment; rules were drawn
up for awarding banners and bonuses to enterprises
that come out winners in all-Union socialist emulation
contests for the best production indices with simulta-
neous fulfilment of the plan for reduction of cost of
production.
Money in its various functions plays a big role
in the planned reproduction of the national econ-
omy.
As a measure of value, money makes it possible
to plan and calculate the value of commodities, to re-
duce to a common denominator qualitatively different
expenditures of labour, and to determine the results
of the work of industries, plants and individual work-
ers. As a means of circulation and of payment, money
serves the turnover of state and cooperative trade and
the economic ties between enteiprises. By means of
money, in the indicated functions, wages and the money
payments for the labour of collective farmers is
planned out. As an instrument of accumulation, money
mobilizes the accumulations of socialist economy and
the resources of the population for distribution in con-
formity with the tasks of the national-economic plan.
Through the medium of money, plan fulfilment by the
ministries and enterprises is subjected to the "control
by the ruble."
Money circulation is planned ?by the State Bank
on the basis of the cash plan, which covers all sources
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of state revenue and the entire outflow of funds from
the State Bank.
Furthermore, acceleration of money circulation
and the consolidation of the Soviet ruble play an ac-
tive part in expanding socialist production and in en-
suring proper proportion between the various branches
of industry.
One of the chief economic levers for socialist plan-
ning is the system of prices---factory prices, state pur-
chasing prices, retail prices and also railway rates.
Factory prices are planned by ascertaining the nec-
essary ratio in a given branch of industry between
the cost of production_ and the accumulations at the
plants, part of which is allotted to the plants. Operat-
ing on the principle of national-economic profitable-
ness, the Soviet State, for a time, kept factory prices
in certain industries at a level below cost of produc-
tion and compensated for production expenditures in
these branches of industry by means of state subsidies.
For instance, during the initial period of indus-
trialization, when the cost of production level in heavy
industry was still excessively high, low prices were
set for coal, metal and machines with the object of
spreading the use of machinery in the national econo-
my. The systematic reduction of cost of production in
heavy industry made it possible, by the end of the
Second Five-Year Plan period, to revise factory
prices in order to ensure that the respective branches
of industry could work on a profitable basis,
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Under war economy, the factory prices of products
of the war industry were reduced considerably; this
was of great importance in financing war expendi-
tures. In the new five-year plan period, industry must
be put on a profitable basis by means of a systematic
reduction in cost of production. In view of this, fac-
tory prices in a number of branches of industry will
have to be revised.
The planning of state purchasing prices of agri-
cultural produce plays, an important part in the de-
velopment of certain branthes of industry. An exam-
ple of this are the special bonuses for extra deliveries
of cotton introduced in 1935, which had great effect
in stimulating the development of cotton growing.
In the sphere of trade, the state made use of retail
commercial prices for ensuring an increase in con-
sumption by the population and for maintaining nor-
mal money circulation.
During the war the necessary level of consumption
by the population was ensured by the centralized dis-
tribution of the more important goods at fixed state
prices. The introduction of commercial trade made it
possible to employ retail commercial prices for regu-
lating prices on the kolkhoz market. After systemati-
cally reducing commercial prices, the Government
raised the prices of rationed goods, which were exces-
sively low, and this made it possible at the' end of
1947 to pass to expanded Soviet trade on the basis of
single state retail prices.
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Transport rates arc widely used by the state for
the proper distribution of productive forces and for the
elimination of excessively long hauls and uneconomic
shipments.
One of the decisive levers for fulfilling the plan
is the regulation of wages to prevent equalization in
wages and to promote the progress of the more impor-
tant branches and sections of the national economy.
In the period of the Second Five-Year Plan, in order
to accelerate the growth of the coal industry and the
progress of other brancheslif the national economy, it
was found necessary to transfer engineers and techni-
cians from the offices to the place of production. This
was accomplished, in particular, by revising rates of
pay in such a way as to create an incentive to work
directly in the pit, the shop, or construction site at
the point of production.
During the war wages were raised in a number of
industries in order to ensure fulfilment of war-econo-
my tasks and to increase productivity of labour. This
was done, primarily, in the armaments, the metallur-
gical and the coal industries.
In addition, the payment of bonuses for fulfilment
and overfulfilment of productivity- of labour assign-
ments was extended. During the rationing period,
higher monetary remuneration in proportion to in-
creased productivity of labour was accompanied by
supplementary supplies of food and manufactured
goods for workers who exceeded the regular output
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rates. In a- number of industries the payment of bonuses
-for economizing fuel, metal and deficient raw and
other materials was extended.
In the postwar period the role and importance of
money payment for labour in the organization of .pro-
duction and .distribu Lion are growing considerably.
To-,attract workers into the key industries and to
form a stable skilled personnel, the five-year, plan-law
provides for higher rates of pay for workers, engineers
and technicians in branches of heavy industry (coal,
metallurgical and oil industries).
Furthermore, the five-year plan provides for an
improvement in the progressive piece-rate system and
also for bonuses to be paid to engineers and techni-
cians?on Fulfilling and overfulfilling -production plans.
The share of bonuses for fulfilling and overfulfilling
production assignments in the earnings of workers and
office employees has increased. This enhances the role
of wages in stimulating- growth of production and ful-
filment and overfulfilment of plans.
A most important lever for increasing productivi-
ty of labour in industrial enterprises are up-to-date
technical-economic standards and output rates. The
average progressive scales for utilizing equipment,
raw material, -fuel and other materials that were fixed
by the plan -for 1947 have been an important means
for rapidly spreading advanced -Stakhanovite Methods
of work and for stimulating the growth of productivi-
ty of labour in the current five-year plan period. The
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steady growth of the mechanization of labour and tile
improvement in its organization calls for a systematic
revision of output rates. For instance, with the devel-
opment of the Stakhanov movement, which revealed
the possibilities of a rapid increase in productivity of
labour, the existing rates of output were raised to some
extent; the progressive piecework rates of pay, how-
ever, were left unchanged and the pay roll increased
because of the increase in productivity of labour.
During the war, the development of mass produc-
tion and the improvements achieved in technology
called for a revision of output rates in the armament
and machine-builaing industries. The postwar recon-
version of industry made it necessary to revise the
output rates again. For many kinds of civilian goods
temporary, so-called experimental-statistical output
rates had been introduced, which made no allowance
for the introduction of new machinery and improved
technological processes. In some branches of the ma-
chine-building industry these output rates were ex-
ceeded on the average by fifty per cent and more.
Consequently, in 1947, the old, low output rates
in machine building, repair plants, auxiliary enter-
prises and subsidiary shops were raised 20% to 25%.
An active part in working out the new output rates
was taken by the trade unions, Stakhanovites, engineers
and technicians who in their respective plants helped
to draw up organizational and technical measures to
enable all the workers to work at the new output rates.
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As distinct from state enterprises, the measure of
labour and distribution of income in the collective
farms is the workday unit. With the view to strengthen-
ing the kolkhozes organizationally and economically
and to developing agriculture as a whole, the Soviet
State is taking the necessary measures to consolidate
and enhance the role of the workday unit in the organ-
ization of production and the distribution of kolkhoz
income.
As was pointed out in the resolution of the Feb-
ruary (1947) Plenum of the Central Committee of
the C.P.S.U.(B.), a serious obstacle to the further in-
crease in productivity of labour and in crop and live-
stock yields has been the principle of equalization
obtaining in collective farms as regards payment for
work done, in the distribution of workday units and
kolkhoz income among the kolkhozniks; the piece-
work system for individuals and teams doing field or
other work has not been sufficiently employed, the
output rates have been too low and this has led to a
waste of workdays. To eliminate these defects, it has
been deemed necessary in the near future to revise the
output rates and the evaluation of work in workday
units in such a way as to ensure higher remuneration
for more important work-and lower remuneration for
less important work.
For the purpose of effecting a more economical
and proper expenditure of workday units, the Plenum
of the Central Committee of the C.P.S.U.(B.) recom-
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. .
mended that the collective farms, at the beginning of
the year, plan the number of workday units required
for the various branches and various crops, and to
establish strict control to ensure that workday units
are credited in conformity with work actually done
and with the planned expenditure of workday units
by the given brigade and team.
Special emphasis must be laid on the role of cred-
it in planning the national economy. Soviet credit,
wielded by the State Bank, makes it possible to redis-
tribute the spare funds of economic organizations for
the purpose of meeting the temporary (seasonal; etc.)
financial needs of socialist economy. In this connec-
tion, the state employs credit as a means of exercising
daily control over fulfilment of the plans by the min-
istries and enterprises.
In the process of drafting and carrying out the
credit plan, a close check is kept on the quantities
actually required of seasonal stocks of raw ma-
terials, fuel, other materials and supplementary
investments in uncompleted production actually re-
quired.
Credit influences the fulfilment of the production
plan. To be able to repay a bank credit at maturity,
the enterprise must expend the funds for the purposes
provided for by the plan and keep to the planned
turnover schedule.
One of the most important levers for planned guid-
ance is cost accounting.
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The system of management and planning of enter-
prises based on cost accounting establishes -a depend-
ence between the results of the work of an enter-
prise and its money income. An enterprise is allotted
fixed and circulating funds and is an independent eco-
nomic 'unit with power to dispose of the financial re-
sources assigned to it. The resources expended by en-
terprises are compensated for only in accordance with
the socially necessary labour expended. Cost account-
ing presupposes fulfilment of the state plan by each
branch of industry and enterprise on the basis of the
established standards of consumption of raw and other
materials and of the planned increase in productivity
of labour. Overexpenditure of resources and non-fulfil-
ment of assignments for increase in productivity of
labour by a given branch of industry, or enterprise,
upset the proportion in the distribution of means of
production and labour power and jeopardize the ful-
filment of the national-economic plan as a whole. Cost
accounting demands subordination of the work of the
enterprises to the interests of the state as a whole.
An extremely important gauge for estimating wheth-
er an enterprise spends state funds properly or not
is cost of production. Planned cost of production di-
rects the efforts of the enterprise to the task of fulfill-
ing the qualitative indices and to seek reserves in so-
cialist production.
'Cost accounting gives the industries and enter-
-prises a greater incentive to fulfil and overfulfil the
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quantitative and qualitative indices of the plan. An en-
terprise that operates on the basis of cosi accounting
and possesses operative independence within the frame-
work of the plan, has an interest in fulfilling the vol-
tune of output and the qualitative indices of its plan,
because fulfilment of the plan not only improves its
financial position, but also increases the prosperity
of its workers. ?
To strengthen cost accounting in the plants and to
give them an added incentive to work on a profitable
basis, the Government passed a decision o establish
in industrial enterprises what is known as a director's
fund.
Such a fund can be established and payments of
bonuses can be made from it only when the given en-
terprise has fulfilled the state assignments for output
in full conformity with the plan, ?and primarily with
the assignment for reducing cost of production.
Cost accounting strengthens the connections be-
tween industries in accordance with the planned distri-
bution of social labour. The material connections be-
tween separate state enterprises are expressed in a sys-
tem of contracts which ensure mutual control through
the medium of the ruble.
The economic contracts entered into between cen-
tral administrations (general contrtiets) and between
enterprises (direct contracts) concretize the plan and
are a means for checking up on its fulfilment. The
contracts specify the quantity. the assortment and
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grade of products contracted for, -dates of delivery, the
manner of settling accounts and the liabilities of the
suppliers and consumers for failure to comply. with
the terms of the contracts (penalties, forfeits, fines).
As Comrade Molotov has pointed out: "The system of
contractual relations. is the best means for combining
the economic -plan with the principles of cost account-
ing."'
Finally, cost accounting enables the financial
bodies to control fulfilment of the state plan by enter-
prises. Control by means of the ruble is exercised by
supplying fixed and circulating 'funds and also by fur-
nishing credit to economic organizations.
Cost accounting stimulates the initiative of enter-
prises in discovering new production reserves and in
exercising economy, helps to increase their financial
accumulations, and is one of the decisive factors en-
suring success in socialist planning.
In connection with the enormous scale of socialist
accumulation, the strengthening of cost accounting ac-
quires special importance in the new five-year plan
period. As A. A. Zlidanov said: "We must strengthen
and develop socialist methods of management, the
exercise of economy and cost accounting, resolutely
eliminate mismanagement, over-staffing and high cost
of production, and mobilize our internal resources, all
V". M. Molotov, The Struggle for Socialism, Russ. A,
1935, p. 258.
131' 195
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sources of accumulation, for the purpose of rehabili-
tating and developing our national economy."
By stimulating the initiative and independent action
of the enterprises in fulfilling the plan, cost account-
ing facilitates the struggle to fulfil the plan. Planning
without real cost accounting leads to red t.tpe and bu-
reaucratic methods of directing enterprises. Further-
more, improper cost accounting leads to anti-state
practices by enterprises. "Sometimes cost accounting
is reduced to formal routine and referencca are made
to plans and contracts between economic organizations
which are actually slipping into bureaucratic methods.
On the other hand, cost accounting is sometimes un-
derstood too 'freely.' Indeed, are there not cases of
heads of trusts, cooperative organizations, factories or
state farms who sell their products 'to the best advan-
tage' and in doing so upset established prices and,
failing to carry out their obligations to the state, ac-
tually slip on to the sordid path of profiteering? And
yet the plan, contracts, and cost accounting are all ele-
ments of a single Bolshevik economic polif.y, the ap-
plication of which, of course, demands a Bolshevik
attitude towards oneself "2
I A. A. Zhdattov, The Twentv-Ninth Anniversary of ? the
Great October Socialist Revolution, Russ. ed., 1946, p. 11.
2 IT. M. Molotov, The Struggle for Socialism. Russ. ed.,
1935, p.380.
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THE MASSES OF THE WORKING PEOPLE IN
THE STRUGGLE TO FULFIL TIIE PLAN
A fundamental feature of socialist planning is the
widest utilization in planning the national economy
of the initiative and labour enthusiasm of the vast
masses of the working people--the direct participants
in the struggle to fulfil the plan.
Socialist emulation is one of the greatest advan-
tages Soviet society possesses over capitalism, one of
the most decisive indices of its superiority to that sys-
tem. The epoch-making change from slaving fbr the ex-
ploiters to free labour, to working for oneself, for
one's own Soviet State, brought into being a new
mighty force for the economic and cultural develop-
ment of .the country?socialist emulation of the broad
masses of the working people. Socialist emulation is a
great force that accelerates the onward march of Soviet
society and helps to overcome the difficulties encoun-
tered in the accomplishment of the tasks of socialist
construction. Lenin and Stalin revealed the inexhaus-
tible forces inherent in free socialist labour and
scientifically explained the importance of socialist
emulation -as an effective method -of mobilizing the ac-
tivities of the vast masses of the working people for
achieving the tasks connected with the building of
Communism.
Socialist emulation is most directly and closely
connected with the work of planning the national econ-
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omy of the U.S.S.R., it is its most important vital
nerve. The national-economic state plans promote
the progress of Soviet economy and determine
the concrete aims and tasks of socialist emula-
tion.
At the same time, the stimulation of mass initia-
tive at work by developing socialist emulation is a most
important condition for the successful fulfilment of the
plan. Socialist emulation in the course of fulfilling
the plan makes it possible to utilize new reserves and
potentialities for increasing production and thus en-
sures overfulfilment of plans.
In dealing with the single economic plan, the Ninth
Congress of the Russian Communist Party (Bolsheviks)
stated in its resolution: "The indicated plan can be
carried out not by a single, simultaneous heroic effort
of the advanced elements of the working class, but by
persevering, systematic, planned labour in which ever-
increasing masses of the working people will take
part."1
The GOELRO plan and the economic plans that
followed it have been mighty instruments for mobiliz-
ing the masses of the working people to carry out the
tasks of building Socialism.
The First Five-Year Plan period was a period of
development of socialist emulation in the struggle to
Resolutions and Decisions of Congresses and Conferences
of the C.P.S.U.(B.) and of Plenary Sessions of Its Central
Committee, Part I, Russ. ed., p. 330.
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fulfiil the plan. The Sixteenth All-Union Conference of
the C.P.S.U.(II.), which adopted the First Five-Year
Plan, issued an appeal to all the working people to
organize socialist emulation throiighout the country.
The appeal said: "To overcome the difficulties connect-
ed with socialist construction, to develop further the
attack on the capitalist elements in town and country,
to fulfil the five-year plan, organize emulation in all
spheres of construction, organize emulation between
mills, factories, pits, railways, state farms, collective
farms and Soviet institutions."1
With the growth and consolidation of socialist re-
lationships in the U.S.S.R. and with the develop-
ment of planning, the masses of the working people
kept on finding new forms in which to display their
labour initiative and daring enterprise in their
work.
In the course of socialist emulation the slogan of
"The Five-Year Plan in Four Years" originatkd, and,
in the struggle to fulfil the plan, there emerged such
forms of the creative initiative of the working class as
counter-proposals to the industrial-financial plan
and counter-planning for the shift.
Noting the decisive successes achieved in fulfill-
ing the First Five-Year Plan in four years, Comrade
Stalin pointed to the main forces that ensured us this
historic victory.
Ibid., Part II, p. 357.
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"They are, first and foremost, the activity and self-
devotion, the enthusiasm and initiative of the millions
of workers and collective farmers, who, together with
the engineering and technical forces, displayed colos-
sal energy in developing socialist emulation and shock
work. There can be no doubt that without this we could
not have achieved our goal, we could not have ad-
vanced a single step.
"Secondly, the firm leadership of the Party and of
the Government, which urged the masses forward and
overcame all the obstacles that stood in the path to
the goal.
"And, lastly, the special merits and advantages of
the Soviet system of economy, which bears within
itself the colossal potentialities necessary for over-
coming any and all difficulties.
"Such are the three main forces that determined
the historic victory of the U.S.S.R."
In the course of fulfilling the Second Five-Year
Plan there arose a new and higher form of socialist
emulation, viz., the Stakhanov movement, "... the most
vital and irresistible movement of the present day."
( S talin)
The Stakhanov movement caused the old technical
standards and production plans to be discarded and
created new opportunities for increasing production.
I J. V. Stalin, Problems of Leninism, Moscow 1947,
pp. 425-26.
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During the Great Patriotic War the self-sacrific-
ing labour of the working class, the kolkhoz peasantry
and the Soviet intelligentsia was a mighty force that
ensured the successful execution of the war economy
plans and the growth and consolidation of the coun.
try's war economy.
The wartime Stakhanovites became the continuators
of the technical revolution that was begun by the
pioneers of the Stakhanov movement. The foremost
Stakhanovites?Bosy, Yankin, Semivol os, Lunin,
Valeyev, Zavertailo, Agarkov and the others,
radically improved production methods, and revealed
new potentialities for increasing the productivity of
labour.
Socialist emulation was a powerful means for
mobilizing the broad masses of the workers, engineers
and technicians in the struggle to carry out the plan,
to utilize all the reserves of the national economy for
the purpose of increasing the aid given to the front
and of accelerating the economic recovery of the dis-
tricts freed from German occupation. Characteristic
was the range of creative initiative of the workers,
technicians and engineers in increasing productivity
of labour and economizing material resources. One
of the forms in which this initiative of the masses
z was displayed in making better use of production and
labour potentialities during the war was the public
inspections of the organization of work that were con-
ducted at many plants. For instance, the public in-
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spection which took place at the Ural Heavy Machinery
Works was carried out with the aid of thousands of
workers, foremen, engineers, technicians and office
workers, who suggested an enormous number of effi-
ciency and innovation proposals. At eight plants of
the tank industry alone where public inspections were
conducted, some 15,000 proposals were made for im-
proving the organization of work and for perfecting
technological processes.
Forms of collective Staldianovite work such as the
mass organization of front brigades in industrial
enterprises and the big-crop teams movement in agri-
culture assumed wide dimensions during the war. By
the middle of 1944 there were 115,000 front brigades
in industry, uniting 800,000 young workers who strove
to increase production with fewer workers. The method
introduced by Yegor Agarkov, a brigade leader in a
tank factory, who showed that by enlarging brigades
and production sections it is possible to release a
considerable number of skilled workers, and at the
same time to increase productivity of labour, was wide-
ly employed in industry.
Socialist emulation on the collective farms ac-
quired vast importance during the Great Patriotic
War, in the struggle to fulfil and overfulfil the
plans.
The adoption by the Supreme Soviet of the
U.S.S.R. of the Five-Year Plan for the Restoration and
Development of the National Economy evoked new
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labour enthusiasm among the Soviet people. As was
the case in the period of the execution of the historic
tasks of the Stalin five-year plans and in the execution '
of the economic plans during the war, the Soviet
people again turned to socialist emulation, the tried
method of successful plan fulfilment.
Socialist emulation in fulfilling the plan for the
second year of the current five-year plan ahead of
time, undertaken in honour of the thirtieth anni-
versary of the Great October Socialist Revolution,
assumed exceptionally wide dimensions. The personnel
of the leading Leningrad enterprises, after weighing
the possibilities and counting up their reserves, issued
an appeal to all the workers, engineers, technicians,
foremen and office workers in industry all over
the Soviet Union in which they took the following
pledge:
"To mark the thirtieth anniversary of the Great
October Revolution by fulfilling the plan for the
second year of the postwar five-year plan ahead of
time, i. e., by November 7, 1947.
"In carrying out this pledge, the personnel of each
of our plants has discussed and adopted concrete
measures to ensure the execution of assignments in
full, a further increase in productivity, of labour and
? reduction in cost of production, an improvement in
the quality of their products, improvement in techno-
logical processes, and the introduction of the latest
and most efficient production methods."
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In response to the Leningraders' appeal, the coal
miners, oil workers, metallurgical and machine-building
workers, chemical workers and those of other indus-
tries, all joined the emulation contest. On the initiative
of the collective farmers in the Altai Territory a
socialist emulation contest arose among the workers
in socialist agriculture. The collective farmers and all
others engaged in agriculture in the Ukraine, Byelo-
russia, Georgia, Kuban, Siberia, the Volga area, Mos-
cow Region, and other republics and regions of the
Soviet Union, wrote letters to Comrade Stalin in
which they pledged themselves to attain in 1947 a
rich harvest and an advance in socialized livestock
breeding, and to fulfil their obligations to the state in
full and on time. The builders at the Zaporozhye Steel
Works initiated an emulation movement among build-
ing workers, and socialist emulation developed ex-
tensively in the transport industry. Of equally nation-
wide dimensions was the range of socialist emulation
in 1948, conducted under the slogan?"Fulfil the plan
of the third year of the Stalin five-year plan ahead of
time."
Characteristic of the present stage of socialist emu-
lation is the profound, differentiated approach to the
potentialities and reserves of the various industrial
enterprises, collective and state farms and machine and
tractor stations, which makes possible the extensive
employment of the methods practised by the best
enterprises and helps to pull the lagging plants up to
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the level of the advanced ones. This was reflected in
the -concrete pledges taken by varioue industries and
plants and by leading collective farms in letters they
sent to Comrade Stalin.
Beside the names of Stakhanovites already known
throughout the country:, the coal miner Gerasim Zapo-
rozhets, the textile worker Maria Volkova and the shoe
operator Vasily Matrosov, socialist emulation constant-
ly brings out the names of new Stakhanovites of the
current five-year plan period. Among these are:
Nikolai Reshetnyak, a Donets Basin coal-cutting
machine operator, who attained high productivity for
such a machine; Ivan Kutsakovsky, a Krivoi Rog
driller, initiator of a new method for tunneling; Ivan
Pronichkin, brigade leader of the North Urals bauxite
mines, one of the initiators of accelerated tunneling
methods; Ivan Rumyantsev, an installation worker,
initiator of rapid methods in installation operations
at the Zaporozhye Construction Job, and many others.
Socialist emulation in the countryside constantly
brings to the front new leaders in the struggle for
rich harvests and an advance in socialized livestock
breeding.
A powerful stimulus for mass emulation on the
collective farms is the system of conferring the title
of Hero of Socialist Labour, and awarding orders and
medals of the U.S.S.R. established by the Government
for collective farmers and for workers of machine and
tractor stations and state farms who attain high yields,
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The participants in socialist emulation consider
the state plan as a minimum target and endeavour to
exceed it. The socialist pledges of every enterprise
are backed by a carefully prepared system of organiza-
tional and technical measures covering the introduc-
tion of new machinery, mechanization, improvement
of technological processes, application of the line pro-
duction method and measures for economizing raw and
other materials and fuel, and for raising the produc-
tion and technical qualification of the workers. The
organizational and technical measures for carrying out
the pledges are worked out with the wide cooperation
of the engineers and technicians, foremen and Stakha-
novite workers.
Especially typical of the initiative of workers and
leading engineers in rapidly popularizing up-to-date
production methods are the plans for introducing
Stakhanovite work methods that are drawn up in
many plants on the proposal of Vasily Matrosov, a
worker at the Paris Commune shoe factory. Stakhanov-
ites, foremen and engineers are invited to help draw
up such plans, and their suggestions constitute the
basis for the plans.
More than 4,000 workers, engineers and techni-
cians took part in working out such plans in the light
and textile industry plants in the city of Moscow alone.
In a brief period over 20,000 efficiency proposals were
collected.
The success of socialist emulation is to a large
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extent decided by the wide cooperation of the manage-
'Hal personnel in production. It is the cooperation of
the Stakhanovites and engineers that primarily ensures
the rapid dissemination of the achievements of the
Stakhanovites. Nikolai Reshetnyak, the Donets Basin
coal-cutting machine operator, who managed to more
than quadruple the output standard, is much indebted
for his success to his section chief, Bridko, who was
able to organize the work cycle at the coal face. The
accelerated tunneling methods employed at the North
Urals bauxite mines were popularized with the active
cooperation of the engineers and technicians and also
the mine managers. A more than twofold increase in
productivity of labour in machining a certain tractor
part at the Kirov Works in the Urals was the result
of the initiative of Alexander Ivanov, a technologist
of that plant, who worked out and applied new machin-
ing methods.
The movement of the technologists who apply the
Ivanov methods has assumed wide dimensions in indus-
trial plants and has made it poSsible to utilize con-
siderable production reserves for overfulfilling the
plan. Initiated by Nikolai Rossiisky, a senior foreman
at the Moscow Calibre Works, a movement spread
among foremen in the industrial enterprizes throughout
the country to organize collective Stakhanovite work
in their respective sections. In 1948 a new patriotic
mass movement arose, a movement .to mobilize
internal reserves, to put plants on a profitable basis
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and to secure accumulations over and above the
amount laid down in the plan. This movement testifies
to the growth of Communist consciousness among the
workers, peasants and intellectuals of our country.
The struggle waged by the entire people to fulfil
the Stalin postwar five-year plan has yielded splendid
fruit. Vivid proof of this are the reports published
every year by the Central Statistical Board of the
Council of Ministers of the U.S.S.R. which sum up
fulfilment of the Five-Year Plan for the Restoration
and Development of the National Economy of the
Soviet Union.
The results achieved during the past three years
of the Stalin postwar five-year plan period testify
to the powerful forces that are inherent in the socialist
organization of the national economy, to the further
prospering of our country and to the inexhaustible
potentialities of the Soviet social and state system,
of the planned direction of the national economy and
the free socialist labour of the Soviet people. During
the first three years of the postwar five-year plan
period (1946-48), industrial output in the U.S.S.R.
steadily increased from year to year, agriculture and
transport developed, and trade increased. Moreover,
the rate of increase in production rose constantly.
In 1946 industrial output showed an increase of 20%,
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in 1947 22%, and in 1948 27%. An extremely impor-
tant factor in the postwar development of socialist
economy is the steady increase in production and the
accelerated rate of development of the major branches
of industry?the iron and steel and coal industries,
electric power stations, and the machine-building
industry?which are the basis for the advancement of
all other branches of the national economy.
The annual national-economic plans are being suc-
cessfully fulfilled and overfulfilled. The industrial
output plan for 1947 wag fulfilled 103.5%, which
made up for the underfulfilment of the plan in 1946;
as a result, the plan for the two years was fulfilled
100%. The 1948 results were even better: industrial
output that year, the third and decisive year of the
five-year' plan period, was fulfilled 106%. Thus, the
plan for the first three years of the five-year period
has been fulfilled 103% . These achievements in the
fulfilment of the plans of the first three years are a
guarantee that the Soviet Union will fulfil the five-year
plan as a whole ahead of time.
The Bolshevik Party and the Soviet Government
have been and are now devoting an enormous amount
of attention to the restoration of the economy of the
regions that were occupied by the Germans and are
rendering these regions extensive aid. In 1948 capital
? construction in these regions amounted to 20,000
million rubles. This ensured a rapid rate of restoration
of industry in these devastated regions. Thus, in 1946,
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industrial output in these regions showed an increase
of 28%, in 1947 33%, and in 1948 41 %. Moreover,
the output of pig iron increased by 41 ?A, steel by
66%, rolled metal by 65%, cement by 49% and sugar
by 75%. These facts go to show that the regions of
the U.S.S.R. which suffered from German occupation
are fully attaining their former industrial capacity
and are making an ever-increasing contribution to the
achievements of the national economy . of the Soviet
Union as a whole.
Thanks to the rapid growth of industrial produc-
tion, prewar industrial output was already reached by
the end of 1947. In 1948 industrial output exceeded
the 1940 level by 18 % . Thus, notwithstanding the enor-
mous damage inflicted upon our country by the war,
the Soviet people have been able within the three
postwar years not only to reach the prewar industrial
output level, but even to surpass it.
The years of the postwar five-year plan period
arc characterized by a high rate of reproduction of
fixed funds and of skilled labour. In 1946, the volume
of capital construction in the national economy showed
an increase of 17% compared with the preceding year,
that of 1947 10%, and that of 1948 23%. During
the first three years of the present five-year plan period
some 4,000 state industrial enterprises were built or
restored and put into operation, equipped with the
most up-to-date machinery. During the postwar period
the handling of new types of highly-productive machin-
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cry, mechanisms, apparatus and measuring instruments
has been mastered and advanced technological and
production processes have been introduced in the
national economy.
One of the very important tasks accomplished by
the Soviet State in the postwar period is the training
of skilled workers on a very large scale. During the
first three years of the five-year plan period the
trade, railway and industrial training schools trained
more than two million young workers. In addition,
seven million workers received individual or team
training, or training in special courses, and ten million
workers improved their qualifications in the same
manner. Like the old, experienced workers, the new
workers, trained in the postwar years, show high
skill in the handling of machinery and also high pro-
ductivity of labour. The rise and development of new
forms of Stakhanovite labour, the utilization and wide
dissemination of the methods employed by the leaders
in socialist emulation and the innovators of new
methods, have ensured a steady growth of productivity
of labour. In 1947, productivity of labour in industry
increased 1g % compared with the preceding year and
in 1948 it increased 15% and surpassed the 1940 level.
Agriculture in the U.S.S.R. is also advancing at
a tremendous rate. After overcoming enormous diffi-
culties?the consequences of the war and the unprece-
dented drought of 1946?the Soviet peasantry is
successfully carrying out the decisions on the postwar
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promotion of agriculture aclopted at the February
(1947) plenary session of the Central Committee of
the C.P.S.U.(B.). In 1947 the total grain crop exceed-
ed the 1946 crop by 58%, and in 1948, notwithstand-
ing the drought in most of the Volga districts, the
total grain crop of the U.S.S.R. as a whole amounted
to over 7,000 million poods, and was only slightly
below that of the prewar year of 1940. The average
yield per hectare was above prewar. In 1948, the crop
area was 13.8 million hectares larger than in 1947.
The state plan for the sowing of winter crops for
1949 was overfulfilled, and the area of such crops
sown in 1948 was about 3 million hectares larger than
in 1947. Autumn fallow land ploughed in 1948 for
1949 crops was 17 million hectares above the 1947
figure. Considerable success was achieved in developing
and increasing the productivity of livestock breeding.
Much attention was paid to the technical equipment
of socialist agriculture. It is a noteworthy fact that
in 1948, agriculture received from the state three times
as many tractors and twice as many trucks and agri-
cultural machines as in the prewar year of 1940. This
fact indicates the mighty growth attained in the Soviet
Union by the machine-building industry, which has
already far surpassed the prewar level.
One of the most important factors in the advance-
ment of socialist agriculture is the introduction in
agricultural production of the achievements of Soviet
agrobiological science based on the accomplishments
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of the great scientists of our country: I. V. Michurin,
V. V. Dokuehayev, P. A. Kostychev and V. R. Williams.
The decision adopied in 1948, on the initiative of
Comrade Stalin, by the Council of Ministers of the
U.S.S.R. and the Central Committee of the C.P.S.U.(B.)
on the "Plan for the Establishment of Shelter Belts,
?the Introduction of Travopolye Crop Rotation and
the Building of Ponds and Reservoirs for Ensuring
High and Stable Crops in the Steppe and Forest-
Steppe Districts in the European Part of the U.S.S.R."
is destined to play an exceptional role in further
advancing agriculture in the U.S.S.R. This decision,
which is distinguished for the grandeur of the tasks
it sets, is called by the people the Stalin plan for
transforming nature. The face of a vast territory equal
to the combined area of many European states is to
be transformed in an exceedingly short historical
period, from two to three decades. In this territory
are situated about 80,000 collective farms having a
total of 120,000,000 hectares of land on perpetual
lease. The plan adopted provides for the introduction
on a wide scale, beginning with 1949, of a series of
agronomic measures for advancing agriculture, the
most important elements of which are the travopolye
crop rotation system and the planting of shelter belts.
The extensive campaign against drought and for high
and stable crop yields has already begun; the plan of
great undertakings is already being put into operation,
thus opening prospects of an unprecedented advance
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of agriculture and an abundance of articles of con-
sumption that is possible only in a socialist land,
which is effecting the gradual transition to Communism.
The successes achieved in developing socialist .pro-
duction and the steady advance of all branches of the
national economy have been the firm foundation for
the uninterrupted rise in the material well-being of
the working people of the U.S.S.R. In capitalist
countries, on the contrary, the monopolists are, in the
postwar period, waging a fierce offensive against the
standard of living of the workers and office employees;
inflation is increasing, wages are declining and
unemployment is growing. In the United States, for
instance, there are, according to official figures, about
2,000,000 totally unemployed, which is an underestima-
tion by at least two-thirds; the number of partially
unemployed is about 10,000,000. In contrast to capital-
ist countries, the number of employed workers and
office employees in the U.S.S.R. has been steadily
growing in the postwar period, the increase for the
first three years of the present five-year plan period
amounting to 6,200,000; in 1948 the number employed
exceeded the 1940 figure by 10%. The improvement
in the well-being of the working people of the U.S.S.R.
is vividly reflected in the growth of real wages. In
1947 the wages and salaries fund showed an increase
of 23%. The abolition of rationing and the currency
reform carried out at the end of 1947, together with
tho reduction in state retail prices for both food and
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manufactured goods doubled the purchasing power of
the ruble. As a result of the reduction in state retail
prices and the lowering of prices in the kolkhoz mar-
kets and cooperative stores that followed, the popula-
tion profited to the extent of 86,000 million rubles
in 1948. Thanks to the further- price reductions an-
nounced on March 1, 1949, the population will gain
an additional 71,000 million rubles in 1949.
Housing construction is proceeding on an exten-
sive scale in the country. During the first three post-
war years about 51,000,000 square metres of living
space were built or restored in cities and industrial
townships, and more than 1,600,000 houses were built
or restored in rural areas.
The year 1948 is distinguished for further progress
in cultural development in the U.S.S.R., for an
immense advance in science, art and literature, for the
rise in the cultural standard of the working people. In
1948 the number of pupils attending primary and sec-
ondary schools increased by over 2,000,000, and the
number of students in institutions of higher learning
reached 734,000, which was 26% more than in 1940.
Not a single capitalist country can show such achieve-
ments.
The successful fulfilment of the postwar Stalin five-
year plan signifies a further increase in the productive
forces of Socialism, the rise in the material and
cultural level of die Soviet people, and the further
strengthening of the camp of Socialism and democracy.
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The new feats of construction performed by the Soviet
people strengthen the forces of Socialism and of
democracy and fill the hearts of the working people
throughout the world with courage and confidence.
The progress made in fulfilling the present five-
year plan is further evidence of the supreme advan-
tages of socialist planned economy that was born of
the Great October Socialist Revolution; it is a striking
index of the great organizing power of the Party of
Lenin and Stalin and of the inexhaustible creative
power of the Soviet people.
The Soviet Union, which bore the main burden of
the Second World War, is strongly imbued with the
desire to work peacefully to carry out the Stalin plans
of great undertakings?plans for increasing the eco-
nomic might and still further raising the level of the
culture of the Land of Socialism. It is precisely for this
reason that the Soviet Union is tirelessly exposing the
instigators of another war and has come forward as
the herald of the struggle for a firm and lasting peace,
for the freedom and independence of nations, of the
working people the world over, of all advanced and
progressive mankind.
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CONSTITUTION
(FUNDAMENTAL LAW)
of the
KAZAKH
SOVIET SOCIALIST
REPUBLIC
!fttlfAlt I
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CONSTITUTION
(FUNDAMENTAL LAW)
OF THE
KAZAKH SOVIET
SOCIALIST REPUBLIC
? As amended by the Supreme Soviet
of the Kazakh S.S.R., on March 13. 1948,
on the recommendations of the
Drafting Commission
FOREIGN LANGUAGES PUBLISHING HOUSE
Moscow 1948
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CONTENTS
Page
Chapter I
THE SOCIAL STRUCTURE 7
Chapter II
THE STATE STRUCTURE 12
Chapter III
THE HIGHER ORGANS OF STATE
POWER IN THE KAZAKH SOVIET
SOCIALIST REPUBLIC 18
Chapter IV
THE ORGANS OF STATE ADMINIS-
TRATION OF THE KAZAKH SOVIET
SOCIALIST REPUBLIC
Chapter V
THE LOCAL ORGANS OF STATE
POWER
26
34
5
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Chapter VI
THE BUDGET OF THE KAZAKH
SOVIET SOCIALIST REPUBLIC . . 45
Chapter VII
THE COURTS AND THE PROCU-
RATOR'S OFFICE
Chapter VIII
FUNDAMENTAL RIGHTS AND DU-
TIES OF CITIZENS
Chapter IX
THE ELECTORAL SYSTEM
47
59
Chapter X
ARMS, FLAG, CAPITAL 64
Chapter XI
PROCEDURE FOR AMENDING THE
CONSTITUTION
66
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CHAPTER I
THE SOCIAL STRUCTURE
ARTICLE 1
The Kazakh Soviet Socialist Republic is a social-
ist state of workers and peasants.
ARTICLE 2
The political foundation of the Kazakh S.S.R. is
the Soviet's of Working People's Deputies, which
grew and became strong as a result of the overthrow
of the power of the landlords, capitalists and hal,
the conquest of the dictatorship of the proletariat,
the liberation of the Kazakh people from the nation-
al oppression of tsathm, of the Russian imperial-
ist bourgeoisie, and the defeat of the nationalist
counter-revolution.
7
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ARTICLE 3
All power in the Kazakh S.S.R. belongs to the
working people of town, aul and country as rep-
resented by the Soviets of Working People's
Deputies.
ARTICLE 4
The economic foundation of the Kazakh S.S.R. is
the socialist system of economy and the socialist
ownership of the intruments and means of produc-
tion, firmly established as a result of the liquida-
tion of the feudal and capitalist system of economy,
the abolition of private ownership of the instru-
ments and means of production, and the elimination
of the exploitation of man by man.
ARTICLE 5
Socialist property in the Kazakh S.S.R. exists
either in the form of state property (belonging to
the whole people) or in the form of cooperative and
collective-farm property (property of collective
farms, property of cooperative societies)..
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ARTICLE 6
The land, its mineral wealth, waters, forests,
mills, factories, mines, rail, water and air transport,
bank, communications, large state-organized agri-
cultural enterprises (state farms, machine and trac-
tor stations and the like), as well as municipal en-
terprises and the bulk of the dwelling houses in
the cities and industrial localitie, are state property,
that is, belong to the whole people.
ARTICLE 7
The common enterprises of collective farms and
cooperative organizations, with their livestock and
implements, the products of the collective farms and
cooperative organizations, as well as their common
building's, constitute the common, socialist proper-
ty of the collective farms and cooperative organi-
zations.
Every household in a collective farm, in addition
to its basic income from the common, collective-
farm enterprise, has for its personal use a small
plot of household land and, as its personal proper-
ty, a subsidiary husbandry on the plot, a dwelling
9
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house, livestock, poultry and minor agricultural
implements?in accordance with the Rules of the
Agricultural Artel.
ARTICLE 8
The land occupied by collective farms is secured
to them for their use free of charge and for an un-
limited time, that is, in perpetuity.
ARTICLE 9
Alongside the socialist system of economy, which
is the predominant form of economy in the Kazakh
S.S.R., the law permits the small private economy
of individual peasants and handicraftsmen based on
their own labour and precluding the exploitation
of the labour of others.
ARTICLE 10
The personal property right of citizens in their
incomes and savings from work, in their dwelling
houses and subsidiary home enterprises, in articles
of domestic economy and use and articles of person-
al use and convenience, as well as the right of
citizens to inherit personal property, is protected
by law.
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ARTICLE 11
The economic life of the Kazakh S.S.R. is deter-
mined and directed by the State national-economic
plan, with the aim of increasing the public wealth,
of steadily raising the material and cultural stand-
ards of the working people, of consolidating the
independence of the socialist state and strengthen-
ing its defensive capacity.
ARTICLE 12
Work in the Kazakh S.S.R. is a duty and a mat-
ter of honour for every able-bodied citizen, in ac-
cordance with the principle: "He who does not
work, neither shall he eat."
The principle applied in the Kazakh S.S.R. is
that of socialism: "From each according to his
ability, to each according to his work."
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CHAP TER II
THE STATE STRUCTURE
ARTICLE 13
For the purpose of mutual assistance among the
Union Republics along economic and political lines,
as well as along the line of defence, the Ka-
zakh Soviet Socialist Republic voluntarily united
with the other equal Soviet Socialist Republics,
namely:
The Ruasian Soviet Federative Socialist Republic,
The Ukrainian Soviet Socialist Republic,
The Byelorussian Soviet Socialist Republic,
The Uzbek Soviet Socialist Republic,
The Georgian Soviet Socialist Republic,
The Azerbaijan Soviet Socialist Republic,
The Lithuanian Soviet Socialist Republic,
The Moldavian Soviet Socialist Republic,
The Latvian Soviet Socialist Republic,
The Kirghiz Soviet Socialist Republic,
12
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The Tajik Soviet Socialist Republic,
The Armenian Soviet Socialist Republic,
The Turkmen Soviet Socialist Republic,
The Estonian Soviet Socialist Republic and
The Karelo-Finnish Soviet Socialist Republic
in a federal state, the Union of Soviet Socialist Re-
publics.
Proceeding from the aforesaid, the Kazakh S.S.R.
ensures to the U.S.S.R., as represented by its higher
organ S of state power and organs of state admin-
istration, the rights defined in Article 14 of the
Constitution of the U.S.S.R.
Outside of the spheres set forth in Article 14 of
the Constitution of the U.S.S.R., the Kazakh S.S.R.
exerciSes state authority independently, retaining
its sovereign rights in full.
ARTICLE 14
The Kazakh Soviet Socialist Republic consists of
4.,
the Akmolinsk, Alctyubinsk, Alma-Ata, East Ka-
zakhastan, Guriev, Jambul, West Kazakhstan, Kara-
ganda, Kzyl-Orda, Kokchetav, Kustanai, Pavlodar,
North KazakhStan, Semipalatinsk, Taldy-Kurgan
and South Kazakhstan Regions.
13
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ARTICLE 15
The Kazakh Soviet Socialist Republic reserves
the right freely to secede from the Union of Soviet
Socialist Republics.
ARTICLE 16
The territory of the Kazakh S.S.R. may not be
altered without its consent.
ARTICLE 16a
The Kazakh Soviet Socialist Republic has its own
Republican military formations.
ARTICLE 16b
The Kazakh Soviet Socialist Republic has the
right to enter into direct relations with foreign
states and to conclude agreements and exchange
diplomatic and consular representatives with them.
ARTICLE 17
The laws of the U.S.S.R. are binding within the
territory of the Kazakh S.S.R.
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ARTICLE 18
Every citizen of the Kazakh S.S.R. is a citizen
of the U.S.S.R.
Citizens of all other Union Republics enjoy on
the territory of the Kazakh S.S.R. equal rights with
citizens of the Kazakh S.S.R.
ARTICLE 19
The jurisdiction of the Kazakh Soviet Socialist
Republic, as represented by its higher organs of state
power and organs of state administration, embraces:
a) Adoption of the Constitution of the Kazakh
S.S.R. and control over its observance;
b) Submission of the formation of new region's
constituting part of the Kazakh S.S.R. to. the Su-
preme Soviet of the U.S.S.R. for confirmation;
c) Establishment of the boundaries, and of the
division into districts, of regions;
d) Legislation of the Kazakh S.S.R.;
e) Maintenance of public order and safeguard-
ing the rights of citizens;
f) Approval of the national-economic plan of the
Kazakh S.S.R.;
g) Approval of the state budget of the Kazakh
S.S.R. and of the report on its fulfilment;
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h) Determination of state and local taxes, im-
posts and non-tax revenues in conformity with the
laws of the U.S.S.R.;
i) Direction of the fulfilment of the local budg-
ets of the region;
j) Direction of insurance and savings;
k) Administration of the banks, industrial, agri-
cultural and trading enterprises and organizations
subordinate to the Republic, as well as direction of
local industry;
1) Control and superintendence of the condition
and administration (of enterprises subordinate to the
Union;
m) Establishment of the procedure governing the
use of land, mineral wealth, forests and waters;
n) Direction of the execution of the Rules of
the Agricultural Artel and direction of the consol-
idation of the collective farms;
o) Direction of dwelling houses and the munic-
ipal economy, dwelling house construction and the
modernization of cities and other inhabited places;
p) Road building; direction of local transport
and communications;
q) Labour legislation;
r) Legislation concerning marriage and the
family;
s) Direction of public health;
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t) Direction of social maintenance;
u) Direction of elementary, secondary and higher
education;
v) Direction of the cultural, educational and
scientific organizations and institution's of the Ka-
zakh S.S.R., and administration of the cultural,
educational and scientific organizations and insti-
tutions of all-Republican importance;
w) Direction and organization of physical culture
and sports;
x) Organization of the judicial organs of the
Kazakh S.S.R.;
y) Granting the rights of citizenship of the Ka-
zakh S.S.R.;
z) Amnesty and pardon of citizens convicted by
judicial organs of the Kazakh S.S.R.;
a) Organization of the military formations of
the Kazakh S.S.R.;
p) Establishment of the representation of the
Kazakh S.S.R. in international relations.
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CHAP T ER III
THE HIGHER ORGANS
OF STATE POWER
IN THE KAZAKH SOVIET
SOCIALIST REPUBLIC
ARTICLE 20
The highest organ of state power in the Kazakh
S.S.R. is the Supreme Soviet of the Kazakh S.S.R.
ARTICLE 21
The Supreme Soviet of the Kazakh S.S.R. exer-
cises all rights vested in the Kazakh S.S.R. in ac-
cordance with Articles 13 and 19 of the Congitu-
tion of the Kazakh S.S.R., in so far as they do not,
by virtue of the Constitution, come within the ju-
risdiction of organs of the Kazakh S.S.R. that are
accountable to the Supreme Soviet of the Kazakh
S.S.R., that is, the Presidium of the Supreme Soviet
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of the Kazakh S.S.R., the Council of Ministers of
the Kazakh S.S.R., and the Ministries of the Ka-
zakh S.S.R.
ARTICLE 22
The Supreme Soviet of the Kazakh S.S.R. is the
sole legislative organ of the Kazakh S.S.R.
ARTICLE 23
The Supreme Soviet of the Kazakh S.S.R. is elect-
ed for a term of four years by the citizens of the
Kazakh S.S.R. voting by election districts on the
basis of one deputy for every 20,000 of the popu-
lation.
ARTICLE 24
A law is considered adopted if passed by the
Supreme Soviet of the Kazakh S.S.R. by a simple
majority vote.
ARTICLE 25
Laws pfMed by the Supreme Soviet of the Ka-
zakh S.S.R. are 'published in the Kazakh and Rus-
2* 19
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sian languages over the signatures of the President
and Secretary of the Presidium of the Supreme
Soviet of the Kazakh S.S.R.
ARTICLE 26
The Supreme Soviet of the Kazakh S.S.R. elects
a Chairman of the Supreme Soviet and two Vice-
Chairmen.
ARTICLE 27
The Chairman of the Supreme Soviet of the Ka-
zakh S.S.R. presides at the sittings of the Supreme
Soviet of the Kazakh S.S.R. and ha. charge of the
conduct of its business and proceedings.
ARTICLE 28
Sessions of the Supreme Soviet of the Kazakh
S.S.R. are convened by the Presidium of the Su-
preme Soviet of the Kazakh S.S.R. twice a year.
Extraordinary sessions are convened by the Pre-
sidium of the Supreme Soviet of the Kazakh S.S.R.
at its discretion or on the demand of one-third of
the deputies to the Supreme Soviet of the Kazakh
S.S.R.
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ARTICLE 29
u'D
ehl
The Supreme Soviet of the Kazakh S.S.R. elects
the Presidium of the Supreme Soviet of the Kazakh
S.S.R., consisting of a President of the Presidium of
the Supreme Soviet of the Kazakh S.S.R., two Vice-
Presidents, a Secretary of the Presidium and fifteen
members of the Presidium of the Supreme Soviet
of the Kazakh S.S.R.
ARTICLE 30
The Presidium of the Supreme Soviet of the Ka-
zakh S.S.R. is accountable to the Supreme Soviet
of the Kazakh S.S.R. for all its activities.
ARTICLE 31
The Presidium of the Supreme Soviet of the Ka-
zakh S.S.R.:
a) Convenes the seSsions of the Supreme Soviet
of the Kazakh S.S.R.;
b) Issues decrees;
c) Gives interpretations
zakh S.S.R. in operation;
d) Conducts nation-wide
e) Annuls decisions and
21
of the laws of the Ka-
polls (referendums);
orders of the Council
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of Ministers of the Kazakh S.S.R. and likewise de-
cisions and orders of the regional Soviets of Work-
ing People's Deputies if they do not conform to
law;
f) In the intervals between sessions of the Su-
preme Soviet of the Kazakh S.S.R., releases and
appoints Ministers of the Kazakh S.S.R., on the rec-
ommendation of the Chairman of the Council of
Ministers of the Kazakh S.S.R., subject to subse-
quent confirmation by the Supreme Soviet of the
Kazakh S.S.R.;
g) Institutes titles of honour of the Kazakh
S.S.R.;
h) Confers titles of honour of the Kazakh S.S.R.
and grants awards;
i) Exercises the right of pardoning citizens con-
victed by judicial organs of the Kazakh S.S.R.;
j) Appoints and recalls diplomatic representa-
tives of the Kazakh S.S.R. to foreign states;
k) Receives the letters of credence and recall of
diplomatic representatives accredited to it by
foreign states.
itt
ARTICLE 32
The Supreme Soviet of the Kazakh S.S.R. elects
a Credentials Committee to verify the credentials
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of the members of the Supreme Soviet of the Ka-
zakh S.S.R.
On the report of the Credentials Committee, the
Supreme Soviet of the Kazakh S.S.R. decides wheth-
er to recognize the credentials of deputies or to
annul their election.
ARTICLE 33
The Supreme Soviet of the Kazakh S.S.R., when
it deems necessary, appoints commissions of inves-
tigation and audit on any matter.
It is the duty of all institutions and officials to
comply with the demands of such commissions and
to submit to them all necessary materials and doc-
uments.
ARTICLE 34
A member of the Supreme Soviet of the Kazakh
S.S.R. may not be prosecuted or arrested without
the consent of the Supreme Soviet of the Kazakh
S.S.R., or, when the Supreme Soviet of the Kazakh
S.S.R. iS not in session, without the consent of the
Presidium of the Supreme Soviet of the Kazakh
S.S.R.
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ARTICLE 35
On the expiration of the term of office of the
Supreme Soviet of the Kazakh S.S.R., the Presidium
of the Supreme Soviet of the Kazakh S.S.R. orders
new elections to be held within a period not exceed-
ing two months from the ?date of expiration of the
term of office of the Supreme Soviet of the Kazakh
S.S.R.
ARTICLE 36
On the expiration of the term of office of the
Supreme Soviet of the Kazakh S.S.R., the Prdsidium
of the Supreme Soviet of the Kazakh S.S.R. retains
its powers until the newly-elected Supreme Soviet
of the Kazakh S.S.R. shall have formed a new
Presidium of the Supreme Soviet of the Kazakh
S.S.R.
ARTICLE 37
The newly-elected Supreme Soviet of the Kazakh
S.S.R. is convened by the outgoing Presidium of
the Supreme Soviet of the Kazakh S.S.R. not later
than three months after the elections.
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ARTICLE 38
The Supreme Soviet of the Kazakh S.S.R.
appoints the Government of the Kazakh
S.S.R., namely, the Council of Ministers of the
Kazakh S.S.R.
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CHAP TER IV
THE ORGANS
OF STATE ADMINISTRATION
OF THE KAZAKH SOVIET
SOCIALIST REPUBLIC
ARTICLE 39
The highest executive and administrative organ of
state power of the Kazakh S.S.R. is the Council of
Ministers of the Kazakh S.S.R.
ARTICLE 40
The Council of Ministers of the Kazakh S.S.R.
is responsible and accountable to the Supreme So-
viet of the Kazakh S.S.R., or, in the intervals be-
tween sessions of the Supreme Soviet of the Kazakh
S.S.R., to the Presidium of the Supreme Soviet of
the Kazakh S.S.R.
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ARTICLE 41
The Council of Ministers of the Kazakh S.S.R,
issues decisions and orders on the basis and in pur-
suance of the laWs in operation of the U.S.S.R. and
the Kazakh S.S.R., and of the decisions and orders
of the Council of Ministers of the U.S.S.R., and
verifies their execution.
ARTICLE 42
Decisions and orders of the Council of Ministers
of the Kazakh S.S.R. are binding throughout the
territory of the Kazakh S.S.R.
ARTICLE 43
The Council of MiniAers of the Kazakh S.S.R.:
a) Coordinates and directs the work of the
Ministries of the Kazakh S.S.R. and of other eco-
nomic and cultural institutions under its juris-
diction; coordinates and verifie,-8 the work of
the authorized representatives of the all-Union
Ministries;
b) Adopts measures to carry out the national-
economic plan;
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c) Adopts measures to fulfil the state and local
budgets of the Kazakh S.S.R.;
d) Adopts measures for the maintenance of pub-
lic order, for the protection of the interests of the
state, and for the safeguarding of the rights of citi-
zens;
e) Directs and verifies the work of the Executive
Committees of the regional Soviets of Working
People' Deputies;
f) Sets up, whenever necessary, special Commit-
tees and Central Administrations under the Coun-
cil of Ministers of the Kazakh S.S.R. for economic
and cultural affairs;
g) Directs the organization of the military for-
mations of the Kazakh S.S.R.;
h) Exercises guidance in the sphere of the rela-
tions of the Kazakh S.S.R. with foreign states, on
the basis of the general procedure established by
the U.S.S.R. governing the relations of Union Re-
publics with foreign states.
ARTICLE 44
The Council of Minister's of the Kazakh S.S.R.
has the right to annul decisions and orders of Ex-
ecutive Committees of regional Soviets of Working
People's Deputies and likewise to suspend decisions
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and orders of regional Soviets of Working People's
Deputies.
The Council of Ministers of the Kazakh S.S.R.
has the right to annul orders and instructions of
Ministers of the Kazakh S.S.R.
ARTICLE 45
The Council of Ministers of the Kazakh S.S.R.
is appointed by the Supreme Soviet of the Kazakh
S.S.R. and consists of:
The Chairman of the Council of Ministers of the
Kazakh S.S.R.;
The Vice-Chairmen of the Council of Miniters of
the Kazakh S.S.R.;
The Chairman of the State Planning Commission
of the Kazakh S.S.R.;
The Ministers of the Kazakh S.S.R.;
The Chief of the Arts Administration;
The Chairman of the Committee on Cultural and
Educational Institutions.
ARTICLE 46
The Government of the Kazakh S.S.R. or a Min-
ister of the Kazakh S.S.R. to whom a que:stion of
a member of the Supreme Soviet of the Kazakh
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S.S.R. is addressed must give a verbal or written
reply in the Supreme Soviet of the Kazakh S.S.R.
within a period not exceeding three days.
ARTICLE 47
The Ministers of the Kazakh S.S.R. direct the
branches of state administration which come within
the jurisdiction of the Kazakh S.S.R.
ARTICLE 48
The Ministers of the Kazakh S.S.R., within the
limits of the jurisdiction of their repective Minis-
tries, issue orders and instructions on the basis and
in pursuance of the laws in operation of the U.S.S.R.
and the Kazakh S.S.R., of the decisions and orders
of the Council of Ministers of the U.S.S.R. and the
Council of Ministers of the Kazakh S.S.R. and of
the orders and instructions of the Union-Republican
Ministries of the U.S.S.R., and verify their execu-
tion.
ARTICLE 49
The Ministries of the Kazakh S.S.R. are either
Union-Republican or Republican Ministries.
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ARTICLE OU
Each Union-Republican Ministry of the Kazakh
S.S.R. directs the branch of state administration of
the Kazakh S.S.R. entrusted to it, with the excep-
tion of only a limited number of enterprises, accord-
ing to a list confirmed by the Presidium of the
Supreme Soviet of the U.S.S.R., and is subordinate
both to the Council of Ministers of the Kazakh
S.S.R. and the corresponding Union-Republican
Ministry of the U.S.S.R.
ARTICLE 51
Each Republican Ministry of the Kazakh S.S.R.
directs the branch of state administration entrusted
to it and is directly ubordinate to the Council of
Ministers of the Kazakh S.S.R.
ARTICLE 52
The following Ministries of the Kazakh S.S.R.
are Union-Republican Minitries of the Kazakh
S.S.R.:
The Ministry of the Grocery Supplies Industry
The Ministry of Internal Affairs
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The Ministry of the Armed Forces
The Ministry of State Control
The Ministry of State Security
The Ministry of Public Health
The Ministry of Foreign Affairs
The Ministry of Cinematography
The Ministry of Light Industry
The Ministry of Forestry
The Ministry of the Timber Industry
The Ministry of the Meat and Dairy Industry
The Ministry of the Food Industry
The Ministry of the Building Materials Industry
The Ministry of the Fish Industry
The Ministry of Agriculture
The Ministry of State Farms
The Ministry of the Textile Industry
The Ministry of Trade
The Ministry of Finance
The Ministry of Justice.
ARTICLE 53
The following Ministries of the Kazakh S.S.R.
are Republican Ministries:
The Ministry of Motor Transport
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The Ministry of Irrigation
The Ministry of the Municipal Economy
The Ministry of Local Industry
?.
The Ministry of the Local Fuel Industry
The Ministry of Education
The Ministry of Social Maintenance.
3-909
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CHAPTER V
THE LOCAL ORGANS
OF STATE POWER
ARTICLE 54
The organs of state power in regions, districts,
cities, settlements and auls (villages, stanitSas, kish-
laks) are the Soviets of Working People's Depu-
ties.
ARTICLE 55
The Soviets of Working People's Deputies of
regions, districts, cities, districts in big cities, set-
tlements and auls (villages, stanitsas, kishlaks) are
elected 'by the working people of the respective
regions, districts, cities, settlements and auls
(villages, stanitsas, kishlaks) for a term of two
years.
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ARTICLE 56
The Soviets of Working People's Deputies of re-
gions, districts, cities, settlements and .avis (vil-
lages, stanitsas, kishlaks) direct cultural, political
and economic affairs on their territory, draw up the
local budgets, direct the work of the organs of ad-
ministration subordinate to them, ensure the main-
tenance of public order, assist in strengthening the
defensive capacity of the country and, ensure the
observance of the laws and the protection of the
rights of citizens.
ARTICLE 57
The Soviets of Working People's Deputies adopt
decisions and issue orders within the limits of the
powers vested in them by the laws of the U.S.S.R.
and the Kazakh S.S.R.
ARTICLE 58
The executive and administrative organ of the
Soviet of Working People's Deputies of a region,
district, city, settlement or -aul (village, tanitsa,
kishlak) is the Executive Committee elected by it,
.3*
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consisting of a Chairman, Vice-Chairmen, a Secre-
tary and members.
ARTICLE 59
The executive and administrative organ of the
Soviet of Working People's Deputies in a small lo-
cality is the Chairman, the Vice-Chairman and the
Secretary elected by the Soviet of Working Peo-
ple's Deputies.
ARTICLE 60
The Executive Committee of the Soviet of Work-
ing People's Deputies of,a region, district, city, set-
tlement or aul (village, stanitsa, kishlak) exercises
guidance in cultural, political and economic affairs
within its territory on the basis of decisions taken
by the corresponding Soviet of Working People's
Deputies and superior state organs.
ARTICLE 61
Sessions of regional Soviets of Working People's
Deputies are convened by their respective Executive
Committees not less than three times a year.
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ARTICLE 62
Sessions of district Soviets of Working People's
Deputies are convened by their respective Execu-
tive Committees not less than four times a year.
ARTICLE 63
Sessions of Soviets of Working People's Deputies
of cities, districts in big cities, settlements and auls
(villages, stanitsas, kishlaks) are convened by their
respective executive organs not less than once a
month.
ARTICLE 64
The Soviets of Working People's Deputies of re-
gions, districts, cities or districts in big cities each
elect a Chairman and a Sectretary for the duration of
their sessions to conduct the sittings of the sessions.
ARTICLE 65
The Chairman of a settlement or aul (village,
stanitsa, kishlak) Soviet convenes the Soviet and
con ducts its sittings.
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ARTICLE 66
The executive organs of the Soviets of Working
People's Deputies are directly- accountable both to
the Soviets of Working People's Deputies which
elected them and to the executive organs of the
respective superior Soviets of Working People's
Deputies.
ARTICLE 67
The superior Executive Committee's of the Soviets
of Working People's Deputies have the right to an-
nul decisions and orders of inferior Executive Coln-
minces and to suspend decisions and orders of
inferior Soviet's of Working People's Deputies.
ARTICLE 68
The superior Soviets of Working People's Depu-
ties have the right to annul decisions and orders of
inferior Soviets of Working People's Deputies and
of their Executive Committees.
ARTICLE 69
The regional Soviets of Working People's Depu-
ties set up the following Departments and Adminis-
:rations of their Executive Committees:
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Departments
a Department of Irrigation
a Department of Roads
a Department of Public Health
a Department of the Municipal Economy -
a Department of Cultural and Educational Work
a Department of Local Industry
a Department of Public Education
a General Department
a Department of Arts
a Department of Social Maintenance
a Department of Trade
a Department of Finance;
Administrations
a Motor Transport Administration
a Cinematographic Administration
a Local Fuel Industry Administration
an Agricultural Administration
a Planning Commission
a Cadres Sector
under the Chairman of the Executive Committee and,
in addition, in accordance with the specific features
of the economy of the Region, the regional Soviets
of Working People's Deputies set up the following
,30
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Departments, subject to confirmation by the Union'
Republican Ministries of the Grocery Supplies In-
dustry, Light Industry, the Timber Industry. the
Meat and Dairy Industry, the Food Industry, the
Building Materials Industry, the Fish Industry and
the Textile Industry:
a Department of the Grocery Suppl'es Industry
a Department of Light Industry
a Department of the Timber Industry
a Department of the Meat and Dairy Industry
a Department of the Food Industry
a Department of the Building Materials Industry
a Department of the Fish Industry
a Department of the Textile Industry.
ARTICLE 70
The Ministry of Internal Affairs, the Ministry
of State Security, the Ministry of Forestry and the
Ministry of Justice set up their own administrations
under the regional Soviets of Working People's Dep-
uties, in accordance with the conditions of the re-
gion and on the basis of the laws of the Union of
Soviet Socialist Republics and the Kazakh Soviet
Socialist Republic.
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ARTICLE 71
The Departments and Administrations of the re-
gional Soviets of Working People's Deputies are
subordinate in their activities both to the corres-
ponding regional Soviets of Working People's Dep-
uties and their Executive Committees and to the cor-
responding Ministries of the Kazakh S.S.R.
ARTICLE 72
The district Soviets of Working People's Depu-
ties set up the following Departments of their Exec-
utive' Committees :
a Department of Roads
. a Department of Public Health
-a Department of Cultural and Educational Work
a Department of Public Education
a General Department
a Department of Agriculture
a Department of Social Maintenance
a Department of Trade
a Department of Finance
a planning Commission
a Cadres Sector
under the Chairmen of the Executive Committees
and, in addition, in accordance with the specific
41
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features of the economy of the district, the district
Soviets of Working People's Deputies set up the
following Departments, subject to confirmation by
the respective regional Soviets of -Working People's
Deputies:
a Department of the Municipal Economy
a Department of Local Industry.
ARTICLE 73
The Ministry of Internal Affairs and the Ministry
of State Security set up their Departments un-
der the district Soviets of Working People's Deputies
in accordance with the conditions of the district, on
the basis of the laws of the U.S.S.R. and the Ka-
zakh S.S.R. and subject to confirmation by the cor-
responding regional Soviet of Working People's
Deputies.
ARTICLE 74
The Departments of the district Soviets of Work-
ing People's Deputies are subordinate in their ac-
tivities both to the district Soviets of Working Peo-
ple's Deputies and their Executive Committees and
to the corresponding Departments of the regional
Soviets of Working People's Deputies.
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ARTICLE 75
The city Soviets of Working People's Deputies
set up the following Departments of their Executive
Committees:
a Department of Public Health
a Department of the Municipal Economy
a Department of Cultural and Educational Work
a Department of Public Education
a General Department ?
a Department of Social Maintenance
a Department of Trade
a Department of Finance
a Planning Commision
a Cadres Sector
under the Chairman of the Executive Committee
and, in addition, in accordance with the specific
features of the city's industry and its municipal and
suburban economy,
a Department of Local Industry and
a Department of Agriculture,
A Motor Transport Administration is formed un-
der the Executive Committee of the Alma-Ata City
Soviet of Working People's Deputies.
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ARTICLE 76
The Departments of the city Soviets of Working
People's Deputies are subordinate in their activi-
ties both to the respective city Soviets of Working
People's Deputies and their Executive Committees
and to the corresponding Departments of the district
Soviets of Working People's Deputies or directly
to the corresponding Departments of the regional
Soviets of Working People's Deputie.
The Department of the Alma-Ata City Soviet
of Working People's Deputies are subordinate in
their activities both to the Alma-Ata Soviet of Work-
ing People's Deputies and its Executive Committee
and to the corresponding Ministry of the Kazakh
S.S.R. directly.
ARTICLE 77
On the expiration of the terms of office of the
regional, district, city, settlement or aul (village,
stanitsa, kishlak) Soviets of Working People's Dep-
uties, their executive and administrative organs
retain their powers until the newly elected Soviets
shall have formed new executive and administrative
organs.
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CHAP TER VI
THE BUDGET
OF THE KAZAKH SOVIET
SOCIALIST REPUBLIC
ARTICLE 78
The state budget of the Kazakh S.S.R. is drawn
up by the Council of Minister's of the Kazakh S.S.R.
and-submitted by it to the Supreme Soviet of the
Kazakh S.S.R. for its approval. ?
Upon its approval by the Supreme Soviet of the
Kazakh S.S.R. the state budget of the Kazakh S.S.R.
is published for general information.
ARTICLE 79
The Supreme Soviet of the Kazakh S.S.R. elects
a Budget Commission, which reports its conclusions
on the Mate budget of the Kazakh S.S.R. to the
Supreme Soviet.
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ARTICLE 80
The report on the fulfilment of the state budget
of the Kazakh S.S.R. is approved by the Supreme
Soviet of the Kazakh S.S.R. and published for gen-
eral information.
ARTICLE 81
The budgets of the regional, district, city, set-
tlement and aul (village, stanitsa, kishlak) Soviets
include the revenues from the local economy, de-
ductions from the state revenues collected within
their territory and likewNe receipts from local taxes
and imposts in amounts fixed by the laws of the
U.S.S.R. and the Kazakh S.S.R.
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CHAP TER VII
THE COURTS AND
THE PROCURATOR'S OFFICE
ARTICLE 82
In the Kazakh S.S.R. justice is administered by
the Supreme Court of the Kazakh S.S.R., the Re-
gional Courts, the Special Courts of the U.S.S.R.
established by decision of the Supreme Soviet of
the U.S.S.R., and the People's Courts.
ARTICLE 83
? In all Court cases are tried with the participa-
tion of people's assessors, except in cases specially
provided for by law.
ARTICLE 84
The Supreme Court of the Kazakh S.S.R. is the
highest judicial.. organ of the Kazakh S.S.R. The
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Supreme Court of the Kazakh S.S.R. is charged with
the supervision of the judicial activities of all the
judicial organs of the Kazakh S.S.R.
ARTICLE 85
The Supreme Court of the Kazakh S.S.R. is elect-
ed by the Supreme Soviet of the Kazakh S.S.R. for
a term of five years.
ARTICLE 86
Regional Courts are elected by the regional So-
viets of Working People's Deputies for a term of
five years.
?
ARTICLE 87
People's Courts are elected by the citizen, of the
district on the basis of universal, direct and equal
suffrage by secret ballot for a term of three years.
ARTICLE 88
Judicial proceedings in the Kazakh S.S.R. are
conducted in the Kazakh language, and in districts
where the majority of the population is Russian or
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Uigur or Uzbek, in the Russian, Uigur or Uzbek
language respectively, person's not knowing the lan-
guage of the majority of the population of the
district being guaranteed the opportunity of fully
acquainting themselves with the material of the case
through an interpreter and likewise the right to
use their own language in court.
ARTICLE 89
In all Courts of the Kazakh S.S.R. cases are heard
in public, unless otherwise provided for by law,
and the accused is guaranteed the right to defence.
ARTICLE 90
Judges are independent and subject only to
the law.
ARTICLE 91
Supreme supervisory power to ensure the strict
observance of the law by all Ministries and insti-
tutions subordinated to them, as well as by offi-
cials and citizens within the territory of the Kazakh
S.S.R. generally, is exercised by the Procurator-Gen-
eral of the U.S.S.R. directly and also through the
Procurator of the Kazakh S.S.R.
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ARTICLE 92
The Procurator of the Kazakh S.S.R. and the re-
gional procurators are appointed by the Procurator-
General of the U.S.S.R. for a term of five years.
ARTICLE 93
District and city procurators are appointed by the
Procurator of the Kazakh S.S.R., subject to the ap-
proval of the Procurator-General of the U.S.S.R.,
for a term of five years.
ARTICLE 94
The organs of the Procurator's Office perform
their functions independently of any local organs
whatsoever, being subordinate solely to the Pro-
curator-General of the U.S.S.R.
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CH AP TER VIII
FUNDAMENTAL RIGHTS
AND DUTIES OF CITIZENS
ARTICLE 95
Citizens of the Kazakh S.S.R. have the right to
work, that is, the right to guaranteed employment
and payment for their work In accordance with is
quantity and quality.
The right to work is ensured by the socialist or-
ganization of the national economy, the steady
growth of the productive forces of Soviet society,
the elimination of the possibility of economic crises,
and the abolition of unemployment.
ARTICLE 96
Citizens of the Kazakh S.S.R. have the right to
rest and leisure.
4*
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The right to rest and leisure is ensured by the
establishment of an eight-hour day for factory
and office workers, the reduction of the working
day to seven or six hours for arduous trades and
to four hours in shops where conditions of work
are particularly arduous, by the institution of an-
nual vacations with full pay for factory and office
workers, and by the provision of a wide network
of sanatoria, rest homes and clubs for the accom-
modation of the wo-fking people.
ARTICLE 97
Citizens of the Kazakh S.S.R. have the right to
maintenance in old age and also in case of sick-
ness or disability.
This right is ensured by the extensive develop-
ment of social insurance of factory and office work-
ers at state expense, free medical service for the
working people, and the provision of a wide net-
work of health resorts for the use of the working
people.
ARTICLE 98
Citizens of the Kazakh S.S.R. have the right to
education.
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This right is ensured by universal and compul-
lsory elementary education; by free education up to
and including the seventh grade; by a system of
state stipends for students of higher educational es-
tablishments who excel in their studies; by instruc-
tion in schools being conducted in the native lan-
guage, and by the organization in the factories,
state farms, machine and tractor stations and collec-
tive farms of free vocational, technical and agronom-
ic training for the working people.
ARTICLE 99
Women in the Kazakh S.S.R. are accorded equal
rights with men in all pheres of economic, govern-
ment, cultural, political and other public activity.
The possibility of exercising, these rights is en-
sured by women, being accorded an equal right with
men to work, payment for work, rest and leisure,
social insurance and education, by state protection
of the intere'sts of mother and child, state aid to
mothers of large families and unmarried mothers,
maternity leave with full pay, and the provision of
a wide network of maternity homes, nurseries and
kindergartens.
Resistance to the actual emancipation of women
(giving minors in marriage or contracting marriage
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with them, bride purchase, polygamy, restricted
choice of hnsband, organizing resistance to the
drawing of women into study, into agricultural or
industrial production, into the governing of the
state or into social or political activities) is punish-
able by law.
ARTICLE MO
Equality of rights of citizens of the Kazakh
S.S.R., irrespective of their nationality or race, in
all spheres of economic, government, cultural, polit-
ical and other public activity, is an indefeasible
law.
Any direct or indirect restriction of the rights
of, or, conversely, the establishment of any direct
or indirect privileges for, citizens on account of
their race or nationality, as well as any advocacy
of racial or national exclusiveness or hatred and
contempt, i punishable by law.
ARTICLE 1.01
In order to ensure the citizens freedom of con-
science, the mosque and the church in the Kazakh
S.S.R. are separated from the state, and the school
from the mosque and the church. Freedom of re-
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ligious worship and freedom of anti-religious prop-
aganda is recognized for all citizens.
ARTICLE 102 ?
In conformity with the interMs of the working
people, and in order to strengthen the socialist
system, the citizens of the Kazakh S.S.R. are guar-
anteed by law:
a) freedom of speech;
b) freedom of the press;
c) freedom of assembly, including the holding
of mass meetings;
d) freedom of street processions and demonstra-
tions.
These civil rights are ensured by placing at the
disposal of the working people and their organiza-
tions printing presses, stocks of paper, public build-
ings, the streets, communications facilities and oth-
er material requisites for the exercise of these
rights.
ARTICLE 103
In conformity with the interests of the working
people, and in order to develop the organizational
initiative and political activity of the masse of the
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people, citizens of the Kazakh S.S.R. are guaran-
teed the right to unite in, public organizations: trade
unions, cooperative societies, youth organizations,
sport and defence organizations, cultural, technical
and scientific societies; and the most active and
politically-conscious citizens in the ranks of the
working class and other sections of the working
people unite in the Communist Party of the Soviet
Union (Bolsheviks), which is the vanguard of the
working people in their struggle to strengthen and
develop the socialist system and is the leading core
of all organizations of the working people, both
public and state.
ARTICLE 104
Citizens of the Kazakh S.S.R. are guaranteed
inviolability of the person. No person may be
placed under arrest except by decision of a court or
with the sanction of a procurator.
ARTICLE 105
The inviolability of the homes of citizens
and privacy of correspondence are protected by
law.
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ARTICLE 106
The Kazakh S.S.R. affords the right of asylum
to foreign citizens persecuted for defending the in-
terests of the working people, or for scientific ac-
tivities, or for struggling for national liberation.
ARTICLE 107
It is the duty of every citizen of the Kazakh
S.S.R. to abide by the Codstitution of the Kazakh
Soviet- Socialist Republic, to observe the- laws,- to
maintain labour discipline, honestly to perform
public duties, and to respect the rules of socialist
intercourse.
ARTICLE 108
It is the duty of every citizen of the Kazakh
S.S.R. to safeguard and fortify public, socialist
property as the sacred and inviolable foundation of
the Soviet system, as the source of the wealth and
might of the country, as the source of the prosper-
ity and culture of all the working people.
Persons committing offences against public, social-
ist property are enemies of the people.
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ARTICLE 109
- Universal military service is law.
Military ervice in. the Armed Farces of the
U.S.S.R. is an honourable duty of the citizens of
the Kazakh S.S.R.
ARTICLE 110
To defend the country is the sacred duty of every
citizen of the Kazakh S.S.R. Treason to the moth.
erland?violation of the oath of allegiance, de-
sertion to the enemy, impairing the military power
of the state, espionage?is punishable with all the
severity of the law as the most heinous of crime.
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CHAPTER IX
THE ELECTORAL SYSTEM
ARTICLE 111
Members of all Soviets of Working People's Dep-
uties--of the Supreme Soviet of the Kazakh S.S.R.
and of the regional, district, city, settlement and aul
(village, stanitsa, kishlak) Soviets of Working Peo-
ple's Deputies?are chosen by the electors on the
basis of universal, equal and direct suffrage by
secret ballot.
ARTICLE 112
Elections of deputies are universal: all citizens
of the Kazakh S.S.R. who have reached the age of
eighteen, irrespective of race or nationality, sex,
religion, education, domicile, social origin, property
status or past activities, have the right to vote
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in the election of deputies and to be elected,
with the exception of insane persons and persons
who have been convicted by a court of law and
whose sentences include deprivation of electoral
rights.
Every citizen of the Kazakh S.S.R. who has
reached the age of twenty-one is eligible for election
to the Supreme Soviet of the Kazakh S.S.R., irre-
spective of race or nationality, sex, religion, educa-
tion, domicile, social origin, property status or past
activities.
ARTICLE 113
Elections of deputies are equal: each citizen has
one vote; all citizens participate in elections on an
equal footing.
ARTICLE 114
Women have the right to elect and be elected on
equal terms with men.
ARTICLE 115
Citizens serving in the Arnie.' Forces of the
U.S.S.R. have the right to elect and be elected on
equal terms with all other citizens.
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ARTICLE 116
Elections of deputies are direct: all Soviets of
Working People's Deputies, from aul, settlement and
city Soviets of Working People's Deputies to the
Supreme Soviet of the Kazakh S.S.R., are elected
by the citizens by direct. vote.
ARTICLE 117
Voting at elections of deputies is secret.
ARTICLE 118
Elections to the Soviets of Working People's Dep-
uties of the Kazakh S.S.R. are held by election
districts on the following bases:
in elections to regional Soviets?one deputy for
every 5,000 to 8,000 of the population, depending
upon its size;
in elections to district Soviets one deputy for
every 1,000 of the population; in a district whose
population does not exceed 25,000, twenty-five dep-
uties are elected, and in a district whose population
exceeds 60,000, not more than sixty deputies are
elected;
in elections to city Soviets or city district Soviets
?one deputy for every 350 to 500 of the popula-
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lion, &pending upon its size; in a city or city dis-
trict whose population does not exceed 12.000,
thirty-five deputies are elected;
in elections to the Alma-Ata City Soviet?one
deputy for every 600 of the population;
in elections to settlement or aul (village, stanitsa,
kishlak) Soviets?one deputy for every 100 of the
population; in a settlement or aul (village, stanitsa,
kishlak) whose population does not exceed
1,000, nine deputies are elected, and where the
population exceeds 2,500, not more than twenty-five
deputies.
The basis of representation for each regional,
district, city, ettlement and aul (village, stanitsa,
kishlak) Soviet of Working People's Deputies is
fixed in the Ordinance Concerning Elections to Re-
gional, District, City, Settlement and Aul (village,
stanitsa, kishlak) Soviets of Working People's Dep-
uties of the Kazakh 5.5.11., within the range of the
bases of representation indicated in the present
art icle.
ARTICLE 119
Candidates are nominated by election districts.
The right to nominate candidates is secured to
public organizations and societies of the working
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people: Communist Farty organizations, trace un-
ions, cooperatives, youth organizations and cultural
societies.
ARTICLE 120
It is the duty of every deputy to report to his
electors on his work and on the work of his Soviet
of Working People's Deputies, and he may be re-
called at any time upon decision of a majority of
the electors in the manner establMed by law.
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CHAPTER X
ARMS, FLAG, CAPITAL
ARTICLE 121
The arms of the Kazakh Soviet Socialist Repub-
lic are a sickle and hammer of gold placed cross-
wise, handles down, against a red background in
the rays of the sun and surrounded by ears of
grain, with the inscriptions "Kazakh S.S.R." and
"Workers of All Countries, Unite!" in the Kazakh
and Russian languages. At the top of the arms is a
five-pointed star.
ARTICLE 122
The state flag of the Kazakh Soviet Socialist Re-
public is of red cloth with a gold sickle and ham-
mer and the inscription "Kazakh S.S.R." in gold
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letters in the upper corner near the staff, above
in the Kazakh language, below in the Russian
language.
ARTICLE 123
The capital of the Kazakh Soviet Socialist Re-
public is the City of Alma-Ata.
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CHAP TER XI
PROCEDURE FOR AMENDING
TH E CONSTITUTION
ARTICLE 124
The Constitution of the Kazakh S.S.R. may be
amended only by decision of the Supreme Soviet
of the Kazakh S.S.R. adopted by a majority of not
less than two-thirds of the votes of the Supreme
Soviet.
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.4(
CONSTITUTION
(FUNDAMENTAL LAW)
of the
UZBEK
SOVIET SOCIALIST
REPUBLIC
416-1116P
?I'rFt MAX 5
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WORKERS OF ALL COUNTRIES, UNITE!
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CONSTITUTION
(FUNDAMENTAL LAW) ?
OF THE
UZBEK SOVIET
SOCIALIST REPUBLIC
As amended by the Supreme Soviet
of the Uzbek S.S.R., on June 25, 1948,
on the reconunendations of the
Drafting Commission
FOREIGN LANGUAGES PUBLISHING HOUSE
moscow 1949
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Printed in the Union of SOViei Socialist Republics
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C 0 N N S
Chapter I
THE SOCIAL STRUCTURE . .
Chapter Il
THE STATE STRUCTURE . .
Chapter III
THE HIGHER ORGANS OF STATE
POWER IN THE UZBEK SOVIET
SOCIALIST REPUBLIC . . .
Chapter IV
THE ORGANS OF STATE ADMIN-
ISTRATION OF THE UZBEK SOVIET
SOCIALIST REPUBLIC . . .
Chapter V
THE HIGHER ORGANS OF STATE
POWER OF THE KARA-KALPAK
AUTONOMOUS SOVIET SOCIAL-
IST REPUBLIC
5
Page
12
27
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Chapter VI
THE ORGANS OF STATE ADMIN-
ISTRATION OF THE KARA-
KALPAK AUTONOMOUS SOVIET
SOCIALIST REPUBLIC . . . 39
Chapter VII
THE LOCAL ORGANS OF STATE
POWER
Chapter VIII
THE BUDGET OF THE UZBEK
SOVIET SOCIALIST REPUBLIC , 56
Chapter IX
THE COURTS AND THE PROCU-
RATOR'S OFFICE .
Chapter X
FUNDAMENTAL RIGHTS AND
DUTIES OF CITIZENS .. .. 63
Chapter XI
THE ELECTORAL SYSTEM 71
Chapter XII
ARMS, FLAG, CAPITAL 76
Chapter XIII
PROCEDURE FOR AMENDING THE
CONSTITUTION . 78
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CHAP TER I
THE SOCIAL STRUCTURE
ARTICLE 1
The Uzbek Soviet Socialist Republic is a social-
ist state of workers and dekhkaneh.
ARTICLE 2
The political foundation of the Uzbek S.S.R. is
the Soviets of Working People's Deputies, which
grew and became strong as a result of the over-
throw of the power of the landlords and capitalists,
the hal, emirs and khans, the conquest of the dic-
tatorship of the proletariat, the re-unification of the
dismembered Uzbek people in a state a workers
and dekhkaneh, the liberation of the Uzbek people
from the national oppression of tsarism, of the
Russian imperialist bourgeoisie, and the defeat of
the nationalist counter-revolution.
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ARTICLE 3
All power in the Uzbek S.S.R. belongs to the
working people of town and kishlak as represented
by the Soviets of Working People's Deputies.
ARTICLE 4
The economic foundation of the Uzbek S.S.R.
is the socialist system of economy and the socialist
ownership of the instruments and means of produc-
tion, firmly established as a result of the liquida-
tion of the feudal and capitalist system of econo-
my, the abolition of private ownership of the instru-
ments and means of production, and the elimina-
tion of the exploitation of man by man.
ARTICLE 5
Socialist property in the Uzbek S.S.R. exists
tither in the form of state property (belonging to
the whole people) or in the form of cooperative
and collective-farm property (property of collec-
tive farms, property of cooperative societies).
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ARTICLE 6
The land, its mineral wealth, waters, forests,
mills, factories, mines, rail, water and air transport,
banks, 'communications, large state-organized agri-
cultural enterprises (state farms, machine and trac-
tor stations and the like), as well as municipal en-
terprises and the bulk of the dwelling houses in the
cities and industrial localities, are state property,
that is, belong to the whole people.
ARTICLE 7
The common enterprises of collective farms and
cooperative organizations, with their livestock and
implements, the products of the collective farms and
cooperative organizations, as well as their common
buildings, constitute the common, socialist property
of the collective farms and cooperative organizations.
Every household in a collective farm, in addition
to its basic income from the common, collective-farm
enterprise, has for its personal use a small plot of
household land and, as its personal property, a sub-
sidiary husbandry on the plot, a dwelling house, live-
stock, poultry and minor agricultural imple-
ments---in accordance with the rules of the agri-
cultural artel.
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CHAPTER II
THE STATE STRUCTURE
ARTICLE 13
For the purpose of mutual assistance along eco-
nomic and political lines as well as along the line
of defence, the Uzbek Soviet Socialist Republic
voluntarily united with the other equal Soviet So-
cialist Republics, namely:
The Russian S.F.S.R., the Ukrainian S.S.R..
the Byelorussian S.S.R., the Kazakh S.S.R., the
Georgian S.S.R., the Azerbaijan S.S.R., the Lithu-
anian S.S.R., the Moldavian S.S.R., the Latvian
S.S.R., the Kirghiz S.S.R., the Tajik S.S.R., the Ar-
menian S.S.R., the Turkmen S.S.R., the Estonian
S.S.R. and the Karelo-Finnish 'S.S.R. in a federal
state, the Union of Soviet Socialist Republics.
Proceeding from the aforesaid, the Uzbek S.S.R.
ensures to the U.S.S.R., as represented by its
higher organs of state power and organs of state
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administration, the rights defined in Article l4 of
the Constitution of the U.S.S.R.
Outside of the spheres set forth in Article 14
of the Constitution of the U.S.S.R., the Uzbek
S.S.R. exercises state authority independently,
retaining its sovereign rights in full.
ARTICLE 14
The Uzbek Soviet Socialist Republic consists
of the Andizhan, Bukhara, Kashka-Darya, :Naman-
gan, Samarkand, Surkhan-Darya, Tashkent, Ferglia-
na and Khorezm Regions and the Kara-Kalpak
Autonomous Soviet Socialist Republic.
ARTICLE 15
The Uzbek Soviet Socialist Republic reserves
the right freely to secede from the Union of Soviet
Socialist Republics.
ARTICLE 16
The territory of the Uzbek S.S.R. may not be
altered without its consent.
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ARTICLE IOa
The Uzbek Soviet Socialist Republic has the
right to enter into direct relations with foreign states
and to conclude agreements and exchange dip-
lomatic and consular representatives with them.
ARTICLE 16b
The Uzbek Soviet Socialist Republic has its own
Republican military formations.
ARTICLE 17
The laws of the U.S.S.R. ale binding within the
territory of the Uzbek S.S.R.
ARTICLE 18
Every citizen of the Uzbek S.S.R. is a citizen
of the U.S.S.R.
Citizens of all other Union Republics enjoy on
the territory of the Uzbek S.S.R. equal rights with
citizens of the Uzbek S.S.R.
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The jurisdiction of the Uzbek Soviet Socialist
Republic, as represented by its higher organs of
state power and organs of state administration,
embraces:
a) Adoption of the Constitution of the Uzbek
S.S.R. and control over its observance;
b) Confirmation of the Constitution of the
Kara-Kalpak Autonomous Soviet Socialist Re-
public;
c) Establishment of the boundaries, and of tile
division into districts, of regions, and also the sub.
mission of the formation of new regions constitut-
ing part of the Uzbek S.S.R. to the Supreme Soviet
of the U.S.S.R. for confirmation;
d) Confirmation of the boundaries and of the
division into districts of the Kara-Kalpak Auton-
omous Soviet Socialist Republic;
e) Legislation of the Uzbek S.S.R.;
f) Maintenance of public order and safeguard-
ing the rights of citizens;
g) Approval of the national-economic plan of
the Uzbek S.S.R.;
h) Approval. of the state budget of the! Uzbek
S.S.R. and of the report on its fulfilment;
i) Determination of state and local taxes, im-
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Laws of the U.S.S.R.;
j) Direction of the carrying out of the budgets
of the Kara-Kalpak Autonomous Soviet Socialist
Republic and of the local budgets of the regions;
k) Direction of insurance and savings;
1) Administration of the banks, industrial, ag-
ricultural and trading enterprises and organiza-
tions subordinate to the Republic, as well as di-
rection of local industry;
m) Control and superintendence of the condi-
tion and administration of enterprises subordinate
to the Union;
n) Establishment of the procedure governing the
use of land, mineral wealth, forests and waters;
a) Direction of dwelling houses and the munic-
ipal economy, dwelling house construction and
the modernization of cities and other inhabited
places; road building, and direction of local
transport and communications;
p) Labour legislation;
q) Legislation concerning marriage and the
family;
r) Direction of public health;
s) Direction of social maintenance;
t) Direction of elementary, secondary and
higher education;
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U) vireclion of the wail:law, educational and
scientific organizations and institutions of the Uz-
bek S.S.R., and administration of the cultural,
educational and scientific organizations and insti-
tutions of all-Republican importance;
v) Direction and organization of physical Cul;
Lure and sports;
w) Organization of the judicial organs of the
Uzbek S.S.R.;
x) Granting the rights of citizenship of the Uz-
bek S.S.R.;
y) Amnesty and pardon of citizens convicted by
judicial organs of the Uzbek S.S.R.;
z) Establishment of the representation of the
Uzbek S.S.R. in international relations;
a) Establishment of the procedure governing
the organization of the military formations of the
Uzbek S.S.R.
ARTICLE 20
The Kara-Kalpak Autonomous Soviet Socialist
Republic has its own Constitution, which takes
account of the specific features of the Republic and
is drawn. up in full conformity with the Constitu-
tion of the Uzbek S.S.R. and the Constitution of
the U.S.S.R.
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ARTICLE 21
The laws of the Uzbek S.S.R. are binding through.
out the territory of the Kara-Kalpak A.S.S.R.
In the event of divergence between a law a the
Kara-Kalpak A.S.S.R. and a law of the Uzbek
S.S.R., the law of the Uzbek S.S.R. prevails.
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CH AP TER III
THE HIGHER ORGANS
OF STATE POWER
IN THE UZBEK SOVIET
SOCIALIST REPUBLIC
ARTICLE 22
The highest organ of state power in the Uz-
bek .S.S.R. is the Supreme Soviet of the Uzbek
S.S.R.
ARTICLE 23
The Supreme Soviet of the Uzbek S.S.R. is elect-
ed for a term of four years by the citizens of the
Uzbek S.S.R. voting by election districts on the
basis of one deputy for every 15,000 of the popula-
tion.
2* 19
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ARTICLE 24
The Supreme Soviet of the Uzbek S.S.11. is the
sole legislative organ of the Uzbek S.S.R.
AwricLE 25
The Supreme Soviet of the Uzbek S.S.R. ever-
eises all rights vested in the Uzbek S.S.R. in accord-
ance with Articles 13 and 19 of the Constitubion of
the Uzbek S.S.R., in so far as they do not, by vir-
tue of the Constitution, come within the jurisdic-
tion of organs of the Uzbek S.S.R. that are ac-
countable to the Supreme Soviet of the Uzbek
S.S.R., that is, the Presidiutn of the Supreme So-
viet of the Uzbek S.S.R., the Council of Ministers
of the Uzbek S.S.R.. and the Ministries of the
Uzbek S.S.R.
ARTICLE 26
A law is considered adopted if passed by the
Supreme Soviet of the Uzbek S.S.R. by a simple
majority vote.
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ARTICLE 27
Laws passed by the Supreme Soviet of the Uzbek
S.S.R. are published over the signatures of the
President ard Secretary of the Presidium of the
Supreme Soviet of the Uzbek S.S.R.
ARTICLE 28
The Supreme Soviet of the Uzbek S.S.R. elects
the Presidium of the Supreme Soviet of the Uzbek
S.S.R., consisting of a President of the Presidi-
um of the Supreme Soviet of the Uzbek S.S.R.,
three Vice-Presidents of the Presidium, a Secre-
tary of the Presidium and thirteen members of
the Presidium of the Supreme Soviet of the
Uzbek S.S.R.
ARTICLE 29
The Presidium of the Supremo Soviet of the Uz-
bek S.S.R. is accountable to the Supreme Soviet of
the Uzbek S.S.R. for all its activities.
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ARTICLE 30
The Presidium of the Supreme Soviet of the Uz-
bek S.S.R.:
a) Convenes the sessions of the Supreme Soviet
of the Uzbek S.S.R.;
b) Gives interpretations of the laws of ihe Uz-
bek S.S.R. and issues decrees:
c) Conducts nation-wide polls (referendums);
d) Annuls decisions and orders of the Council
of Ministers of the Uzbek S.S.R., of the Council of
Ministers of the Kara-Kalpak A.S.S.R., and likewise
decisions and orders of the regional Soviets of
Working People's Deputies if they do not conform
to law;
e) In the intervals between sessions of the Su-
preme Soviet of the Uzbek S.S.R., releases and ap-
points Ministers of the Uzbek S.S.R., on the recom-
mendation of the Chairman of the Council of Min-
isters of the Uzbek S.S.R., subject to subsequent
confirmation by the Supreme Soviet of the Uzbek
S.S.R.;
f) Institutes and confers titles of honour of the
Uzibek S.S.R. and awards honorary testimonials of
the Supreme Soviet of the Uzbek S.S.R.;
g) Exercises the right of pardoning citizens con-
victed by judicial organs of the Uzbek S.S.R.:
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h) Appoints and recalls diplomatic represent-
atives of the Uzbek S.S.R. to foreign states;
i) Receives the letters of credence and recall of
diplomatic representatives accredited to it by for-
eign states.
ARTICLE 31
The Supreme Soviet of the Uzbek S.S.R. elects
a Chairman of the Supreme Soviet of the Uzbek
S.S.R. and two Vice-Chairmen.
ARTICLE 32
The Chairman of the Supreme Soviet of the Uz-
bek S.S.R. presides at the sittings of the Supreme
Soviet of the Uzbek S.S.R. and has charge of the
conduct of its business and proceedings.
ARTICLE 33
The Supreme Soviet of tile Uzbek .S.S.R, elects
a Credentials Committee to verify the credentials
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of the members of the Supreme Soviet of the
liz-
hek S.S.R.
On the report of the Credentials Committee, the
Supreme Soviet of the Uzbek S.S.R. decides wheth-
er to recognize the credential; of deputies or to
annul their election.
ARTICLE 34
The Supreme Soviet of the Uzbek S.S.R.. when
it deems necessary, appoints commissions of inves-
tigation and audit on any matter.
It is the duty of all institutions and officials to
comply with the demands of such commissions and
to submit to them all necessan materials and doc-
uments.
ARTICLE 35
A member of the Supreme Soviet of the Uzbek
S.S.R. may not be prosecuted or arrested kkithout
the consent of the Supreme Soviet of the Uzbek
S.S.R., or, when the Supreme Soviet of the Uzbek
S.S.R. is not in session, without the consent of
the Presidium of the Supreme Soviet of the Uzbek
S.S.R.
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ARTICLE 36
On the expiration of the term of office of the
Supreme Soviet of the Uzbek the Presidium
of the Supreme Soviet of the Uzbek S.S.R. retains
its powers until the newly-elected Supreme Soviet
of the Uzbek S.S.R. shall have formed a new Pre-
sidium of the Supreme Soviet .of the Uzbek S.S.R.
ARTICLE 37
On the expiration of the term of office of the
Supreme Soviet of the Uzbek S.S.R., the Presidium
of the Supreme Soviet of the Uzbek S.S.R. orders
new elections to he held within a period not ex-
ceeding two months from the date of expiration
of the term of office of the Supreme Soviet of the
Uzbek S.S.R.
ARTICLE 38
The newly-elected Supreme Soviet of the Uzbek
S.S.R. is convened by the outgoing Presidium, of
the Supreme Soviet of the Uzbek S.S.R. not later
than three months after the elections.
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ARTICLE 39
Sessions of the Supreme Soviet of the Uzbek
S.S.R. are convened by the Presidium of the Su-
preme Soviet of the Uzbek S.S.R. twice a year.
,Extraordinary sessions of the Supreme Soviet of
the Uzbek S.S.R. are convened .at its discretion or
an the demand of one-third of the deputies to the
Supreme Soviet.
ARTICLE 40
The Supreme Soviet of the Uzbek S.S.R. ap-
points the Government of the Uzbek S.S.R., namely,
the Council of Ministers of the Uzbek S.S.R.
ARTICLE 41
Laws, as well as decrees and explanations of the
Presidium of the Supreme Soviet of the Uzbek
S.S.R. and decisions and orders of the Council of
Ministers of the Uzbek S.S.R. are published in the
Uzbek and Russian languages, and for the Kara.
Kalpak A.S.S.R. also in the Kara-Kalpak language,
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CIIAP TER IV
THE ORGANS
OF STATE ADMINISTRATION
OF THE UZBEK SOVIET
SOCIALIST REPUBLIC
ARTICLE 42
The highest executive and administrative or-
gan of state power of the Uzbek ,S.S.R, is the
Council of Ministers of the Uzbek S.S.R.
ARTICLE 4,3
The Council of Ministers of the Uzbek S.S.R. is
responsible and accountable to the Supreme So.
viet of the Uzbek S.S.R., or, in the intervals be-
tween sessions of the Supreme Soviet of the Uzbek
S.S.R., to the Presidium of the Supreme Soviet of
the Uzbek S.S.R.
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ARTICLE 44
The Council of Ministers of the Uzbek S.S.R.
issues decisions and orders on the basis and in
pursuance of the laws of the U.S.S.R. and the
Uzbek S.S.R., and of the decisions and orders of
the Council of Ministers of the U.S.S.R., and ver-
ifies their execution.
ARTICLE 15
Decisions and orders of the Council of Minis-
ters of the Uzbek S.S.R. are binding throughout
the territory of the Uzbek S.S.R.
ARTICLE 46
The Council of Ministers of the Uzbek S.S.R.:
a) Coordinates and directs the work of the Min-
istries of the Uzbek S.S.R. and of other institu-
tions under its jurisdiction; coordinates and verifies
the work of the authorized representatives of the
all-Union Ministries;
b) Adopts- measures to cart) out the national.
economic plan;
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c) Adopts measures to' turni sTatt.?Rg
budgets of the. Uzbek S.S.R.;
ti) Adopts measures for the maintenance of pub-
lic order, for the protection of the interests of the
state, and for the safeguarding of the rights of
citizens;
e) Directs and verifies the work of the Council
of Ministers of the Kara-Kalpak A.S..S.R.; directs
and verifies the work of the Executive Commit-
tees of the regional Soviets of Working People's
D epu ties;
f) Sets up, whenever necessary, special Commit-
tees and Central Administrations under the Cou.n.
cil of Ministers of the Uzbek S.S.R. for economic
and cultural affairs;
g) Exercises guidance in the sphere of the rela-
tions of the Uzbek .S.S.R. with foreign states, on
the basis of the general procedure established by
the U.S.S.R. governing the relations of Union Re-
publics with foreign states;
h) Directs the [organization of the military for-
mations of the Uzbek S.S.R.
ARTICLE 47
The Council of Ministers of the Uzbek S.S.R.
has the right to annul [decisions and orders of Exec-
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utive LommIttees of regional Soviets of Work-
ing People's Deputies and to suspend decisions
and orders of the Council of Ministers of the.
Kaia-Kalpak A.SS.R., and decisions and orders
of regional Soviets of Working People's Dep-
uties.
The Council of Ministers of the Uzbek S.S.R.
has the right to annul orders and instructions of
Ministers of the Uzbek S.S.R.
ARTICLE /18
The Council of Ministers of the Uzbek S.S.R. is
appointed by the Supreme Soviet of the 'Uzbek S.S.R.
and consists of:
The Chairman of the Council of Ministers of
the Uzbek S.S.R.;
The Vice-Chairmen of the Council of Ministers
of the Uzbek S.S.R.;
The Chairman of the State Planning Conuni,z-
sion of the Uzbek S.S.R.;
The Ministers of the Uzbek S.S.R.;
The Chief of the Arts Administration;
The Chairman of the Committee on Cultural and
Educational Institutions.
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ARTICLE 49
The Ministries of the Uzbek S.S.R. arc either
Union-Republican or Republican Ministries.
ARTICLE 50
The following Ministries of the Uzbek .S.S.R. are
Union-Republican Ministries of the Uzbek S.S.R.:
The Ministry of the Grocery Supplies Industry
The Ministry of Internal Affairs
The Ministry of the Armed Forces
The Ministry of State Control
The Ministry of State Security
The. Ministry of Public Health
The Ministry of Foreign Affairs
The Ministry of Cinematography
The Ministry of Light Industry.
The Ministry of Forestry
The Ministry of the Meat and Dairy industry
The Ministry of the Food Industry
The Ministry of the Building Materials Industry
The Ministry of Apiculture
The Ministry of State Farms
The Ministry of the Textile Industry .
The Ministry of Trade
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the IVimistry of t'inance
The Ministry of Justice.
ARTICLE 51
The following '111.inistrie.; of the Uzbek S.S.R.
are Republican Ministries:
The Ministry of Motor Transport
The Ministry of Irrigation
The Ministry of the Municipal Economy
The Ministry of Local Industry
The Ministry of Education
The Ministry of Social Maintenance.
ARTICLE 52
The Ministers of the Uzbek S.S.R. direct the
branches of state administration which come within
the jurisdiction of the Uzbek S.S.R.
ARTICLE 53
The Ministers of the Uzbek S.S.R., within the
limits of the jurisdiction of their respective Min-
istries, issue orders and instructions on the basis
32:
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and in pursuance of the Laws of the U.S.S.R. and
the Uzbek S.S.R., of the decisions and orders of
the Council of Ministers of the U.S.S.R. and the
Council of Ministers of the Uzb,ek S.S.R. and of
the orders and instructions of ,the Union-Repub-
lican Ministries of the U.S.S.R., and verify their
execution.
ARTICLE 54
Each Union-Republican Ministry of the Uz-
bek S.S.R. directs the branch of slate administra-
tion of the Uzbek S.S.R. entrusted to it, with the
exception of only a limited number of enterprises,
according to a list confirmed by the Presidium of
the Supreme Soviet of the U.S.S.R., and is subor-
dinate both to the Council of Ministers of the Uzbek
S.S.R. and the corresponding Union-Republican
Ministry of the U.S.S.R.
ARTICLE 55
Each Republican Ministry of the Uzbek S.S.R.
directs the branch of state administration entrust-
ed to it and is directly subordinate to the Council
of Ministers of the Uzbek S.S.R.
3-149 33
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ARTICLE 56
The Government of the Uzbek S.S.R. or a Min.
ister of the Uzbek S.S.R. to whom a question of
a member of the Supreme Soviet of the Uzbek
S.S.R. is addressed must give a verbal or written
reply in the Supreme Soviet of the Uzbels S.S.R.
within a period not exceeding three days.
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C 11 A 11 '1' E R V
THE HIGHER ORGANS
OF STATE POWER
OF THE KARA-KALPAK
AUTONOMOUS
SOVIET SOCIALIST REPUBLIC
ARTICLE 57
The highest organ of state power in the Kara-
Kalpak A.S.S.R. is the Supreme Soviet of the
Kara-Kalpak A.S.S.R.
ARTICLE 58
The Supreme Soviet of the Kara?Kalpak Auton-
omous Soviet Socialist Republic is elected by the
citiiens of the Republic for a term of four years
on the basis of representation established by the
Constitution of the Kara-Kalpak A.S.S.R,
3* 35
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ARTICLE 59
The Supreme Soviet of the Kara-Kalpak Auton-
omous Soviet Socialist Republic is the sole legis-
lative organ of the Kara-Kalpak A.S.S.R.
ARTICLE 60
The Supreme Soviet of the Kara-Kalpak Auton-
omous Soviet Socialist Republic:
a) Adopts the Constitution of the Kara=Kalpak
A.S.S.R. and submits it to the Supreme Soviet of
the Uzbek S.S.R. for its confirmation;
b) Establishes the division into districts of
the Autonomous Republic and the boundaries of
districts and cities, and submits them to the
Supreme Soviet of the Uzbek S.S.R. for confirma-
tion;
c) Approve:, the national-economic plan and
budget of the Kara-Kalpak A.S.S.R. and also the
report on the fulfilment of the budget;
d) Institutes and confers titles of honour of the
Kara-Kalpak A.S.S.R. and awards honorary testi-
monials of the Supreme Soviet of the Kara-Kalpak
A.S.S.R.
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ARTICLE 61
The Supreme Soviet of the Kara-Kalpak A.S.S.R.
elects the Presidium of the Supreme Soviet of the
Kara-Kalpak A.S.S.R., consisting of a President of
the Presidium of the Supreme Soviet of the Kara-
Kalpak A.S.S.R., Vice-Presidents of the Presidium,
a Secretary of the Presidium and members of the
Presidium of the Supreme Soviet of the Kara-Kal-
pak
ARTICLE 62
The Presidium of the Supreme Soviet of the
Kara-Kalpak A.S.S.R, is accountable to the Su-
preme Soviet of the Kara-Kalpak A.S.S.R.
ARTICLE 63
The term of office of the Presidium of the
Supreme Soviet of the Kara-Kalpak A.S.S.R.
is fixed by the Constitution of the Kara-Kalpak
A.S.S.R.
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ARTICLE 64
The Supreme Soviet of the Kara-Kalpak A.S.S.R.
elects a Chairman of the Supreme Soviet of the
Kara-Kalpak A.S.S.R. and Vice-Chairmen to con-
duct its sittings.
ARTICLE 65
The Supreme Soviet of the Kara-Kalpak A.S.S.R,
appoints the Government of the Kara-Kalpak
Autonomous Soviet Socialist Republic, namely, the
Council of Ministers of the Kara-Kalpak A.S.S.R.
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THE ORGANS
OF STATE ADMINISTRATION
OF THE KARA-KALPAK
AUTONOMOUS
SOVIET SOCIALIST REPUBLIC
ARTICLE 66
The highest executive and administrative organ
of state power of the Kara-Kalpak A.S.S.R. is the
Council of Ministers of the Kara-Kalpak A.S.S.R.
ARTICLE 67
The Council of Ministers of the Kara-Kalpak
A.S.S.R. is responsible and accountable to the Su-
preme Soviet of the Kara-Kalpak A.S.S.R., or, in
the intervals between sessions of the Supreme So-
viet of the Kara-Kalpak A.S.S.R., to the Presid-
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:um of the Supreme Soviet at the Icara-Kalpak
A.S.S.R.
ARTICLE 68
The Council of Ministers of the Kara-Kalpak
A.S.S.R. is appointed by the Supreme Soviet of :the
Kara-Kalpak Autonomous Soviet Socialist Repub-
lic and consists of:
The Chairman of the Council of Ministers of the
Kara-Kalpak A.S.S.R.;
The Vice-Chairmen of the Council of Ministers;
The- Chairman of the State Planning Commis-
sion;
The Ministers, namely:
The Minister of Internal Affairs
The Minister of State Security
The Minister of Public Health
The Minister of Municipal Economy
The Minister of Local Industry
The Minister of Education
The Minister of Agriculture
The Minister of Social Maintenance
.The Minister of Trade
The Minister of Finance
- The Minister of justice.
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The Chiefs of Administrations, namely:
The Roads Administration
The Cinematography Administration
The Arts Administration
The Cultural and Educational Institutions Ad-
ministration.
ARTICLE 69
The Council of Ministers of the Kara-Kalpak
A.S.S.R. issues decisions and orders on the basis
and in pursuance of the laws csf the U.S.S.R., the
Uzbek S.S.R. and the Kara-Kalpak A.S.S.R. and
of the decisions and orders of the Council of Min-
isters of the 'U.S.S.R. and the Uzbek S.S.R., and
verifies their execution.
ARTICLE 70
- The Council of Ministers of the Kara-Kalpak
A.S.S.R, has the right to annul orders and instruc-
tions of Ministers of the Kara-Kalpak .A.S.S.R.,
decisions and orders of Executive Committees of
-city and district Soviets of Working People's Dep-
uties within the territory of the Kara-Kalpak
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A.S.S.R., and likewise to suspend the decisions and
orders of city and district Soviets of Working
People's Deputies,
ARTICLE 71
The Ministers of the Kara-Kalpak A.S.S.R. di-
rect the branches of state administration which
come within the jurisdiction of the Kara-Kalpak
A.S.S.R., in accordance with the Constitution of the
Uzbek S.S.R. and the Kara_Kalpak A.S.S.R.
ARTICLE 72
The Ministers of the Kara-Kalpak A.S.S.R., with-
in the limits of the jurisdiction of their respective
Ministries, issue orders and instructions on the ba-.
sis and in pursuance of the laws of the U.S.S.R.,
the Uzbek S.S.R. and the Kara-Kalpak A.S.S.R.,
of the .decisions and orders of the Council of
Ministers of the U.S.S.R., the Uzbek S.S.R.
and the Kara-Kalpak A.S.S.R., and of the orders
and instructions of he Ministers of the Uzbek
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ARTICLE 73
Each Ministry of the Kara-Kalpak A.S.S.R. di-
rects the branch of state administration entrusted
to it and is subordinate to both the Council of
Ministers of the Kara-Kalpak A.S.S.R. and the
respective Ministry of the Uzbek S.S.R.
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CHAP TER VII
11:'T
THE LOCAL ORGANS
OF STATE POWER
ARTICLE 74
The organs of state power in regions, districts,
cities, settlements, kishlaks and auls are the Soviets
of Working People's Deputies.
ARTICLE 75
The Soviets of Working People's Deputies of
regions, districts, cities, districts in big cities, set-
tlements, kishlaks and auls are electect In the work-
ing people of the respective regions. districts.
cities, settlements, kishlaks and auls for a term of
two years.
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ARTICLE 76
The Soviets of Working People's Deputies (of
regions, districts, cities, settlements, kishlaks and
auls) direct cultural, political and ,econamic affairs
on their territory, draw up the local budgets, direct
the Work of the organs of administration subordi-
nate to them, ensure the maintenance of public or-
der, assist in strengthening the defensive capacity
of the country and ensure the observance of the
laws and the protection of the rights of citizens.
ARTICLE 77
The Soviets of Working People's Deputies adopt
decisions and issue orders within the limits of the
powers vested in them by the laws of the U.S.S.R.,
the Uzbek S.S.R. and the KaranKalpak A.S.S.R.
ARTICLE 78
The .executive and administrative organ. of the
Soviet .of Working People's 'Deputies of a region,
district or city is the Executive Committee elected
by the Soviet Of Working People's Deputies ?con.
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sisting of a Chairman, Vice Chairmen a Secretary
and members.
ARTICLE 79
The executive and administrative organ of the
Soviet of Working People's Deputies of a settle-
ment, kishlak or aul having a population of no
more than 750 is the Chairman, the Vice-Chairman
and the Secretary elected by the Soviet of Working
People's. Deputies.
ARTICLE 80
The executive and administrative organ of the
Soviet of Working People's Deputies of a settle-
ment, kishlak or au] having a population of more
than 750 is the Executive Committee consisting of
a Chairman, a Vice-Chairman, a Secretary and
members elected by the Soviet of Working Peo.
pie's Deputies.
ARTICLE 8]
The executive organs of the Soviets of Working
People's Deputies are directly accountable both to
the Soviets of Working People's Deputies which
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elected them and to the executive organs of the
respective superior Soviets of Working People's
Deputies.
ARTICLE 82
The Executive Committee of the Soviet of Work-
ing People's Deputies (of a region, district, city,
settlement, kishlak or aul) exercises guidance in
cultural, political and economic affairs within its
territory on the basis of decisions taken by the
corresponding Soviet of Working People's Depu-
ties and superior state organs.
ARTICLE 83
Sessions of regional Soviets of Working People's
Deputies are convened by their respective Execu-
tive Committees not less than four times a year.
ARTICLE 84
Sessions of district Soviets of Working People's
Deputies are convened by their respective Execu-
tive-Committees not less than six times a year.
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ARTICLE 85
Sessions of Soviets of Working People's Deputies
of cities, settlements, kishlalcs and auls are con-
vened by their respective executive organs not less
than once a month.
ARTICLE 86
The Soviets of Working People's Deputies of
regions, districts and cities each elect a Chairman
and a Secretary for the duration of their sessions
to conduct the sittings of the sessions.
r.
ARTICLE 87
The Chairman of a settlement, kishlak or aid
Soviet convenes the settlement. kishlak or mil So-
viet and conducts its sittings.
ARTICLE 88
The superior Executive Committees of the Soviets
of Working People's Deputies have the right to
annul decisions and orders of inferior Execu-
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tive Committees and to suspend decisions and
orders of inferior Soviets of Working People's
Deputies.
ARTICLE 89
The superior Soviets of Working People's Dep-
uties have the right to annul decisions and orders
of inferior Soviets of Working People's Deputies
and of their Executive Committees.
ARTICLE 90
The regional Soviets of Working People's Dep-
uties set up the following Departments of their
Executive Committees:
a Department of :Motor Transport
a Department of Irrigation
a Department of Roads
a Department of Public Health
a Department of the Municipal Economy
a Department of Cultural and Educational
Work
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a Department of Local Industfy-
a Department of Public Education
a General Department
a Department of Social Maintenance
a Department of Arts
a Department of Trade
a Department of Finance;
and the following Administrations:
a Cinematographic Administration and
an Agricultural Administration;
a Planning Commission
a Cadres Sector under the Chairman of the Ex-
ecutive Committee,
and, in addition, in accordance with the specific
features of the economy of the Region, the re-
gional Soviets of Working People's Deputies set
up the following Departments or Administrations,
subject to confirmation by the Union-Republican
Ministries of Light Industry, Forestry, the Meat
and Dairy Industry, the Food Industry and the
Textile Industry:
of Light Industry
of Forestry
of the Meat and Dairy Industry
of the Food Industry
of the Textile Industry.
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ARTICLE 91
The all-Union Ministries and likewise the Min-
istry of Internal Affairs, the Ministry of State
Security and the Ministry of Justice set up their
administrations under the regional Soviets of Work-
ing People's Deputies, in accordance with the con-
ditions of the region and on the basis of the laws
of the U.S.S.R. and the Uzbek S.S.R.
ARTICLE 92
The Departments and Administrations of the
Executive Committees of the regional Soviets of
Working People's Deputies are subordinate in their
activities both to the corresponding regional So-
viets of Working People's Deputies and their Ex-
ecutive Committees and to the corresponding Minis-
tries of the Uzbek S.S.R.
ARTICLE 93
The district Soviets of Working People's Depu-
ties set up tfic following Departments of their
Executive Committees:
a Department of Irrigation
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a Department of Roads
Department of Public Health
a Department of Cultural and Educational Work
a Department of Public Education
?a General Department
a Department of Agriculture
a Department of Social Maintenance
a Department of Trade
a Department of Finance
a Planning Commission
a Cadres Sector under the Chairmen of the
Executive Committees,
and, in addition, in accordance with the specific
features of the economy of the district, the district
Soviets of Working People's Deputies set up the
following Departments, subject to confirmation by
the Presidium of the Supreme Soviet of the Uzbek
SSR.:
a Department of Motor Transport
a Department of the Municipal Economy
a Department of Local Industry.
ARTICLE 94
The Ministry of Internal Affairs and the Min-
istry of State Security set up their Departments
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under the district Soviets of Working People'b
Deputies, in accordance with the conditions of the
district, on the basis of the laws of the U.S.S.R.
and the Uzbek S.S.R. and subject to confirmation
by the Presidium of the Supreme Soviet of the
Uzbek S.S.R.
ARTICLE 95
The Departments of the Executive Committees
of the district Soviets of Working People's Depu-
ties are subordinate in their activities both to the
district Soviets of Working People's Deputies and
their Executive Committees and to the 'correspond-
ing Departments of the superior Executive Com-
mittees of the Soviets of Working People's Depu-
ties.
ARTICLE 96
The city Soviets of Working People's Deputies
set up the following Departments of their Execu-
tive Committees:
a Department of Public Health
a Department of the Municipal EConomy
a Department of Cultural and Educational Work
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a Department of Public Education -
a General Department
a Department of Social Maintenance
a Department of Trade
a Department of Finance
a Planning Commission
a Cadres Sector under the Chairman of the
Executive Committee,
and, in addition, in accordance with the ,..peeific
features of the city's industry and its municipal
and suburban economy,
a Department of Local Industry and
a Department of Agriculture.
ARTICLE 97
The Departments of the Executive Committees
of the city Soviets of Working People's Deputies
are subordinate in their activities both to the re-
spective city Soviets of Working People's Deputies
and their Executive Committees and to the corre-
sponding Departments of the Executive Commit-
tees of the regional Soviets of Working People's
Deputies.
The Departments of the Executive Committee
of the Tashkent City Soviet of Working People's
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or male in t eir activities both
to the Tashkent Soviet of Working People's Dep-
uties and its Executive Committee and to the
corresponding Ministry of the Uzbek S.S.R. di.
reedy.
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CHAPTER VIII
THE BUDGET
OF THE UZBEK SOVIET
SOCIALIST REPUBLIC
ARTICLE 98
The state budget of the Uzbek S.S.R. is drawn
up by the Council of Ministers of the Uzbek S.S.R.
and submitted by it to the Supreme Soviet of the
Uzbek S.S.R. for its approval.
Upon its approval by the Supreme Soviet of the
Uzbek S.S.R. the state budget of the Uzbek S.S.R.
is published for general information.
ARTICLE 99
The report on the fulfilment of the state budg-
et of the Uzbek S.S.R. is approved by the Supreme
Soviet of the Uzbek S.S.R. and published for
general information.
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ARTICLE 100
The budget of the Kara-Kalpak A.S.S.R. and
the local budgets of the regional, district, city,
settlement, kishlak and aul Soviets include the rev-
enues from the local economy, deductions from
the state revenues collected within their territory
and likewise receipts from local taxes and imposts
in amounts fixed' by the laws of the 'U.S.S.R. and
the Uzbek S.S.R.
ARTICLE 101
The Supreme Soviet of the Uzbek S.S.R. elects
a Budget Commission, which reports its conclu-
sion's on the state budget of the Uzbek S.S.R. to
the Supreme Soviet.
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CHAP TER IX
THE COURTS AND
THE PROCURATOR'S OFFICE
ARTICLE 102
In the Uzbek S.S.R. justice is administered by the
Supreme Court of the Uzbek S.S.R., the Supreme
Court of the Kara-Kalpak A.S.S.R., the Regional
Courts, the Special Courts of the U.S.S.R. established
by decision of the Supreme Soviet of the U.S.S.R.,
and the People's Courts.
ARTICLE 103
In all Courts cases are tried with the participa-
tion of people's assessors, except in cases specially
provided for by law.
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ARTICLE 104
The Supreme Court of the Uzbek S.S.R. is the
highest judicial organ of the Uzbek S.S.R. The
Supreme Court of the Uzbek S.S.R. is charged with
the supervision of the judicial activities of all the
judicial organs of the Uzbek S.S.R. and the Kara-
Kalpak A..S.S.R.
ARTICLE 105
The Supreme Court of the Uzbek S.S.R. is
elected by the Supreme Soviet of the Uzbek S.S.R.
for a term of five years.
ARTICLE 106
The Supreme Court of the Kara-Kalpak A.S.S.R.
is elected by the Supreme Soviet of the Kara-Kalpak
A.S,S.R. for a term of five years.
ARTICLE 107
Regional Courts are elected by the respective
regional Soviets of Working People's Deputies for
a terra Of five years.
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ARTICLE 108
People's Courts are elected by the citizens of the
districts on the basis of universal, direct and equal
suffrage by secret ballot for a term of three years.
ARTICLE 109
Judicial proceedings in the Uzbek S.S.R. are
conducted in the Uzbek language, and in the Kara-
Kalpak A.S.S.R. in the Kara-Kalpak language, and
in rural districts and in districts of cities where
the majority of the population is Russian or Kazakh
or Tajik or Kara-Kalpak, in the Russian, Kazakh,
Tajik or Kara-Kalpak language respectively, persons
not knowing the language of the majority of the
population of the district being guaranteed the op-
portunity of fully acquainting themselves with the
material of the case through an interpreter and
likewise the right to use their own language in court
ARTICLE 110
In all Courts of the Uzbek S.S.R. cases are heard
in public, unless otherwise provided for by law,
and the accused is guaranteed the right to defence.
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ARTICLE 111
Judges are independent and subject only to
the law.
ARTICLE 112
Supreme supervisory power to ensure the strict
observance of the law by all Ministries and institu-
tions subordinated to them, as well as by officials
and citizens within the territory of the Uzbek S.S.R.
generally, is exercised by the Procurator-General
of the U.S.S.R. directly and also through the Procu-
rator of the Uzbek S.S.R.
ARTICLE 113
The Procurator of the Uzbek S.S.R. is appointed
by the Procurator-General of the U.S.S.R. for a term
of five years.
ARTICLE 114
The Procurator of the Kara-Kalpak A.S.S.R.
and likewise the Procurators of the regions are
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appointed by the Procurator-General of the U.S.S.R.
for a term of five years.
ARTICLE 115
District and city procurators are appointed by the
Procurator of the Uzbek S.S.R., subject to the
approval of the Procurator-General of the U.S.S.R..,
for a term of five years.
ARTICLE 116
The organs of the Procurator's Office perform
their functions independently of any local organs
whatsoever, being subordinate solely to the Procura-
tor-General of the U.S.S.R.
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CIIAP TER X
FUNDAMENTAL RIGHTS
AND DUTIES OF CITIZENS
ARTICLE 117
Citizens of the Uzbek S.S.R. have the right to
work, that is, the right to guaranteed employment
and payment for their work in accordance with its
quantity and quality.
The right to work is ensured by the socialist
organization of the national economy, the steady
growth of the productive forces of Soviet society,
the elimination of the possibility of economic crises,
and the abolition of unemployment.
ARTICLE 118
Citizens of the Uzbek S.S.R. have the right to
rest and leisure.
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The right to rest and leisure is ensured by the
establishment of an eight-hour day for factory and
office workers, the reduction of the working day to
seven or six hours for arduous trades and to four
hours in shops where conditions of work are particu
larly arduous, by the institution of annual vacations
with full pay for factory and office workers, and by
the provision of a wide network of sanatoria, rest
homes and clubs for the accommodation of the work-
ing people.
ARTICLE 119
Citizens of the Uzbek S.S.R. have the right to
maintenance in old age and also in case of sickness
or disability.
This right is ensured by the extensive develop-
ment of social insurance of factory and office
workers at state expense, free medical service for
the working people, and the provision of a wide
network of health resorts for the use of the working
people.
ARTICLE 120
Citizens of the Uzbek S.S.R. have the right to
education.
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This right is ensured by universal and compulsory
elementary education; by free education up to and
including the seventh grade; by a system of state
stipends for students of higher educational establish-
ments who excel in their studies; by instruction in
schools being conducted in the native language, and
by the organization in the factories, state farms,
machine and tractor stations and collective farms
of free vocational, technical and agronomic train-
in.g for the working people.
ARTICLE 121
Women in the Uzbek S.S.R. are accordeld: equal.
rights with men in all spheres of economic, govern-
ment, cultural, political and other public activity.
The possibility of exercising these rights, is
ensured by women being accorded an equal right
with men to work, payment for work, rest and lei-
sure, social insurance and education, by state pro-
tection of the interests of mother and child, state
aid to mothers of large families and unmarried
mothers, maternity leave with full pay, and the
provision of a wide network of maternity homes,
nurseries and kindergartens.
Resistance to the actual emancipation of women,
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(giving minors in marriage, bride purchase, organ-
izing resistance to the drawing of women into study,
Into agricultural or industrial production, into
the governing of the state or into social or political
activity) is punishable by law.
ARTICLE 122
Equality of rights of citizens of the Uzbek S.S.R.,
irrespective of their nationality or race, in all
spheres of economic, government, cultural, political
and other public activity, is an indefeasible law.
Any direct or indirect restriction of the rights
of, or, conversely, the establishment of any direct
or indirect privileges for, citizens on account of
their race or nationality, as well as any advocacy
of racial or national exclusiveness or hatred and
contempt, is punishable by law.
ARTICLE 123
In order to ensure the citizens freedom of con-
science, religious institutions in the Uzbek S.S.R.
are separated from the state, and the school from
the masque and other religious institutions. Freedom
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of religious worship and freedom of anti-religious
propaganda, is recognized for all citizens.
ARTICLE 124
In conformity with the interests of the working
people, and in order to strengthen the socialist sys-
tem, the citizens of the Uzbek S.S.R. are guaranteed
by law:
a) freedom of speech;
b) freedom of the press;
c) freedom of assembly, including the holding
of mass meetings;
d) freedom of street processions and demonstra-
tions.
These civil rights are ensured by placing at the
disposal of the working people and their organiza-
tions printing presses, ?stocks of paper, public
buildings, the streets, communications facilities and
other material requisites for the exercise of these
rights.
ARTICLE 125
in conformity with the interests of the working
people, and in order to develop the organizational
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initiative and political activity of the masses of the
people, citizens of the Uzbek S.S.R. are guaranteed
the right to unite in public organizations: trade
unions, cooperative societies, youth organizations,
sport and defence organizations, cultural, technical
and scientific societies; and the most active and
politically-conscious citizens in the ranks of the
working class and other sections of the working
people unite in the Communist Party of the Soviet
Union (Bolsheviks), which is the vanguard of the
working people in their struggle to strengthen
and develop the socialist system and is the leading
core of all organizations of the working people,
both public and state.
ARTICLE 126
Citizens of the Uzbek S.S.R. are guaranteed in-
violability of the person. No person may be placed
under arrest except by decision of a court or with
the sanction of a procurator.
ARTICLE 127
The inviolability of the homes of citizens and
privacy of correspondence are protected by law.
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ARTICLE 128
The Uzbek S.S.R. affords the right of asylum to
foreign citizens persecuted for defending the interests
of the working people, or for scientific activities,
or for struggling for national liberation.
ARTICLE 129
It is the duty of every citizen of the Uzbek S.S.R.
to abide by the Constitution of the Uzbek Soviet
Socialist Republic, to observe the laws, to maintain
labour discipline, honestly to perform public duties,
and to respect the rules of socialist intercourse.
ARTICLE 130
It is the duty of every citizen of the Uzbek S.S.R.
to safeguard and fortify public, socialist property
as the sacred and inviolable foundation of the Soviet
system, as the source of the wealth and might of the
country, as the source of the prosperity and
culture of all the working people.
Persons committing offences against public, so.
cialist property are enemies of the people.
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ARTICLE 131
Universal military service is law.
- Military service in the Armed Forces of the
U.S.S.R. is an honourable duty of the citizens of
the Uzbek S.S.R.
ARTICLE 132
To defend the country is the sacred duty of every
citizen of the Uzbek S.S.R. Treason to the mother-
land?violation of the oath of allegiance, desertion
to the enemy, impairing the military power of the
state, espionage?is punishable with all the severity
of the law as the most heinous of crimes.
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THE ELECTORAL SYSTEM
ARTICLE 133
Members of all Soviets of Working People's
Deputies?of the Supreme Soviet of the Uzbek S.S.R.,
of the Supreme Soviet of the Kara.Kalpak A.S.S.R.
and of the regional, district, city, settlement, kishlak
and aul Soviets of Working People's Deputies?are
chosen by the electors on the basis of universal,
equal and direct suffrage by secret ballot.
ARTICLE 134
Elections of deputies are universal: all citizens
of the Uzbek S.S.R. who have reached the age of
eighteen, irrespective of race or nationality, sex,
religion, education, domicile, social origin, property
status or past activities, have the right to vote in
the election of deputies and to be elected, with the
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been convicted by a court of law and whose sen-
tences include deprivatio,n of electoral rights.
Every citizen of the Uzbek S.S.R. who has reached
the age of twenty-one is eligible for election to the
Supreme Soviet of the Uzbek S.S.R. and the Supreme
Soviet of the Kara-Kalpak A.S.S.R., irrespective
of race or nationality, sex, religion, education,
domicile, social origin, property status or past
activities.
ARTICLE 135
Elections of deputies are equal: each citizen has
one vote; all citizens participate in elections on an
equal footing.
ARTICLE 136
Women have the right to elect and be elected
on equal terms with men.
ARTICLE 137
Citizens serving in the Armed Forces of the
U:S.S.R. have the right to elect and be elected on
equal terms with all other citizens.
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ARTICLE 138
Elections of deputies are direct: all Soviets of
Working People's Deputies, from kishlak, aul and
city Soviets of Working People's Deputies to the
Supreme Soviet of the Uzbek S.S.R., are elected
by the citizens by direct vote.
ARTICLE 139
Voting at elections of ,cleputies is secret.
ARTICLE 140
Candidates are nominated by election districts.
The right to nominate candidates is secured
to public organizations and societies of the work-
ing people: Communist Party organizations, trade
unions, cooperatives, youth organizations and
cultural societies.
ARTICLE 141
? It is the duty of every deputy to report to his
electors on his work and on the work of his
Soviet of Working People's Deputies, and he may
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of the electors in the manner established by law.
ARTICLE 142
Elections to the Soviets of Working People's
Deputies of the Urzbek S.S.R. are held by election
districts on the following bases:
in elections to regional Soviets?one deputy
for not less than 4,000 and not more than 25,000
of the population, depending upon the size of the
region;
in elections to district Soviets?one deputy for
every 1,000 of the population;
in a 'district whose population does not exceed
25,000, twenty-fine deputies are elected;
in a district whose population exceeds 60,000,
not more than sixty deputies are elected;
in elections to city Soviets or city district Soviets
?one deputy for not less than 350 and. not more
than 500 of the population, depending upon the
size of the city or city district;
in a city or city district whose population does
not exceed 12,000, thirty-five deputies are elected;
in elections to the Tashkent City Soviet?one
deputy for every 900 of the population;
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in elections to settlement, kishlak or aul Soviets
?one .deputy for every 100 of the population; in
a settlement, kishlak or aul whose population does
not exceed 1,000, nine deputies are elected, and
where the population exceeds 2,500, not more than
twenty-five deputies.
The basis of representation for each regional,
district, city, settlement, kishlak and raid Soviet
of Working People's Deputies is fixed in the
Ordinance Concerning Elections to Regional,
District, City, Settlement, Kishlak and Au! Soviets
of Working People's Deputies of the Uzbek S.S.R.,
within the range of the bases of representation
indicated in the present- article.
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C A P T ER XII
ARMS, FLAG, CAPITAL
ARTICLE 143
The arms of the Uzbek Soviet Socialist Republic
are an urak (sickle) and hammer of silver placed
crosswise, handles down, in the golden rays of a
rising sun against a white background and sur-
rounded by a wreath consisting, on the right, of
ears of wheat and, on the left, of cotton sprigs
bearing flowers and open bolls; beneath, between
the two halves of the wreath, lies part of a globe.
Both halves are intertwined with a red ribbon
displaying the inscription: "Workers of All Coun-
tries, Uniter?on the right in the Uzbek language,
and on the left in the Russian language; below,
on the bow of the ribbon, are the initial letters
"Uz.S.S.R." in gold; above the ribbon, at the top
of the arms, is a red gold-rimmed five-pointed
star,
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ARTICLE 144
The state flag of the Uzbek Soviet Socialist
Republic is of red cloth with the following gold.
lettered inscription in the upper corner near the
staff: a) above, in Uzbek, "Uzbekiston S.S.R.,"
b) below, in Russian, "Uzbekskaya S.S.R."
The natio of the width to the length is 1:2.
ARTICLE 145
The capital of the Uzbek Soviet Socialist Re-
public is the City of Tashkent.
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CH AP TER XIII
PROCEDURE FOR AMENDING
THE CONSTITUTION
ARTICLE 146
The Constitution of the Uzbek S.S.R. may be
amended only by decision of the Supreme Soviet of
the Uzbek S.S.R. adapted by a majority of not
less than two-thirds of the votes of the deputies
of the Supreme Soviet.
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