JPRS ID: 9211 USSR REPORT HUMAN RESOURCES

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• Content Type: REPORTS

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JPRS L/9211
24 July 1980 -
- lJ SS R Re ~ ort
p
HUMAN RESOURCES
CFOUO 5/80)
~ F~~$ FOR~IGN ~3ROADCAST 1NFORMATION SERVICE
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_ JPRS L/9211
_ 24 July 1980
- USSR REPORT
HUMAN RESQURCES
(FOUO 5/80)
CONTENTS
LABOR ~
Reasons for Formation of Personal Savings of Workers Discussed
_ (A. Zaytsev; VOPROSY EKONOMIKI, Mar 80) 1
More Mechanization Needed in Personal Farming
(V. Vasilevskiy; VOPROSY EKONOMIKI, May 80) 11 =
~ DEMOGRAPHY
Class Structure, Popu~ation Growth Figures Given
(SSSR V TSIFRAK~i, 1980) 18
- a- LIII - USSR - 38c FOUO]
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LABOR
REASONS FOR FORMATION OF PERS6NAL SAVINGS OF WQRKERS DISCUSSID
Moscow VOPROSY EKONOMIKI in Russian No 3, Mar 80 pp 5~+-61 -
,LArticle by A. Zaytsev, Odessa: "P~:rsonal Savings of Workers Under De-
veloped Socialism'J
LTextJ Personal monetary savings of workers acquire great importance in
the system of economic relations of developed socialism. The formation of
personal savings represents a natur al economic process chaxacteristic of
both capitalist and socialist countries to the same extent, although on a
- different absolute and relative scale and with different motives. -
Despite the ob~ectivity of the processes oP formation of personal savings
under socialism a dual attitude toward them is manifested to some extent.
~ On the one hand, savings are considered a.n active paxt of the country's
fina.ncial system, which makes it possible to accelerate the rates of econ-
omic development. On the other, personal sr.,~ings are in the sphere of
some blame as the ma.nifestation of by no mean~ man's best ~ualities, that
is, a calculating nature and a tendency toward monetary accumulation. Fi-
na11y, there is the view th~.t the growth of savings is fraught with some
da.nger, which is connected with the inevitable liquidation of vast debts
on them. This precisely explains the fact that, despite the development
= of savings banks and savings in the USSR as a whole, tfle level of their
- orga.nization cannot meet modern requirements. Such a dual attitude to-
~ ward savings was based in large measure on the fact that for a long time
_ their absolute and relative scale was comparatively not big and the posi-
tive cotttribution to the development of the socialist economy made by per-
sonal savings was negligible, while their possible negative aspects could
but evoke concern.
, In the last few years the volume of personal savings has increased at
rates greatly outstripping thE growth of the basic indicators of the de-
velopment oP the socialist ecor~omy. The high rates of growth of personal
_ savings greatly outstrip the rates of growth of the national income. This
lEd to a considerable increase in their voiume in relation to the absolute
indicators of the socialist econom.y (see table 1).
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Table 1. Absolute and Relative Amounts of Personal Savings in Savings
Banks
Indicators 195~ 1960 1977 1978
Personal savi.ng~ (in billion rubles) 1.9 10.9 116.7 131.0
Personal savings (in q):
of the national income 3.6 7.5 29�0 31.0
of the personal consumpti~n fund 4.8 11.6 39.8 41.~+
of capital investments 19. 8 35 S'S 101. 9
Average amount of deposit (in rubles) 125 209 972 1005
Amouttt of per-capita deposit (in rubles) 10.6 51.2 452.7 50~+.2
- It should be noted that there was a significantincrement not only in the
' amounts of -
persona.l savings, but in the volumes of their annual increases
as well.
Table 2. Absolute a.nd Relative Amounts of Annual Increases in Personal
Savings
Indicators 1950 1960 1977 1978 _
Annual increase in savings (billion rubles) 0.3 0.9 13.7 14.4
Increase in savings (in
of the national income 0.6 0.6 3.4 3.4 -
of the personal consumption fund 0.8 1.0 4.7 ~+.5
of the volume of capital investments 3.1 2.9 11.2 11.2
Increase in savings per (in rubles):
deposit 21.0 17.2 114.2 112.7
capita 1.7 2 53.1 55
An a.nalysis of the data in the table shows the high and stable rates of
growth of personal savings both in the past and at present. The corstantly
� growing scale of personal sa~ings transforms them not on],y into an import-
_ ant economic factor, but also into an ob,ject and tool of the financial and
credit policy, whose efficient Ltilization can be a reserve durin~ the so-
lution of many problems caru7ected with the development of the socialist
econoa~y. At the same time, it should be noted that personal savings have
a grPat elasticity. In our opinion, it is not complicated to ta.ke and im-
plement measures for increasing the inflow of savings in savings banks and
on this basis to greatly increase their participation in reproduction proc-
- esses. It is also possible to limit the inflow of savings and thereby to
prevent an intensification ~P their role in economic development iY need
be. All these circumstances advance a number of problems both in terms of
theory and.practice, that is, understanding the nature of and reasons for
the formation of personal savings a.nd their place and role in the social-
ist economy.
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In the economic literature savings are usually considered the population's
personal income not used for consumer needs. In our opinion, this con- -
cept cannot be considered incorrect. However, it reflects only the ex-
ternal aspect of savings and does not give an answer to the question of
the nature of tfle relationship between savings and real reproduction proc-
esses.l It seems to us that personal savings should be considered from
differettt aspects. First of all, it is important to single out within
_ the structure of personal savings tko parts corresponding to two funda-
mentally different sources of their formation: first-- accumulated per-
sonal income; second--accumulated payments of interest on money deposits.
They axe not the same parts of the combined amount of savings both fr~m
the quantitative a.nd qualitative aspects. The population's personal in-
come, that is, wages, pensions, allowances, grants, income from private ~
subsidiary plots and so forth, is the source of the first. The interest
sv~s paid by savings banks are the source of the second. In turn, the
_ profit of socialist enterprises accumulated by the USSR State Bank in the
form of charge for the use of bank loans is the source of the interest
sums.
_ Every depositor has the concept that his own savings and the interest
paid on them are a total siun. However, in tre cambined amount of savings
it is possible to quite clearly differentiate both these parts. For ex-
ample, if different ~oeriods beginning from 1950 are taken as the basis
_ for the differentiation of savings formed from interest a.nd from the in-
flow oi'' personal income, the situation is as follows:
Table 3. Interest Paymentis and Persone,l Income in the Total Volume of ~
the Population's Deposits _
Amount of Deposits Amoi;nt Inflow Share in Balance
(in bill. rub.) of paid of per- of Deposits
. at begin- at End interest sonal of paid of ac-
ning of of (in bill. income (in inter- cumulated ~
_ - period period rub ) bill rub ) est income
1950-1960 1.9 10.9 1.8 8.8 15.8 8~+.2
195a-197o 1.9 ~+6.6 12.2 33.~+ 26.2 73.8
1950-1975 1.9 91.0 27.8 63.2 30.6 69.4
195~-1977 1.9 116.7 39.1 77,6 33.~+ 66.6
Thus, the share of savings, the source of which is the paid interest, has a
tendency to increase, to which the data of the table attest. _
1. See, for exam~le, G. Yeremeyeva and G. Tkachenko, "Osnovy Sberegatel'-
nogo Dela" lFundamentals of Savings/, Izdatel'stvo Finansy, 1976, p 3, .
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What is the economic nature of the first and second part of savings?
_ Since the first part of personal savings is based on personal income and
personal income is based on the national income created in the sphere of
material production, persona.l savings axe the value embodiment of nation-
= al labor connected with the production of the national income and corres-
pond to the paxt of it that relates to the necessary product. However, ~
this is the most general concept and it does not give an answer to the
~ question of the difference between the national labor embodied in sav-
- ings and that embodied in personal income used for consumer needs. In
our opinion, the difference lies in the fact that savings, which are the
value embodiment of national labor, at the same tine, represent deferred
personal consumption and deferred consumer demand. Deferment of consump-
tion, whe~her it is short or lengthy, creates the possibility for the uti- ~
lization in public production of the results of labor embodied in person-
al income and temporarily not used by people for direct consumer pur-
poses. At the sa.me time, the nature of personal income, the source of
which are the formed savings, is not important, because the national in-
come is the bas:.s for any personal income, whether it is the wages of -
. workers in the sphere of material production or the wages of w~orkers in -
; the nonproduction sphere, pensions, or grants.
However, this concept inevitably raises the following question: What is _
the relationship between savings and their formation, on the one hand, and
the production of the national income, on the other? If the national in-
come is a newly created value, what is ultimately "saved" in the process
of formation of personal savings? Such a question is quite legitimate,
because, if the national income is represented as the combination of some
material wealth, apparently, the latter cannot be saved, because it is
made not for "savings," but for certain production or consumer purposes
and must be realized without fail.
As is well known, the labor of workers employed i~ the sphere of material
production is the creator of the combined value, o~' which one part Forms
the value of the necessary product and is expressed in wages and the oth-
er, the value of the surplus product. The transformation of paxt of the _
personal income into savings means that the income allocated for consump- -
tion is set against the large phyaical and material volume of the con-
- sumption fund and, therefore, personal consumption a.rticles with a given
volume of personal income cannot 3e fully realized. Hence either an in-
crease in the volume of the population's person~l income so that the bulk
of personal income less savings corresponds to the bulk of consumer goods
and services used for personal consumption, ox a reduction in the produc-
tion of consumer goods and services to a level that with a given volume
of persona.l income would make it possible to ensure their f~ll realiza-
~ion, is inevitable. Thus, consumer goods and services, which should have
been used for personal consumption, are "saved" in the process of forma-
tion of savings. The very process of "saving" such goods lies in the
- fact that with a given volume of personal income they may not be produced.
These social savings within ttle structure of the consumption fund axe in-
evitably embodied in another part of the national income--in the accumula-
t:ton fund--and through the accumulation fund, in the accumul~.:ion of so-
cial wealth.
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At the same time, it should be kept in mind that individual savings rep-
_ resent individual deferment of consumption. For this reason the forma-
= tion of savings represents a temporary tra.nsfer of value from the consump-
tion fund to the accumua.ation fund. However, since inditi*idual savings _
ultimately form one publa.c savings fund, which has a tendency towaxd _
continuous growth, the indicated transfer of value takes on a permanent -
nature. It would stop in one case--if, instead of an increase in sav-
ings, a process of their reduction began. At the same time, the volume
, of the pY~ysical a.nd material consumption fund should inevitably exceed -
the annual volume of personal income. ~
There is a.nother situation with the second part of savings, which repre-
sents accumulated payments of interest on deposits. As already noted, '
'~he profit of socialist enterprises is the source of this part of sav-
ings, that is, it is the part of the national product that relates to the
value of the surplus product. In the process of dist~ribution of the na-
tional income part of the savings corresponding to the annua.l sum of paid
interest is excluded Prom the surplus product a.nd together with the sav-
ings formed from personal income is returned to the accumulation fund.
This process appears as the withdr~,wa1 of the profit ot enterprises in the
form of interest on baaik loans, then transfer o2' interest to savings banks,
payment of interest on deposits, return oP interest within the structure
of savings to the loan f~and and, finally, granting of short- and long-term
loans from savings to the national economy. -
What a.re the ~easons for the formatiou of sav:tngs and for the continuous
growth of their volume? Several puints on this score are advanced in the
" literature devoted to these problems. Some authors connect the formation
of personal sav~ngs with the manifestation of the function of Soviet mon- -
ey as a means of accumulation,l and others,with the continuous rise in the
standard of living and material Well-being of the Soviet people.2 There
is no question that both the socialist principle of distribution accord-
ing to labor a.nd the continuous rise in the standard of living of workers,
on the one ha.nd, e.nd the manifestation of the Punction of money as the
mea.ns oP accumulation and savings have a bearing on the process of forma-
tion of savings. In our opinion, however, they should not be considered
the basic reasons for the Pormation of savings, because they are not so -
much reasons as factors creating favorable conditions for the formation of
savings.
- 1. See G. Yeremeyeva and G. Tkachenko, "Osnovy Sberegatel'nogo Dela," ~
~ .
2. See A. Ye. Ilinich, ".Sberegatel'noye Delo" LSaving~, Izdatel'stvo
Finansy, 197~+, pp l+-5 �
~
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It seems to us that the reasons fo~ the formation of personal savings
should be sought in the change in the structure of personal consumption
resulting from thE risp in the material well-being of workers. As the
material well-being of workers rises, the ~hare of expenditi:res on pro-
duction goods is lowered a.nd the share of ex-penditvxes on industrial
goods and the pa,yment for services increa.ses. The share of expensive
durables increases in the total vclume of industrial goods and services.
The latter ca.n include services of sanatoriums, rest homes, guest houses
and foreign and domestic tourism. As a rule, the cost of such durables
an3 services exceeds the limits of the wages received by workers. 'IThere- _
fore, the accumulation of a certain amount of money becomes an inevitable
condition for their acquisit~on. At the same time, the more the share of
expensive services in the total volume af services increases, the more ~
significa.nt this process is, which is co~firmed by the following data.
Table 4. Dynamics of Personal Savings, netail Trade Turnover and Volume .
_ of Sale of Some Durables in 1965-1977 in Current Prices _
(1965=1)
1970 1975 1977
Personal savings 2.5 1+.9 6.2
Retail trade turnover 1.5 2.0 2.2
Sale of industrial goods 1.6 2.2 2.5 _
including:
electrical goods 2.1 2.8 3.0
furniture and carpets 1.5 2.3 2.8
television sets* 1.7 1.8 1.8
~ ,jewellery 5�~ 15.3 19.6
passenger cars* 2.0 15.0 17.3
*in units
The data cited indicate the existence o~ quite a close relationship bet-
ween the growth of the volume of per�sonal savin~s and the turnower of the
sale of the most important and widespread durables. An increase in the
production a.nd sale of durables inevitably stimulates the process of for-
mation of savings. In turn, the existence of savings increases demand and,
accordingly, the production of durables.
One of the reasons for the formation of savings--workerst income (wages,
pensions, ~r~nts, allowsnces and so forth)--is of a dis~rete nature and
the predominant share of expenditures, of a continuous nature. Thus, a
permanent balance of monetary assets in the form of a reserve of forth-
coming payments is inevitabl,y formed among the population. The amount of
such a ba.lance depends on the f~equency of payment of monetary income.
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It is characteristic of man to have a reserve of material wealth neces- _
sary for life, which consists of p~ysical axticles (foodstuffs, clothing,
footwear a.nd household articles~ a.nd monetary reserves. The greater the
ability of money to be transformed into material wealth, the greater the -
inclination to have a reserve of money, not material wealth. Essentially,
- this is not an economic, but a sub,jective-psychological, factor in the
formation of savings. However, consid2ration of this factor makes it pos-
sible to understand mar~y phenomena connected with the formation of sav-
ings.
So-called unsatisfactory demand is another reason for the formation of
monetary savings. In fact, if a person decides to acquire some thing and
does not find it on the market, inevitably he has free money. The scale ~
of Pormation of such savings will be inversely proportional to the degree
of commodity cover~ge of consumer de~tand and to the degree of spread of
commodity shortage. However, it should be ta.ken into consideration that
consumer demand has a great elasticity. Tnerefore, unsatisfactory demand
for some goods can be switched to others and, moreover, even produce ad-
ditional demand. Therefore, it would be incorrect to consider the exist-
ence of unsatisfactory demand the basic reason for the formation of sav-
_ ings. If this were so, we would have a gradual reduction in the growth of
savings and in their volume as the coamiodity coverage of consumer demand
intensifies. However, the reverse occurs: Commodity coverage rises and,
at the same time, savings increase.
~ 4,That past do personal savings take in reproduct ion processes in the so-
cialist economy? Here it is possible to note several factors. First, ,
the effect of savings and their growth ~n the process of personal con-
sumption of workers; second, the effect of personal savings on monetaxy -
circulation and moneta.ry turnover and on the process of balancing the mon-
etary income and expenditure of the population, consumer demand and its
co~odity coverage; third, the effect of personal savings on capital in-
vestments and the reproduction of productive capital. -
One of the chaxacteristics of personal savings lies in the fact that the
process of their formation, in addition to ob,jective patterns resulting
from the fact that society belongs to a certain type of social and econ-
omic system, takes on a sub~ective and psychological coloring. Every de-
positor has his ideas about the expediency of savings--to keep money at
_ home or in a savings bank. The level of education, culture, formed tra-
dition and so forth affects the process of formation ~f savings. However,
as already noted, it is chaxacteristic of all types of savings, irrespec-
tive of the motives for their formation, to appear in the form. of delayed
~r deferred consumpt~nn. At the same time�, deferment of consumption con-
tains elements of irreversibility and the longer the deferment, that is,
the longer the period of existence of individual savings, the greater the
irreversibility. Thus, savings appeax as a fa,ctor to some extent limiting
and rationalizing personal consumption.
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- Another aspect should be noted. From the point of view of social and in-
dividual p sychology some people, especially those that do not belong to
_ the category of "prudent," spend a significant share of their income in-
~ efficiently. Such expenditures are not a factor in the rise of the mate-
rial well-being of people and do not have a tendenc;; toward growth as
the income increases. The use oP a savings account reduces the share of
such expenditures.
_ The ef ficiency of the effect of savings on the process of rationa~.ization
of personal consumption depends on the number of people that use savings .
accounts and on the intensity of use of savings deposits. The greater the
number of depositors of savings banks in the total population a.nd the more
- intensive the turnover of the income and expenditure of deposits, the hig~.- '
er the efficiency of ~he effect of personal savings on the process of con-
sumption rationalization. The efficiency of such an effect also depends
to a large extent on the quality of service by savings banks. The slight-
est inconveniences created for depositors during the use of savings ac-
counts, which require additional time for the formulation of operations
- from them, increase in each depositor the tendency to have ready cash, to
buy, not to save.
Savings can appear not only as a factor in rationalization, but a.lso as a
facto~ in the direct limitation of consumption. The existence of a large
_ share of deposits kept for a long time in savings banks, in particular in
thrift accounts, serves as a proof of this. The extent to which it is ad-
visable to intensify or, conversely, to limit the manifestation of such a
quality of personal savings is another matter. In order to answer this
question, it is necessary to proceed from the assumption that the lea~ in
the risE in the material well-being and material security of the Soviet
people in the last few years is an in3isputable fact. However, in many
types of consumer wealth the level of consumption increased to such an ex-
tent that often it began to exceed scientific consumption norms. ,
The "Ba.sic Trends in the Development of the USSR National Economy for
1976-1980" adopted by the 25th party congress, in connection with the
� problems of consiuaption growth, note the need to "actively affect the _
formation of consumer demand and the development of the population's es-
_ thetic tastes." Personal savings, in paxticular their characteristic to _
appear as means of limiting the population's unsound consumer expenditures, _
can play an important role in the solution of this problem and in the e-
limination and li.mitation of irrational surplus consumption. The effi-
ciency of this function depends not only on the share of personal income
that is annually tra.nsformed into savings, but maYnly on the share of in-
come that is transformed into savings intended for a long-term deposit.
The effec~ of personal savings on monetary circulation and monet ary turn-
over lies in tfle existence s.nd continuous growth of the volume of the pop-
ulation's personal savings, which inevitably introduces significant
cha.nges in the mechanism of cash and noncash monetary turnover connected
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: with a.n exchange of the population's monetary income for goods and serv-
ices. These changes can be reduced to the following. Under conditions
when savings are not formed there is a direct and indirect exchange of
the population~s moneta,ry income ~or goods and services. At the same
time, in order that the stability of monetary circulation may be ensured,
a full coincidence of the volume oF monetary income to the volume of sold
goods and rendered services is necessary. If paxt of the personal income
is transformed into savings, along with the ordinary act of exchange of
income for a commodity another act appears--the transformation of income
into sr~vings and the transformation of savings into income intended for
the payment for goods and services. _
At first glance it may appear that no significant changes occur. In fact,
however, in the second case, when the transformation of income into sav- ~
ings a.nd the reverse transformation of savings into income assumes sig-
nificant proportions, the problems of balancing consumer demand and its
co~odity coverage become sharply complicated. Under these conditions
the volume of consumer demand becomes less definite a.nd less stable not
only as a whole, but in particular in time and space (territory). Ac- -
cording to the data for 1975, a total of 49.5 billion rubles, or about 20
percent of the entire volume of the population's personal monetary income,
were t~ansPormed into savings and, at the same time, 39�5 billion rubles,
or about 50 percent of the bala.nce of deposits for this year, were trans-
formed from savings into income. It is characteristic that the shaxe of
income transformed into savings and the share of savings tranformed into
income grow. The money turnover connected with the transformation of in- _
, come into savings and with the reverse transformatio~~ of savings into in-
- come becomes extremely big. Suffice it to say that, whereas in 1965 this
turnover comprised 25 percent of the volume of proceeds from trade re-
ceived in the USSR State.Bank, in 1970 it comprised 32 percent and in
1975, ~+1 percent. In practice, this means that two spheres of monetaxy
turnover servicing the population, that is, through the USSR State Bank
a.nd through the system of savings banks, have now been formed.
Under such conditions even the slightest fluctuations in the amount of
_ income transformed into savings and of savings transformed into income,
not to mention the fluctuations in the balance of deposits or in the an-
nual rates of increase in savings, sharply complicate monetary circula-
tion, the balancing of demand and supply and the provision of monetary
_ stability. Fluctuations in the volume of increase in savings only within _
20 to 30 percent o~ the average level over a period of several yeaxs axe
equivalent to an increase or, conversely, decrease in consumer demand
am.ounting to 3 or 4 billiott rubles, which comprises 1.5 to 2 percent of -
the volume of retail trade turnover, or 5 to 7 percent of the volume of
commodity stocks in trr~de. Such fluctuations sharply complicate the work
of trade and contribute either to the creation of a shortage of goods or
stale goods.
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. `
The direct effect of personal savings on the sphere of production lies in -
the fact that personal savings ~.ppear as investment resources contributing �
to an increase in the scale of capital investments and capital construc- "
~ tion. The decision on the economic situation in the country and on the
- tasks of the pa.rty adopted at the 15th party conference stated that the
_ rate of expansion of fixed capital, in particulax, would depend on the -
_ "use of the populatia~i's savings by involving them in cooperatives, sav-
ings banks, internal state loans, the credit system and so forth."
The relationship between savings and capital investments is of quite a _
= complex nature. Before 196~+ savings were an income item of the USSI3 state
budget and then became a source of short-term loa.ns of the USSR State
Bank. However, this external aspect does not exclude the investment na- '
- ture of savings, because outlays on circulating capital, including out-
- lays made along the line of short-term bank loans, essentially are invest-
ments. Furthermore, it is necessary to take into account that, as savings
grow and the credit resources of the State Bank incre;ase from them, there
is a.nd will be an increase in the share of credit investments in fixed -
c apital as compared with the crediting of circulating capital.
The investment nature of personal savings means that the latter are em-
bodied in the productive capital of the national economy, including fixed _
productive and circulating capital. At the same time, the greater the
volume of savings, the greater the share of productive capital created and -
forr~ed from savings in the total volume of productive capital. In 1965
the share of such capital within the structure of all the productive capi-
ta1 of the national economy comprised 3.8 percent, in 1970, 6.3 percent,
in 1975, 8.1 percent and in 1977, 9.0 percent. Although this is not much,
= it is important that there is a tendency towaxd continuous growth. Fur-
thermore, personal savings appear as a form of combining the personal
property of citizens with public socialist property. In fact, the person-
- al savings of every man are his persona.l property, which in no way differs -
~ Prom the prope.rty em~odied in personal things, household articles and so
~ forth. However, these savings are embodied in productive capital, which
. is socialist property.
~ The investment nature of persona.l savings means the need for the maxi.mum
- possible acceleration of savings processes and the advisability for the
further increase in the volume of savings.
COPYRIGHT: Izdatel'stvo "Pravda", "Voprosy ekonomiki", 1980 -
11, ~+39
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LAAOR
MORE MECAANIZATION NEIDID IN PERSONAL FAI~iING -
Moscow VOPROSY EKONOMIKI in Russian No St~Say 80 pp 132-136 ,
- rArticle by V. Vasilevskiy: "The IIse of Small Equipment in Personal ~
J
_ rText~ The industrialization ~f agriculture which is being carried out
on the base of the large production of kolkhozes and sovkhozes and its
integration with industry and science demands a great deal of time and
significant investments which rest upon the substantial growth of labor -
productivity, yields and the marketability of agriculture and agxicultural
products. Only a large agricultural production which has been moved to -
an industrial base which utilizes the achievements of scientific and
technical growth will be able to completely solve the problem of continu- ~
ously supplying the country's population xi.th a wide ~ariety of all the
most important high quality foodstuffs. The solution of these tasks
- is a compl,.ex and relatively lengt~y process. Retaining a very important ~
place under theRe conditions is personal farming (LPI~) in which is
produced approxi.mately one-fourth of the entire gross production of
- agriculture. In 1978, the relative proportion of personal farming of '
kolkhoz farmers, workers and employees in the total volume of the country's
agricultural production came to 10 percent; the proportion ~f I,PKH in
the production of potatoes was 61 percent; 3~ for eggs; 29 for vegetables,
meat and mi3.k; and 19 percent for wool.
The preservation of personal farming under developed socialism is con-
dition~ed by several causes: by the insufficient level of the develop- -
ment of the productive forces of agriculture, as a result of which it
still does not completely provide ~he urban and rural population with the _
mos~ important food products; and by the increase of the scale of special-
ization i.n the production of agricultural enterprises and their shift =
from ~ multi-crop structure of operation to the single crop principle
~ which reduces opportunities for agricultural workers to be self-sufficient
in all agricultural products. The rural population's self-sufficiency
in the most important food products saves the state si~nificant foodstuff _
resources. Thus; 72 percent of the meat, 76 percent of the milk, and
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almost 100 percent of co~sumed potatoes and eggs in a family of kolkhoz
workers comes from personal farmi.ng.l The necessity of the developnent
of LPKS has repeatedly been stressed in Party and state documents of
recent years. Thua, emphasized in "Basic Directions for the Development
of the IISSR National Economy for 1976-1980" is the large economic role
of personal farming as an essential additional source of food resources,
_ the inadmissibility of limiting personal farming, and the necessity of
rendering assistance to it by kolkhozes, sovkhozes and Soviet and econom:i.c
- organs.
The development of personal farming is drawing ne~w material and labor
resources into the production process which cannot be utilized in public -
_ production and is contributing to an increase in state production funds,
to a shift in labor activity, and to an impronement of health and a
fosteri,ng among young people of a love for agricultural work. Currently,
42.8 million families of kolkhoz farmers, workers and employees are
involved i.u personal farming.
~ The Constitution of the IISSR guarantees the right of citizens to own
their personal farming plots and to labor i.n them. Article 13 of the
Constitution reads, "There may be plots of land for the use of citi.zens
granted in established legal procedure for personal farming (including the
keeping of liv~stock and poultry), gardening and truck farming, as well
as for i.ndividual housing construction. Citizen.s are obliged to rationally
utilize the plots of land granted ~o them. The state and kolkhozes render
aid to citizens in the conduct of personal farming."
i The Number and Average Size of Personal Farmin Plots*
Si.ngle -
Categories of the Number oi Total land under erop
population with pers~nal cultivation (thousands land
- personal plots plots (millions) of hectares) (hectares)
Kolkhoz farmers 13.2 3,360 ~.25
Workers and
employees 29.6 2,570 0.09
Totals: 42.8 5,93~ 0.14
*Cm. EKONOt~IKA SEL'SKOGO KHpZYAYSTVA, No 10, 1977, p. 88
1. VOPROSY EK(JNOMIKI, No 7, 1978, p. 121
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Labor spent on personal farming is socially necessarq since part of the
needed products of the rural population is created by it, and it satisfies,
not only personal, but also public economic requirements. Products of
this labor serve the goals of the reproduction of the work force of the
public sector of production and represent a component part of the state
fund for foodstuff resources. More than half of those involved in LPKH
are of working age; two-fifths are on a g~nsion; and $6 percent of -
these people do both private and public labor.
' The care of one's own cattle and poultry, the production of labor intensive
products (meat, milk, vegetables aad potatoes), and the extensive use of
private land anii garden plots with low quality technical equipment leads to -
large labor expenditures. The nature af labor and its cost i.n LPKS
has not significantly changed for some time. The work is carried out by �
hand ~.th great p~psical effort. In this connection, an important role
belongs to small equipment i.n cha~ging the nature of personal farming,
in improving the standard of living of the rural population and in
les~eni.ng labor on private plots. ThP tools of labor for individual
use cope with the tasks connected rrith raising the intensity and pro-
ductivity of personal farming; with reducing labor outla;~s and raising
productivity; with increasi.ng the foodstuff resources based on the
effective conduct of personal farming, collective gardening, truck
. farming and bee keeping; and with the making of the rural population
self-sufficient in basic food products.
The variety of labor tools being turned out for inclivi.dual use small
mechanisms, engi.nes, machines, i.nstruments and implements follows
maadmally nearer to the structure of the needs for them which are being
formed, taking into account electrification, mechanization and auto- .
mation of the labor process in personal farming and the introduction
of a district heating system for living and worldng quarters. Small
equipment includes small-s:tze, small-capacity tractors, self-propelled
chassis or trucks of 10-15 h.p., portable electric uii.lking cnachi.nes, `
power saws, mowing machines and sprinklers, trailer and tractor-mounted .
equipment (plow, harrow, cultivator, potatoe picker), domestic water
pumps, electric and solar storage batteries, portable welding equipment,
trailers ror light motor vehicles, snow cats (motorized sledges) with _
= covered body and universal trailer, table and standi.ng scales with
various Iimits for weighing and with minimal tolerance for error, machines
for the shearing of sheep, electric separators, churns, chaff cutters,
multi-chamber large-capacity freezers, containers and capacities for the
s~orage and delivery of agricultural products, technica.lly complex
garden and farming implements and equipment, etc.
Such small equipment is limited for use only in public farming. The
modern material and technical industrial base completely permits the -
organization of mass large series production of small equipment both for _
_ public agricultural production and for LPKH. However, at this time, the
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proportion of small equipment for mechanizatiou owned by citizens is
insi~ificant. In 1974, for example, the value of the basic productien
- funds of LPKH came to appro~dmately 11 billion rubles, of which 45
percent went to productive livestock. Small equipment mechanization,
agricultural construction and perennial plantings came to only two
percent of the gross value of the persgnal property of the urban and
rural populati~n (300 billion rubles). Consequently, the relative
share of small equipment in the ~ralue of basic production funds is even
lower.
Today, up to 300 enterprises of 54 ministries and departments are supplying
the trade network of the Central Union of Consumers' Societies and the -
Ministry of Trade with more than 300 varieties of small equipment for
personal and garden farming. However, industry is not satisfying the ,
- population's growing demand for these labor tools. Eaterprises are
basically turning out garden and truck farming implements intended for
hand work: shovels, rakes, hoes, cultivators and garden watering pots.
At the same time, the manufacture of small mechanization equipment, -
complex technological machine units, instruments, mechanisms and motors
used ~ garden and domestic agriculture is extremely linited. Planning
and design and technological institutes and the Design and Technical
Office have been coping with the questions of developing and introducing
this or that technical innovation for decades. Those goods which are =
needed for.the rural inhabitant (for example, a bow saw) are being
_ removed from production.
In conditions of developed socialist society, it is necessary to stress,
first of all, the expansion of individual ownership of these goods and
the public and collective (cooperative) forms of organization of their
use. Partial and then complete mechanization of labor i.n personal
farming on tne basis of tne broad use of small equipment publically
owned by kolkhozes and sovkhozes and of eq-si.pment for the small mechaniza-
tion of the cultivation of land for the growing of crops and the care
of livestock and poultry on private plots begun on a cooperative basis
permits the dra~ving into circulation of additional reserves of food
products and the more rational and intensive exploitation of the means
of small mechanization. .
Another way to expand the circle of those who have the opportunity to
use machines for the small mechanization of ~.abor is to organize the
rental of them through a system of stores, domestic service and consumer
- cooperatine trade centers. Likewise, it is advisable to organize special
rental points i.n large villages and cities which can be included in a
system of the State Committee for AFricultural Equipment. The organization
of the rental of equipment for smal~ mechanization requires the creation
2. VOPROSY r~ONOMIKI, No 6, ~974, p. 8
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Equipment for Small Mechanization Being Turned out by Domestic Industry
for the Needs of Agriculture*
Agricultural work to Weight
Desi$nat3on be carried out Productivity (kg� )
nectric hoe Continuous and inter- 150 square 87
row soil cultivation meters/hour
and weed destruction
Single row hand Sowing of grain, leguminous 14
seeding machine and groats seeds -
Motorized foot Mowi.ng of natural and seed 0.29 nectares/ 72 ,
mowing machine grass on small plots hour
Sheaf threshing Th~~^eshing small batches 50-300 sheafs/hour 780
machi.ne of sheafs and primary cleaning
- of grain, leguminous and
groat crops
FLectric cutter Cont~nuous cultivation of 790 square 131
for soil soil in hot houses, hotbeds, neters/hour
cultivat~on hotbed plots; preparation
of soil mixtures
Indoor hotbed Domestic Y~qdroponic growin~ 500 pieces/square _
of seedlings, rregetables, meter (for one
greens and decorative flowers rotation)
- "Rosa-3'r water- Stationary system for 0.75-9.74 liters/ 2.2
ing unit watering garden plots second (expenditure
. of water)
FLectri c movable For chemical battle against 48
sprayer vermin and diseases of fruit,
berry and vegetable crops on
private plots; watering plants;
whitewashi.ng trees; trans- -
ferring water from reservoirs
IIniveral tractor- Inter-row cultivation of 1,800 -
cultivator (T-25A) vegetable crops, gardens; ~
of the Vladimir- pre-planting cultivation with
skiy Tra ctor chemical weed killers of
Plant ( capacity gardens and truck gardens;
- 3 h.p.) cuttin~ and gatherin.g of hay; all transport work
* Nanufactured only for kolkhozes'and sovkhozes and i.n insufficient
quantiti es ~
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of the necessary material and technical base with nodern tools and
specially equipped facilities with appropriate repair services. The
necessitq arises to solve the problem of the centralized delivery and
return of equipment distributed for rent and many other engi.neering,
economic, personnel and legal questions. The centralized re.ntal system
must have available the most modern types of small equipment (domestic ~
and imgorted) with a corresponcling assortment of spare parts. The
coefficient of the utilization of small equipment on a rental basis will -
be significantly higher than under conditions of its use within the -
framework of personal ownership.
A well run rental method will contribute to.the more rational utilization -
of production cagacities for the expansion of the output of highly
mechanized tools of labor. The necessity to speed up output of certain ,
mechanisms, machine units and instruments will climi.nish, since the demand
for them will be coaered by the rental of a smaller qu~ntit~ of equipment.
~ Reliably supplied information to the population on the rules for rental -
- and the availability of small equipment, its consumer properties and
advantages in comparison with hand methods of labor will accelerate
the process of the partial and complete mechanization of personal farming.
An over-all approach to the improvenent of the utilization of small
equipment solves a number of important economic and social problems. _
_ In the first place, the efficiency of its use is raised; of primary _
importance to the growth of the efficiency of the utilization of small
equipment and the raisi.ng of labor productivity in LPKH is the mechani-
zation of labor based on the use of compact instruments an d mach~es
equigped with electric motors and designed for work on private plots: _
the tilling and fertili~ation of the soil, the cultivation of garden
crops, the preparation of fodder, the carryi.ng for livestock and poultry,
etc. (for example, special nozzles for electric separators permit the _
utilization of these mechenisms for the churning of butter and the
shredding and slicing of fruits and ve~etables; dev:.ces for chaff cutters
serve to cut root crops for cattle and poultry). In the second place,
the i.ntensit~ and productivity of LPKH grows: the volume of gross and
commodity production, crop capacity, will increase, and the quality of
agricultural products will improve. In the third place, rural i.nhabitants
~ri.ll not be occupied in labor i.ntensive repairs of sma~l equipment.
In our view, it is advisable to set a quota in the state five-year plan
for the expansion of production and the denelotiment of the rental of
small equipment. Practice shows that the rental of items of prolonged
use already today is giving a significant national economic effect (more
than 100 nillion rubles). Both domestic servi.ce and consumer cooperative -
enterprises and enterprises and associations of the State Comnittee for
Agricultural Equipment should render aid to the system of small equipment
rental. In this way, que~tions will be solved relating to the inte~sive
~ utilization of the fleet of small equipment, the acceleration of the rate
- of technological pla,nn.ing norms in this area, the creation of a repair
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_ base (large specialized industrial-type regair enterprises), and to the
maintaining of equipment in good repair and in a long-term operational
- condition.
The lack of centraliz~d regulation and planning of personal farmi.ng and
its support by the administrations of kolkhozes, sovkhozes, Soviet organs,
- enterprises and organiza~ions of the State Committee for Agricultural
Equipment, and consumer cooperatives leads to the fact that personal
- farming and~the raising of domestic animals and poultry is becoming
more and more of a burdensome activity. Addressing the November (1978) ~
- Plenum of the Central Committee of the CPSU, L. I. Brezhnev diracted the
attention of Party, Soviet and economic organs to an i~tensification -
- of their attention to the needs of personal farming. He said, 'TThe
possibilities of the private farms of plants and factories as well as of ,
the personal farms of the rural population are still being poorly utilized.
We adopted decrees on these questions, but they are still being carried
out slo~~rly. It is necessary to help these farms more i.n the acquisition
of younger animals and in the supplying of fodder. It is also necessary
to create a specific public climate through which kolkhoz farmers and
_ sovkhoz workers would become aware that b3 raising livestock and poultry
at home they are doing useful state work."
COPYRIGHT: Izdatel'stvo "Pranda", "Voprosy ekonomiki", 1980
_ ~
$$$5
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DEMOGRAPHY
CLASS STRUCTURE, POPULATION GROWTH FIGURES GIVEN
Moscow SSSR V TSIFRAKH in Russian 1980 signed to press 10 Mar 80 pp 17, 22
[From the book "SSSR v tsifrakh" published under the auspices of
the USSR Central Statistical Administration, Izdatel`stvo Statistika,
200,000 copies, 224 pages] .
- [Excerpts]
Class Structure of the Population (in percent)
1913 1928 1939 1959 1970 1978
Entire populatioti (including
nonworking family members 100 100 100 100 100 100 _
Of which,
Workers and employees 17.0 17.6 50.2 68.3 79.5 84.9
Employees 14.6 12.4 33.5 49.5 56.8 61.8
Kolkhoz peasantry and
cooperative artisans 2.9 47.2 31.4 20.5 15.1
- Individual peasants and
independent artisans 66.7 74.9 2.6 0.3 0.0 0.0
Bourgeoisie, landowners,
merchants and kulaks 16.3 4.6
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Birthrate, Mortality and Natural Population Growth (per 1,000 people)
Natural Popula-
Year Births Deaths tion Growth
1913 45.3 29.1 16.4
1940 31.2 18.0 13.2
1950 26.7 9.7 17.0
1960 24.9 7.1 17.8 .
1965 18.4 7.3 11.1
1970 17.4 8.2 9.2 -
1971 17.8 8.2 9.6
1972 17.8 8.5 9.3
1973 17.6 8.7 8.9
1974 18.0 8.7 9.3
1975 18�l 9.3 8.8
1976 18.4 9.5 8.9
1977 18.1 9.6 8.5
1978 18.2 9.7 8.5
1979 18.3 10.1 8.2
COPYRIGHT: Izdatel'stvo Statistika, 1980 -
CSO: 1828
END -
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