JPRS ID: 9701 USSR REPORT ECONOMIC AFFAIRS

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000300100064-7
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• Sequence Number: 64
• Content Type: REPORTS

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JPRS L/9701
30 April 1981
U SSR Re ort
p
ECONOMIC AFFAIRS
- CFaUO 5/81)
FB~$ FOREIG~! BROADCAST INFORMATlON SERVICE
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JPRS L/9701
.
30 April 19 81
USSR REPORT
ECONGMIC AFFAIRS
~ (FOUO 5/81)
CONTENTS
PZANNING AND PI~AN IMPLEMENTATION
- Methodological Instructions for FS.ve-Year Plan Examined
(M. Chistyakov; VOPROSY ERONONL[K2, Jan 81) 1
INTRODUCTION OF NEW TECHNOLOGY
Role of Amortization in Technical. Modernization Weighed
(V. Senchagov, V. Ostapenko; VOPROSY EKONC~MIKI, Jan 81) 10
- a- ( I II - USSR - 3 FOUO]
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- PLANNING AND PLAN IMPLEM~NTATION
~ METHODOLOGICAL INSTRUCTIONS FOR FIVE-YEAR PLAN EXAMINED
Moscow V'OPROSY EKONOMIKI in Russian No 1, Jan 81 pp 110-118
[Article by M. Chistyakov: "Methodological Instructions for Compiling the
llth Five-Year Plan"J
[Text] In accordaince with the decision of the June (1980; Plenum of the CPSU Cen-
tral Committee, the 26th party congress wi11 discuss the basic directions of the
USSR economic and sociai development for the period 1981-1985. The central planning
agencies with the participation of, the ministries, departments, scientiiic arganiza-
tions and the collectives of the associations and enterprises, in preparing for the
congress, are intensely engaged in compiling prospects for further development of
- the country's economy, and in drafting major economic problems, special-purpose com-
- prehensive programs and plans for development of the union and autonomous republics,
krays, oblasts, rayons, cities, associations and enterprises.
The llth Five-Year Plan, just as the previous long-term plans, is being compiled at
all levels of the national economy on a common methodological basis. The great im-
. portance of developing methods and orgaaization of planning was noted in the decree
. by the CPSU Central Committee and the USSR Council of Ministers "On Improving Plan-
ning and Strengthening the Influelce of the Economic Mechanism on Increasing Pro-
duction Efficiency and Work Quality." Guided by this decree, the USSR Gosplan
jointly with other state committees, ministries, departments and the state planning
agencies of the union republics has drafted and sent to the ministries, associations
and enterpr~ses more than 60 new methodological directions, instructions and other
standard documents, including the Methodological I:~structions for Drafting State
Plans for USSR Economic and Socj.al Deve:Lopment (March 1980).
The methodological instructions for compiling the state plans for economic and ~
social development are based on common organizational and methodological principles
for socialist planning developed by Marxist-Leninist theory and proven by many years
of practice. They cont_ain the procedures for compiling plans and methods for sub-
stantiating all sections of the five-year plan for the country's economic and social -
_ development as a single national economic complex. They are also used in drafting
the basic directions for the ten-year period and the annual state plans. In the
Methodolog:cal Instructions, special attention is paid to improving the ~ethods for
substantiating the social production efficiency indicators. -
Growth in production efficiency, raising lsbor productivity, better utilization of
fixed cagital and produczion capacity, raw materials and physical resources, and
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intensification of production procE~sses ensure the achievement of the highest re-
aults with the least outlays for physical anc~ labor resources per unit of output.
, The system of indicaturs in the Me1;h~dological Instruction~ has been refined in ac-
cordance with the instructions of the July (1979) decree by the CPSU Central Com-
mittee and the USSR Council of Ministers and rhe suggestions by the Institute of
_ Economics of the USSR Acad~my o~ Sciences; thi.s system of indicators is used in
drafting plans to raise production efficiency for the national economy as a whole,
the union r-~~,~blics, ministries, departments, associations and enterprises. Just as
before, it is recommended that social production efficiency be planned according to
the drafted system af indicators. The system of indicators for social producti~n
efficiency used in campiling the lOth rive-Year Plan has been supplemented with in-
dicators that describe improvement in utilization of labor resources and fixed and
working capital, the degree of introduction of ne~a equipment and the development of
external economic ties. Included among the gensralizing is the indicator of the
ratio of sur.plus product to the wage fund for workers engaged in physical
" nroduction.
Indicators to more fully describe uti.lization of working capital have begun to be
used; these are the indicator of production of social product (co~nodity production)
' per ruble of average annual value of working capital and the indicator of the ratio
of increase in physical working capital to the increase in social product (commodi-
_ ty production). For analysis of the materials-intensiveness of social product by
individual types of resources, it is recommended that indicators of input of major
energy, physical and raw material resources in physical terms be calculated pe-r
- ruble af social product (commodity production). Indicators of growth in labor pro-
ductivity will be calculated on the basi~ of nEt output (normative), while in the
lOth Five-Year Plan they were determined, as a rule, by commadity production.
Indicators describing the effectiveness of new equipment have been introduced for
the first time in the Methodological InStructions for compiling the llth Five-Year
Plan. It is recommended that the estimate of the effectiveness of scientific and
technical measures be made according to the ~�alue of the total annual economic ef-
fect obta~.ned in the national economy fr~m ~aking use of achievements in science
and technology. This indicator will be considered in the five-year plan as estima-
ted and used to estimate the effect from introduction of new equipment.
A generalizing indicator describing the economic effect from introduction of new
equipment is being introduced for the first timp into the practice of planning the
five-year and annual plans for enterprises, associations and ministries. This in-
dicator will be the increase in profit, and in s~me sectors, the decrease in pro-
duction cost through implementation of scientific and technical measures. Along
with this, the gen?~ration of the consolidated cost accounting effect from output and
use of new equipment will be plarmed. This indicator is the increase in profit from
implementation of ineasures for new equipment less capital investment (one--~time out-
lays) ;:aking the aormative factar (E = 0.15) into account. Included in the Methodo-
logical Instructi~ns is a procedure for estimatin~ and reflecting the economic ef-
fect from new Pquipment in the appropriate sectiens of the plans for enterprises,
_ associations, ministries and departments, and in the state plans for the country's
economic and social development as a whole. This wi.ll permit making an organic link
bet~een the drafted plans for development of science and technology and the basic
- sections of the plans: by production, labor, production cost and profit, capital
construction and physical input.
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The increase in production in physical and monetary terms and in the percentage of
products in the highest quality category in total production of them through intro-
duction of new equipment is provided for in Che plan for industrial production. In
the section of the plan on labor under the same conditions are determined the in-
crease in labor p~roductivity and the relative savings in number of workers and the
- wage fund, and in the section on supply of materials and equipment--the savings in
physical input. Results from introduction of ineasures in the plan for development
of science and technology will begin to be considered in the applied norms and nor-
matives of utilization of physical and labor resources and in the normatives of
output-capital ratio and unit capital investment.
Needed refinements have also been introduced into the procedure for estimates of in-
dicators of efficiency for industrial production. The estimates are to be based on
new indicators, sanctioned in the five-year plan in accordance with the decrae by
the CPSU Central Committee and the USSR Council of Ministers of 12 July 1979, inclu-
ding net output (normative), labor productivity for net output (normative), total
profit, and in some sectors--reduction in production cost of output, output-capital
ratio, indicators of average reduc~ion of norms of input of major types of physical
resources and others.
In the Methodological Instructions, it is recommended that efficient use of produc-
tion apparatus be planned using engineering calculations and passports for produc-
tion associations and enterprises. An important reserve for increasing capacity is
improving equipment utilization through raising the shift system factor for its
operation and eliminating intrashift losses. Acceleration of assimila.tion of
capacity gained as a result of remode?.ing and expansion of operazing and construc-
tion of new enterprises should be corsidered in plans.
A generalizing in~'icator d.escribing utilization of production apparatus in industry
i~ the output-capital ratio. It is recommended that this indicator be calculated
separately for enterprises operating a~ the start ~i i:he five-year period and for
those newly introduced in the plan period.
Estimates of the technical and economic indicators for utilization of equipment,
machines and aggregates have to be made for detailed substantiation of plans to in-
crease capacity of industrial enterprises. In the process, lists of these indica-
tors defined by the ministries and associations and the specific character ot pro-
duction shauld be considered.
Agricultural producticn efficiency is plann~d at all levels on the basis of common
principles and methods ta}.ing the peculiarities of this sector into account. Effi-
cient use of land, all agricultural equipment and mineral and organic fertilizer,
and raising crop yield and animal husbandry productiveness must be provided for in
the plans. Growth in agricultural production efficiency is reflec~ed first of all
- in the increase of output produced per hectare of land used with a reduction in to-
tal outlays for labor and physical resources per unit of output. The common indi-
cators for agricultural production efficiency are: rates of growth of gross and
net output, net income (profit), labor productivity, profitability, materials-
, intensiveness and capital-intensiveness. Efficient utilization of agricultiiral p~-
tential, it was stressed in the October (1980) Plenum of the CPSU Central Committee,
- is the most immediate way of solving the social problems of rural areas.
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In drafting plans for capital construction, special attention must be paid to effec-
_ tive use of capital investment. Resources must be directed first of all to techni-
- cal reequipping and remodeling of operating enterprises, excesses in plans and esti-
ma~.es must be prevented, physical and labor resources must be concentrated in con-
struction :,f major facilities and priority projects, uncompleted construction must
be reduced and construction quality raised, new capucity must be put into operation
and assimilated expeditiously, and dissipation of resourc~s over numerous projects
must be stopped.
Growth in effectiveness of industrial and agricultural production, capital invest-
ment ar,d new equipment c~ill be reflected in the system of progressive norms and
normatives used in drafting and ensuring accomplishment af the plans. A major lever
- for. raising production efficiency is the long-term economic normatives that will be
sanctioned in the five-year plan starting with the llth Five-Year Plan. Among them
are: stable normative provisions for wages per ruble uf output calculated by the
indicator used for planning labor productivity; normative provisions for formation
of funds for economic incentives (material incentives, sociocultural measures and
housing construction and funds for production development) determined by quality
indicators; normative provisions for deductions from profit.; normative provisions
for formation of a sir.gle fund for development of science and technology; quotas
for aver~ge reduction of norms of input for the major types of physical resources
and others.
Methods for substantiating proportional development of the economy are set forth
mora fully in the Methodlogical Instructions for complling state plans for economic
and social development. A major instrument in planning optimal proportions and en-
suring a balanced national economy as a single economic complex is the system af
balances, norms and normative provisions that will be drafted for each year of the
_ five-year plan. In the five-year plan, special attention must be paid to balancing
natural-physical ratios. As is known, these questions have always been the center
of attention by plannin:g agencies. The new method differs from the old in that the
, requirement for balanced plans by years of the five-year plan and by a broader pro-
ducts list has been significantly increased in it. In connection with this, the
basic principles for organizin~ work on ccrapilation of physical balatices are given.
Plans for distribution of products by holders of fixed capital will also be drafted
now in the five-year plan. Depending on the purpose of the specific types of pro-
ducts in the national economy, the physical balances and p~ans far product distri-
bution will be compiled by USSR Gosplan, USSR Gossnab, ministries, departments of
the USSR and the councils of ministers of the union republics.
- USSR Gosplan is cliarged with drafting physical balances and plans for distribution
for products of intersector use--basic types oF raw materials, materials, fuel and
energy resources, machines and equipment, consumer goods--authorized in the state
plans for USSR economic and social development. Regarding this, the USSR Gosplan
will draft and present to the USSR Council of Ministers in the five-year plan f.or
USSR economic and social development the balances of physical resources with a
yearly distribution for about 410 types of products compared to the 234 designa-
tions in the lOth Five-Year Plan. In the proces~, the USSR Gosplan will compile
plans for ~istribution of products by holders of fixed capital for the first time.
From 65 to 85 percent of all resources are subject to distribution by holders of
capital; this will permit associations a~td enterprises to expeditiously conclude
long-term contracts for delivery of products.
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- USSR Gossnaa drafts thP physical halances and distribution plans by years of the
iive-year plan for the major types of products of intersector use not being distri-
buted by USSR Gospl.an and the plans for production of which are approved by the USSR
ministries and, departments by agreement with the USSR ~ossnab. USSR Gossnab and its
agencies will draft balances (by years of the five-qear pZan) for almost 300 types
_ of products compared to the 100 designations in the lOth Five-Year Plan. The USSR
min istrie~ and departments and the councils of ministers of the union republics
dr aft the physical balances and plans for the list of products of intersector use
distributed b}~ them.
- The procedure for compiling cosr balances has been expanded signifi~antly in the
_ Me thodological. Instructions. F~r the first time, they include the procedure for
compilation by the. ministries and departments of five-year (with distribution by
ye ars) f inancial plans that will be given to the USSR Ministry of Finance for coor-
dination. Five-year financial plans will be drafted for the first time also for
production associations ar~d enterprises.
Th e procedure has been refined for drafting and substantiating the country's aggre-
ga t e financial balance; the USSR Ministry of Finance will present to the USSR Gos-
pl an the est3mates ~or the aggregate financial balance and suggestions for balancing
it, and aggregate estimates (by basic indicators) of income and expenditure of the
US SR State Budget for the five-year plan (with distribution by years). The aggre-
_ ga te financial balance drafted within the five-year plan for the country's economic
and social development will be presented to the USSR Council of Ministers by the
USSR Gosplan.
To ens~ire coordination by years of the five-year period, the procedure for calcula-
ting the balance of personal income and expenditure has been refined. This balance
must be drafted by the USSR Gosplan and the planning agencies of the union republics
fo r the five-year period and presented to the USSR Council of Ministers.
- Ne eded refinements have been made to the Procedure for Drafting Five-Year and Annual
Ba 1 ances of Labor Resources; special attention is paid to improving estima~es and
- substantiating balances of manpoc~er and skilled personnel. It is recommended that
me asures to ensure full employment of the population capable of working be drafted
and efficient utilization made of labor resources. To raise labo.r efficiency, a
considerable increase in the mechanization of production has to be planned, labor
- or ganization improved, and personnel training improved. In the operating enter-
- pr i ses, growth in production volume must be ensured, as a rule, through raising la-
bor productiv:ity, that is, without increasing the number of workers, and in a number
; of cases by even reducing them.
Of great importance in coordinating the supply and demand of manpower are the aggre-
ga te balance of labor resources and the balance estimates of demand for training of
sk i lled workers. The balance of labor resources and other balance estimates are
dr afted for the USSR as a ~rhole, the union republics, krays and oblasts.
Along with the population at the age capable of working, manpower resources must in-
cl ude the persons of pensionary age and youths up to age 16 that are working in
- st a te enterprises~ institutions, cooperative and social organizations, and the pub-+~
ii ~ sector of kolkhozes. Along with that, the possibility of drawing into the pub-
lic sector the popiilation at the age capable of working that is employed in the do-
mes tic and private subsidiary sector must be more fully considered,
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To substantiate the general economic ratios of development of the national economy,
the Methodological Instructions contain the procedure to draft in the five-year
plan the balance of the national economy of Che USSR and the union republics and
, the intersector balance for production and distribution of output. It is recommen-
ded in it tiYat all indicators of thttse balances be drafted by years of the five-
year period, ensuring the balance of indicators of total social reproduction.
To coordinate and substantiate the maj or economic ratios in the national economy,
' it is recom~ended that alternative es timates of the basic national economic indica-
tors be made. Just as before, the procedure contains methods for determining the
rates and ratios of development of the national economy and analyzing the sector
structure of social production and the basic factors of expanded socialist repro-
duction. Given in this section are methods for calculating the balance of produc-
. tion, consumption ~~nd accumulation of the social product; the balance of production,
distribution, redistribution and utilization of national income; and the balance of
national wealth (balances of fixed and working capital). Indicators of the balance
of the national economy o~e drafted by basic sectors and in the social aspect by
years of the five-year period.
The balance of the national economy of the union republics provides a comprehensive
_ description of reproduction of physical, labQr and financial resources with regard
to economic features. Estimates by union republics are used to substantiate na-
tional economic plans for development of their economy and efficient division of
labor among them, and for analysis of general economic ratios on a territorial pro-
file.
The Methodological Instr.uctions contain for the first time basic provisions for
planning scientific and technical, economic, social and regional programs. In
_ planning, said L. I. Brezhnev at the October (1980) Plenum of the CPSU Central Com-
mittee, "extensive use of the method of special-purpose ~rograms has to be made.
- Each such program must be a substantiated plan, supported by precise estimates, of
measures aimed at end results and full resolution of a specific problem. It is es-
sential that the stages and sequence of prob lems to be solved be defined in the
pro~ram. And of course there must be a program management system that clearly es-�
tablishes the line of responsibility f or each section of work and that assigns the
necess~iry ri.ghts. Without all of this, a program is no program, but a sum of good
wishes." In the scientific and technical pr~grams, tasks f.or achieving final aims
and technical and economic results are provided for, and schedules and stages for
carrying out the work are defined--from scientific research to practical realiza-
tion, including organization of series production of new products and introduction
_ of progressive technology. In the neGr five-year plan, a food pro~ram of paramount
importance to raising the nati~nal welfare will be drafted in accordance with the
_ decision by rhe CPSU Central Committee Politburo. Among the special-purpose com-
prehensive programs will be pr~grams to reduce employment of manual labor in indus-
try and other sectors of the national economy; to raise the efficiency of use of
fuel and energy; to speed up development of the oil and gas industry in Western
Siberia; to ensure full utilization of the basic types of mineral resources and
others.
- Defining comprehensive measures for s~cial development is of major importance in
drafting long-term plans. In the decree on improving planning, it was noted that
" they must be drafted at all levels of economic management--for the USSR as a whole,
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the union and autonomous republics , krays , oblasts , cities and rayons , and f or
ministries, departments, associations, enterprises and organizations. These mea-
sures involve improving labor conditions, raising workers` skill levels and tlie pop-
ulation's educational and cultural level, improving housing and living conditions,
health services and others. Plans for these measures must ~e compiled in coordina-
tion with tasks fr~r development of production, capital construction and raising the
efficiency of them. Programs to solve major regional problems and further develop
territorial-production complexes are drafted to efficiently site productive forces
and make full and efficient use of resources.
Special-purpose compretiensive programs are a component of state plans for the
country's economic and social deveZopment. They w~st be coordinated with the physi-
cal, labar and financial resources and capital investment provided for by state
plans. The programs are drafted by basic indicators--labor productivity, production
cost and the technical and economic level of outnut. Among the indicators, the re-
soL~rces and capital investment needed to successfully accomplish the program are
- planned. Comprehensive programs are compiled on the basis of profound analysis of
the proposed problems with regard to the possibility of ineeting the public demand
for the product contemplated by the program.
The procedure for planning new equtpment has been significantly revised. In the
plans for USSR economic and social development, it is necessary to provide f or fur-
ther expansion of scientific research that ensures improvement of the scient ific
and technical base, an increase in the technical level of praduction and output and
the mechanization and automation of production processes, and creation of new types
of products and advanced industrial processes.
In drafting the five-y~~ar plan and the main directions of development for the ten-
year period, extensive use is made of the materials of the Comprehensive Program of
Scientific and Technical Progress and its socioeconomic consequences for the
20-year period drafted by the USSR Academy of Sciences, the USSR State Committee on
Science and Technology and tlie USSR Gosstroy. Basic tasks on carrying out s cien-
tific and technical programs and on the development, dssimilation and introduction
of new highly efficient industrial processes and types of products, as well as
normative provisions for formation of a single fund for development of science and
technology (for ministries) are approved for ministries, associations and en ter-
prises in the five-year plan.
The introduc.tion of computers permitting automation of managemPnt processes is of
gxeat importance to improving production management in associations and enterpr.ises.
In long-term and annual plans, it is neceG~arv to provide for building up capacity
of general-purpose comPuters, computing centers and automated systems for inf orma-
- tion management and processing.
The main direction in improving the material and technical base for production is _
technical reec~uipping of associations and enterprises. The Methodological Instruc-
tions recouimend th