DECLINE IN GROWTH RATE OF SOVIET LIGHT INDUSTRY

Created: 8/7/1962

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No. Pages. 2

no. nages

CIA/RR CBNoi '

72

Support Brief

DECLINE IN GROWTH RATE OF SOVIET LIGHT INDUSTRY

cia historical review program release as8

CENTRAL INTELLIGENCE AGENCY Office of Research and Reports

DECLINE IN GROWTH RATE OF SOVIET LIGHT INDUSTRY

The increased emphasis on providing the Soviet consumer with manufactured goods that developed under sponsorship of Khrushchev and flourishedas seriously do-clinod. Plan fulfillment reports for light industry athow only slight Improvementoor performance The growth rate for production of cotton fabric showed some improvement, although gains still are insufficient to meet the goal of the Seven Voar, and the growth rate for leather footwear declined. Problems which began to emerge in light industryhortages of raw materials and machinery, labor troubles resulting from the shortened work day, and failure to bring new capacity into productionhave worsened until the Industry Is now growingate far below that required to meet5 goals. In the first halfutput of light industryhole reportedlyercent over tho corresponding porlodhereas Increasesercent are required by the Seven Year Plan.

Light industry, which produces by far the largest share of goods consumed by the Soviet public (excludingas registered docllning growth rateshe.sharpest decline occurringrowth rates since the beginning of the Seven Yoar Plan, expressed as percentage increases over the output of the previous year, are compared with scheduled annual growth rates for the Seven Year Plan as follows:

Commodity

Half2

Annual Increase

fabric

fabric

fabric

fabric

4

footwear

garments

increase over the first half

wasorcent of previous year.

wasercent of previous period.

August 2

1

Khrushchev, la what wasincere effort to narrow the gap between consumption in the USSR and Western countries, was characteristically over-optimistic, and hds efforts to improve the consumer's lot have fallen far short.

Prior tod Party Congress,Khrushchev hadhis desire to equalize the rates of growth for heavy and consumer industries, but the decisions of the Congress ln1 clearly gave the edge to heavy industry with the further warning that necessary military expenditures might trim the program even more if "complications in' thesituation" should so demand.

In addition, there are difficult problems within the Light industry is in desperate need ofand technologicalact tbat Is basic to further growth. Furthermoreesult of agricultural failures, shortages of textile fibers are hinderingin some parts of the industry. The workday has been shortenedours, with the probable addition to the labor force of numbers of unskilled workers. In thefor increasing capacity in lightrend has developed toward the expansion and modernization of existing plantseans of limiting the need for new construction, but the machine building industry has failed to provide machinery, equipment, and spare parts in sufficient quantity. New processes cannot be successfully worked out because of the lack of resources, technical skills, and fully coordinated programs of development. Pressures by the public to improve quality and assortment are mounting, and consumer resistance ia creating troublesome surpluses of unsalable goods.

These factorsremondous burden for anstill charged by Khrushchev with meeting the growing demands of an increasing population.

Analyst: Coord:

v

7 August CB2

Original document.

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