SOVIET PLANNING CONFERENCE RECOMMENDS IMPROVEMENTS IN ECONOMIC INDICATORS (CB 6

Created: 6/7/1961

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TJA HISTORICAL REVIEW PROGRAM RELEASE AS9

CURRENT SUPPORT BRIEF

SOVIET PLANNING CONFERENCE RECOMMENDS IMPROVEMENTS IN ECONOMIC INDICATORS

office of research and reports

CENTRAL INTELLIGENCE AGENCY

This report represents tho Immedioto views of the originating intelligence components of 'he OfSce of Research and Reports. Commeni* are solicited.

CONFERENCE RECOMMENDS ECONOMIC INDICATORS

The calculation and use of Industrial performance data by Soviet planners and economic administrators will bo simplifiedhange recommendedecent planning conference is adopted. The USSR now reports its industrial growth in terms of the concept "gross production" (valovaya produktslya). More detailed analysis of plant and branch-of-industry porformance, however, often makes use of anothor concept called "commercialtovarnaya produktslya) whichenoral Indicator differs from "grossprincipally in that it takes no account of changes in the amount of work still in process at the end of an accounting period. The conference recommended that in the future all analyses ofperformancehole use the concept "commercialin constant and in current prices. ress report of the con-

kesce actlvlties revealed that, in anticipation of this change the definition of "commercial production" recently was changed,eliminating the differences between tho two concepts.

The planning conference wasarch,y theResearch Institute of tho State Economic Councilpursuantirective of the0 Plenum of theParty, and attended by representatives of thethe councils of national economy (sovnarkhozy),scientific institutions.

On the basis of data presented covering the trial use ofvalue indicators atndustrial enterprises during the latter halfhe conferonce agreed that'no singlecould be used to measure the volume of work in all thebranchos of industry. The conference thorefore recommended that, in addition toingle value Indicator throughout all industry, special and different indicators for volume of work be established for use in the different branches of industry. studied by the conference, in addition to "gross production" and "commercialere: commercial productionexpenditures for) an indicator based oncosts (normatlvnaya stolmost') an indicator based on the value of the final output of the basic production plus the value of auxiliary production, and,or certain industries, the statistic of gross turnover.

As the general Indicator the conference recommonded use of tho statistic, "commercial production" since it would best insure the necessary connection between the plan for volume of work and other financial plans such as the cost plan and the'plan for accumulation. The newspaper report of the conference, however, went ahead to say:

"In separate branchos, in accordance with tho already existing arrangement, it will be necessary to calculate the indicator of commercial production in terms offrom the factory mothod, that is, includingturnover and, at the enterprisesarticular long cyclo of production (heavy industry, shipbuilding,eries ofncluding the change in tho balance of unfinished work."

Thua the recommendationhift from use of tho statistic, "grosso use of the statistic, "commercialisecommendation to shift from "gross" toas we now know it, but rather from the present "gross" to something now.

Detailed discussion of these concepts, became available to Western analysts/ and In subsequent discussionsho essential difference between these two concepts has remained" the samo. For each factory the value of "commercial production" has represented the value of finished product realized or intended to be realized, semi-fabrlcates delivorod to others, work of annature done for others, work done on the materials of others, and capital repair work on own equipment and meansGross production" differed from "commercial production" by the inclusion of the value of the materials supplied by others upon which work Is done for others,y any change in the value of semi-fabricates produced for own use in further production, the value of special instruments, forms, models, and appliancesfor own use,nd by the value of two exceptions which factories were permitted to add into tho value of their "gross production" but not into the value of their "commercialne of these exceptions was that, in certain branches of industry, in particular ln certain branches of food and lightactory was allowed to report as production the whole value of an intermediate product as well as the value of tho final product.he other was that, In branches of Industryong cycle of production, such as machine building, the reported value of the "gross production" Included any change. In the value of unfinished production. 8/

The report of this conference, however, revealed thatproduction" has already been redefined to Include the two exceptions. Hence the new concept of "commercial production" will differ from the old concept of "gross production" only by suchamounts as the value of the materials involved in work done for others on materials supplied by others and the amount of change in stocks of seal-fabricates and special Instrumentation, which in certain branches of food and light industry is disregarded.

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Ekononicheskaya Gazeta, . it in, D. "Tekhpromf inplan predprlyatlyavnutrlproizvodstvonnykh rezorvov" Plan of an enterpriseinstrumentof the reserves internal tokhozyayatvo, no. in, 3. etodology ischisleniya tempovn the mothodo-Togy ofof tho tempos of thegrossinoprosy Ekonomlkl,^ifo.

A. Soviet Statistics, Foreign Languages Publishing

House, (hereafter referred to as Yezhov. Soy lot Statistics) . Kuparadze"7T. Sprayaonomlsta (Handbook for tho. (heroafter referred to asprayochn lk.

Kuparadze. p. 9.

Yezhov. Soviet

Kuparadze" . 7.

Yezhov. Soviet

Ibid.

IHoT.

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