Democratic Centralism in Economic Management, the principle on which the socialist economy is managed, through combining unified centralised management with the initiative and creativity of local and sectoral bodies and of all the working people, every economic body and official being responsible for the job they have been entrusted. It implies that the decisions of higher echelons are compulsory for lower ones and that strict state discipline is observed. The principle is aimed at comprehensive improvement of the efficiency of social production and the quality of output, achievement of high. final results of production activity for the benefit of all society and each of its members and for the sake of the communist education of the working people. Democratic centralism in economic management is only possible under socialism which, on the one hand, makes it possible to centralise management of the entire national economy and, on the other, involves the broadest masses of the working people in management. The need for a centralised economic management ensues from the very nature of the socialist system. The seizure of political power by the working people and nationalisation of the main means of production create objective conditions for meeting the requirements of large-scale production in organisational unity of the national economy and its direction from a single centre according to plan. In compliance with the Constitution of the USSR, the higher echelons of state power and management have, in particular, to wage a uniform socio-economic policy and manage the country’s economy; define the guidelines for scientific and technical progress and outline general measures for rational utilisation and protection of natural resources; develop and approve state plans for the economic and social development of the USSR and supervise their fulfilment; develop and approve the unified State Budget of the USSR and supervise its implementation; manage the uniform monetary and credit system; define prices and wages policy; manage industries, associated and individual enterprises of national importance; guide industries of Union-Republican subordination; manage state-monopolised foreign trade and other external economic activities. Centralised management of the economy makes it possible to use more effectively labour resources, materiel and funds, concentrate them in the most important areas, ensure the balanced development of the national economy, and prevent numerous losses unavoidable in a free market economy. Socialism also opens up for every citizen and work collective ever broader vistas for taking part in the management of the state and society. The Soviet law On Work Collectives and Enhancing Their Role in Managing Enterprises, Institutions and Organisations places wide powers in all spheres of production and social life at the hands of work collectives. Participation of working people in 82 economic management, and the active role of sectoral and regional management in the development of the national economy ensure that full use is made of the initiative and creative energy of the working people in the national interests, that additional reserves are tapped for increasing production, local and sectoral specifics are taken into account and thus the most effective programme developed and implemented for achieving the ultimate goals set up by the central management bodies, that higher management echelons are relieved of responsibility for deciding current issues, and decision-making is both speedy and flexible. The centralism and democratism in economic management are different forms embodying the absolute power of the working people and their rights as masters of production. These two basic principles, far from being in conflict, constitute an organic whole; they are interdependent and complementary. As Lenin said, "centralism understood in a truly democratic sense, presupposes the possibility, created for the first time in history, of a full and unhampered development not only of specific local features, but also of local inventiveness, local initiative, of diverse ways, methods and means of progress to the common goal" (V. I. Lenin, Collected Works, Vol. 27, p. 208). The forms and methods for implementing democratic centralism in economic management evolve depending on changes in the level of the economy and the nature of the links between its components, scientific and technical progress and its materialisation in production, the social activity of the working people and availability of skilled personnel. The implementation of democratic centralism is also dictated by the status of the economic mechanism, the planning system in the economy, and the division of rights and duties between the elements of the economy. In the USSR, a system of measures is being carried out to improve the centralised, planned management of the economy, develop democratism in production management and increase the creative initiative of work collectives. To this end, the role of long-term planning, in particular of five-year plans, and its unity with current planning is being increased; the rights of production associations (enterprises) and local territorial management bodies are being expanded and their economic initiative encouraged; the material responsibility of production associations (enterprises) and organisat-ons for fulfilment of their obligations, and in particular, timely delivery of products of the agreed variety and quality, is being stepped up (see also Discipline, Planning); the conditions are being created for further development of the creative activity of the working people, socialist emulation, and counter (upwardly adjusted) plans.