Direct Long-Term Economic Ties, stable relationships between producer and consumer associations (enterprises) in the provision of industrial and technological products. Under these relationships, assortment plans for the production and delivery of products are formed within centralised assignments, and the amount of resources allocated. These plans are formalised as long-term economic agreements on the basis of consumer orders. The system of direct ties expresses a new stage in the socialisation of production, which is marked by more complex ties in the economic structure and proportions, and by their greater dynamism. As production expands and specialisation and cooperation develop, the final economic results (see Final Results of Production Activity) become increasingly dependent on coordinating the work of the intermediate links and the intra- and inter-sectoral ties, as well as on the effective work of each link in the entire framework of economic relations. Longterm economic ties make it possible to unite the efforts of consumers and suppliers in a planned way in order to ensure the timely and proper fulfilment of the state economic and social development plan, and to increase production efficiency through accelerating the introduction of scientific and technical innovations, through economising on material, labour and financial resources, and through expanding the range and improving the quality of products in accordance with consumer orders. This is done through regularising the production process and product deliveries according to technical specifications agreed with the consumer within a certain period of time stipulated in economic contracts. Today in the USSR direct ties link more than 12,600 production associations and enterprises, specifically 8,700 associations and enterprises of 70 ministries and departments which manufacture 75-85 per cent of the products in a given industry. Direct long-term economic ties are established for a five-year period on the basis of the proposals of consumer enterprises on their linkage with producer enterprises for product delivery. The volume of product deliveries is determined by planning bodies in an expanded product range. All other delivery specifications— such as assortment, time limits and quality—are defined in long-term contracts which currently encompass 90 per cent of the products delivered directly to enterprises. In the current eleventh five-year plan period (1981-1985), direct economic ties are becoming the basic form of material and technical supply for production associations and enterprises which stably produce and consume various goods. The planned organisation of these ties, higher economic incentives and greater responsibility for their development and the fulfilment of the delivery plan, the linking of delivery enterprises to consumer enterprises through the organisation of rational shipments and the conclusion of long-term contracts with transport organisations are all important avenues in improving the economic mechanism. Direct long-term economic ties are promoted by cooperation between work collectives of enterprises in different industries which together produce the end product and are consequently interested in fulfilling contractual obligations in the entire product range. These ties help further improve production relations and strengthen the relations of comradely cooperation and mutual assistance, increasing the degree of socialisation of socialist production. Today, direct ties are developing rapidly between enterprises of industrial ministries producing consumer goods and trading organisations. This makes it possible to formulate the production programme of enterprises proceeding from trade orders, organise the smooth functioning of industrial enterprises, and more efficiently change the assortment depending on consumer demand. The establishment of direct long-term economic ties makes all participants more responsible in material terms for the timely and proper fulfilment of plan 88 assignments and delivery obligations in accordance with consumer orders and longterm contracts, and so helps to achieve high ultimate results.
Notes
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