Material and Moral Incentives, the forms, methods and means of enlisting people into labour and encouraging people’s labour activity under socialism. A definite system of incentives for work conditioned by the corresponding type of relations of production is characteristic of every social formation. In pre-capitalist formations the exploiting classes primarily employ direct violence and extra-economic compulsion to incite direct producers to work. Capitalism relies on economic coercion, based on formal equality between the owner of the means of production and the owner of labour power. The elimination of private ownership of the means of production and of the exploitation of man by man, and the assertion of the socialist social property radically change the attitude of direct producers to work. A new type of economic interests arises, harmoniously combining the interests of society as a whole, of work collectives and of the members of socialist society. Here the interests of the whole people are first and foremost. They express the necessity of the maximum possible growth of social wealth and, on this basis, satisfaction in the best way possible of the growing requirements of the members of society and the allround development of each. Under socialism, each worker is a co-owner of social wealth, and because of this he is interested in highly productive work and in increasing this social wealth. However, under socialism most people do not yet feel labour as a prime necessity of life. There are social and economic differences in labour—degree of qualification, level of mechanisation, working conditions, economic significance, etc. Therefore, socialist society requires forms and methods of encouraging people to work to the best of their ability. A system of material and moral incentives has shaped up in the USSR to instill in the working people the feeling of collectivism, and to form a communist attitude towards labour and social wealth. Material incentive for the results of their labour is one of the main pillars of the socialist economy. It is based on social appropriation of the means and products of production, and the collective work of all ablebodied members of society aimed at raising the well-being of all. Personal material incentive for the results of one’s labour is realised through distributing material and cultural benefits according to the quantity and quality of labour every worker expends. In socialist society there is a direct and immediate relation between higher social production and its greater effectiveness, on the one hand, and a share of social wealth for personal consumption of members of the society, on the other. At state enterprises and institutions wages (see Wages under Socialism) are the principal form of material incentive, while in the collective farm- andcooperative sector it is guaranteed payment according to work done (see Payment for Work on Collective Farms). In developed socialist society (see 217 Developed Socialism) the role of material incentives such as bonuses is growing. In combination with their wages, bonus payments make workers more interested in bettering the final results of their labour, in making it more productive and in improving the quality of the product. Alongside personal material incentives there are incentives for work collectives at costaccounting enterprises (see Cost Accounting) for improving economic activity which will bring them a share of the profits (see Profit of Socialist Enterprises) and will result in forming the economic incentives funds. Socialist society makes sure to organically combine personal and collective interests. Under socialism, relations between society as a whole (the state) and each work collective are structured on the principle: "what is advantageous for society must be advantageous for the enterprise and every worker”. This principle places enterprises in economic conditions which encourage them to use material and labour resources more effectively in order to satisfy social requirements in the best way possible. The material incentives come not only in the form of wages and payments in the collective farm-and-cooperative sector of production but also through social consumption funds. This has a direct effect on the worker’s labour. The fact that society provides many social services at no cost to the recipient or at a discount encourages workers to work more efficiently and to increase their contribution to social production. Members of society receive several allowances and privileges (pensions, grants, leaves, etc.) according to their wages, work record, working conditions, etc. Thus, distribution through social consumption funds is linked with distribution according to work, intensifying the incentives for highly productive labour. Material incentives presuppose not only encouragement but also material responsibility of workers and their collectives for the results of their work. The moral incentives for work are the greatest achievement of socialism and its main advantage over capitalism. The attitude towards work in socialist society is one of the principal criteria of a person’s appraisal. Moral incentives are means and forms of encouraging people to work which are based on the use of the social significance of labour and on the social recognition of labour services. The effectiveness of the material and moral incentives finds its concrete expression in the work workers and collectives do. Moral incentives are implemented through various forms of socialist emulation, patriotic initiatives, the broad participation of the working people in managing state and social affairs, the movement of innovators and inventors, etc. The development of moral incentives for work presupposes the education of working people in a spirit of communism and the strengthening of conscientious discipline. Moral and material incentives are organically interlinked, supplementing and enriching one another. This makes it possible to fully employ the abilities of every worker and collective as a whole and to make them interested in the best way possible in effective and highly productive labour. The Constitution of the USSR proclaims: "By combining material and moral incentives and encouraging innovation and a creative attitude to work, the state helps transform labour into the prime vital need of every Soviet citizen.”