Proportions of Social Production, correlation between the components, parts and subdivisions of production, industries and regions which evolves under the influence of the objective economic laws, the rate and trends of the scientific and technical progress and socio-economic conditions of development. Under capitalism, a sort of proportionality in the development of production emerges spontaneously, is constantly being upset and is restored only for a short time through squandering part of national wealth during crises and recessions, with their higher unemployment and falling living standards. Under socialism the proportionality necessary to effectively develop the economy is maintained consciously and continuously by the purposeful activity of the state. Proportions are formed and improved through consideration of the directions of scientific and technical progress, changes in social requirements and other factors, and through the planned distribution of material and labour resources and capital investment among the industries, sectors and regions of a country. To make progressive changes in the economic proportions, it is important to correctly determine priorities in the development of industries and economic regions. The necessary economic proportions are established by working out a system of balances: material (natural) balances of the production and distribution of key products, the fixed assets balance, balance of labour resources, balance o] the national economy, balance ( interbranch) of the production and distribution of tin- social product, and others. In accordance with the Resolution of the CC CPSU and the USSR Council of Ministers of July 12, 1979, "On Improving Planning and Enhancing the Economic Mechanism’s Impact on Raising Production Efficiency and Quality of Work”, balances of material and manpower resources and of production capacities, the financial balance and the balance of the people’s cash incomes and expenditures are now worked out in the Soviet Union on an annual basis within the state five-year economic and social development plan. The formation of material and financial reserves according to the statutory norms, and whenever necessary production capacity reserves as well, will promote maintenance of the planned proportionality. Depending on the content of phenomena and processes, whose links are reflected in the economic proportions, the latter are divided into general economic, inter-sectoral, intra-sectoral, intra- production and territorial. The general economic proportions characterise the correlation of the components, subdivisions and aspects of social production as a whole (e. g., the correlation between the production of means of production and production of 296 consumer goods, or between consumption and accumulation). Inter-sectoral proportions reflect the ratio between branches or groups of branches, e. g., industry and agriculture, the power industry and power-consuming industries, etc. Intra-sectoral proportions delineate the correlations between subbranches and different kinds of production (e. g., between production of pig iron and steel, clinker and cement, yarn and fabrics). Intra-production proportions are determined by the links between the principal and auxiliary shops, etc. Territorial proportions reflect the location of the productive forces throughout the country, the ratio of the republics and economic regions in producing the aggregate social product and the national income, and in distributing the production resources. Today, the territorial proportions in the USSR are being improved primarily through giving Siberia and the Far East a greater role in the economy, especially in the production of oil, gas and coal, electricity and other key items, and through forming and developing extensive territorial-production complexes in these regions. Great influence is being exerted on this process by the construction of the Baikal-Amur Railway and the industrial development of adjacent regions. There are physical-material and value proportions as well as proportions in allocating manpower resources. Physicalmaterial proportions characterise the correlations in the development of industries manufacturing products in kind. Value proportions reflect the established economic ratios through collating respective indices expressed in money. Proportions in allocating manpower resources characterise the ratios between the number of employed in the production and non-production spheres of the economy, in the extracting and manufacturing industries, in industry, agriculture, construction and other sectors, and in the republics and economic regions. Changes in manpower allocation proportions are determined by the shifts in the development and location of social production, demographic and other factors. The stage of developed socialism is marked by the improvement of proportions in conformity with the task of accelerating the growth of the people’s well-being and increasing the efficiency of social production. This means increasing the share of industries which are pacesetters in science and technology, raising the development rate in agriculture, and changing its branch structure through the specialisation and concentration of production, inter-farm cooperation and agroindustrial integration, and evening out the growth rate of the A and B groups in industry, highlighting the importance of industries directly satisfying people’s needs, etc.
Notes
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