Reproduction, Socialist, planned and balanced process of constant renewal, expansion and technological improvement of social production aimed at providing a genuine well-being and the all-round development of all members of society, and based on public ownership of the means of production. Material benefits, 312 labour power and socialist relations of production are reproduced on an extended scale in the process of socialist reproduction both within individual socialist countries and within the framework of the socialist world economic system as a whole. Public ownership of the means of production and balanced economic development ensure the superiority of socialist reproduction over capitalist reproduction. Under socialism, it is possible to utilise material and labour resources of society more rationally, and determine the sectoral structure of production that is optimal for a given stage of development. Socialist society consciously gives priority to the accelerated development of the most progressive industries which are crucial for the technological level of the entire economy. It also takes into account the fact that the country’s defence capability must be kept strong, and its cooperation with the socialist and the developing countries extended. Under socialism the systematic improvement of living standards serves to constantly expand the consumer goods market. The absence of exploiter classes, and hence of parasitic consumption, greatly increases the possibility of accumulation (see Socialist Accumulation). The elimination of crises of overproduction and of competitive struggle and consequent losses serve the same purpose. As a result, higher production growth rates are ensured. Of great significance for enhancing the efficiency of social production is the scientific and technological, revolution; coupled with advantages inherent in socialism, it makes socialist economic system the world’s most dynamic economic force. As developed socialism becomes reality, the intensive form of expanded reproduction moves to the foreground because the advantages and opportunities which the socialist system provides are widely utilised. The source of expanded reproduction lies in the growth of the national income, one part of which is systematically used by society, as the accumulation fund, to increase the production and non-production assets. There are assets-intensive and assets-saving forms of intensive expanded reproduction. The assets-saving form is more progressive, since it corresponds to the objective of socialist reproduction to a greater extent, as it makes it possible to expand production and improve living standards without involving more capital investment and production assets. The greater effectiveness of capital investment is directly dependent on its concentration in decisive sectors, on increasing the share of expenditure on machinery, on reducing the period of construction, and on the priority channelling of allocated means to build projects that will promote scientific and technical progress and to re-equip and update operating enterprises. One condition of ensuring socialist reproduction is the balanced distribution of the aggregate product so that expended means of production are replaced, and accumulation and consumption funds established in order to quickly expand production and achieve genuine well-being for all members of society. The realisation of the social product assumes that part of the output of Department I is exchanged between enterprises within the department to replace the means of production expended over the year and to ensure the growth of the production assets to expand production. Within Department II, part of the output is also exchanged between state and collective-farm and cooperative enterprises. From this output, the requirements are satisfied both of workers already engaged, and of those who will be engaged in Department II. Apart from that, a certain share of the output is sold to workers in the non-productive realm in exchange for their incomes which are engendered by the surplus product. The remaining part of the output of both departments is exchanged between them, with the result that Department I ensures expanded reproduction of the production assets of Department II, while Department II provides articles of consumption needed by all workers in Department I. The balance between the two departments and other inter- and intraindustry proportions in socialist reproduction are maintained through balancing the production and distribution of the social product; it indicates which 313 industries and in which quantities are manufacturing a certain product, and where it is sent to be utilised. Apart from the static material balance, which is instrumental in coordinating the aggregate and the final social product of the period covered by the plan, dynamic balance models are also utilised (see Balance Method). They make it possible to coordinate the volumes of the aggregate product, national income and capital investment over several plan periods. The development of computer technology and the wider application of mathematical methods in’ economics facilitate the elaboration of the optimal economic balances for the country which makes social production more effective.