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USSR: Measures of Economic Growth and Development, 1950-80

Central Intelligence Agency · 1982-12-08 · 399 pages · text from the file's own layer

This Joint Committee Print, dated December 8, 1982, gathers studies that the Central Intelligence Agency's Directorate of Intelligence prepared for the Joint Economic Committee of the US Congress. It gives estimates of Soviet gross national product for 1950 to 1980, with indexes of industrial production, agricultural production and consumption, and explains the methods and data behind them. The foreword says official Soviet statistics inflate growth and that the CIA measures offer a more accurate picture. The document contains no UFO material.

  • p. 184 …Metalwares, metal structurals, light industry and processed food industry machinery and equipment, and mineral chemicals are…
  • p. 271 …meals, fish meal, and vitamin and mineral supplements as well as ground hay and other materials…
Approved for Release: 2019/07/19 C05210421
general, the larger the sample’s share of the total, the
greater the likelihood that its characteristics are
similar to those of the full population.”
Using the 1972 input-output table as a point of
reference enables us to measure the sample coverage
and to identify those areas of industry where a
relatively small sample threatens the accuracy of the
indexes. If we sum the value of all the products within
each sector’s sample for 1972 and compare this with
the reported GVO in the input-output table, we get a
rough notion of the percentage of industrial output
covered by SPIOER, at least for that year. The
measure is rough because differences in accounting
practices and pricing make the industrial sample and
the input-output table incompatible in some respects.
For example, the production of commodities pub-
lished in physical units includes intraplant turnover,
but the value of production as reported in the input-
output table presumably removes intraplant turnover
in measuring gross output.” Production data ex-
pressed as a CSA index and perhaps as a value series
are also usually reported on an establishment basis,
and the input-output data are compiled on a commod-
ity basis. A commodity-based classification scheme
rebases the secondary production of an enterprise to
the industry to which it ostensibly should belong, but
establishment-based classification makes no attempt
at such a correction.” Another important difference is
the SPIOER sample’s use of 1 July 1967 prices and
the input-output table’s use of 1972 prices. To the
extent that there has been inflation—concealed or
otherwise—our estimated sample coverage may be
understated.
1‘ A large share—but less than 100 percent—does not ensure that
the sample represents the total if the products included are atypical.
For example, Soviet production data may be upward biased because
the CSA publishes only data that reflect favorably on Soviet
accomplishments. On the other hand, some published data under-
state growth because the Soviets generally measure output in
natural units, like the number of bulldozers. Such treatment fails to
capture changes in product assortment and quality. Therefore,
because of the peculiarities of Soviet data, a large sample share
does not guarantee the representativeness of the sample.
’° Narodnoye khozyaystvo v I 978 g, p. 580 and Treml, Gallik,
Kostinsky, and Kruger, Structure, pp. 46-47. Also see the earlier
discussion of gross output measures in this paper.
’° Treml, Gallik, Kostinsky, and Kruger, Structure, pp. 123-146.
In SPIOER’s coverage of industrial production, 87
percent of the industrial sectors reported in the recon-
structed 1972 input-output table have some form of
representation in the sample (table 13). The machin-
ery branch has the most sectors and also the most
gaps in coverage, although the missing sectors are
relatively unimportant. Of the represented sectors the
median coverage is 71 percent with the degree of
coverage ranging from 8 percent in one machinery
sector to more than 100 percent in certain sectors in
the construction materials, light industry, and proc-
essed food branches.“ Coverage in four of 10 branches
is more than 70 percent, and all but two have at least
50-percent coverage. The most restricted samples are
found in nonferrous metals (29 percent) and chemicals
(42 percent); statistics on production of nonferrous
metals and many chemicals are considered classified
by Soviet authorities and hence are not reported.
Machinery coverage would have been low—about
one-half—except that we added our estimates of
military machinery to the value of the sample. Overall
in this benchmark year the SPIOER sample ac-
counted for about 60 percent of Soviet industrial
production.
A Rough Measure of Sample Representativeness. The
fact that SPIOER product samples represent substan-
tial shares of total output in 1972 does not guarantee
that the samples are representative in terms of their
growth. The best available benchmarks of representa-
tiveness are the various input-output tables. One
rough measure can be performed computing gross
value of output in current rubles from the 1959, 1966,
and 1972 input-output tables for 10 branches of
" The sectors where this occurs are: logging (115 percent), cement
(106 percent), concrete (106 percent), asbestos cement (1 18 percent),
linen (159 percent), hosiery and knitwear (125 percent), flour and
cereal (142 percent), and fruit and vegetables (155 percent). There
are several possible explanations for the seeming anomaly. First the
average wholesale prices used by SPIOER could be too high.
Second, in some cases prices may have been reduced between 1967
and 1972. Third, different definitions of output and differences
arising from the conflict between commodity versus establishment
classifications also play a role.
208
Approved for Release: 2019/07/19 C05210421

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FOIA release, from the cia-readingroom collection. The PDF is mirrored here; the original link is above. 399 pages are in the text index: search them above, or from the library's search.