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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.

Approved for Release: 2019/07/19 C05210421
Table 16
Comparison of Growth of Output in Two Sectors
Using Fixed and Variable Price Weights
Average Annual Percent
1960-66 1967-72
T“ If PM 1960-727“
Hoist transporTmachinery
_ Variable price weights I 8.4 9.5 8.9
Fixed price weights b 8.7 6.9 7.8
Construction machinery
Variable price weights B 8.9 8.8 8.8
Fixed price weights b 10.3 6.2 8.4
= These series are derived from the deflated final demand of the
respective sector from the input-output tables of 1959, 1966, and
I972. Because the CIA study has no price samples for 1966, the 1966
table in 1970 prices is used and then deflated to 1972 prices with the
derived indexes.
Deliveries to final demand in current prices are found in the
following sources:
1959-Dimitri M. Gallik, Barry L. Kostinsky, and Vladimir G.
Treml, Conversion of Soviet Input-Output Tables to Producers‘
Prices: The I 959 Reconstructed Table, FER-No. 6 (Washington,
D.C.: US Department of Commerce, February 1975).
l966—Treml and Guill, in Treml, Studies, pp. 197-281.
I972-Gallik, Guill, Kostinsky, and Treml, “The 1972 Input-
Output Table,” pp. 423-471.
Prices: The price deflators are taken from CIA, An Analysis of the
Behavior of Soviet Machinery Prices, I 960-73.
'> These series are derived from the SPIOER quantity series for these
two sectors.
Much more has been written about the distortions
afflicting both types of value series—-official ruble
value series and GVO index series—the double-count-
ing and disguised price inflation alluded to earlier.
The effect of changes in double-counting is relatively
easy to understand; the inflationary bias perhaps
requires more discussion.
Enterprise managers find it advantageous to boost
prices to meet their performance targets. But it is
difficult for managers to raise prices on standardized
products since prices are controlled by the govern-
ment. An exception is made, however, if the item can
be considered a new product.” Then an enterprise can
charge a new-product price, which is deliberately set
higher than the price of the old product to recapture
research and development costs of the new product.
Later the temporary new-product price gives way for
” The new-product pricing phenomenon has been widely discussed
in the literature. In particular see Abraham S. Becker, Ruble Price
Levels; Joseph S. Berliner, The Innovation Decision in Soviet
Industry; Padma Desai, “On Reconstructing Price, Output and
Value-Added Indexes in Postwar Soviet Industry and Its
Branches,” pp. 55-77; Gregory Grossman, “Price Control, Incen-
tives and Innovation in the Soviet Economy," Alan Abouchar, ed.,
The Socialist Price Mechanism (Durham, N. C.: Duke University
Press, 1977); and CIA, An Analysis of the Behavior of Soviet
Machinery Prices, 1960-73.
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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 under it. 399 pages are in the text index: search them above, or from the library's search.