Documents / FOIA release

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. 183 …Biases in the Basic Data” for a fuller treatment of the new-product pricing phenomenon. It…
  • p. 253 …waste as it affects each category; a fuller discussion of the waste prob- lem can be…
Approved for Release: 2019/07/19 C05210421
received by all producers.‘ Agricultural commodities
are included in the index in the year in which they
were produced although some of the commodities may
be marketed or consumed in subsequent years. We
divide agriculture into two subsectors: crops and
livestock. Net production of the crop sector is the
value of crop production available for sale outside the
crop sector and for direct consumption by farm
households—that is, gross crop production minus the
value of seed grain and seed potatoes and minus waste
elements in grain and sunflower seed production. In
theory, waste should be deducted for all crops, but
lack of data makes it impossible to estimate these
quantities for crops other than grain and sunflower
seed. Crops used exclusively within agriculture for
feed such as hay, corn for silage, feed roots, and so
forth, are not counted. Similarly, to obtain “net”
output of the livestock sector, gross output is reduced
by animal products used for feed and hatching eggs.
When the two sectors are aggregated to measure total
net agricultural output, the value of commodities
transferred between them for use in the production
process is subtracted to avoid double counting. These
transfers represent feed produced in the crop sector
but consumed by livestock such as grain, potatoes,
whole milk, and vegetables. Because hay and other
forage crops are not included in crop output, they are
not part of these transfers. Data are lacking to
estimate transfers such as manure from the livestock
sector to crop production. When the two subsector
indexes are considered independently, feed is counted
as crop output and also is included implicitly in the
value of livestock output. In measuring total net
output, we subtract the value of crops and whole milk
fed as well as hatching eggs from livestock output.
Thus, the value of hay and other forage crops is
automatically included in net livestock output. The
CIA index, then, defines net livestock production as
gross output minus a) the value of selected agricultur-
al commodities fed to livestock and b) the value of
hatching eggs. Because our crop index and feed
deduction make no allowance for hay and other forage
‘ The index is a Laspeyres quantity index where
H
2 P70,j Qij
_ i=1
1,_n_i-
Z P10. 1 Qm
crops, the value of net livestock output is somewhat
overstated relative to the value of net crop output. The
value of these feed crops is small, however, and its
exclusion does not have a significant effect on the
results.’ Below, we define the sample categories in
more detail.‘ We touch briefly on waste as it affects
each category; a fuller discussion of the waste prob-
lem can be found in section V below. Table 1 shows
the ruble value and percentage distribution of agricul-
tural production in 1970 according to our index.
Grain and Potatoes. Grain and potatoes together
amount to 60 percent of net crop output. We account
separately for nine types of grain: wheat, rye, corn,
barley, oats, rice, millet, buckwheat, pulses, and “oth-
er grains.” Other grains amounted to less than 1
percent of the value of grain output in 1970.’ The
following tabulation shows the value of grain produc-
tion in 1970. Wheat and barley together account for
over two-thirds of the ruble value of net grain output.
While wheat has always been the single most impor-
tant grain, barley has been in second place only since
the early 1960s. Growth in barley production is
associated with the emphasis on rapid expansion of
feed grain output. Before then, rye was the second
largest grain crop in value terms. g
Million Rubles Percent
Wheat 7256.0 53.1
Rye 990.5 7.3
Buckwheat 224.0 1.6
Rice 307.4 2.2
Corn for grain 1009.6 7.4
Oats 839.4 6.2
Barley 2282.9 16.7
Millet 138.2 1.0
Pulses 600.9 4.4 _
Other 8.3 0.1
Total 13657.2 100.0
’ While the CIA index is primarily used to derive value added in
agriculture, with some adjustments it can also be used to gauge
trends in output of the crop and livestock sectors available to
consumers. For this purpose, net crop output is defined as gross
output less seed, waste, and grain, potatoes, and vegetables used for
feed. Net livestock output is defined as gross output less whole milk
fed and eggs for hatching. Redefining the subsectors in this way
raises the growth in livestock output and reduces the growth in crop
output reflecting the relatively rapid gains made by the Soviet
consumer in consumption of livestock products.
‘ Details on the derivation of the quantity data used in the index are
presented in appendix A. The derivation of 1970 average realized
prices is explained in appendix B.
i=1 ’
These include sorghum, spelt, vetch, lupin, seradella and other
minor miscellaneous grains.
254
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.