Documents / FOIA release
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.
“Cooper”25 pages
Approved for Release: 2019/07/19 C05210421 An Index of Consumption in the USSR Introduction The index of consumption described in this paper was developed to provide a measure of real consumption in the Soviet Union in the post-war period that is comparable in concept and methodology to measures available for Western countries. The index defines consumption to include all household expenditures on goods and services for consumption plus government current expenditures on health andeducation services. ln Western national accounts—those of the OECD, for example—this definition is equivalent to “private final consumption expenditures“ plus the health and education components of “government final consump- tion expenditures". Although treated separately here, the index is designed as a major component of an index of gross national product (GNP).‘ Like most of the other components of CIA’s reconstruction of Soviet GNP over time, the consumption index is an aggregate of time series, most of them in physical units, weighted by expenditures in rubles in the base year (1970). This approach contrasts with that in Western countries, where the GNP index and its components are usually deflated value measures. In the Soviet case, the resort to physical measures was both necessary and desirable, because of the lack of trustworthy price indexes as well as current expendi- ture data in most cases. A Western-type measure of progress in raising living standards in the USSR is required for two important reasons. First, the measures published by the Soviet government are conceptually unsuitable for compari- sons with those published by Western countries and also are widely believed to have a large upward bias. The official Soviet measures—“real per capita in- comes” and “personal consumption” plus “material expenditures of institutions serving the population”- are couched in the Marxian conceptual framework of net material product; thus, they exclude the labor inputs into personal and oommunal services, and they include depreciation and some other elements not considered to be final consumption expenditures in the West.’ The Soviet government publishes neither a cost ' See JEC, GNP, 1950-80. 2 For details, see United Nations, Comparisons ofthe System of National Accounts and the System of Balances of the National Economy, Part l, Series F, No. 20, New York (1977). 323 of living index, nor a suitable deflator for net material product by end use. The official index of retail prices has serious methodological and conceptual faults.‘ Second, progress in raising living standards is a major facet of the challenge that Soviet-style socialism has long posed to Western market-oriented systems. The goal to “overtake and surpass" capitalist rivals was laid down by Stalin in the early 1930s and reiterated with great fanfare by Khrushchev in the early l960s. Indeed, the Program of the 22nd Party Congress was designed to bring Soviet society to communism “in the main" by 1980, when the Soviet people would have a “standard of living higher than that of any capitalist country." ‘ Thus, provision of a reliable measure of real gains in living standards is key to an evaluation of the Soviet Union's progress toward its goal.’ The CIA index is the only Western-type mea- sure of consumption that has been constructed and kept up to date for the entire period since l950. The results of its several recent versions have been pub- lished periodically in JEC compendia on the Soviet economy.° The index described in this paper is a somewhat revised version of that published in JEC, 1979. Two other Western-type indexes are available for a part of the period—indexes for I950-58 by. Bergson and Chapman " and an index for 1958-64 by Becker.” These indexes have not been revised to take account of more recent information or extended to later years. The CIA index thus fills a large gap in Western research on trends in levels of living in the Soviet Union in the post-war years. The index is kept continuously under review, with a view to increasing its reliability as new information permits. ’ Gertrude E. Schroeder, “An Appraisal of Soviet Wage and Income Statistics" and Morris Bornstein, “Soviet Price Statistics" in Treml and Hardt, pp. 307-312, 370-378. ‘ Pravda, October 19, 196]. _ _ ’ The Soviet achievement is evaluated in a comparative framework in Gertrude E. Schroeder and lmogene Edwards. Consumption in the USSR: An International Comparison, US Congress, Joint Economic Committee, I981. ° JEC, I966, Part II-B, pp. 499-529; JEC, I973. PP. 376-403; JEC. I976, pp. 620-660; JEC, I979, Vol. l, pp. 759-789. ’ Janet G. Chapman, “Consumption,” in Abram Bergson and Simon Kuznets, eds., Economic Trends in the Soviet Union, Cambridge, Harvard University Press, I963, pp. 235-282. ‘Abraham S. Becker, Soviet National Income, I958-I964, RAND Berkeley, University of California Press, I969, pp. l I9. 222-227. 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.