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 are based on deflated retail sales or value of produc- tion in “constant” prices may impart an upward bias to the index, because of the dubious reliability of the official price indexes used as deflators. These two sources of bias tend to offset each other. Judging from a mass of anecdotal evidence from the Soviet press concerning the poor quality of consumer goods and hidden price inflation, however, one might conclude that the upward biases are predominant. There is no good way to assess the matter. Category Weights The expenditure weights used to aggregate the 1 l major categories of goods and services are those for 1970 estimated in the calculations of GNP by end use in established prices. A full description of the sources and methods of their derivation is given in CIA, GNP I970. The weights shown there have been revised considerably to take into account additional or more recent information and an improved understanding of Soviet data; the revisions are described in Appendix D of JEC, GNP, 1950-80. The revisions reduced total consumption by 4 percent and raised the share of goods as opposed to services. A summary description of the revised weights follows: \ Goods. The weights for food and soft goods are the sum of (1) retail sales reduced to reflect only house- hold purchases for consumption, (2) consumption in kind estimated in physical units valued at average prices realized by producers (“farm gate” prices) and (3) military subsistence estimated by valuing rations in 1970 prices. The weight for durables and miscella- neous goods represents retail sales reduced to reflect only household purchases for consumption. Household services. The weights represent estimated household expenditures on these services based on a wide variety of Soviet sources, mainly studies by individual researchers published in books and journal articles. Communal services. The weights are the sums of estimated expenditures for education and health (1) by households based on a variety of Soviet and other sources and (2) by the government, derived from official data on wages and employment and on budget expenditures for other items, net of investment outlays and stipends. - On the whole, the expenditure weights are considered to be quite reliable. Although nominal consumption may be overstated because of inability to remove some non-consumption expenditures from retail sales of goods and services, the total can be reconciled fairly well with official Soviet values for consumption. The total, of course, does not take into account black market prices and other activities carried on in the illegal “second” economy. Such activities are not included in GNP in other countries either. In the Soviet case, moreover, they probably generate mainly price increases and income transfers rather than additions to the supply of real goods and services." As for individual category weights, which are based on specific Soviet sources and assumptions, their magni- tudes generally are supported by other information that is available. Also, the revealed expenditure pat- tern agrees well with that given by official statistics based on family budget surveys (Narkhoz I977, pp. 409-410), and, in general, with what one would expect on the basis of international comparisons for a coun- try at the USSR’s level of development as measured by per capita GNP and consumption.“ Data from surveys of the family budgets of urban Jewish emi- grees also support the relationshipsfwhen allowance is made for the unrepresentative composition of the sample." The 1970 weights used to aggregate the component indexes, both for major categories and for their sub- categories, are probably about as accurate as can be obtained with the data base and understanding of its meaning that are available at present. Although a number of estimates and assumptions had to be made in the process of constructing these weights, the impact of any errors cannot be large. If anything, the values for consumption as a whole and for some categories" are probably overstated, a tentative conclu- sion stemming from the fact that successive revisions in the weights, based on new information invariably produced lower values. The data underlying the weights for individual sub-categories are of uneven quality, a matter that will be considered in the following section. " Many personal services are provided privately, both legally and illegally. The expenditure weights for repair and personal care and health and education services include a substantial allowance for such services, based on a variety of information. “ Data on comparative expenditure patterns are given in Schroeder and Edwards, 0p. cit.; International Labour Office, Household Income and Expenditure Statistics, N0. 3, I968-I976, Geneva, 1979; V. Cao-Pinna and S. S. Shatalin, Comparison Patterns in Eastern and Western Europe. New York, Pergamon Press, 1979. " Gur Ofer and Aaron Vinokur, Private Sources of Income ofthe Soviet Urban Household, RAND, R-2359-NA, August I980, pp. 53-69. - 330 Approved for Release: 2019/07/19 C05210421
Not linked to a story yet.
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.