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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. 19 …Monica, Calif, 1962; Becker, 1969; and Sally Anderson, Soviet National Income, I 964-I 966, in…
Approved for Release: 2019/07/19 C05210421
enterprises, the government, and kolkhozy for ma-
chinery and equipment, construction-installation
work, design work, and other capital outlays, and also
investment by private households for housing. New
fixed investment, as defined in the reconstructed GNP
accounts for the USSR, also includes net additions to
livestock, which are part of inventory investment in
the US accounts. In contrast to the United States, the
Soviets include the cost of installing machinery in
construction expenditures. These expenses would be
part of investment in machinery in the United States.
Because of the different scope of government activity
in the Soviet Union, government expenditures are
treated somewhat differently than in US GNP. The
Soviet Government provides a wide range of consumer
services without charge. Government current expendi-
tures for health, education, and recreational services
are classified here as consumption rather than as
government expenditures. The government, through
the state budget, also purchases a large share of the
investment goods and distributes them to various
organizations. These expenditures are treated as in-
vestment rather than as government expenditures.
Investment in the US accounts includes only private
investment; government investment is included in
government expenditures. Included in government
expenditures for the USSR are current outlays for
government administrative services, research and de-
velopment, and a part of defense expenditures. Gov-
ernment administrative services in turn consist of
outlays on cultural activities, municipal services, civil-
ian police, general agricultural programs, forestry,
and state administration and the administrative or-
gans of social organizations.
The second basis of classifying GNP is by type of
income. This approach is not used in computing the
growth of real GNP, but is used to construct the base-
year GNP weights. The principal types of household
incomes are state wages and salaries, kolkhoz money
wage payments, net income from sales of farm prod-
ucts, consumption in kind of private agricultural
production, earnings from private services, net rent
from owner-occupied housing, and net income from
construction of private housing. The principal types of
income in the public sector are retained earnings,
31
charges for special funds, taxes, depreciation, subsi-
dies (as negative income), deductions from profits, and
other payments to the budget.
The third basis of calculating GNP is by sector of
origin, aggregating the income earned in each sector
of production activity. The classification of the pro-
duction of goods and services conforms to Soviet
definitions: industry, construction, agriculture, trans-
portation, communications, trade, and services. Indus-
try is further broken down into ll subsectors and
services into nine. Military personnel and a small
“other branches” sector complete the sectors of origin.
The full list of sectors is shown in figure 9.
Each type of income earned in 1970 is allocated
among the sectors of origin. The values assigned to
each sector are then summed to form the 1970
weights for each sector. Each sector weight is then
multiplied by a matching volume index to derive the
estimated growth of real GNP.
Production Boundaries. The definition of a final good
or service is not always clear in national income
accounting. The main source of uncertainty is wheth-
er government expenditures should be considered final
or intermediate output. The decision in Western
practice has been to declare all government purchases
of goods and services to be final output. The more
extensive scope of government activity in the USSR
makes definition of final output still more difficult.
One major problem concerns science expenditures. In
the United States, research and development is large-
ly financed by private corporations, and their expendi-
tures are considered intermediate purchases. The
research and development funded by governments is
considered final output, being treated as purchases
from the various industries that perform research and
development on government contract or as direct
purchases of materials and wages of government
employees. Accordingly, in the US accounts there is
not a separate comprehensive account for research
and development expenditures. In the Soviet Union,
most science expenditures are funded by the govern-
ment, and science is considered a separate sector. For
practical reasons, then, all Soviet science expenditures
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.