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Additional resources for Alternative Approaches to Economic Planning
Typically they are differentiated by the skill grade of the worker, the sector of the economy in which he or she is employed and (sometimes) the region of the country in which he or she works. However, many workers are on piece rates, and in the general atmosphere of labour shortage caused by taut planning there is some scope for wage drift (see, for example, Fearn, 1965). The supply of labour depends on individual household responses to wage rates. Except for relatively brief periods there has been no attempt to allocate labour administratively, nor to oblige workers to remain employed at a particular enterprise.
As a result consumers became increasingly 'choosy' and demanding, no longer accepting all the poor-quality goods which were purchased in times of poverty and shortage. 5 Industrial output * Provisional. Sources: Naradnoe Khozyaistvo SSSR; SSSR v tsifrakh; Ekonomicheskaya gazeta (various issues). 1 Agricultural output ;:s \D w ~ ;:s ;:s s· Dq ;:s <:::> ~...... :;· ;:;. 11) l:l... 2 Capital intensity in Soviet industry 1965-78 Capital intensity (index, 1965 100)* = 1965 1970 1972 1974 1976 1978 100 134 155 178 204 229 * The index measures capital per worker in industry.
This feature leads to distortions in plan implementation (discussed below). We have explained how the production and supply components of the enterprise annual plan are constructed. In fact, the plan document the enterprise receives, in the Soviet Union called the technical, industrial and financial plan, lays down targets for other aspects of enterprise activity. 5 below). Techniques based on the compilation of balances similar to those described above are used to allocate labour, investment and financial resources, and to prepare these divisions of the plan.
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