Central Planning in Czechoslovakia: Organization for Growth in a Mature Economy

By Jan M. Michal | Go to book overview

Chapter 10
NATIONAL INCOME, GROSS PRODUCT, AND EXPENDITURE AGGREGATES

1. Conceptual Framework of National Income and Social Product in Centrally Planned Economies

Two basic national aggregates have been used so far in centrally Planned economies: national income and gross social product. Both are basically different from national income and gross national product under the definition generally accepted in the West.1

National income and social product, as presently defined in Eastern Europe, refer only to the sphere of material production or the "productive" sphere. This does not mean that they exclude all services. They include services connected with the production and distribution of material products, such as trade (wholesale, retail, and foreign), transportation of goods, legal services, etc. In the Czechoslovak framework, the branches of material production are industry (mining, manufacturing, electricity, and gas); construction; agriculture; forestry; transportation (in principle, freight transport only); communications and servicing production; state supplies of materials and state procurement of agricultural produce; trade and public catering.

Explicitly excluded from the official Czechoslovak computations of national income are the following branches of the "nonmaterial" or "nonproductive" sphere: passenger transportation; communications (the part servicing the population); science and research (but probably not industrial research); communal services (such as barbers, cleaners, etc.);

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1
In some centrally planned economies--for example, Poland--the concept of "gross national income" or "net product" has been introduced. It is, in fact, gross national product limited to the sphere of material production (merely a difference in terminology). In Dochód Narodowy Polski, 1956, the "net product" is defined as follows: "Value of material goods which, as the ultimate result of material production, is at the disposal of the community; on the other hand, national income corresponds to the newly produced value of material production. The difference between net product and national income is the value of fixed investments consumed (amortization) by which net product exceeds national income." In Czechoslovak statistics such an aggregate is not used.

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Central Planning in Czechoslovakia: Organization for Growth in a Mature Economy
Table of contents

Table of contents

  • Title Page iii
  • Acknowledgments v
  • Contents vii
  • List of Tables ix
  • Abbreviations and Symbols xiii
  • Introduction 1
  • Chapter 1 Population and Manpower 6
  • Chapter 2 Industry 26
  • Chapter 3 Construction 58
  • Chapter 4 Agriculture 64
  • Chapter 5 Transportation 91
  • Chapter 6 External Trade 96
  • Chapter 7 Money and Prices 139
  • Chapter 8 State Budget and Investments 165
  • Chapter 9 Income of the Population and Standard of Living 188
  • Chapter 10 National Income, Gross Product, and Expenditure Aggregates 211
  • Conclusion 238
  • Appendix Results of the 1959 Plan; Plan for 1960 and Targets for 1965 Under the Third Five-Year Plan 245
  • Summary 253
  • Bibliography of Works Cited 265
  • Subject Index 269
  • Name Index 274
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