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Liberman, E. G. (1971). Economic methods and the effectiveness of production A. Schultz & L. J. Kirsch, Trans. White Plains (N. Y.): International Arts and Sciences Press, inc.  
Last edited by: Dominique Meeùs 2012-02-21 14:39:50 Pop. 0%
      As we know, the economic reform was elaborated in a rather extensive, specific form. First, there was a substantial reduction in the range of obligatory plan indices communicated to enterprises on a centralized basis, a number of indices were replaced, and the new profitability index was introduced.
     Plan targets for the volume of output to be sold are being established for enterprises instead of the gross output index. This substitution is very substantial : it places production under the economic control of purchasers and creates prerequisites for the establishment of organic unity between planning and cost-accounting. The basic product-mix [nomenklatura] is also confirmed from above.
     In addition to other indices, profit and profitability calculated as the ratio of profit to fixed productive capital and to normed working capital have been established as indices for evaluating the effectiveness of the work of enterprises. Thus, yardsticks of effectiveness which, although they have existed in our country for a long time, have not played a large part in planning, to say nothing of the evaluation of the work of enterprises, have been brought into economic circulation.
     In our opinion, the plan should confront production with ultimate goals but should not directly regulate the means of their attainment within the enterprise, which would deprive the enterprise of the necessary maneuverability in finding optimal solutions for the fulfillment of plan targets.
     Although they retain their importance as accounting indices within the branch, such indices as the number of personnel, the average wage, labor productivity, and enterprise cost of production are not included in the number of obligatory indices that are confirmed for each enterprise.
     Even now, certain economists cannot see how such a very important index as labor productivity can be left outside the realm of obligatory centralized planning. But the reform in no way denies the fact that labor productivity is a most important index to the effectiveness of production. The task consists in monitoring the correspondence between the growth of wages (including bonuses from profits) and increases in labor productivity.
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