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Soviet Union (continued) of the Soviet command economy without replacing them with efficiently functioning markets. The initial reforms featured greater authority for enterprise managers over prices, wages, product mix, investment, sources of supply, and customers. But in the absence of effective market discipline, the result was the disappearance of low-price goods, excessive wage increases, an even larger volume of unfinished construction projects, and, in general, continued economic stagnation. The Gorbachev regime has made at least four serious errors in economic policy in these five years: the unpopular and short-lived anti-alcohol campaign; the initial cutback in imports of consumer goods; the failure to act decisively for the privatization of agriculture; and the buildup of a massive overhang of unspent rubles in the hands of households and enterprises. In October 1989, a top economic adviser, Leonid Abalkin presented an ambitious but reasonable timetable for the conversion to a partially privatized market system in the 1990s. In December 1989, however, Premier Ryzhkov's conservative approach prevailed, namely, the contention that a period of retrenchment was necessary to provide a stable financial and legislative base for launching further reforms. Accordingly, the new strategy was to put the reform process on hold in 1990-92 by recentralizing economic authority and to placate the rank-and-file through sharp increases in consumer goods output. In still another policy twist, the leadership in early 1990 was considering a marked speedup in the marketization process. Because the economy is caught in between two systems, there was in 1989 an even greater mismatch between what was produced and what would serve the best interests of enterprises and households. Meanwhile, the seething nationality problems have been dislocating regional patterns of economic specialization and pose a further major threat to growth prospects over the next few years.

GNP: $2,659.5 billion, per capita $9,211; real growth rate 1.4% (1989 est. based on Soviet statistics; cutbacks in Soviet reporting on products included in sample make the estimate subject to greater uncertainty than in earlier years)

Inflation rate (consumer prices): 6% (1989 est.)

Unemployment rate: officially, no unemployment

Budget: revenues $622 billion; expenditures $781 billion, including capital expenditures of $119 billion (1989 est.)

Exports: $110.7 billion (f.o.b., 1988); commodities—petroleum and petroleum products, natural gas, metals, wood, agricultural products, and a wide variety of manufactured goods (primarily capital goods and arms); partners—Eastern Europe 49%, EC 14%, Cuba 5%, US, Afghanistan (1988)

Imports: $107.3 billion (c.i.f., 1988); commodities—grain and other agricultural products, machinery and equipment, steel products (including large-diameter pipe), consumer manufactures; partners—Eastern Europe 54%, EC 11%, Cuba, China, US (1988)

External debt: $27.3 billion (1988)

Industrial production: growth rate 0.2% (1989 est.)

Electricity: 355,000,000 kW capacity; 1,790,000 million kWh produced, 6,150 kWh per capita (1989)

Industries: diversified, highly developed capital goods and defense industries; consumer goods industries comparatively less developed

Agriculture: accounts for roughly 20% of GNP and labor force; production based on large collective and state farms; inefficiently managed; wide range of temperate crops and livestock produced; world's second-largest grain producer after the US; shortages of grain, oilseeds, and meat; world's leading producer of sawnwood and roundwood; annual fish catch among the world's largest—11.2 million metric tons (1987)

Illicit drugs: illegal producer of cannabis and opium poppy, mostly for domestic consumption; government has begun eradication program to control cultivation; used as a transshipment country

Aid: donor—extended to non-Communist less developed countries (1954-88), $47.4 billion; extended to other Communist countries (1954-88), $147.6 billion

Currency: ruble (plural—rubles); 1 ruble (R) = 100 kopeks

Exchange rates: rubles (R) per US$1—0.600 (February 1990), 0.629 (1989), 0.629 (1988), 0.633 (1987), 0.704 (1986), 0.838 (1985); note—the exchange rate is administratively set and should not be used indiscriminately to convert domestic rubles to dollars; on 1 November 1989 the USSR began using a rate of 6.26 rubles to the dollar for Western tourists buying rubles and for Soviets traveling abroad, but retained the official exchange rate for most trade transactions

Fiscal year: calendar year

Communications

Railroads: 146,100 km total; 51,700 km electrified; does not include industrial lines (1987)

Highways: 1,609,900 km total; 1,196,000 km hard-surfaced (asphalt, concrete, stone block, asphalt treated, gravel, crushed stone); 413,900 km earth (1987)

Inland waterways: 122,500 km navigable, exclusive of Caspian Sea (1987)

Pipelines: 81,500 km crude oil and refined products; 195,000 km natural gas (1987)

Ports: Leningrad, Riga, Tallinn, Kaliningrad, Liepaja, Ventspils, Murmansk, Arkhangel'sk, Odessa, Novorossiysk, Il'ichevsk, Nikolayev, Sevastopol', Vladivostok, Nakhodka; inland ports are Astrakhan', Baku, Gor'kiy, Kazan', Khabarovsk, Krasnoyarsk, Kuybyshev, Moscow, Rostov, Volgograd, Kiev

Merchant marine: 1,646 ships (1,000 GRT or over) totaling 16,436,063 GRT/22,732,215 DWT; includes 53 passenger, 937 cargo, 52 container, 11 barge carrier, 5 roll-on/float off cargo, 5 railcar carrier, 108 roll-on/roll-orT cargo, 251 petroleum, oils, and lubricants (POL) tanker, 11 liquefied gas, 21 combination ore/oil, 4 specialized liquid carrier, 17 chemical tanker, 171 bulk; note—639 merchant ships are based in Black Sea, 383 in Baltic Sea, 408 in Soviet Far East, and 216 in Barents Sea and White Sea; the Soviet Ministry of Merchant Marine is beginning to use foreign registries for its merchant ships to increase the economic competitiveness of the fleet in the international market—the first reregistered ships have gone to the Cypriot flag

Civil air: 4,500 major transport aircraft

Airports: 6,950 total, 4,530 usable; 1,050 with permanent-surface runways; 30 with runways over 3,659 m; 490 with runways 2,440-3,659 m; 660 with runways 1,220-2,439 m

Telecommunications: extensive network of AM-FM stations broadcasting both Moscow and regional programs; main TV centers in Moscow and Leningrad plus 11 more in the Soviet republics; hundreds of TV stations; 85,000,000 TV sets; 162,000,000 radio receivers; many satellite earth stations and extensive satellite networks (including 2 Atlantic Ocean INTELSAT and 1 Indian Ocean INTELSAT earth stations)

Defense Forces

Branches: Ground Forces, Navy, Air Defense Forces, Air Forces, Strategic Rocket Forces

Military manpower: males 15-49, 69,634,893; 55,588,743 fit for military service; 2,300,127 million reach military age (18) annually (down somewhat from 2,500,000 a decade ago)

Defense expenditures: NA 288