Source: http://www.lituanus.org/1983_2/83_2_01.htm
Timestamp: 2019-04-20 23:19:53+00:00

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The relationship between economic and social factors and the nationality question can also be analyzed from the perspective of local republic policies and regional development problems. The ongoing debate in the Soviet Union regarding the question of reconciling branch and territorial principles and interests in the area of economic planning and management has created an opportunity for the articulation of republic interests. The abolishment of the sovnarhoz system in 1965 drastically reduced the significance of the territorial principle in planning and management. The branch principle, embodied organizationally in the form of all-union and union-republic ministries, reacquired a dominant position. While the branch principle strengthened centralized planning and management of the Soviet economy, it also made it difficult to implement regional development programs and solve inter-branch problems. This is seen in many parts of the Soviet Union — especially in areas of new development, such as the West Siberian Lowland. In these areas, local advocacy of the territorial principle in planning and management is articulated as a concern for improving economic efficiency.3 In a Union republic such as Lithuania, the advocacy of the territorial principle may also be viewed as an attempt to advance the interests of the eponymous nationality.
The purpose of this paper is to examine the hypothesis that Lithuanian planners and party officials, by focusing on problems created by the failure to coordinate territorial and branch principles, are attempting to: (1) expand the rights and prerogatives of republic: agencies vis-a-vis central agencies, and (2) achieve local priorities in the area of environmental protection, manpower resource use, and the food supply.
Lithuanian party and government officials made a concerted effort to shape the course of industrial development and maximize the utilization of the republic's major resource — it's population.
Manifestations of local interest and influence reached its apogee during the 1957-1965 period when economic planning and management in the Soviet Union was carried out within the framework of the sovnarkhozy system. Enhancement of the territorial principle created opportunities to further republic interests.
Abolishment in 1965 of the Lithuanian SSR Economic Council (Sovnarkhoz) made the implementation of the master plan more difficult — especially since the prerogatives of the branch ministries increased. Nevertheless, certain successes were achieved. A number of new industrial enterprises were located in the newly designated regional centers and smaller industrial towns. The abundant rural manpower resources were able to satisfy the needs of the new industrial enterprises and practically eliminated the necessity of using outside labor.16 Inter-republic migration remained at a low level. The 1979 census of population revealed that Lithuania continued to be one of the most homogeneous republics in the Soviet Union.
Failure to control the development of industry and growth of major cities stems from the fact that republic agencies — such as the Lithuanian SSR State Plan Committee — have very little influence on the activities of All-Union and Union-republic ministries. Republic priorities, such as those expressed in the 1965-1980 master plan, have been overridden by central ministries and territorial planning has become subordinated to branch interests. This situation has created a feeling of frustration and dissatisfaction among members of the republic leadership and the scientific community. Shortcomings in the implementation of the master plan have been blamed by Lithuanian authorities on the All- Union and Union-republic ministries and their enterprises.
The persistence of strong departmental tendencies in Lithuania has made it difficult not only to improve cooperation and coordination between functionally related enterprises, but also to implement comprehensive programs and solve interbranch problems. The growing severity of certain interbranch problems has generated considerable discussion and criticism of established planning and management practices in the republic. This is particularly evident in respect to environmental protection, manpower resource use, and the food supply problem in the republic.
The manpower supply question was one of the main problems addressed by the "Comprehensive Program for the Intensification of Industry and Construction in the Lithuanian SSR between 1981-1985."62 Although the Comprehensive Program is essentially a preplan analytic document concerned with projecting the future course of economic and social development in the republic, its specific focus is directed toward the problem of improving the distribution and use of manpower resources. The linchpin of this endeavor is the formulation of a manpower balance for the republic. Moreover, beginning with 1979, employment limits were established for all ministries, enterprises, and associations in the republic.63 In this regard, the Comprehensive Program attempts to go beyond analysis and become a directive document — albeit on a voluntary basis.
The production, procurement, processing, and retailing of food and food products comprises an interconnected functional system. Its management, however, is highly fragmented. The ministries of Agriculture, Meat and Dairy Industry, Food Industry, Procurement, and Trade are involved in its operation. The existence of a highly fragmented branch planning and management system makes it difficult to coordinate activities which affect the interests of a number of organizations. For example, in line with the policy of increasing the concentration and specialization of production, the Lithuanian SSR Ministry of Meat and Dairy Industry closed down a number of small dairy plants. Although the production of dairy products in large combinates is more efficient and cheaper, the shortage of refrigerated trucks and the lack of refrigerators in rural stores actually reduced the availability of milk and other dairy products in the countryside.
The primacy of the branch principle in Soviet planning and management has reduced the input of republic agencies in determining the distribution and development of productive forces in Lithuania. Attempts to implement the 1965-1980 master plan and achieve a more uniform distribution of economic activity has been negated by the actions of individual ministries. The propensity of ministries to take advantage of positive externalities found in the large cities has sustained their growth. This not only exacerbates the differences between the large cities and the new regional centers, but also accentuates the existing disproportions between the productive and nonproductive sectors of the economy in the urban areas of the republic. The prevalence of departmentalism has made it difficult to solve problems whose scope extends beyond the narrow interests of individual ministries. This in turn is creating increasing frustration with the systemic inadequacies of the centralized economic system.
The essence of the branch-territorial dichotomy is the fact that the branch planning and management system is not working. Criticism of the branch principle is tantamount to criticism of economic centralization. Advocacy of the territorial principle, on the other hand, represents an attempt to increase the rights and prerogatives of regional units. In this respect, the branch-territorial debate is a reflection of the growing conflict of interests between the center and periphery. As pointed out by George Breslauer, "center-regional relations are becoming one of the more salient issues in Soviet politics."88 In a union republic such as Lithuania, the branch-territorial and center-regional dichotomies have become important systemic sources of dissatisfaction and frustration. This enhances existing nationalistic sentiments and acts against attempts to defuse the nationality problem in the republic.
* This is a revised version of a paper presented at the Seventh Conference on Baltic Studies, Georgetown University, June 4-9, 1980.
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