The Mechanism of Self-Financing

Abstract

Given the consistent implementation of the principles of self-financing, work collectives must be motivated to produce more, cheaper, better, and faster, to carry out contractual obligations without fail, and to accelerate scientific-technological progress. Only then will they be able to ensure adequate sources for remunerating labor, for their social and productive development. The transition to self-financing is a demand of the party program that resounded with special force at the June 1987 Plenum of the CPSU Central Committee. While this mechanism was until recently applied at two state industrial enterprisesthe Sumy M. V. Frunze Machine-Building Science-Production Association and the >i>"AvtoVAZ">/i> Associationall enterprises belonging to the Ministry of Chemical and Petroleum Machine Building, the Ministry of Instrument Making, Automation Equipment, and Control Systems, the Ministry of the Automotive Industry, the Ministry of the Petroleum Refining and Petrochemical Industry, the Ministry of Light Industry, and thirty-seven other large enterprises of other industrial ministries have now been converted to self-financing. Nine percent of all industrial enterprises that account for more than 20 percent of total industrial output are now operating on a self-financing basis.