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October 24, 1965 - Image 6

Resource type:
The Michigan Daily, 1965-10-24

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Russian Economic Change


Not Ideological

(Continued from Page 1)
heretical "capitalist incentives,"
but it has been tried in Russia
And still more important is the
added freedom factories will have
for minor expansion plans, al-
though it is unclear how for be-
yond merely choosing new equip-
ment this goes.
Possibly the most radical in-
novation is the "charge for cap-
ital" (in effect, an interest charge)
which will now go along with any

industry's expansion plans. Thus,
in the form of credits, the free
handout of grants will stop.
While production plans will be-
come to a great extent the con-
cern of the industry involved, all
of the key prerogatives remain in
the hands of the government:
pricing, allocation of material re-
sources, and major j investments.
Planning too, though beginning
at the bottom in consumer indus-
tries with people who are close to
the retail outlets and know con-

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sumer interests (a very important
qualitative revision), the govern-
ment will retain the last say.
Thus the definitive, crucial at-
tributes of a free-market, capital-
ist economy will still be missing-
and for this reason, talk of the
growth of capitalism in Russia is
nonsense. The government keeps,
as it always has, a very strong
hand on the plow, and the con-
version to profit as the main in-
dicator of success is unimportant
as a consideration in Soviet eco-
nomic philosophy.
The reforms will not be imple-
mented suddenly - it will take
about two years. Whether more
major innovations follow depends
on two things: whether the lead-
ers overcome the opposition of the
old line economists, and what gen-
eral economic path the Russian
economy will follow.
Three Alternatives
This last question covers three
alternatives: a computer-directed
economy: a quasi - free - market
Yugoslavian type economy with
the capitalistic appurtenances of
an industry's freedom to compete
and to revise prices; or Liberman-
ism (named after the Russian

of a free economy with a mainly
centrally directed economy.
The indications are, from this
year's changes and from an eval-
uation of traditional Soviet think-
ing, their commitments to phi-
losophy, and their commitments to
the old line thinkers, that Liber-
manism will win out.
Thus it seems safe to say that
the changes are not radical, that
the thinking behind them is not
capitalistic, and that there are no
signs of a move toward capital-
ism. It may be that "capitalist"
incentives and management in-
itiative has found a place-but
these changes are actually logical
bottom level reforms, necessary if
production is to be increased.
It is worth noting that little
mention has been given to the role
of the Communist party under
the new system. Kosygin said in
an address that the party role will
be increased, but there is good
reason to think this was said as
a sop to party officials. As the
party's job traditionally has been
checking up on local industry, the
increased management freedoms

SRegents Request
'Budget Increase

economist who outlined the phi- will probably mean more work for
losophy), which mixes in elements the party, but this change is one

(Continued from Page 1)
where a college's requested ,ap-
propriations increases will be
spent. Thus it is especially impor-
tant for the University, which this
year is requesting an appropria-
tions increase of $14.6 million,
about double last year's increase.
The Legislature and/or the
governor have traditionally cut
the state colleges' requests, and
the hope at the University is that
the new way of presenting the
budget will restrain such cuts this
State Funds
State funds supply the Univer-
sity with a little less than one-
third of its total budget.
The theory of budget coordina-
tion rests on the establishment of
standards for each institution
whic hexpress how much educa-
tion at a given level - freshman,
sophomore, junior, senior, and
graduate-costs at the institution.
Once these basis are established,
the colleges calculate their re-
quest increases from the state on
the basis of their estimated in-
creased needs for the coming year
in any given area.

Thus the University's request
for an increase of $6.9 million to
support its students is based on
an estimated increase of 82,503
additional credit hours that -will
be taught next year. The transla-
tion from.credit hours to dollars
requested is based on ratios ap-
proved by the presidents' council.
Different Cost Levels
Smith explained that all the
state's colleges will profit by such
a method. "It finances other in-
stitutions at the levels they re-
quire while recognizing the dif-
ferences in costs at varying levels
of instruction within the Univer-
sity," he said.
The University emphasizes grad-
uate programs so heavily that
any budgeting system which does
not take into account the greater
costs of upper-level instruction
fails to provide the money the
University needs, Smith said.
For example, he explained,
freshman - sophomore education
costs the University about $17.74-
per credit hour in direct instruc-
tional costs. By comparison, he
continued, junior-senior education
costs $29.94 per credit hour and
doctoral programs cost an aver-
age of $125.01 per credit hour.
Thus, if the state does not recog-
nize the University's increased
need for money because of its
heavy emphasis on higher-level
education, the institution can suf-
fer serious losses.
Quality of Education
The budget thus can advance
education at the University a
great deal, both in internal quality
and in concert with the rest of the
state's institutions.
The question now is whether
Gov. George Romney and the
Legislature will approve such siz-
able increases as those requested,
about double last year's.
Legislative comment for and
against the University has recent-
ly been mixed, so that the future
of the University's requestei in-
crease is far from certain.

of degree, not kind.
Changes in Agriculture
Since the beginnings of Soviet
Russia industry has grown stead-
ily, at times at fantastic rates.
At the same time comparatively
little was done to improve agri-
culture, and the result has been
a sore spot in the economy. Much
of it is due to the farm structure
itself - the collective farms, for
example, have rarely worked well.
Some of the weakness is due to
mismanagement of important pro-
grams of all varieties, and to the
reprehensible practice of "man-
agement by fiat" as Kosygin calls
Thus the current regime has de-
cided to lower the volume of ob-
ligatory sales to the government
and to fix that level through 1970.
Second, the procurement price
paid by the state for food products
will be raised from 50 to 100 per
cent. The aim of this is to foster
higher output by making it more
Production of agricultural ma-
chinery will be increased, and re-
strictions on private household
land allotments, and on the num-
ber of cattle that can be privately
owned will be removed.
The two billion rubles worth of
debts owned by the collective
farms will be written off, and the
bonus system for workers and of-
ficials who fulfill or overfulfill
quotas will be expanded.
In addition, the prices of goods
widely used in the countryside will
be lowered.
Incentives, Private Production
Nothing in this program is an
innovation. What is new, though,
is the more widespread use of in-
centives, and the encouragement
of private production. And though
this program has not gotten as
much publicity as the changes in
industry, it is easily of equal im-
Agriculture is the Achille's heel
of the Russian economy-it had
largely been ignored under Stalin,
and it shows it.
The Russian government is hav-
ing trouble with fast-braking in-
dustrial growth, and a perenially'
insoluable farm problem. A major
slate of changes is going into
effect to reverse the situation. But
behind the simple aspect of dif-
ficulties and solutions are several
U To Review
UMI Relations
(Continued from Page 1)
of those libraries with whom we
Relations Held Unquestioned
"These relationships have ex-
tended to the University of Mich-
igan although, since I've become
a Regent, on a somewhat circum-
scribed basis. Never in the past
has any question been raised as
to the propriety of these relation-
In his statement yesterday,
President Hatcher said:
"Mr. Power has done more
than any other man to make
scarce library resources accessible
to other libraries and scholars.
His services to scholars and col-
leges have been unique. He is
known and honored throughout
the world for his contributions in
microfilming and copy flow re-
Power is the president of the
Association of Governing Boards
of State Universities and Allied
Institutions, a nationwide organi-
zation comprised of university re-
gents and trustees.

7:15 p.m.-Americans for Re-
appraisal of Far Eastern Policy
will hold its first meeting in the
Multipurpose Room of the UGLI.
7:30 p.m.-Ken Southwood of
the sociology department will
speak on "Civil Wars and Inter-
vention" in the Betsy Barbour
7:30 p.m.-Prof. Marvin Felheim
of the English department will
lecture on "Contemporary Fiction"
in the Rackham Amphitheatre.
10:30 a.m.-Vice-President for
St'udent Affairs Richard L. Cut-
ler will deliver the opening ad-
dress "The Task of the Univer-
sity" at the "Consultation on Re-
ligious Values at the University of
Michigan," in the North Campus
Noon - Swami Parampanthi,
Hindu minister from India, will
speak on the "Meaning and Mys-
tery of Reincarnation" in the In-
ternational Center.
7:30 p.m.-"Made in the U.S.A."
will be the topic of the Art of the
Americas Lecture to be held in the
Rackham Amphitheatre.
7:30 p.m. - Swami Parampan-
thi, Hindu minister from India,
will lecture on "Cardinal Doctrines
of Hinduism" in the Multipurpose
Room of the UGLI.
8:30 p.m. - The University
Woodwind Quintet will give a re-
cital in the School of Music Re-
cital Hall.
Noon-William Stringfellow will
speak on "A Private and Public
Faith" in Room 2 Michigan
4 p.m.-Dr. Kenneth Cummins
of the biology department at the
University of Pittsbui'gh will speak
on "Trophic Relations in a Small
Woodland Stream" in 231 Angell
7:30 p.m.-The Law School will
present "Aspects of Law Prac-
tice: Rural, Urban, Corporate and
Governmental" in the Lawyer's
Club Lounge of the Law Quadran-
8 p.m.-The Professional Thea-
tre Program will present the APA
in "Harakles" at Lydia Mendels-
sohn Theatre.
1 p.m.-George L. Geis, .,direc-
tor of the Center for Research on
Learning and Teaching, will speak
on "Revision and Evaluation" in
the North Campus Commons.
2:15 p.m.-Bruce RusSett, visit-
ing research political scientist, will
-speak on "Identification and In-
terpretation of International Re-
gions" in 1057 MHRI.
4:15 p.m.-Prof. Jerzy Kurylo-
wicz of Harvard University will
speak on "A Balto-Slavic Prob-
lem" in the East Conference Room
of Rackham Hall.
7 and 9 p.m.-Cinema Guild will
present "Footlight Parade" at the
Architecture Aud.
8 p.m.-The Professional Thea-
tre Program will present the APA

in "Herakles" at Lyd1ia Mendels-
sohn Theatre.
8:30 p.m.-The University Sym-
phony Band, conducted by William
D. Revelli, will give a concert at
Hill Aud.
4:15 p.m.-Floyd Mann of the
psychology department will speak
on "Effectiveness in Scientific
Work Groups" in Aud. B.
4:15 p.m.-Prof. Jerzy Kurylo-
wicz of Harvard University will
lecture on "What is Morphonol-
ogy" in the Rackham Amphithea-
7 and 9 p.m.-Cinem'a Guild will
present "Footlight Parade" at the
Architecture Aud.
8 p.m.-The Professional Thea-
tre Program will present the APA
in "Herakles" at Lydia Mendels-
sohn Theatre.,

important factors that have a cru- A second factor that functions these were neglected under Sta-
cial bearing on the problems, and as an automatic check to attempts lin, and Russia is now paying for
that are generally ignored by to speed up the economy is the them with capital that could be
Western observers. huge investment in agricultural going into factories.
Defense and Space machinery, materials, and tech-
First, there is the very heavy nology. Russia has a long way to Thus with a closer look the re-
drain on the economy owing to go to modernize its agriculture-it cent structural changes lose all
defense and space efforts. Russia, will -be paying for a long time for of their air of radicalism, and the
in the present state of world af- Stalin's mistreatment. And one "weakness inherent" in Russia's
fairs must have a military estab- must remember that the Russian socialistic economy can largely be
lishment at least equal to ours, climate and the amount of arable explained. Russia is still a thor-44
but what they pay for it consti- land available are ceilings of a oughly socialist country, and its
tutes a much larger share of their type that the United States does economy remains very strong; it
GNP than what we pay for ours. not really face. is growing as fast as that of the
When one thinks of the capital Thirdly, Russia is placing a U.S., even with all the factors that
expenditures and investments that good deal of its wherewithal into hold back expansion. What has
could be made with this money, a consumer expenditures-transpor- happened is not a revolution-it is
truly staggering change in the sit- tation, housing, communication- a broad, comprehensive, and lib-
uation of the Russian economy be- necessities for a high and sophis- eral change in a troubled but still 4
comes possible. ticated standard of living. All of fast-moving economy.
The Week To Come: A Campus Calendar

8:30 p.m.-The Czech Philhar-
monic conducted by Karel Ancerl
will give a concert at Hill Aud.
2:30 and 8 p.m.-The Profes-
sional Theatre Program will pre-
sent the APA in "Herakles" at
the Mendelssohn Theatre.
4:15 p.m.-William Whitehead
of th music school will give an
organ recital at Hill Aud.
6:30 p.m.-The India Students
Association Banquet will be held
at the Michigan Union Ballroom.
7 and 9 p.m.-Cinema Guild will
present "Rififi" at the Architec-
ture Aud.
7 and 9:30 p.m.-The University
of Michigan Men's Glee Club, di-
rected by Philip A. Duey, and the
New York University Men's Glee
Club, directed by Alfred Greefield,
will give a concert at Hill Aud.




(Continued from Page 2)
ments with the following:
MON., OCT. 25-
Chevron Chemical Co., San Francisco,
Calif.-Men & women. BA & MA's in
Chem. & Gen. Lib. Arts. Positions in
territorial sales located throughout U.S.
Corning Glass Works, Corning, N.Y.
-Men & women. Degrees in Gen.
Chem., Gen. Lib. Arts, Econ, Math,
Physics for elec. computing, mkt. res.,
personnel, prod.; purchasing, territor-
ial sales & statistics. Company wide
Harvard Business School, Boston,
Mass.-Men & women, degrees in any
field. 4 'programs available to dev.
basic skills & knowl. in field of bus.
admin., inciding 2 yrs. leads to MBA,
Adv. Mgmt. Program, Trade Union
Program & Program for Mgmt. Dev.
New-York Univ. Grad School, N.Y.C.
-Men & women, all majors. Grad pro-
grams in Arts & Sciences, Bps. Admin.,
Educ., Social Work, Public Admin., Law,
Dentistry, Medicine & Engrg.
TUES., OCT. 26-
Harris Trust & Savings Bank, Chicago
-BA & MA's in Econ., Law, BA in
Gen. Lib. Arth & Math. Positions in
banking, mgmt. trng., & territorial
Chevron Chemical Co., San Francisco
-(See above).
H. J. Heinz Co., Detroit-BA's in all
fields for territorial sales. Sales
branches in principal U.S. cities.
Detroit Bank'-& Trust, Detroit-De-
grees in Econ., Gen. Lib. Arts, Poll.
Sci. Bkgd. in acctg. Men & women for
mgmt..trng, & banking programs.
Lawrence Radiation Lab., Livermore,
Calif.-All degree levels in math, phys-
ics, biochem., Analyt., Gen., Radio &
Phys. Chem. & Physiology. Men &
women. R. & D. positions.
Shell Oil Co., Houston, Tex. -, BA's*
for territorial sales throughout Mid-
west. BA & MA's for acctg., budgeting,
data systems, econ. analysis, statistics,
Indust. rel., transport., etc. Located
throughout U.S. Men & women.
WED., OCT. 27-00
Bureau of the Census, Wash., D.C.-
Men & women, degrees in Econ., Soc.
& Psych. All degree levels in Math &
Statistics. FSEE req. Positions in sta-
International Business Machines,
Dearborn, Mich.-Men & women. All
degree levels in Physical Chem. & Math.
Elec. computing, Prod., Territorial Sales
& Systems Engrs. Plants, Labs & Of-
fices throughout U.S.
U.S. Navy & Marine Corps-Officers
will be in the Fishbowl from 9 a.m.-4
p.m. with information about commis-
sion programs for students & grads.
Officer programs for men & women in-
clude general line, supply, medical &
dental. Engrg., law, theological & avia-
tion-men only. Officer qualification

test given to seniors with no obliga-
tion. No appointment needed. ,Stop by
information booth.
The following schools will interview
candidates at the Bureau of Appoint-
MON., OCT. 25-
Utica, Mich.-K-6, H.S. Lib.-
THURS., OCT. 28-
Royal Oak, Mich.-Elem. Vocal Mu-
sic, Visiting Teacher, Spec. Ed. (Type
A), Speech Corr., Deaf, Orthopedics, J.H.
Science, J.H. Engl./SS, J.H. Spanish,
H.S. Ind. Arts, H.S. Lib., S.S. Girls PE. 4
FRI., OCT. 29-
Madison Heights, Mich. (Lamphere
Sch.)-Elem. K-6, J.H. Math, Ind. Arts
(start now or 2nd semester).
Saugatuck,Mich.-Grade 3, Part-time
Rem. Reading.
International Schools Services---Math/
Sci. in Colombia & Dominican Repub-
lie, Engl./SS in Ecuador, Mexico &;Nie-
araugua, Ejem. in Brasil, Colombia,
Guatemala, Laos, Arabian Gulf &
MON., NOV. 1-
Clinton, Mich.-Comm. (start imme-
TUES., NOV. 2-
Fenton, Mich. (Lake Fenton Comm.
Schs.)-Elem., J.H. Math, J.H. Engl.
,THURS., NOV. 4-
Stanton, Mich, (Central Montcalm
Sch. Dist.)-5th Grade, 6th Grade.
FRI., NOV. 5-
Bear Lake, Mich.-Ind. Arts or nd.
Arts/PE (start. 2nd semester), Type A.
Manistee, Mich.-Emot. Dist., Type B,
Visiting Teacher, Type A, Speech Ther-
apy, Speech Corr.
The following schools have vacancies
to be filled this semester-NOW:
Byron, Mich.-Elem. Rem. Reading.
Ypsilanti, Mich. (Cleary .College)-
Commercial Subjects °(evening classes,
Appointmnts may be made ndw.
For additional information .and ap-
pointments contact the Bureau of Ap-
pointments, Educ. Div., 3200 SAB, 764-

Miss Margaret Flory
will speak as port of a service of installation
for the campus ministry staff about the



Sunday, October 24 ... 7:30 P.M.



First Presbyterian Church, 1432 Washtenaw
SUNDAY, October 24, at 3:30 P.M., Miss Flory will meet with all
students interested in work, study, and service projects in the U.S. and
overseas-French Room, Presbyterian Campus Center, 1432 Wash-

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Only $67.50.

NOUNCEMENTS is available to official-
ly recognited and. registered : student
organizations only. Forms are avail-
able in Room 1011 SAB.
La Sociedad Hispanica, Tertulia; lunes
3-5 p.m., 3050 Frieze Bldg. Vengan to-
Gamma Delta, Sunday evening, Oct.
24, supper at 6 p.m. followed by pro-
gram at 7.p.m., a play: " T he Cup of
Trembling,'? about the life of Dietrich
Bonhoeffer. All most welcome. - 1511
University Lutheran Chapel, 1511
Washtenaw, Sunday morning services,
9:45 and 11:15 a.m. Sermon subfect:
"Remember . . . Praise." Bible class at
11:15: "The Upside-Down Economics of
Love-II Cor. 9." All welcome.
Young Republicans, Executive Board
meeting, Oct. 24, 4 p.m., 2535 SAB.
Lutheran Student Chapel, Hill St. at
Forest-Ave., Worship services 9:30 &
11 ani. Speaker, 7 p.m.: "The Place
of the Church in Education, -Dean
Robert Long, Wittenberg University.
Henderson House, 2Oth anniversary
open house, Sun., Oct. 24, 2-5 p.m.,
1330 Hill St.




802 Monroe

AdN these other virtuoso Beethoven recordings to your collection.

Monday, Oct. 25, Noon Luncheon, 25c
Director of Student Organizations


318 S. State
On the Campus
761 -2011

2215 W. Stadium
Near Liberty


to Please

i. S '' o ame







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