Page:NATIONAL INTELLIGENCE SURVEY 18; CZECHOSLOVAKIA; THE ECONOMY CIA-RDP01-00707R000200110014-8.pdf/12

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investment funds. By 1971 the contribution made by agriculture and forestry to GNP had declined to about 11% with investment at 10.7%.


(5) Organization and policies—Czechoslovak agriculture was reorganized in the postwar period from an economy of small private farms to one of large socialist farming enterprises (state and collective). These large farms are patterned after the Soviet example and operate under tight central state controls. The drive to socialize agriculture was largely completed by 1960, when over 90% of the arable land was farmed by collective and state farms.

Since 1963 the regime has been experimenting with policies to stimulate agricultural production and reduce the high cost of output brought about by the socialization of agriculture. Policy changes introduced or proposed provide for greater freedom of decisionmaking at the individual farm level and for more direct use of market forces to influence the mix of agricultural output. Measures taken include changes in farm management, regional crop specialization, increases in producer prices, the introduction of pensions for farmers, and a new system of taxation. At the same time there has been an increase in industrial inputs and services made available to the agricultural sector. It is still too soon for the full impact of these measures to be felt, but they have undoubtedly contributed to increase in output since 1965.

The Husak regime has given no indication of any major changes in agricultural policy. The government has stated that no change is contemplated in the organization of state and collective farms or in the role of private plots. The trend of increasing industrial inputs to agriculture and toward large industrial-type farms initiated by the 13th Party Congress in 1966 is expected to continue into the 1976-80 plan.

Since 1 January 1969 two national Ministries of Agriculture and Food have existed, one for the Czech Lands and one for Slovakia. Their work was coordinated by a federal committee, which in December 1970 was upgraded to the federal Ministry of Agriculture and Food.


(6) Food consumption—Average food consumption per capita has generally exceeded 3,000 calories per day since 1957. Quantitatively the intake is above average for the Eastern European Communist countries. The quality and variety of the diet has improved as the consumption of meat and dairy products has increased and consumption of cereal and potatoes has declined compared with the mid-1950's. Undesirable imbalances still exist, however, due in part to faulty dietary habits. Grain imports have contributed to the improvement in the diet, both directly and by permitting an increase in numbers of livestock, particularly hogs and poultry. Imports of meat, citrus fruits, and vegetables also have contributed to the improved diet. Shortages of meat, particularly pork, prevailed in 1969 and 1970 despite increased imports. Since then, however, domestic supplies have been adequate by Eastern European standards.


b. Fisheries

Fishing is of minor economic importance in Czechoslovakia and is limited to lakes, rivers, and artificial ponds. The annual fish catch has grown from about 7,800 metric tons during 1956-60 to 15,077 metric tons in 1972.

The per capita consumption of fish during 1972 was about 5.2 kilograms (landed weight). Imports of fish and fish products totaled about 58,000 metric tons, with domestic production providing for the remainder of domestic consumption.


c. Forestry

Next to Austria, Czechoslovakia is the most densely forested country in central Europe, with more than one-third of the total land area in forest (4.5 million hectares). The productive forest area is about 3 million hectares and is composed of conifers (spruce, pine, and fir) at the higher elevations and broadleaf species (beech and oak) at the lower elevations.

The main objective of forestry management is the production of high-grade timber for industrial use. Approximately 90% of the productive forest, therefore, is planted from seed. The remaining 10% produces mainly fuel wood under the coppice system in which the trees originate as sprouts from stumps.

The wealth in forested land notwithstanding, forestry plays a small role in the economy. In 1969 this sector accounted for less than 2% of the country's total employment and for about 1% of the national income (in the Communist concept of that term). Nevertheless, domestic production of sawn lumber—about 83% of which is coniferous—exceeds requirements and allows for substantial exports, largely to Western Europe. On a value basis, about three-fourths of the sawn lumber exports in 1973 went to non-Communist countries. Czechoslovakia also imports sawn lumber, primarily from the U.S.S.R. On balance, however, the country is a net exporter. The country's supply position for sawn lumber in 1972 is shown in the following tabulation (in thousands of cubic meters):

Domestic production 3,524
Imports 153
Exports 688


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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8