ABSTRACT
On the production side of national income, the share of agricultural production is understated in relation to industrial production. The socialized sector consists of State and of cooperative productive units. The Social Requirements Fund is that part of production which is not distributed in wages but is used for social consumption and for accumulation. Owing to the peculiarities of the valuation of the different components of production and the disequilibrium exchange rates, it is obvious that the comparability of the national income figures, even amongst Socialist countries, is greatly impaired. Taking the European Socialist countries as a whole, the private sector plays only a minor role, contributing about five percent of total production. The Socialist rates of growth are likely to embody an upward bias. The economic system is generally assumed by Socialist economists that, on the whole, the long-run rate of growth will settle at the level of 50–70 percent higher than in the developed capitalist countries.
