ABSTRACT
The key idea of investment policy in the 1970s became to limit capital investment in the creation of new industrial enterprises and to redirect investment resources to increase productive capacities through the renovation, expansion, and modernization of existing ones. Only in the coal industry was there a reduction in the share of reconstruction due to the development of new coal deposits in eastern regions. In economic circles there is an effort to disguise the fact that, in spite of state and party directives, true reconstruction is taking place in insignificant amounts. The share of construction work proper increased accordingly. The effort to limit capital expenditures on buildings and structures as much as possible was always a characteristic feature of Soviet investment policy and always took an extreme form. Enterprises are trying under flag of reconstruction to use any means to write off as much equipment as possible and to receive as replacements new equipment financed by investment flows if possible.
