Economic management, not merely administrative management
The whole country is living and working these days in the spirit of the 10th Plenum of the Party’s Central Committee. Its tasks and ideas further develop and comprehensively deepen the decisions of the 9th Plenum.
The aim is, as comrade Ramiz Alia stressed in his programmatic speech, to increase the role of the masses, so that the people themselves become masters of the country and exercise their power and sovereignty in every field. This is a great principle of the Party, a precious lesson from comrade Enver Hoxha. The new tasks and horizons opening up embody the interests of the people and the homeland. They are of great theoretical and practical importance for today and for the future. This is why the people welcome them wholeheartedly, receiving them with revolutionary enthusiasm and optimism. They are expressing this concretely, not merely through expressions of solidarity, but through pledges to put them into practice.
When we speak of democratizing life in the country, one important aspect is undoubtedly the implementation of the mass line in the economy. This is a fundamental objective now set by the Party. It is a matter of principle, but also a necessity for invigorating the motive forces of socialist production. Socialism creates the conditions for workers to participate actively not only in production, but also in the management of the economy. Material factors and the new relations created on the basis of common ownership make people committed and free to unleash inexhaustible energy for work and creativity, and to achieve high productivity in every field. The measures taken by the Party at recent plenums pave the way for these conditions and opportunities to be used with the greatest effectiveness: our human and material resources, our great wealth and valuable experience, and the human qualities and values created by socialism are to be advanced more rapidly, production and the economy are to grow, and the people’s material and cultural level is to rise.
To increase the role and participation of the masses in this field, as the 10th Plenum emphasized, the level of the Party’s and mass organizations’ educational and persuasive work must be raised everywhere. But this work will bear fruit and secure the objectives sought only if it is coordinated with the operation of economic mechanisms. If we have had, and continue to have, failures to fulfill plans in particular enterprises and sectors; if there are shortcomings and breaches of labor and technological discipline, poor quality and low productivity; if raw materials and supplies are wasted, costs are high and unforeseen losses occur, in conflict with accumulation—then their causes must also be sought in the existing management mechanism and in the overemphasis on administrative management. It has fostered bureaucratism, laziness, equalitarianism, the tendency to take more from the state and society, contentment with little, and other obstructive phenomena.
The new concept of management based on independent accounting corrects these tendencies and shortcomings by better encouraging and harmonizing the interests of the individual with those of the collective and society as a whole. The economic levers and methods to be applied will make every worker, cadre and specialist, and every management body, more committed and responsible for growth and development. Until now, fulfillment of the plan, increased production, productivity and product quality have not—Democratization and liberalization. The worker, cadre and specialist can no longer tolerate manifestations of indiscipline in themselves or in a comrade, nor shortages in material and technical supply or manifestations of delay. These will be laid at their door, and administrations, managers and directors will not be forgiven for shortcomings that disrupt the “account” of the worker, the enterprise and society as a whole. Thus, alongside rights, management based on independent accounting also adds duties and responsibilities to the foundation.
Now the problems of material and technical supply, and the other quantitative and qualitative indicators of the plan, take on particular importance and weight. When the measure of work and remuneration is not simply the plan as a whole, and when the budget is no longer a “blanket” to cover shortcomings, the economic, technical and technological mechanism comes to the fore. These must be adapted to and accompany the work of the enterprise at every step. Every worker, not just the directorate and administration, must think about and be concerned with the effectiveness of investments, technology, the range and quality of production, whether it is sold or not, and so on. The accounts are no longer kept only by the plan and finance departments, but by everyone and each person individually. Whoever does this well will have a full “pocket.”
The departments and executive committees, too, must fully assume the role assigned to them by the Plenum: seriously and skillfully addressing the development and formulation of policies, the strategy for technical and technological progress, and valuable studies and syntheses. This means revolutionizing working methods and abandoning routine and bureaucratization. The transition entails major qualitative changes in concept, method and work practice. As comrade Ramiz Alia emphasized, the issue is one of new standards of economic and moral conduct. Unless this is understood, the Plenum’s instructions deeply assimilated, and the Party’s objectives correctly grasped, these standards will not be learned and their effectiveness will not be what is required.
In concretizing and implementing the tasks and guidelines set out, courage and restraint must be properly combined with economic reasoning and logic in deciding the steps to take and measures to adopt. This must guide economic thinking at every level, from enterprises and ministries to, in particular, the Planning Commission, the Ministry of Finance and the State Bank. The changes to be achieved will not be easy, nor will they happen in a day or a month. Nevertheless, this does not mean acting sluggishly or with delays. There are, and will be, difficulties; they are objective and subjective. Bureaucratism and outdated forms, as was said at the Plenum, are not easily eliminated or overcome. On the other hand, one must not think that introducing economic levers and methods has closed every avenue to harmful tendencies, which may take root as early as the drafting of plans “to be on the safe side,” as well as in other manifestations fed by petty-bourgeois psychology, indifference and liberalism. Through the Plenum, these manifestations must be brought to an end by establishing strict rules and standards; otherwise they become dangerous.
Administrative management has, and will continue to have, its particular weight and role. The difficulties to be faced are compounded by those arising from the original solutions required. A number of steps, mostly experimental in nature, have been taken in moving to independent accounting, granting authority to the grassroots, and introducing forms of organization and remuneration, etc. The tasks set out by the 10th Plenum and the decisions to be taken on their basis by the relevant bodies have found prepared ground in the process of discussing and implementing the decisions of previous plenums. Thus, the masses are conscious and aware of the great political, ideological, economic and social importance of the changes required, and of their mission to put them into practice. The Party’s bodies and organizations, and communists first and foremost, have a duty to lead this phase of revolutionization by taking the forefront in the great and comprehensive work required.
the common good make people take an interest and unleash within them that inexhaustible energy for work and creativity, for high productivity in every field.
The measures adopted by the Party at its recent plenums open more effectively. By combating manifestations of bureaucratism and the excessive concentration of powers, by eliminating excesses in administrative management governed by rules, standards, orders and directives; by overcoming certain practices that have become taboo and been turned into theory, though their time has passed, the active thinking of the masses and the grass roots will be further revolutionized and revitalized. In this way, economic management, in accordance with the requirements of the objective laws of socialism, will gain the priority and weight it deserves. Its foundation will be the proper harmonization of interests at every level and in every form.
A fundamental aim stands out in the decisions and tasks of the recent plenums: to identify and set in motion those mechanisms that ensure economic and social progress. They are a cornerstone of our social order. Therefore, the problem is to do this by using
and of be applied make every worker, cadre and specialist, and every managerial body more interested and more responsible for growth and development. Until now, fulfilling the plan and increasing production, productivity and its efficiency have relied to a great extent on administrative demands and orders, on propaganda and agitation, sometimes stale and repetitive. These have their place and role, and it is the duty of Party bodies and organizations to use and improve them. But these forms have not always managed to strike at the “nerve,” because the economic interest in which all interests converge has been lacking. Consequently, they have not produced, and cannot produce, the results being sought.
Management on the basis of independent accounting creates new relations. For someone who until yesterday might have been absent or breached labor discipline, casually exceeded the norms, or was unconcerned about whether raw materials arrived or whether the enterprise operated at a loss, and so on, the situation is now different. The workers’ material interest becomes a powerful force striking against indifference, bureaucrat-
are given concrete expression in material value at the grass-roots level. This entails revolutionizing work methods and abandoning routine and bureaucratism. Transferring many tasks and responsibilities to the grass roots also requires cadres and specialists to be closer to them. The issue is to relieve the administrations in the districts and ministries of the superfluous tiers that foster bureaucratism and excessive administrative management. Although the Party has repeatedly drawn attention to this, the administrations have nonetheless grown. Intermediate tiers—responsible officials, directors, inspectors and various organizations—have multiplied. Reducing them will certainly not mean weakening management and control, but strengthening them through qualitative improvements in working methods and style.
Management on the basis of independent accounting is not a simple transfer of powers and titles. On the contrary, Party bodies and organizations, Communists and cadres must first understand it themselves and make clear to the workers that it is requi-