Future Soviet Investment in Transportation, Energy, and Environmental Protection

by Jeannette Van Winkle, Benjamin Zycher

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This study outlines the current state of the transportation, energy, and environmental protection sectors in the Soviet economy. It also projects investment schedules for these sectors. The transportation system depends heavily on rail, which has been deteriorating rapidly. The rail lines will probably continue to create bottlenecks in the Soviet economy for the next several years. Automobile transportation is a growing but still small part of the overall transportation network and it cannot act as a substitute for the rail system. The energy sector has proved more efficient and profitable than the other two. A new demand facing energy investment will be nuclear safety retrofit. Because of international concern, environmental protection is now receiving attention from the Soviet leadership, but it has one of the lowest investment priorities, because it is a drain on short-term profits. Investment in environmental protection will likely be compromised by the demands in other sectors of the economy.

This report is part of the RAND Corporation note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

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