In 1970 the Central Committee of the BKP laid down guidelines for a program of regional economic development, with a view to attaining an optimal distribution of productive resources (capital and labor). The aim of the program was to arrest excessive urban growth and the associated demands on the country's resources for new housing and other amenities and, at the same time, to help develop backward rural areas. Within these guidelines, decentralization of industry has been undertaken, and plans are being worked out for the socioeconomic development of individual districts under the Seventh Five-Year Plan (1976-80) and until 1990. In this context the construction of new industrial plants in heavily populated areas has been restricted. Further production increases in these areas are to be attained through modernization of existing facilities and the introduction of more advanced technology. Special measures have also been adopted to promote economic growth in the relatively underdeveloped districts. In part, this program is implemented through the transfer of industrial activities, equipment, and labor from the congested cities and districts to rural areas. Transfers of this kind decreed by the Council of Ministers Bureau in December 1971 and July 1972 involved 195 production units and 25,000 workers and an annual output of 225 million leva (for value of the lev--see Glossary). Under existing plans lasting until 1975, however, industry and employment will continue to expand in some of the most heavily congested cities. Supply System The organization of a smoothly functioning materials and equipment supply system for industry has been an elusive goal of the leadership ever since the inception of the controlled economy. Various approaches to the problem over a period of years have not succeeded in accomplishing the basic task of ensuring a dependable supply of material resources to industrial producers. As a result, the economy has been officially reported to suffer enormous losses through production shutdowns, substitutions of materials that lower quality and increase costs, and hoarding of scarce materials. Heavy losses have also been incurred through improper storage of materials, careless use that entails excessive waste, and pilferage.