Soviet Bloc Foreign Economic Relations

In recent years, the United States and the Federal Republic of Germany have disagreed sharply over the politics and economics of East-West relations. This book examines the political and economic premises behind American and West German approaches toward East-West commerce and analyzes the degree to which views differ. The contributors, a mix of Ge

This volume explores relations between socialist planned economies of Central and East European countries and capitalist market economies of neutral states in Europe dyring the Cold War. It focuses on the significant role of neutral countries as path-breakers in building East-West contacts.

More than half a decade has passed since Gorbachev launched his "prerestroika" programme to reform the Soviet Union, but the struggle between reformers and conservatives continues to rage while the final outcome, and even the goals of the programme, remains a mystery. Whatever the outcome of this transformation, its impact will reverberate well beyond the borders of the USSR to shape US security and commercial policies into the next century. This edited volume brings together original essays by US-Soviet relations scholars and international business and security experts to explore the many complex and critical issues that the United States must confront in developing its commercial and security policies for the next decade.

Analyzes growing US-Soviet economic interdependence and the implications of economic pressure in their relationship. From a review of US-Soviet economic relations, the author concludes that US embargo strategies against the USSR in the past have been futile, at times even counterproductive.

Reflecting Professor Holzman's important work, this book deals with major issues relating to both East-West and intra-bloc trade. Professor Holzman explores the transition in Soviet bloc economies over the past fifteen years from balanced hard-currency trade to large deficits with the West and the consequent development of a huge hard-currency debt. He compares the causes and treatments of deficits in planned economies with those in market economies and explores the dramatic differences in foreign trade behavior exhibited by Eastern and Western nations and the difficulties that arise when these conflicting systems interact in world markets. He also assesses the impact of Western economic warfare on the Soviet Union and makes recommendations for future U.S. trade policy. The author next turns to the issue of intra-bloc trade. In its early years the USSR economically exploited the smaller East European nations, but many argue that the Soviet Union now subsidizes trade with its partners in the Council for Mutual Economic Assistance in exchange for political, military, and ideological support–an argument that Professor Holzman strongly challenges. He also contends that CMEA, when viewed as a preferential trade group or customs union, has been markedly unsuccessful. On another level, Professor Holzman assesses the causes and possible cures for the serious, chronic problems related to currency inconvertibility, rigid bilateralism, and inability to use exchange rates as tools of economic adjustment. In an international economy growing ever more interdependent, the issues raised in these previously uncollected essays will continue to gain in importance as East and West meet in trade.

The author traces the history of economic relations between India and the Soviet Union after they signed a treaty of mutual military protection in 1971 and draws conclusions on the advantages and disadvantages of the close ties of a developing country with the centrally planned economies.

The enigma of Soviet society is nowhere more strikingly manifested than in its economic relations with the outside world. Western business people, even those with representative offices in Moscow, often describe their negotiations with the Soviets as a veritable black-box affair. Offers for purchase and sale are funneled into the bureaucracy, usually via the Ministry of Foreign Trade, where they are digested for very long periods of time. When a response emerges, little is usually known about the level at which decisions were made, and even less is known about the criteria that were employed to make them. In the abstract, at least, foreign trade decision making in the Western market economies is a rather simple exercise. An American consumer will purchase a Toyota rather than a comparable Chrysler if its price, expressed in dollars at the market exchange rate, is lower. The influences of governmental tariffs, quantitative restrictions, foreign exchange controls, "buy American" policies, and the like, are usually of only secondary importance. In contrast, the Soviet consumer, whether an individual or an industrial enterprise, does not generally have the authority to order the importation of goods or services. That authority is concentrated at the top of Soviet society and administered through a labyrinthine system of overlapping bureaucratic agencies. Furthermore, those Soviet agencies cannot respond to price signals in the same way as the American consumer can, because Soviet domestic prices and exchange rates are themselves set rather arbitrarily by governmental agencies.