EH 2: the socialist system

Question 1

development of trade in soviet bloc

Answer 1

soviet leadership began taking a fresh view on the importance of trade

stalins efforts to organize a distinct socialist trade bloc were unsuccesful

1950s and 1960s: trade policies made greater economic interaction across the Eurobean economies possible

1960s: West was no longer seen as adversary, but as partner whose knowledge and technology could serve domestic aims

Question 2

international context of early Cold War

Answer 2

after WWII Central and Eastern Europe Region was largely underdeveloped agrarian economies

Industrial growth as stated policy goal and means by which Soviet-supported regimes in the region legitimized their rule
-> Stalin created Comecon

Question 3

comecon

Answer 3

first multilateral organization of Soviet Bloc

initially a weak organization with few real function, but grew in importance as Soviet Union sought increased trade and industrial specialization in its sphere

important framework for Central and Eastern European industrialization

largely determined by shared technologies, technical training and assistance and provision of basic supplies

its establishment came partly in response to increasing divisions between US and Soviet Union over influence in Europe -> response to Marshall Plan and formation of Organization for European Economic Cooperation

Question 4

Economy of Soviet Union

Answer 4

strong focus on heavy industry

focus on development of domestic industries

by 1950s much excess capacity in heavy industry, other sectors like light industry and agriculture lagged behind

liabilities in bloc’s economic evolution:
-development dtermined by the structure of domestic institutions
-distinct national economic goals
-weak coordinations mechanisms

-> attempt to adress these via reforms in 1960s and 70s

Question 5

reforms after stalins death

Answer 5

reforms decentralized planning authority to regional economic councils

leadership sought new role for Comecon -> expanding capabilities for economic coordination and sepcialization among members; before mostly still bilateral agreements to prevent regional industrial powerhouses that could undermine soviet power

USSR was undergoing domestic economic reforms expanding trade with Comecon and West

Question 6

why were there increasing ties with west in 60s

Answer 6

technology
-> growth was beginning to falter
-> limitations of socialist model of extensive industrialization
-> lagging behind of light industries
-> outdated technology in heavy industry, poor quality goods