Strategic Reappraisal and Short-term Adjustment: The External Economic Policy of Socialist Countries at the Crossroads

András Inotai

Chapter 19 in The Evolution of Economic Systems, 1990, pp 202-212 from Palgrave Macmillan

Abstract: Abstract Ideological and economic motives have been shaping the relation between socialist countries and the world economy in different ways in various periods of development. In the 1950s, this connection was considered a still necessary evil to be eliminated as soon as possible, because it demonstrated the dependence of the socialist economies on the world market and proved to be a disturbing element in the implementation of the closed, planned economy. From the second half of the 1960s relations with the international economy were regarded as an additional, supplementary growth factor, in accordance with the increasing exhaustion of the traditional domestic and regional factors of development, due to the changing international political framework. Nevertheless, these additional sources were meant to be used for maintaining the unchanged priorities based on national and regional (CMEA) autarky. Increasing trade relations, a large inflow of credits and technology and a limited transfer of manpower characterised this period. By the end of the 1970s the strengthening of international economic relations became one of the highest priorities in almost all socialist countries. Credit repayment obligations, increasing debt servicing intensified the necessity for exporting and looking for new resources.

Keywords: Real Exchange Rate; Socialist Economy; International Competitiveness; Socialist Country; European Economic Community (search for similar items in EconPapers)
Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-11153-4_19

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DOI: 10.1007/978-1-349-11153-4_19

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