The Council for Mutual Economic Assistance (CMEA or COMECON) was an international organization that facilitated economic cooperation and development among socialist countries. Formed in 1949, the CMEA included the USSR, Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, Romania, Cuba, Mongolia, and Vietnam. The organization aimed to provide mutual economic assistance and promote coordinated economic planning among member states.
Historical Context
The post-World War II era marked the beginning of the Cold War, characterized by political and economic tensions between the capitalist West, led by the United States, and the socialist East, led by the Soviet Union. In this context, COMECON was established as a response to the Western European countries’ formation of the Organization for European Economic Co-operation (OEEC) and the Marshall Plan. COMECON aimed to strengthen and develop the socialist economic bloc by coordinating national economic plans and promoting intra-bloc trade.
Key Events and Timeline
- 1949: Establishment of COMECON.
- 1955: Formalization of the organizational structure and functions.
- 1962: Introduction of multilateral economic cooperation projects.
- 1971: COMECON countries adopt a comprehensive program for scientific and technological progress.
- 1985: Initiation of market-oriented reforms and attempts to modernize.
- 1991: Dissolution of COMECON following the collapse of the Soviet Union and the end of centrally planned economies.
Structure and Operations
COMECON operated through various committees and councils. The highest decision-making body was the Session of the Council, which included representatives from all member states. Decisions were made unanimously, reflecting the principle of equality among members. Key areas of cooperation included industry, agriculture, transportation, and energy.
Types of Economic Activities
- Bilateral Trade: Member states engaged in barter and trade agreements.
- Multilateral Projects: Large-scale projects requiring collaboration among multiple states, such as the Friendship Pipeline.
- Technical and Scientific Cooperation: Sharing technological advancements and research findings.
Importance and Impact
COMECON played a significant role in the economic development of its member states. It allowed smaller socialist countries to benefit from the industrial and technological capabilities of the USSR. The organization also facilitated the specialization of production and resource allocation based on comparative advantages within the bloc.
Examples and Applications
- The Friendship Pipeline: A major pipeline that transported oil from the Soviet Union to Eastern Europe, symbolizing economic cooperation.
- Iron and Steel Industry Collaboration: Development of heavy industries in member states, with technical assistance from more industrialized countries.
Related Terms
- Marshall Plan: A U.S. initiative to aid Western Europe in economic recovery post-WWII.
- OEEC: Organization for European Economic Co-operation, the precursor to the OECD.
- Warsaw Pact: A collective defense treaty among Soviet bloc countries.
Comparison with Other Organizations
| Feature | COMECON | OEEC/Marshall Plan |
|---|---|---|
| Formation | 1949 | 1948 (Marshall Plan) |
| Members | Socialist Bloc | Western European States |
| Purpose | Economic cooperation within socialist states | Economic recovery of Europe through U.S. aid |
Interesting Facts
- COMECON had its own system of international payments, avoiding reliance on Western financial institutions.
- The CMEA developed a regional market that was insulated from the fluctuations of global capitalism.
Famous Quotes
- “We cannot expect to achieve the prosperity of the West without developing the planned economies in the East.” - Anonymous COMECON Official
Proverb and Clichés
- “Together we stand, divided we fall.”
Jargon and Slang
- Blokovka: Term used within COMECON to describe bloc-wide initiatives or policies.
- Planovka: Slang for central planning procedures.
FAQs
Why was COMECON dissolved?
What was the primary purpose of COMECON?
References
- F. F. Rutherford, Economic Development in the USSR and Eastern Europe: A COMECON View, Palgrave Macmillan, 1980.
- J. M. Hough, The Soviet Union and Socialism: An Historical Overview, Oxford University Press, 1997.
- D. Turnock, The East European Economy in Context: Communism and Transition, Routledge, 2003.
Summary
The Council for Mutual Economic Assistance was a pivotal organization in the Cold War era, enabling socialist states to pursue coordinated economic development and fostering mutual economic support. Although it ultimately dissolved with the fall of the Soviet Union, its legacy remains an important chapter in the history of international economic organizations and socialist economic theory.
