Dependency Structures in COMECON

Abstract

The structure of economic ties within the East European bloc, in cluding the U.S.S.R., are examined. The dependency of the bloc on the Soviet economy is demonstrated. One method by which the Soviets reinforce this depen dency is through capital exports. Soviet capital exports display some unusual fea tures which are discussed. In general, capital exports and trade patterns are close ly linked in a structure which allows the U.S.S.R. to control and determine the fundamental lines of economic development in the satellite countries. Exchange patterns demonstrate that the Soviets increase their export revenues and reduce their import costs at the expense of the East European countries, especially by limiting Western trade with East Europe. Finally, the COMECON dependency structure is shown to result in a rate of Soviet economic growth which is higher than the East European rates.