Socialist Economies and the Transition of the Market: A by Ian Jeffries

By Ian Jeffries

This offers a close account of every of the socialist international locations and an research of many of the difficulties they've got met within the lengthy transition to marketplace economies, each one of that's very diversified.

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Additional resources for Socialist Economies and the Transition of the Market: A Guide

Sample text

Zv25 Intra-Comecon prices A fundamental feature was the use of some form of world prices, due to the lack of efficient domestic prices and meaningful exchange rates. The exact form varied over time, although world prices were allegedly cleansed of so-called business cycle and monopolistic and speculative influences, and adjustments were made to take account of such factors as differences in quality. The particular price formula was used to determine specific prices in the bilateral negotiations which also decided quantities.

Collectivization during the 1930s was forced, bloody and brutal. Only a nominally independent co-operative, the kolkhoz was subject to state plans and delivery quotas (the latter being concentrated upon after the mid-1950s) at state-determined prices which sometimes bordered on the confiscatory. In 1936 the compulsory procurement price for wheat, plus handling costs, was fifteen roubles a tonne; this wheat was sold to state milling enterprises at 107 roubles per tonne, the turnover tax thus amounting to ninety-two roubles (Nove 1961:99).

Two-tariff schedules have been used by command economies, however, as bargaining levers with the West in the quest for ‘most favoured nation’ treatment (the lowest tariff applying to all). Czechoslovakia, Hungary, Poland and Romania belonged to GATT before the 1989 upheavals and agreed to increase imports so as to simulate the effects of tariff reductions. The institutional hierarchy ran from the State Planning Commission to the Ministry of Foreign Trade and on to the foreign trade corporations, which normally specialized in a particular product or group of products and which operated on a khozraschyot basis.

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