Economic Unification of the Communist Bloc

Studies in the Communitist System

Abstract

Economic levels of the countries in the communist bloc are so different that trade on an equal basis can not be exercised by them. East Germany and Czechoslovakia are on the same level, Poland and Hungary are the same, Bulgaria and Rumania are the same, but Albania is on another level. Countries which are dependent on their natural resources are handicapped and countries which have greater capital enjoy better conditions in their trade. This was one of the reasons why Albania seceded from the communist bloc. Since the Soviet Union is the only country which excels in highly capitalized industry and skilled labor industry, she has an advantage in its trade with other communist countries.
Thus the Soviet Union has to assist the under-developed countries in the bloc in order to level standards in the nearest future. Some of these communist countries which have disadvantages in getting the benefits of division of work have the possibility of economic surrender to the western bloc, if the Soviet Union leaves the situation as it is.
Therefore economic unification is namely political unification itself. Moreover, as they do not have common theory on economic unification, each country takes an obscure attitude, applying autarkic policy on the one hand and emphasizing division of work on the other.