Soviet Bloc Trade Clash
Hungarian and Soviet economists have called for a unified market in the communist trading bloc COMECON but clashed over how and how fast it should be achieved.
They were among 150 economists from East and West attending a recent three-day conference on COMECON reform.
Chairman Kalman Pecsi of Hungary said there was a lot of rhetoric about reform of COMECON. “But if we scratch the surface, we find everything is old,” he said, noting that there was not a single document on which radical reforms could be based.
COMECON trade is based almost exclusively on barter. It remains at the level achievable by the weaker partner, as surpluses cannot be turned into cash. Critics say this produces quality problems, since the markets are guaranteed.
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