Soviet Union and the Third World: The Economic Dimension

This paper surveys some of the outstanding issues and changes in the economic dimension of Soviet involvement in the non-communist Third World over the last 30 years. It attempts to identify and integrate salient features of current knowledge about Soviet economic policy toward the less developed countries. After a survey of the evolution of Soviet arms transfers and economic aid and trade relations, the paper concludes with some reflections on the effectiveness of Soviet policy and prospects for future change. Journal of Economic Literature, Classification Numbers: 124, 420.     

Selected Recent Books on Soviet Energy

This compilation comprises a special bibliography of recent books on Soviet energy prepared and annotated by the editor of Soviet Geography. An initial section contains five books with sections on nuclear power of particular interest in connection with the Chernobyl' accident. A second section of four entries is devoted to general issues of energy policy, consumption and demand, conservation, and impacts of energy development on Soviet foreign policy and world markets. The final section includes ten books addressing problems of fossil fuel development in the USSR, and efforts to overcome organizational and logistical obstacles to West Siberian oil and gas development in particular. Journal of Economic Literature, Classification Numbers: 027, 124, 723.     

Restructuring the Mechanism of Foreign Economic Relations in the USSR

An up-to-date paper by the Deputy Chairman of the State Commission on Foreign Economic Relations, USSR Council of Ministers, details recent economic reforms in the foreign trade sector of the USSR. Particular emphasis is placed on direct business relations between Soviet enterprises and their foreign counterparts, and on joint ventures with CMEA partners as well as firms in Western and developing countries. Anticipated changes in the role exports and imports are to play in the Soviet economy are also discussed. Journal of Economic Literature, Classification Numbers: 052, 124, 420.     

The titularization of Latvian secondary schools: The historical legacy of Soviet policy implementation

Abstract

Few would deny that the Soviet occupation has had an effect on post-restoration policy making and implementation in Latvia. Indeed, many commentators of post-Soviet politics insist that we must come to terms with the Soviet to understand the post-Soviet. In our view, the effects of the Soviet legacy on the policy process are clearly apparent in post-restoration Latvia, specifically in the area of language education policy. This article argues that both Soviet and post-Soviet policy making and implementation can be characterized in three ways: duplicity, a Soviet ethos, and “professionalization”. In what follows, we first engage with the Soviet policy process in general and the 1958–59 education reforms specifically. Based on interviews with education professionals, teachers and parents, we then analyze Latvian education laws and their implementation in 2004, highlighting the legacy of Soviet governance.     

Rethinking Price Reform in the USSR

A distinguished and outspoken Soviet proponent of perestroyka, who is one of its key architects, outlines the major components of an “ideal” price reform package before examining its possible consequences and obstacles to its full realization. He then presents what he believes is a workable alternative to the official Soviet policy on price reform, as well as a crude timetable for its implementation (sequence of reforms in retail and wholesale prices). The paper marks a significant shift in the author's view on the subject, journal of Economic Literature, Classification Numbers: 027, 052, 124, 227.     

Panel on the Economic and Political Consequences of Chernobyl'

This article summarizes a discussion by a panel of leading experts on Soviet energy analyzing the consequences of the accident at the Chernobyl' nuclear plant in the Ukraine on April 26, 1986.

The near-term economic costs associated with clean-up, relocation, and compensating for losses to electricity supplies are significant but manageable. The longer-term effects will focus on likely modifications in Soviet strategies for the nuclear industry, which may shift emphasis back towards conventional fuels and conservation.

The political consequences were managed fairly well by the leadership. Consistent with Secretary Gorbachev's policy of glasnost' (openness) more information has been available on this event than was the case in previous analogous situations. Journal of Economic Literature, Classification Numbers: 027, 124, 723.     

The Soviet union,Japan, and east Asia: The security dimension

This article explores the ways in which the Gorbachev regime has tried to improve what Soviet policymakers perceive as an unfavorable balance of power in Northeast Asia. It argues that Gorbachev’s initial response, which emphasized regional arms control proposals, has not been successful because Japanese leaders do not see them as meaningful concessions. More recent changes in Soviet policy offer greater prospects for accommodation. Changes in the global East-West environment and domestic trends in Japan also may have a positive impact on Soviet-Japanese security relations. She is the author ofJapan and Arms Control (Canadian Centre for Arms Control and Disarmament, Ottawa, 1987).     

Soviet policy toward the two Koreas, 1985–1991: The new political thinking and power

This research explores the evolution of the Soviet Union’s Korea policy between 1985 and 1991, focusing on the correlation between Gorbachev’s shifting power position within the Soviet leadership and the development of the Soviet Union’s new policy toward the two Koreas. Soviet leaders utilized policy issues (foreign and domestic) to mobilize support in their internal power struggle. Conversely, they needed to establish a firm power base before launching new policies. Thus, power and policy in the Soviet political system often enjoyed a mutually reinforcing relationship, and foreign policy issues became entangled in the domestic political process. As Gorbachev’s power position improved and his reform policy (new political thinking) was refined, Soviet policy toward the two Koreas correspondingly evolved in three phases: (1) Gorbachev rising: the formulation of the new political thinking (March 1985–summer 1988); (2) Gorbachev ascendant: the implementation of new political thinking (fall 1988–summer 1990); and (3) Gorbachev in decline: the continuing momentum of the new policy (fall 1990–December 1991). In late 1990–1991, Soviet Korea policy was characterized by an undisguised tilt toward Seoul. Nevertheless, the Soviets did not consider Soviet relations with the two Koreas to be a zero-sum game. Moscow sought to establish a balanced relationship with both Pyongyang and Seoul, and hoped to play an active role in peace and security on the Korean peninsula.     

The Energy System and Economic Imbalances in the USSR

This article examines the severe structural and geograpic imbalances imposed on the Soviet economy by the demands and priorities of the energy complex; it also deals with imbalances manifest within the energy system itself. The feasibilities of policy change and prospect for success in energy conservation under Gorbachev are briefly assessed. Journal of Economic Literature, Classification Numbers: 052, 124, 723.     

Gorbachev’s “new directions” in Asia

The Gorbachev regime has made a dramatic attempt to alter the political environment for Soviet policy in Asia and to shift regional perceptions in its favor. As elsewhere, the major components, of this new approach are the downplaying of the utility of military instruments of power, an emphasis on the peaceful resolution of regional disputes, a deemphasizing of the role of ideology, and a stepped-up effort to pursue relations with regional states through traditional diplomacy. The various elements of “new thinking” as qpplied to Asia have contributed to improved Soviet relations with China, South Korea, and several non-Communist states of Southeast Asia, and created an opportunity for improved relations with Japan. Carolyn McGiffert Ekedahl is a senior analyst at the Central Intelligence Agency and co-author ofThe Soviets and the Third World Under Gorbachev, (Westview Press, forthcoming).     

Managerial Strategies for Spontaneous Privatization

Two Western economists examine the rapid changes in property and business forms of enterprises in the former Soviet Union using evidence from intensive interviews conducted through December 1991 and involving 80 industrial and commercial organizations. After reviewing the reforms that provided the legal basis for the process, they describe different managerial strategies employed in spontaneous privatization and examine the ensuing changes in contractual relations of firms with other entities such as ministries or banks. The authors also interpret spontaneous privatization on the basis of literature covering property rights and identify several groups that lose or derive benefits from the transformation. Journal of Economic Literature, Classification Numbers: P20, L2.     

The Transformation from Communism to Capitalism: How Far? How Fast?

A prominent American specialist on Soviet and East European economies argues that there are important gains to be obtained from rapid market liberalization and privatization in the transition from communism to capitalism. These gains depend on the responsiveness of firms to market signals. A review of the available evidence suggests that rapid privatization is an important factor promoting such responsiveness. The paper also refutes “evolutionary” criticisms of rapid transition policies on the basis of available evidence from East Europe, historical evidence, and the incompatibility between evolutionary approaches and the desire for democratic regimes in East Europe and the former USSR. Journal of Economic Literature, Classification Numbers: E61, H11, L33, P21.     

Multinational enterprise policies towards international intra-firm technology transfer: The case of Japanese manufacturing firms in Asia

In this paper, we examine Japanese manufacturing firms’policies towards intra-firm technology transfer to subsidiaries located in 10 major countries in Asia. In contrast to other research on the topic, this paper is based on a study ofparent firms and thus examines technology transfer policies more directly. The aims of the paper are to explain what Japanese parent firms understand by technology transfer, and to assess the policy implications of the study. The findings indicate that Japanese parent companies have coherent, systematic and nuanced policies on technology transfer to subsidiaries in developing countries. Three distinct categories of technology (“production/supply chain knowledge”; “human resources systems” and “technology for innovation”) are recognised by firms and policies exist for each category, including whether it will be transferred, the extent of the transfer—and when.     

‘The Russians are Coming,the Russians are Coming’: American Management of the Crisis Associated with Ending the October 1973 War

This article follows the last 72 hours of the October 1973 Yom Kippur War; that is, the three days from the collapse of the first ceasefire, on 23 October, until 25 October, when the United Nations Security Council Resolution 340, which ended the war, was adopted. The goal is to present and analyse the interests of the United States and how it managed its policy vis-à-vis Israel and Egypt during the ceasefire imbroglio. However, the article devotes special attention to the serious crisis with the Soviet Union that played out during those fateful hours. It stemmed from the note sent by the leader of the Soviet Union, Leonid I. Brezhnev, to US President Richard M. Nixon on 24 October. From the contents of the message, senior American decision-makers concluded that the Soviets were planning the unilateral deployment of an armed force to the Middle East. In response to this threat, these officials decided to raise the state of alert of the American armed forces to Level 3. The main conclusion of the research, however, is that no real Soviet threat existed. On the contrary, the Soviet Union was interested in preserving détente and in continuing to cooperate with the United States in order to put an end to the violence in the Middle East.     

The Origins of the Soviet Oil Crisis, 1970–1985

Soviet oil production peaked in 1983 and declined in 1984, chiefly because the growth of West Siberian output has nearly stopped. The root of the problem is two decades of unbalanced policy favoring near-term payoff over long-term preparation. Exploration has been systematically neglected in favor of development, and the West Siberian oil industry has been built on too narrow a base. Despite warnings from local officials as early as 1970, this led to a first crisis in 1976-1977. Moscow responded with an emergency increase in development drilling. This approach prevented output from dropping between 1978 and 1983 but only aggravated the deep-seated imbalance, preparing the way for a new crisis in 1983-1985. The underlying causes of this near-sighted approach are analyzed and the implications for a deeper understanding of Soviet decision-making spelled out. Journal of Economic Literature Classification Numbers: 052, 124, 721.     

From Industrial Policy to Regional and Local Locational Policy: Experience from Santa Catarina/Brazil

Abstract — Industrial policy is no longer what it used to be. In the industrialised world and in advanced developing countries alike, the focus has shifted from a top-down, statist approach that sought to create industries to a decentralised, networked approach whose aim is to shape competitive advantages and to create ‘systemic competitiveness.’ This reflects the fact that globalisation and localisation are parallel and mutually reinforcing processes: The firms which do better in a globalised market are rooted in well-developed networks of supporting firms and institutions. The analysis of the case of Santa Catarina, a state which had a strong industrial growth record in the 1970s and 1980s, shows that the relevant actors tend to be slow to move to this kind of pattern. State-level industrial policy mainly consists of participation in a ‘guerra fiscal’ geared to attracting external investment as well as, to a very limited extent, measures aimed at giving financial support to local firms. Yet there is no such thing as an explicit policy at the state level — to say nothing of the local level — designed to support firms by shaping locational advantages. This is due to limitations on the part both of the state and the private sector. As far as the state is concerned, a traditional clientelist and ad hoc style of policy making prevails. In the private sector the business associations (sindicatos and the Federation of Industries, local chambers of industry and commerce and their umbrella federation) are slowly adapting to the new conditions presented by an open economy and far more competitive pressure, though they have thus far lagged in putting more pressure on local and state government to support company-level efforts to increase competitiveness. Within this general picture, however, there are differences between industrial clusters. The most advanced of them, made up of world-class firms manufacturing ceramic tiles, may show the way by strengthening associations, shaping locational advantages, and articulating the demands of companies toward the state.     

The Politics of Citizenship Policy in Post-Soviet Russia

Russian citizenship policy has evolved in puzzling ways from the 1990s, when all former Soviet citizens were entitled to simplified access to Russian citizenship, to the 2002 citizenship law, which put an abrupt end to this policy, giving few but those born on the territory of Russia the right to citizenship. Since 2002, the right to Russian citizenship has been extended to some additional categories of former Soviet citizens, but without a return to the expansive policy of the 1990s. Drawing on legal and governmental sources and the scholarly literature, this article looks at elite debates over citizenship rules to analyze Russian citizenship politics and policies, focusing on citizenship rules affecting former Soviet citizens. These are examined to uncover the causes of legislative zigzags and ascertain the applicability of existing citizenship theories to Russian realities.     

Reflections on Technology in Postwar Reconstruction

A debate on the pattern of technological advance in the Soviet economy after World War II reflects some differences between a distinguished American specialist and two eminent Soviet economists participating in the first joint Soviet Economy roundtable. The discussion covers observations on obsolescence in Soviet consumer goods industries, technology transfers to China, a former emphasis on new construction at the expense of existing capacity, and contradictory aspects and tangible advances in Soviet technology during postwar reconstruction. Also included is Academician Abalkin's comment on technological progress in the context of economic history from the 1920s through the postwar period and perestroyka. journal of Economic Literature, Classification Numbers: 052, 124, 621.     

Consolidation as hegemonization: The case of Estonia

Abstract

The shift from the Soviet system to market economies has induced a wide range of changes in the forest sectors of the three Baltic states. The majority of these changes are the result of compromises made between stakeholders participating in forest policymaking and implementation. In this article it is argued that the relative success of the increasingly complex and dynamic environment of forest policy action arenas is ensured by interconnecting policy networks instead of hierarchical governance by the state. We map and characterize forest policy networks in Estonia, Latvia, and Lithuania, while identifying the actors participating in forest policy formation and implementation. The forest policy networks of the Baltic states are compared against each other and with the situation during the last years of the Soviet system.