Commonwealth Economics in Perspective: Lessons from the East Asian Model

Different approaches to capitalism in the former Soviet Union are discussed in light of recent reassessments of the East Asian economic experience. A reinterpretation of theories of late-development and of economic learning is proposed to explain the focus of economists on post-Soviet/East Asian commonalities in the areas of state-led development policies and group-oriented management techniques. The paper draws on the author's extensive interviews conducted at academic institutes in Moscow and in the Russian Far East studying the Pacific Rim economies, as well as official sources and literature, Journal of Economic Literature, Classification Numbers: P20, P52.     

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.     

Reform and Damages for Breach of Contract in the Soviet Economy

Reforms in remedies for breach of contract emerging under perestroyka have as a main goal a reduction in the use of penalties in favor of compensation for damages. As background to these reforms, the basic principles of the Soviet law of contract damages are outlined, and the law's operation in practice under the traditional planning system is examined. Western economic theories of the choice of contract remedy are used to analyze the underlying causes of the difficulty of measuring and proving damages in the pre-reform system. Emerging reforms in contract remedies are described and evaluated in light of this analysis. journal of Economic Literature, Classification Numbers: 052, 124.     

What is Shock Therapy? What Did it Do in Poland and Russia?

A prominent theorist of Soviet and East European economics critiques the vision of political and economic processes implicit in shock therapy, defending an alternative, evolutionary approach. The critique of shock therapy rests on both theoretical reasoning and examination of evidence from recent cases. An intensive study of economic change in Poland and Russia since the late-1980s concludes that, in both countries, shock therapy failed in its goal of implementing top-down reforms that by-pass existing political and social forces. The evolutionary approach, it is argued, holds the better prospect of generating economic progress that will be sustained over the long term. Journal of Economic Literature, Classification Numbers: E61, L33, P21, P51.     

An Empirical Analysis of Soviet Economic Relations with Developing Countries

Soviet trade with the developing countries is analyzed using formal statistical techniques. Soviet imports of primary products are found to grow more rapidly but to be no more stable than imports of these products by market economies. Evidence is found of Soviet price discrimination in trade in favor of LDC members of the CMEA and against LDCs with which it has bilateral clearing agreements (BCAs). BCAs are correlated with greater trade volumes, relatively diverse export structures and more stable LDC exports to the Soviet Union. No evidence exists that Soviet aid deliveries are linked systematically with later Soviet imports. Journal of Economic Literature, Classification Numbers: 124, 421, 443     

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.     

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.     

Roadblock to Economic Reform: Inter-Enterprise Debt and the Transition to Markets

Two American specialists on Soviet and East European economies examine the relationship between inter-enterprise payments for goods and services and economic reform in Russia. Based on extensive interviews with Russian governmental officials and enterprise directors, as well as unpublished documents, the authors trace and discuss the unsuccessful policies of the government and Central Bank of Russia to eliminate arrears during 1992-93. They also explain why financial underdevelopment poses a serious obstacle to economic reform, and why an effort to sharply tighten credit in 1993-94 could lead to cascading enterprise failures. The analysis includes references to the change after October 1993. Journal of Economic Literature Classification Numbers: P21, O17, G20.     

Computing in the USSR: Recent Progress and Policies

The paper evaluates a broad spectrum of Soviet computing capabilities ranging from the development, production and service sectors to applications in enterprise management, national security, education, and consumer products. Comparisons between Western and Soviet information technologies, summarized in tabular form, reveal gaps in Soviet computing and communications resulting from both technical limitations and administrative/political constraints in the economy. Programs designed to narrow these gaps are described in a final section. Journal of Economic Literature, Classification Numbers: 052, 124, 635.     

The Age Structure of Soviet Population: Preliminary Analysis Of Unpublished Data

This article presents and analyzes hitherto unpublished data on the age structure of the population of the USSR and four of its republics. Analysis of the patterns revealed by these newly available data provides a basis for understanding why they had not been published in the USSR in the six years since the census date. The implications of the data for the analysis of Soviet society, its economic potential, and military draft pools are discussed. Journal of Economic Literature Classification Numbers: 052, 124, 800.     

Monopoly and Transition to the Market

An American economist describes recent Soviet thinking on monopoly and traces its impact on the reform process up until 1991. After an overview of industrial concentration in the Soviet economy, the study proceeds to examine the content of Gorbachev's antimonopoly policy, focusing on policy toward dominant firms, mergers, and entry of firms. Drawing on this background and antitrust experience in Western countries, it concludes by analyzing the role of antitrust policy and import competition in the transition to the market. Journal of Economic Literature, Classification Numbers: P20, L40.     

Soviet Economy: A Welcome Addition to an Important Field of Study

The results of the inaugural meeting of a panel on the Soviet economy, convened by the editors of Soviet Economy, are summarized. The panel noted that 1985 economic performance had been fairly good by recent Soviet standards, although the external trade balance had deteriorated sharply. Turning to the Twelfth Five-Year Plan (FYPXII) and the annual plan for 1986, the panel noted the clearly taut nature of both plans, and the apparent inconsistencies between them. The consensus was that the FYPXII targets would be very difficult to achieve, although outsiders may find it hard to judge due to the inherent ambiguities in measuring quality changes, and the potential for significant hidden inflation in growth statistics. Journal of Economic Literature, Classification Numbers: 052, 124).     

The Soviet Periphery: Economic Development of Belorussia

This paper analyzes the development of Belorussia, focusing upon its industrialization in the post-war period. Belorussia has changed from a lesserdeveloped part of the Soviet periphery to one of the USSR's more developed regions. This has been the result of a number of locational advantages for certain types of industry, particularly machine-building and chemicals. Its experience is similar to the U.S. periphery, and in conformity with Western regional development models, but apparently a typical of most of the Soviet periphery. Journal of Economic Literature, Classification Numbers: 052, 124, 940.     

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.     

The Quality of Gorbachev's Leadership

A prominent political scientist, identified with views expressing reservations about the success of Gorbachev's policies, briefly evaluates the quality of his leadership. The paper's focus is a response to a different assessment of that leadership by George W. Breslauer, published in an earlier issue of Soviet Economy. The author argues that during 1990 Gorbachev has lost most of the support he once enjoyed within both the Soviet populace and the Soviet political elite. He presents evidence that, during fall 1990, a right-wing coalition opposed to Gorbachev's policies was asserting itself. The essay covers developments through the end of November 1990. journal of Economic Literature, Classification Numbers: 124, 822.     

‘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.     

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.     

Chinese Immigration to Russia and Its Non-traditional Security Impact

Russia and China rapidly restore communication after the Cold War, but the Chinese immigration issue is also widely exaggerated and even described as “Yellow Peril again” in Russia. The so-called Yellow Peril is not only a Russian object perception but also a cross-generational conflict between Russia and China. Furthermore, it will be related to the subsequent development of the Russian Far East and Siberia. The Chinese immigration constitutes psychological and survival non-traditional security impacts on Russia and also forms some kind of social competition with Russians. It is vital for Russia to cooperate with its eastern neighbor to accelerate the development of the Russian Far East and Siberia, but national security and social stability are the prerequisites for cooperation. Nevertheless, it is more significant to rebuild self-confidence of the Russians in the Russian Far East and acknowledge that the East will not be a threat to Russia. As long as Russia realizes that it can enjoy unlimited possibilities in the East, the non-traditional security impacts caused by the Chinese immigration will automatically alleviate and even disappear. Today, most Russians are trapped in the dilemma of welcoming or refusing the Chinese immigrants; however, cultural exchange still has some effects and at least causes Russians to begin to positively treat the Chinese immigration and consider whether to accept China and cooperate with China.     

The Soviet Union and the International Trade Regime: A Reply

An international economist and United Nations executive replies to a critique of his paper devoted to the anticipated Soviet participation in the GATT. The author's rebuttal is focused on his opponent's perception of the GATT as an exclusive club and the suggestion that Soviet membership would be costly to the West. Several new arguments are marshaled to substantiate the initial premise that planned economies attempting to reform should be incorporated in the international trade regime. Journal of Economic Literature, Classification Numbers: 027, 124, 420.