key term - COMECON

Definition

COMECON, or the Council for Mutual Economic Assistance, was an economic organization established in 1949 to promote economic cooperation among socialist countries in Eastern Europe. It was created as a response to the Marshall Plan and aimed to coordinate economic policies and support mutual development within the Soviet sphere of influence, reflecting the USSR's desire to strengthen control over Eastern Europe and maintain a unified economic front against the West.

5 Must Know Facts For Your Next Test

1. COMECON was established on January 25, 1949, initially including the Soviet Union and several Eastern European countries, such as Poland and Hungary.
2. The organization aimed to integrate member economies through coordinated planning and joint projects, attempting to increase industrial production and agricultural output.
3. COMECON struggled with inefficiencies due to bureaucratic control and lack of competition among its member states, which limited its effectiveness.
4. Throughout its existence, COMECON faced significant challenges due to national interests of member states, leading to conflicts in economic priorities and cooperation.
5. COMECON was officially dissolved in 1991 after the collapse of communist regimes in Eastern Europe, reflecting the end of Soviet influence in the region.

Review Questions

• How did COMECON respond to the economic challenges faced by Eastern European countries after World War II?
  • COMECON was created as a direct response to the economic difficulties that Eastern European countries faced post-World War II. By promoting economic cooperation among socialist states, COMECON sought to provide a collective framework for rebuilding their economies while countering Western influence through programs similar to those in the Marshall Plan. This included sharing resources, coordinating production, and pursuing joint projects that aimed to strengthen economic ties among member nations.
• Evaluate the impact of COMECON on the economic development of Eastern European countries during the Cold War.
  • While COMECON intended to foster economic growth through cooperative planning, its impact was mixed. On one hand, it facilitated some level of industrialization and agricultural development within member states. On the other hand, its reliance on centralized planning led to inefficiencies and stifled innovation due to lack of competition. National interests often took precedence over collective goals, resulting in unequal benefits among members and ultimately limiting COMECON’s effectiveness as an economic alliance.
• Assess how COMECON's existence influenced the geopolitical landscape in Europe during the Cold War.
  • COMECON significantly influenced the geopolitical landscape of Europe during the Cold War by solidifying the division between Eastern Bloc nations and Western capitalist countries. Through economic integration, COMECON reinforced political alliances within the Soviet sphere of influence and served as a tool for Moscow's dominance over Eastern Europe. As COMECON faced challenges leading up to its dissolution in 1991, it reflected broader tensions within socialist states that ultimately contributed to the collapse of communism in Eastern Europe and a shift towards greater independence from Soviet control.

Related terms

Molotov Plan:

A program initiated by the Soviet Union to provide economic aid and support to Eastern European countries after World War II, serving as a countermeasure to the American Marshall Plan.

Stalinism:

The political system and policies associated with Joseph Stalin's leadership in the Soviet Union, characterized by state control of the economy, political repression, and extensive use of propaganda.

Eastern Bloc:

The group of socialist states in Eastern Europe that were aligned with the Soviet Union during the Cold War, including countries like Poland, Czechoslovakia, Hungary, and East Germany.