key term - Council for Mutual Economic Assistance

Definition

The Council for Mutual Economic Assistance (COMECON) was an economic organization of socialist states established in 1949 to promote cooperation and integration among its member countries. It was created as a response to the Marshall Plan and aimed to facilitate economic collaboration, coordinate economic planning, and implement joint projects to strengthen the economies of Eastern Bloc countries.

5 Must Know Facts For Your Next Test

1. COMECON was established in response to Western European recovery efforts, particularly the Marshall Plan, which aimed to prevent the spread of communism by providing aid to capitalist nations.
2. The organization included member states like the Soviet Union, Poland, Hungary, Czechoslovakia, Bulgaria, Romania, and East Germany.
3. COMECON focused on various sectors, including agriculture, industry, and technology, promoting joint ventures and collective planning to enhance economic efficiency.
4. Despite its goals, COMECON struggled with bureaucratic inefficiencies and a lack of competitiveness compared to Western economies, leading to minimal success in achieving economic integration.
5. With the decline of communism in Eastern Europe during the late 1980s, COMECON was dissolved in 1991 as member states transitioned towards market economies.

Review Questions

• How did COMECON respond to the economic challenges faced by its member states following World War II?
  • COMECON was established primarily as a response to the economic difficulties faced by Eastern Bloc countries after World War II. Its main aim was to promote economic cooperation among member states through coordinated planning and joint projects. By focusing on collective economic strategies, COMECON sought to enhance productivity and efficiency while countering the influence of Western recovery initiatives like the Marshall Plan.
• Evaluate the effectiveness of COMECON in fostering economic integration among socialist states in Eastern Europe.
  • The effectiveness of COMECON in fostering economic integration was limited. While it intended to unify Eastern European economies through shared projects and planning, many member states faced bureaucratic challenges and inefficiencies that hampered real progress. The rigidity of planned economies further inhibited competitive practices, making it difficult for COMECON to achieve its goals of economic cohesion among its members.
• Assess the impact of COMECON's dissolution on the post-communist transition of Eastern European countries.
  • The dissolution of COMECON in 1991 marked a significant turning point for Eastern European countries transitioning from planned economies to market-oriented systems. The end of COMECON allowed these nations to establish their own economic policies and integrate more fully with Western markets. This transition was crucial in shaping new political and economic landscapes in post-communist Europe, as former member states sought to adopt democratic governance and attract foreign investment.

Related terms

Eastern Bloc:

The group of socialist states in Central and Eastern Europe that were aligned with the Soviet Union during the Cold War, often characterized by single-party rule and state-controlled economies.

Marshall Plan:

A U.S. program initiated in 1948 that provided economic aid to Western European countries to help rebuild their economies after World War II, countering the influence of communism.

Planned Economy:

An economic system where the government makes all decisions regarding the production and distribution of goods and services, often associated with communist states.