The Global Environment and Its Impact on Soviet and East European Economies

Abstract

The industrial world is now emerging from a deep economic crisis which covered practically every region of the global economy and nearly developed into a much more serious cumulative decline. The developing countries, particularly the primary producers of raw materials that feed into the industrial machine, suffered greatly in the episode. First, the decline in industrial production had a severe impact on the developing countries and, secondly, the recession created the conditions for a widespread financial crisis that has tentatively been dealt with — especially in avoiding a panic situation — but the crisis is still in the process of being rectified. The recuperation process is still incomplete and generates uncertainties about economic prospects.