East-West Trade and Economic Systems
Trade between East and West is small. Commodity trade between socialist* and OECD countries in 1974 was only 3 per cent of world commodity trade. There are, I think, three main reasons for this. First, the two groups of countries are separated by profound political suspicions of one another. Second, their attempts to trade are hampered by differences of economic system. Third, the West is richer than the East, and the rich have a distressing preference for selling things to one another.
KeywordsEconomic System Economic Relation Eastern Country Socialist Country Credit Term
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- 4.N. Smelyakov (a Deputy Minister of Foreign Trade of the USSR) complains vigorously about the Soviet export incentives problem in ‘Delovye vstrechi’, Novyi mir (1973) no. 12.Google Scholar
- Some explanation of it, from the point of view of industrial managers, is given by G. A. Kulagin, ‘Moi partnery, nachal’stvo i “pravila igry”’, Ekonomika i organizatsiya promyshlennogo proizvodstva, no. 2 (1975) especially pp. 84–5.Google Scholar
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