Category:State Trading
From Eurêka
State Trading
State trading Process of trading restricted to state-run bodies.
State trading monopoly Trade monopoly created by the state.
Bilateral barter Bartering between two states.
Council for Mutual Economic Assistance (COMECON) Formed in January 1949, it was originally little more than a formal structure through which the Soviet Union could use the resources of its satellites to bolster its own war-shattered economy. The original members were Bulgaria, Czechoslovakia, Hungary, Poland, Rumania and the Soviet Union. Later in 1949, Albania and East Germany joined. In 1962 Albania left and Mongolia joined. Cuba joined in 1972. Later, the benefits began to embrace all of Soviet Europe. The Hungarian and Polish uprisings in 1956 forced the Soviet Union to pour aid into these countries economies. Member nations were assigned roles for which they were best qualified: Czechoslovakia was to specialize in heavy industry; Poland on coal mining and transport equipment; Hungary on aluminum processing; East Germany on chemicals, building materials and precision machinery; Bulgaria on orchards and vineyards and Rumania on petroleum production. But within a few years the various countries began to balk against these rigid rules and often turned outside of COMECON for trade.
- Transfer ruble Artificial currency used for the transfer of goods under COMECON that was of even less value than the Soviet ruble.
East-West trade Trade between the state-trading system of the Soviet block and the West, often including large elements of countertrade.
