Loss Of Market And CMEA During The Cold War

The dissertation is about the loss of market in CMEA. The efficient economic organization is the key of economic growth. The market economy is a kind of system and process that can not be overstepped during economic development. Due to the influence of traditional conception of socialism, the socialists can not deal with market in a scientific way when they changed socialism from theory to realization. Then the result is that the central planned economic system was established during one country's socialism in Soviet. After World War II, the international socialist economic system which was independent and closed was constructed in the background of Cold War. The mark is the formation of CMEA whose chief feature is the loss of market.As to the system of international division of labor in CMEA, a document named basic principles of ISDL (international socialist division of labor) was promulgated in 1962. From the document ,market and competition were excluded, but planning was advocated. After about 20 years, the level and structure of industry was improved in most of member states. But due to these reasons such as the main body is not enterprises but government, the form of division of labor is not through market but plan, the same commodity have manifold prices resulting from bilateralism, there have much contradiction such as unequal benefits among member states in CMEA. As a result the effect is only a little, though the appearance is vigorous.Concerning the trade and price system in CMEA, the member states pursued state monopoly of foreign trade. The trade was controlled by central government so that domestic producer and consumer cannot directly contact with foreign companies. In 1960s, some members took some measures to change the situation. Because of wrong conception which socialism must stick to state monopoly, so the reform cannot get rid of the disadvantage of the system of state monopoly of foreign trade. As a result among trade relations of member states, there were much non-market traits which can be made out through Long-term Trade Agreement. Furthermore, the non-market traits caused some negative outcome such as inferior quality of trade commodity or mutual blame among member states. The prices of trade commodity were often determined in a subjective way. As a result the movement of regional price in CMEA has no relation with that of world price. The phenomenon that the contract prices deviate from world prices often emerged due to prevalent bilateralism.On the money and financial system, the institution of exchange rate of member...