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Gorbachev and Eastern Europe
| Article
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17999 |
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Section : |
CURRENT ISSUES
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Date : |
5 / 1990 |
1,735 Words |
| Author
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John H. Farrar
John H. Farrar is coauthor (with Ilya Zemtsov) of Gorbachev:
The Man and the System and of several articles on Soviet
foreign policy. Following a 30-jyear military career, Farrar
was director of strategic studies at the International
Research Center on Contemporary Society in Jerusalem, and he
is currently a foreign affairs specialist at the U.S. Arms
Control and Disarmament Agency |
Mikhail Gorbachev will undoubtedly have an important place in history - how important, and for what accomplishment, remains to be seen.
When Gorbachev came to power over the troubled Soviet Union in 1985, he also inherited an increasingly troubled empire in Eastern Europe. All of the states had serious economic problems. Eastern European products, with a few exceptions, were not very competitive in the West nor in the Third World. Poland, East Germany (the GDR), Czechoslovakia, Hungary, Romania, and Bulgaria, all had accumulated tremendous foreign debts, and Western governments and banks were very reluctant to extend new credits or even reschedule old ones. Moreover, the six Eastern European states were tied to the Soviet Union in an inefficiently managed, sometimes divisive economic union, the Council for Economic Mutual Assistance (CEMA).
Eastern Europe was tied economically to the USSR in another significant way. Paradoxical as it may seem, the Soviet Union has functioned as an underdeveloped economy in relation to Eastern Europe; it supplied raw materials at artificially low prices in return for industrial and finished products. This situation had ramifications beyond the purely economic, for Soviet citizens could not escape the realization that their politically subordinate allies had generally and sometimes dramatically higher standards of living, and in most cases enjoyed much greater political freedoms. Similarly, the Soviet defense establishment, under mounting pressure from competing domestic economic priorities and increasingly apprehensive over the ability of the Soviet economy to keep up with the technological demands prompted by the Reagan military buildup, probably viewed with dissatisfaction the much lower
... (1990 of 11008 Characters)
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