Abstract
The ‘new thinking ’ in the Soviet Union under the leadership of Mikhail Gorbachev has extended to foreign economic policy and to the institutions through which it is conducted. In the two years since the programme for reform in this area was outlined, there have been significant changes in the traditional system of Soviet ‘state trading ’, as it is known in the West. In Soviet parlance, the process is referred to as the ‘restructuring (perestroika? of the mechanism of foreign economic relations of the USSR ’.1
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Notes
l. This was the title of an authoritative article in English by the Deputy Chairman of the new Soviet State Commission for Foreign Economic Relations, I. D. Ivanov. See his ‘Restructuring the Mechanism of Foreign Economic Relations in the USSR ’, Soviet Econom?, no. 5, 1987, pp. 194–6.
For an analysis of the causes and implications of the situation faced, see P. Hanson, ‘Brezhnev ’s Economic Legacy ’ in Philip Joseph (ed.), The Soviet Economy After Brezhne?, Brussels, NATO, 1984, pp. 41–54.
Ivanov, ‘Restructuring the Mechanism ’, p. 195.
The texts were published in Pravd?, 24 September 1986.
The Minister of Foreign Economic Relations, the Chairman of the State Committee for Science and Technology, the Minister of Finance, the first deputy chairmen of GOSPLAN and GOSSNAB, and the Deputy Minister of Foreign Affairs.
Ekonomicheskaia Gazet?, no. 40, 1986, p. 10.
Soviet analysis distinguishes between the traditional ‘extensive ’ period of national economic development based on growth in the amounts of labour, capital and natural resources used in production and a desired, new ‘intensive ’ phase based on growth in their productivity.
Cf. I. D. Ivanov, ‘Restructuring the Mechanism ’, pp. 194–6; N. Shmelev, ‘Avansy i Dolgi ’, Novy Mi?, no. 6, 1987, p. 149; and A. Bykov, ‘Ne neftiu edinnoi ’, Literaturnaia Gazet?, 10 February 1988, p. 14.
See J. M. van Brabant, ‘Planned Economies in the GATT Framework: The Soviet Case ’, Soviet Econom?, no. 1, 1988, pp. 3–35.
Hungary seized the opportunity to conclude several weeks later a comprehensive trade and cooperation agreement with the Community (Financial Time?, 8 July 1988).
See the article on Soviet foreign economic relations by the chairman of the new state commission, V. Kamentsev, in Kommunis?, no 15, 1987.
For details of these organizational changes, see J. F. Mclntyre, ‘Soviet Efforts to Revamp the Foreign Trade Sector ’ in US Congress, Joint Economic Committee, Gorbache? ’s Economic Plan?, vol. 2, Washington, DC, US Government Printing Office, 1987, pp. 489–503.
Cf. H. S. Gardner, Soviet Foreign Trade: The Decision Proces?, Boston, Kluwer-Nijoff, 1983, pp. 56–7.
The retention scheme was outlined in the August 1986 resolutions. See also Ivanov, ‘Restructuring the Mechanism ’, p. 203. There have been reports in the Soviet press, however, that its implementation has been stalled (see, for example, ‘Eksport: a khorosh li stimul? ’, Ekonomicheskaia Gazet?, no 32, 1988, p. 21.
The ‘foreign concessions ’ which Lenin introduced in 1920sought Western capital and know-how for the reconstruction and development of the Soviet economy. The concessions were of two types: ‘pure ’ concessions (to exploit opportunities in the USSR under contract, without acquiring property rights) and ‘mixed company ’ concessions. The 1987 legislation is a return to the second type in its format for joint ventures with non-socialist partners. The concessions experience of the 1920s is discussed in A. C. Sutton, Western Technology and Soviet Economic Development, 1917to 193?, Stanford, Hoover Institution, 1968.
Consideration is reportedly being given to relaxing this requirement to permit the repatriation of profits covered by the import-saving operations of a joint venture, but this concept may prove difficult to render operational.
See UN Economic Commission for Europe, East-West Joint Venture?, New York, United Nations, 1988, pp. 182–9, for a translation of the legislative provisions.
Based on Soviet official details of joint-venture registrations reported in Business Eastern Europ? (various issues).
See C. H. McMillan, Multinationals from the Second World: Growth of Foreign Investment by Soviet and East European State Enterprise?, New York, St Martin ’s Press, 1987.
See, for example, N. Petrakov, ‘Tovar i Rynok ’, in Ogone?, no 34, 1988, p. 6, and the interview with Professor V. Belkin published in Izvestii?, no 217, 4 August 1988.
For a discussion that emphasizes the external aspects, see A. Rozhdov, ‘The USSR Banking Reform ’, Foreign Trade (USSR?, no 3, 1988, pp. 40–2.
For example, there has been interest (by the bank and its foreign subsidiaries) in new techniques for raising funds on Western money markets. See L. J. Brainard, ‘Soviet International Financial Policy: Traditional Formulas or New Innovations? ’, in US Congress, Gorbache? ’s Economic Plan?, vol. 1, pp. 100–15.
See P. Ericson, ‘Soviet Efforts to Increase Exports of Manufactured Products to the West ’, in US Congress, Joint Economic Committee, Soviet Economy in a New Perspectiv?, Washington, DC, US Government Printing Office, 1976, pp. 709–26.
The report of the ministerial team set up to study the internal organization of the Ministry of Foreign Trade was published (at least in part) in 1976, under the name of the official in charge, V. P. Gruzinov. It is available in English translation, edited and with a foreword by E. A. Hewett, as The USS? ’s Management of Foreign Trad?, White Plains, New York, Sharpe, 1979.
They can export and import directly, but will have to deal internally through Soviet foreign trade organizations (Decree no 49, USSR Council of Ministers, 13 January 1987, paragraphs 24 and 26.
‘Soviet Position on GATT Participation ’, News Release no 150, 12 September 1986, USSR Embassy, Ottawa.
Businessmen returning from the Soviet Union report widespread uncertainty about new jurisdictions and responsibilities. The reforms were implemented so rapidly that officials have often had inadequate training in their new duties.
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© 1989 Carl G. Jacobsen
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McMillan, C.H. (1989). Gorbachev’s Foreign Economic Policy. In: Jacobsen, C.G. (eds) Soviet Foreign Policy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11341-5_6
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