East-West Joint Ventures in Cmea Countries

Abstract

East-West joint ventures have recently captured much attention. This surge of interest is due to the fact that joint ventures are a relatively new and increasingly frequent form of East-West industrial cooperation. By the end of 1987 an estimated 166 joint ventures with foreign investors existed in the European member countries of the Council for Mutual Economic Assistance (CMEA). The secretariat of the United Nations Economic Commission for Europe (ECE) estimates that total foreign investment pledged (including the capitalised value of technology and know-how) could be as much as US $ 500 million. A new impetus has been given to Western interest in joint ventures in CMEA countries by the recent foreign trade and economic reforms enacted by the USSR and several East European countries. The remarkable jump in the number of joint ventures established annually (from 5 in 1981 to 91 in 1987) in itself justifies a closer inspection of this type of cooperation.²⁾

Director, Trade Division ECE secretariat, Geneva.