Monetary, Credit and Financial Issues in Economic Cooperation between East and West

Abstract

The share in world industrial production of those socialist countries which are members of the Council of Mutual Economic Assistance exceeds 30 per cent, but their share in international trade is considerably smaller. In 1974 these countries’ share of total world imports was only 8·6 per cent, and of world exports 8·4 per cent.¹ This proves that the CMEA countries do not yet profit sufficiently from the opportunities for international division of labour. In the 1970s the development of trade among the socialist countries has accelerated, as has their trade with other countries. Between 1970 and 1973 East—West trade increased by 107 per cent, while total international trade increased by only 80 per cent;² and this indicates some progress in economic cooperation between East and West. But it can satisfy nobody who believes that the development of economic cooperation between East and West is advantageous for both sides.* To attain more significant levels of cooperation, it will be necessary to change substantially the structure of the trade between Eastern and Western countries.