The Economic Dimension of East—West Relations: Paper I

Abstract

The ebbing of ‘East—West’ economic confrontation In a letter to the Western economic summit — the G-7 meeting in Paris in July 1989 — President Gorbachev declared that ‘our perestroika is inseparable from a policy of full participation in the world economy’1. He had in view Soviet membership of the three major international economic agencies, GATT, the IMF and the World Bank, and, both through them and by bilateral negotiation, non-discriminatory flows of trade, technology and capital with capitalist countries. The Soviet leader realizes the economic loss occasioned by his country’s insulation within itself or, at most, within a bloc of East European states. He spelt out this need for exteriorization more fully to the opening session of the Congress of People’s Deputies on 30 May 1989: ‘We are in favour of making the Soviet economy part of the world economy on a mutually beneficial and equitable basis, and in favour of active participation in the formulation and observance of the rules of the present-day international division of labour, scientific and technical exchanges, trade and co-operation with all those who are ready for it.’2KeywordsForeign TradeEconomic ReformEconomic DimensionEast European CountrySoviet EconomyThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.