The Soviet Economic Role in Asia and the Pacific: A Business Perspective

Abstract

The Soviet Union's attempts to develop new global relationships are not limited to arms control, Soviet-U.S., or Soviet-European relations. As an integral part of its global strategy, the USSR is working to expand its political and economic relationships in Asia and the Pacific. The question of the Soviet economic role in the Pacific needs to be seen against the backdrop of Soviet domestic policy. For the Soviet Union, economic and political issues are inextricably linked, with domestic economic pressures currently driving Gorbachev's twin policies of perestroika and glasnost. In particular, the widespread shortage of even the most basic consumer goods and the continued deterioration of the Soviet economy and standard of living now threaten the foundations of the Soviet state itself. Soviet economic problems are compounded by the comparative strength of the European, American, and Pacific economies, which are steadily widening the gap in relative economic capabilities. The USSR's urgent need for capital and technology from the West to support economic restructuring explains much of the Soviet interest in rebuilding its foreign economic relationships. Arguably, however, Gorbachev's vision goes further, embracing a new structure of international economic and political relationships beyond the ideological divisions of the Cold War. Gorbachev's policies of political and economic reform within the USSR therefore provide the critical foundation for present efforts to revitalize its commercial and economic relationships overseas. The foreign business community looks at economic relations with the Soviet Union pragmatically. The basic questions are (1) is there business