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This book discusses the major proposals to reform the price system in the CMEA economy and what role the price system plays. It shows how debates on that matter have naturally led into debates on reforming all intra-CMEA economic institutions.
Energy exports, which are already the primary source of Soviet convertible currency earnings and an important contributor to the budget, could bring in much more revenue if the Soviet Union were to reduce its extremely high levels of energy consumption. To encourage this process, energy prices need to be raised substantially. Under plausible assumptions, it is shown that an increase in prices could yield sizable foreign exchange earnings. Large increases in energy prices could, however, threaten the solvency of industrial enterprises, precipitate major economic and social dislocation, and severely strain interrepublican economic relationships.
This edition of the Joint Economic Committee's 1993 reports on the economies of the ex-Soviet states tracks the Soviet and post-Soviet economic reform efforts, and looks at issues such as integration and developments.