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Why did the Soviet Union squander the political leverage afforded by its trade subsidy to Eastern Europe? Why did Soviet officials fail to bargain with resolve, to link subsidies to salient political issues, to make credible commitments, and to monitor the satellites' policies? Using an unprecedented array of formerly secret documents housed in archives in Moscow, Warsaw, and Prague, as well as interviews with former Communist officials across Eastern Europe, Randall Stone answers these questions and others that have long vexed Western political scientists. Stone argues that trade politics revolved around the incentives created by distorted prices. The East European satellites profited by trading on the margin between prices on the Western market and those in the Soviet bloc. The Soviet Union made numerous attempts to reduce its implicit trade subsidy and increase the efficiency of the bloc, but the satellites managed consistently to outmaneuver Soviet negotiators. Stone demonstrates how the East Europeans artfully resisted Soviet objectives. Stone draws upon recent developments in bargaining and principal-agent theory, arguing that the incentives created by domestic institutions weakened Soviet bargaining strategies. In effect, he suggests, perverse incentive structures in the Soviet economy were exported into Soviet foreign policy. Furthermore, Stone argues, incentives to smother information were so deeply entrenched that they frustrated numerous attempts to reform Soviet institutions.
As far as I know, relatively little attention has been devoted in the West to the study of various financial problems in the USSR. Among 1 the works I have seen are Gallik et aI. , The Soviet, 1968 -evidently the most important work on this theme; Powell, "Monetary," 1972, in which the statistics of monetary circulation in the USSR are examin ed; Laulan, Banking, 1973, in which some of the questions I examine are also addressed; and CIA, The Soviet, 1977, which is about an analysis of the budget. Moreover, many specialists have turned to the analysis of the expenditures of the budget in an attempt to determine the amount of financing of military expenditures-for example, Holzman, Financial, 1975. Due to the scarcity of data a large number of important problems have remained unstudied in all these works. One of these is the following. If we believe official Soviet statistics, the state budget of the USSR regularly comes out with an excess of revenues over expendi tures; each year a "budget profit" is formed. This in itself already seems quite strange. We all know that the Soviet economy, although it developed quite rapidly (especially in the past), has experienced constant and serious difficulties; we know that the plans are rarely fulfilled and that there were years of great crop failures.
This title was first published in 1966
From 1931 to 1936, Stalin vacationed at his Black Sea residence for two to three months each year. While away from Moscow, he relied on correspondence with his subordinates to receive information, watch over the work of the Politburo and the government, give orders, and express his opinions. This book publishes for the first time translations of 177 handwritten letters and coded telegrams exchanged during this period between Stalin and his most highly trusted deputy, Lazar Kaganovich. The unique and revealing collection of letters—all previously classified top secret—provides a dramatic account of the mainsprings of Soviet policy while Stalin was consolidating his position as personal dictator. The correspondence records his positions on major internal and foreign affairs decisions and reveals his opinions about fellow members of the Politburo and other senior figures. Written during the years of agricultural collectivization, forced industrialization, famine, repression, and Soviet rearmament in the face of threats from Germany and Japan, these letters constitute an unsurpassed historical resource for all students of the Stalin regime and Soviet history.
The most comprehensive and contemporary source available on socialist economic systems, this book employs economic data from eight East European countries and Russia to provide readers with a thorough, accurate picture of formerly Communist economies. J. Wilczynski carefully analyzes the major focal points of socialistic economics: planning and market, profit, production and growth, accumulation, consumption, labor, land, pricing, money and banking, fiscal policy and control, domestic and foreign trade, and international economics. The treatment of the subject is objective and constructive; when comparisons are made with capitalist economies both the strengths and weaknesses of socialism are brought out. This is not, however, a book on comparative economic systems but rather a complete discourse on the actual principles of socialist economics. Controversial issues such as the role of planning and the market, profit, rates of growth, the consumer's place, labor incentives, pricing, and controls are particularly well done. This book can be used as a guide to the economics of formerly communist regimes and as text for courses in developmental economics and comparative economic systems. It is well written by a scholar intimate with the plans, policies, and failures of communist economies from the close of The Second World War to the demise of Communist rule in Eastern Europe.
Ever since the behavioral revolution reached Communist studies more than 2 decades ago, Western scholarship has tended to ignore the powerful and unwieldy institutional structure of the Soviet government. Today, suddenly, it is clear that the dramatic political and legislative reforms of the Gorbachev years will remain incomplete as long as the issues of state bureaucratic power and executive prerogative are unresolved. This volume, brings together original studies of the Soviet executive under Gorbachev by specialists including Barbara Chotiner, Stephen Fortescue, Brnda Horrigan, Ellen Jones, Wayne Limberg, T.H. Rigby and Louise Shelley. Among the topics covered are the major economic, national security and law enforcement ministries, the presidency, the cabinet and questions of presidential-ministerial, presidential-presidential, legislative-executive and party-state relations.