Comecon

The Council for Mutual Economic Assistance ( CMEA short; Russian Совет экономической взаимопомощи, short СЭВ; Mutual Economic Assistance Council for English, CMEA or Comecon short ) was an international organization of socialist countries led by the Soviet Union.

The CMEA was founded in 1949 as a socialist equivalent of the Marshall Plan and the Organization for European Economic Cooperation ( OEEC). He can also be seen in the context of the emergence of the Cold War and the two-camp theory. The CMEA was - as the military alliance founded in 1955, Warsaw Pact - in 1991 resolved as a result of the political upheavals of 1989.

• 4.1 Council meeting
• 4.2 Executive Committee
• 4.3 Secretariat
• 4.4 Other bodies

History

The founding Communiqué was issued on 25 January 1949 after previously representatives from six Eastern bloc countries had signed the Protocol establishing on 18 January in Moscow. The founding members were next to the Soviet Union, Poland, Romania, Bulgaria, Hungary and Czechoslovakia. On February 23, 1949 Albania joined the Alliance (whose membership was resting later), on September 29, 1950 followed by the German Democratic Republic (until 1990 ). Mongolia (6 July 1962), Cuba (1972) and Vietnam (1978 ) were also members later. On September 17, 1964 Yugoslavia joined some organs of Comecon.

China ( to 1961 ) and North Korea have observer status. In November 1986, delegates participated from the Democratic Republic of Afghanistan, Angola, Ethiopia, the People's Democratic Republic of Yemen ( South Yemen ), Laos, Mozambique and Nicaragua as an observer at a meeting.

On May 16, 1973 Finland signed a cooperation agreement with the RGW, 1975, followed by Iraq and Mexico, Nicaragua in 1984, Mozambique 1985. Angola, Ethiopia and the People's Democratic Republic of Yemen followed in 1986 and Afghanistan in 1987.

1991, the attempt to reform the centrally administered economic system of the CMEA market economy. With the dissolution of the Soviet Union and the Comecon disbanded on 28 June 1991.

Tasks

The CMEA was the one to accomplish the task, a better economic specialization and division of labor between the socialist countries and on the other a gradual approximation of the very different economic conditions. As a result, the division of labor, specialization, a reciprocal relationship between the USSR and the other CMEA countries arose. By specializing higher quantities should be achieved and thereby reduces costs ( synergy).

The " Mutual Economic Assistance 'on behalf formulated done primarily by the fact that the economically relatively strong countries ( Soviet Union, East Germany, Czechoslovakia, Hungary) is weaker (Bulgaria, Romania, Cuba, Mongolia and Vietnam) supported economically within the framework of socialist economic integration. At the same time an ideological strengthening within the meaning of Marxism -Leninism was being followed.

Foreign trade between the members was characterized by several years of bilateral treaties and some multilateral treaties. For the coordination of long-term economic plans in the Soviet Union ( five-year plan, from 1959 Seven -Year Plan ), a bureaucratic apparatus, the Gosplan authority, who cared for the link with the economic plans of the other CMEA countries arose.

Although not provided by the system here, the trade between the members was nearly balanced, as it was not very attractive due to the lack of convertibility of currencies to build creditor positions in foreign trade. The payment was by the International Bank for Economic Cooperation ( IBEC ) settled, established as Comecon organ in 1957 with headquarters in Moscow. Cash were transferable ruble and gold reserves. Since the national prices were political prices, they could be used only little fixing of prices in foreign trade. Therefore, average prices of the world market were used as basis.

Under the umbrella of the CMEA also resulted in standardization efforts, such as on 23 December 1968 contract for a Uniform System Electronic Computing Technology ( ESER ), which aimed at the development of a standardized computing technology.

A sub-organization of the CMEA was the common freight car park ( OPW ), which consisted of 1 July 1964 to 31 August 1990.

Joint Projects

Energy sector

On the Tenth Meeting of the Council for Mutual Economic Assistance (CMEA ) in December 1958 in Prague, the construction of the oil pipeline friendship has been decided, which was commissioned in 1963. On the XXVIII. Meeting of the CMEA in June 1974 in Sofia was decided the construction of the gas pipeline Druzhba. With the establishment of international pipeline and power line networks important, politically efficient networking took place.

Specialization

The larger buses of the CMEA countries were built by Ikarus in Hungary, the most powerful tractors and heavy-duty diesel engines (eg DR series 130) and aircraft in the USSR, fish processing vessels in the GDR. Tram cars were from CKD Tatra, large diesel locomotives such as the M62 originated in the locomotive factory Woroschilowgrad and mining locomotives like the EL2 among other electrical engineering from the locomotive works " Hans Beimler " Hennig village were delivered. As of 1976, the German Reichsbahn " had their medium heavy-duty diesel engines (series 119) of the locomotive factory 23 August " import from Romania.

The plan was also a car of lower middle class as a joint project of the Comecon countries under the leadership of the GDR and the Czechoslovak Socialist Republic, the so-called CMEA car.

Problems

In the early days there were mainly problems with the production capacity since the exporting companies were not prepared to increased production volumes. A perennial problem was that the delivered quantities never met the required amounts and also to wish the quality of some products clearly left something. So initially about 50 % of the diesel locomotives manufactured in Romania at Deutsche Reichsbahn were not operational.

For the GDR, this meant that some branches of vehicle construction had to be stopped ( and Others Gotha cars T57 ), it emerged tram cars like the Rekowagen, buses were still built by Fritz Fleischer KG under difficult conditions.

Organs

All major organs of the CMEA could only non-binding recommendations decide. Each member state had only one vote, and until 1967 was the unanimity principle, later, the member countries could also include, on a poll.

Council

The Council meeting was formally the supreme organ of the CMEA. It was composed of delegates from all member countries and entered into usually once a year together, since 1987 alternately in the capital of the Chairman. Was led a delegation from the Prime Minister of a member or his deputy.

Executive Committee

The Executive Committee was the really vital organ, which consisted of a deputy head of the government of each Member State.

Secretariat

The Secretariat consisted of a Soviet general secretary, his non- Soviet deputies and other personnel. The Secretariat was Moscow. The foundation was decided on the Fourth Session of the CMEA on 26 and 27 March 1954 in Hungary.

Other bodies

Other bodies were Standing Committees ( last twenty-two ) and committees (six). They existed since 1957, but they were later upgraded to major organs. In addition, there was the International Bank for Economic Cooperation, the International Investment Bank and the Medunion.

The end of the GDR's membership in the CMEA

The GDR had in the State Treaty of 18 May 1990 committed on Monetary, Economic and Social Union against the Federal Republic of Germany to adapt their economic system in conditions of market economy. This was a continuing membership in the CMEA not compatible. The Statute of the CMEA Council provided for the possibility of a leak, which, however, only six months after the termination became effective. On the other hand, the GDR was applicable assuming that " would automatically terminate upon the termination of their existence as a subject of international law and their Migliedschaft in the CMEA. " The East German government therefore planned, lit in accordance with Article 54. b of the Vienna Convention on the Law of Treaties conduct consultations with member countries, and then to inform the Government of the USSR as depositary of the Comecon Statute Note Verbale of the completion of DDR membership, coupled with the request to inform the Member States thereof. However, since the Soviet side refused to hold consultations, it no longer came to this method. The People's Chamber President Bergmann -Pohl as acting head of state declared on 2 October 1990 the withdrawal of the German Democratic Republic from the CMEA and its sub- organizations with effect from 3 October 1990.

The united Germany has taken over the settlement of all claims and liabilities resulting from the previous membership. The transfer ruble accounts with the former CMEA countries has been carried on by the Federal Republic after reunification until the end of 1990 for reasons of confidentiality. Even today, from the federal budget - albeit to a lesser extent - provided services for this. The federal government is still leading litigation for debt recovery.

To the asset position of the GDR German view also includes the GDR share of the office building of the Comecon in Moscow ( see picture). It was financed by contributions from the Member States, of which the GDR had 40 million rubles, about one-sixth of the construction costs contributed. The market value of the building with 30 floors was estimated at USD 250 and 300 million in the early 1990s. The Soviet and later Russian government has still not recognized this claim. Since the GDR had declared the exit before its end as a legal entity, and not an asset to the united Germany had been transferred.