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Comecon

A Dictionary of Contemporary World History | 2004 | | © A Dictionary of Contemporary World History 2004, originally published by Oxford University Press 2004. (Hide copyright information) Copyright

Comecon (Council for Mutual Economic Assistance) A trading bloc which linked the planned economies of the Communist world. It was established on 25 January 1949, in response to the integrative power the Marshall Plan exerted on Western economies. Its original members were Albania (until 1962), Bulgaria, Czechoslovakia, Hungary, Poland, Romania, and the Soviet Union. East Germany joined in 1950, Mongolia in 1962, Cuba in 1972, and Vietnam in 1978. Yugoslavia had associate status from 1965. It functioned as a bilateral trading system in which the USSR supplied primary goods, as well as oil and gas, in return for finished goods from the other member states. Increasingly, there was an emphasis on closer integration of the various economies, a measure which effectively increased the economic control of the USSR. It collapsed with the implosion of Communism in Eastern Europe, and was formally dissolved on 28 June 1991.

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