Creation of CMEA. A bit of history

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

The governments of various states in different periods of history had a sufficient number of reasons that led to the unification of countries. In some years it was a military confrontation (as, for example, in the case of the Entente at the dawn of the 20th century or the anti-Hitler coalition in its middle), in others it was the need for financial or political support (CIS after the collapse of the USSR or the creation of the CMEA - a union of mutual economic assistance at the end 40s of the last century). Let's take a closer look at the last coalition we mentioned. Creation of CMEA. How it was.

Let's start with the fact that the root cause of the creation of such an economic association in 1949 was the devastating and large-scale consequences of World War II. The countries of Eastern and Western Europe suffered incredible human and economic losses during this global military conflict. It would be more accurate to even say that the financial sector of these states was completely destroyed. Restoration required not only industry, but also the residential sector, as well as infrastructure, not to mention the population. Regular supplies of raw materials were needed,equipment and, of course, food. The formation of the CMEA in 1949 was intended to help resolve these issues.

Countries included in the composition

The countries of socialist Europe became participants of the new commonwe alth, namely: Romania, Bulgaria, the Soviet Union, Poland, Czechoslovakia and Hungary. A few months later, Albania joins them, and the following year, the democratic part of Germany (GDR).

The creation of the CMEA initially assumed that it would include only European states and the USSR. However, in 1962, at a regular meeting, it was decided that other countries that fully share and support the main goals of the association may well be members of the union. This shift in policy allowed for the inclusion of the Mongolian People's Republic, Vietnam and Cuba. However, in 1961, Albania broke all agreements and ceased its participation in the union, due to a change in the state position of the country's government.

Union activities

It is worth noting the following fact: despite the fact that the creation of the CMEA took place in 1949, this economic community began its vigorous activity only in the 60s. It was during these years that the leadership of the largest member state (the USSR) decided to turn the association into a kind of socialist camp, similar to the European Economic Union, which has a common market. In other words, a similarity to the modern European Union has been created. Since 1964, the CMEA countries began to actively interact in a large-scale system of bank mutual settlements. All transactions were carried out through IBEC (International Bank for Economic Cooperation), established in 1963. Seven years later, a new financial structure emerged. Its task was to issue long-term loans for the implementation of community plans. This organization was called the International Investment Bank.

The

70s were marked by a new stage - the creation of a CMEA program aimed at economic unification and mutual penetration. It assumed the development of higher forms of state integration: investments, industrial cooperation, cooperation in the field of scientific and technical developments. It was during this period that various international concerns and enterprises arose. By 1975, despite a noticeable lag behind their Western competitors, the CMEA countries had 1/3 of world industrial production. However, within the coalition, a trend towards the capitalist path of market development was brewing. The USSR made attempts to join the new economic programs, but to no avail. The political situation of the 80s led to a change in governments and the political system in a number of participating countries (including the Soviet Union itself), which ultimately ended in the liquidation of the association on the initiative of its members. It must be said that the creation of the CMEA allowed many European countries to revive the economy destroyed by the war and rise to a new level of economic development.