Comecon
Overview
The Council for Mutual Economic Assistance (Comecon) was an economic organization from 1949 to 1991 under the leadership of the Soviet Union that comprised the countries of the Eastern Bloc along with a number of socialist states elsewhere in the world. The Comecon was the Eastern Bloc's reply to the formation in Western Europe of the Organization for European Economic Co-operation (OEEC).
History
The Comecon was founded in 1949 by the Soviet Union, Bulgaria, Czechoslovakia, Hungary, Poland, and Romania. The primary factors in its formation were the Soviet desire to prevent countries in the Soviet sphere of influence from moving towards that of the Americans and the West, and the desire to strengthen the mutual assistance and socialist fraternity of the Eastern Bloc.
Structure
The organizational structure of the Comecon was divided into two levels: the Council and the Executive Committee. The Council was the supreme decision-making body and met once a year, while the Executive Committee was responsible for the day-to-day management of the Comecon activities.
Role and Function
The main role of the Comecon was to create a mutual economic benefit and cooperation between the member states, which were socialist countries of Eastern Europe, Asia, and Africa. The Comecon was intended to prevent countries in the Soviet sphere of influence from moving towards that of the Americans and the West.
Impact
The impact of the Comecon on the member countries' economies was significant. The organization provided a platform for the countries to exchange and cooperate in various economic fields. However, the economic performance of the Comecon countries was not always positive. The lack of market-oriented reforms and the high level of economic protectionism often led to economic inefficiencies and lack of competitiveness.
Dissolution
The Comecon was dissolved in 1991 following the end of the Cold War and the dissolution of the Soviet Union. The organization was replaced by the Commonwealth of Independent States (CIS), which, however, lacked the economic integration features of the Comecon.