The Council for Mutual Economic Assistance (COMECON,CMEA) was established in 1949 on a soviet initiative with Bulgaria,Czechoslovakia ,Hungary,Poland and Romania as the other founder members.The German Democratic Republic, Mongolia,Cuba and Vietnam joined later and Yugoslavia had associate status.

Its purpose was to create a common market among its members and to promote the coordination and integration of their economies.
With the transition in Eastern Europe from common to market economies and the start of trade in convertible currency,the member governments decided to disband COMECON in January 1991.A successor body called the Organization for International Economic Cooperation (OIEC) was created on an interim basis to wind down the remnants of COMECON.The OIEC has an advisory and consultative role, although it will deal with question of tariffs and quotas and the development of relations with other organizations,including the European Community.East European members are committed to market principles and integration in the world economy.

Leave a Reply

Your email address will not be published. Required fields are marked *