The Soviet Effect on the Economy

The Polish economy is in dire straits; it is in debt to the west to the tune of nearly $20 billion. It is plagued by high energy prices, sagging investment, and low exports. The largely privately owned agricultural sector is unable to meet the food requirements of the nation. This year Poland will have to import over $7 million tonnes of grain, and meat production is only expected to reach 75% of the market requirements.

To understand Poland's economic crisis, and its effect on workers, it is necessary to examine the economy's weaknesses -precisely, the way it is tied to the Soviet Union. Through a trade agreement called Comecon the Soviet Union dominates the economies of Eastern Europe and, significantly, the economies of Vietnam and Cuba. The agreement consolidates the Soviet Union's hold on the Eastern Bloc by developing unequal exchange, promoting the export of Soviet capital, and pushing for what is called an international division of labour. The latter involves, a specialisation of industry and agriculture in the member countries to serve Soviet interests. For example, Comecon's "gardener", Bulgaria, is unable to adequately supply its own people with fruit and vegetables. For Poland it has meant an overdevelopment of engineering and electrical industry, to the detriment of other sectors of the economy. Hence, the shortages of basic foodstuffs felt most sharply by Polish workers.