The Pros And Cons Of The Warsaw Pact

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Following the end of World War II, Europe was in shambles and a drastic rebuild was needed. The war resulted in a division of Europe which led to among other things, the creation of the United Nations and the Soviet Bloc. The conclusion of World War II lead to East Germany, the Czech Republic, Slovakia, and others to align themselves with the Soviet Union through the Warsaw Pact. Each country’s future was shaped by the policies of each organization. Since the end of World War II, the Czech Republic, Slovakia, and East Germany have experienced the advantages and disadvantages of a centrally planned economy and their individual struggles to transition to a free market economy.

LAY OUT EACH COUNTRY’S ECONOMIC SYSTEM UNDER USSR…….
HOW THEY TRANSITIONED …show more content…

This region also came to known as the Soviet Bloc, and its members consisted of countries that had communist governments and foreign policies that were aligned with that of the Soviet Union. The agreement designated a unified military presence among its member countries. The treaty was in response to the Paris Agreement allowing West Germany to join the North Atlantic Treaty Organization (NATO.) This agreement was the initial step towards the Soviet Union strengthening and expanding its grasp across Europe. (Britannica) In 1968, the Soviet Union sent Warsaw Pact troops into Czechoslovakia in an attempt to regain order after freedom of expression bans had been loosened and relations with the West were gaining strength. After democratic revolutions and upheavals swept Eastern Europe in 1989, the Warsaw Pact was deemed “nonexistent” on July 1, 1991 at the final summit of Warsaw Pact leaders. The meeting was held in Prague, Czechoslovakia. All of the former members of the Warsaw Pact joined NATO, except for the former Soviet Union, now known as Russia. …show more content…

The disadvantages of this economic system are the ignorance of product quality and the inefficient utilization of resources and goods and services. This in turn makes trade with other economies that produce higher quality products very difficult. To combat this, the central agency created five-year and one-year plans to produce goods and services in the most efficient way possible.(Econ10 Paper).
The Eastern Bloc countries depended on materials from the Soviet Union. Trading in the Eastern Bloc was significantly impacted by joining the Warsaw Pact. Prior to the War, the Eastern Bloc averaged 1%-2% of their trade with the Soviet Union. By 1953, trade with the Soviet Union by other Pact nations averaged 37%. Stalin’s prohibition of the Marshall Plan and its trade initiatives played a huge role in this increase.
The Council for Mutual Economic Assistance (CMEA), or COMECON, determined what products would be traded within the Eastern Bloc. Upon conception, COMECON was intended to allow the Soviets to take materials and equipment at will from other Eastern Bloc countries. However, by the 1970’s, the Soviet Union became the net subsidizers for the other countries by exchanging low quality finished goods for low cost raw

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