Because of the dearth of domestic resources in relation to the needs for
economic development and consumption, foreign trade has consistently
shown a negative balance. A marked improvement in this respect has taken
place since 1955, even though the absolute deficit has been growing with
the rising trade volume. In the 1960s exports covered 60 percent or more
of imports, compared with 47 percent in the 1956-60 period and 31
percent in the preceding eleven post-World War II years. This
improvement in the trade balance has been achieved through a consistent
policy of diversifying domestic production with a view to import
substitution, developing all possible resources for the production of
exportable goods, improving product quality, and severely restricting
domestic consumption. The annual trade deficit in 1967 and 1968 was
about 200 million leks.
The volume of trade has been rising quite steadily from 140 million leks
in 1950 to 950 million leks in 1968. During this period imports
increased from 110 million to 580 million leks, and exports rose from 30
million to 370 million leks. The Fourth Five-Year Plan calls for an
increase of 31 percent in total trade over the volume of the preceding
five years, including an increase of 36 percent in exports and 28
percent in imports. These figures imply a planned average annual trade
volume in the 1966-70 period of 885 million leks, of which 355 million
leks were exports and 530 million leks imports. Although the rate of
trade expansion during 1966-68 exceeded the target, the export-import
ratio was not as favorable as that called for by the plan.
The directional pattern of the country's foreign trade has conformed to
the general observation that trade follows aid. The assumption by
Communist China in 1961 of the major aid donor position previously held
by the Soviet Union had an immediate and pronounced impact on the
direction of trade. In 1960 Communist China accounted for only 7 percent
of the total trade volume, as against 54 percent for the Soviet Union.
By 1962 trade with Communist China had grown to 51 percent of a somewhat
smaller total volume, whereas trade with the Soviets had ceased
altogether by 1963. In 1964 Communist China's share of the trade was
equal to that of the Soviet Union in 1960, and the actual volume
represented by that share was 23 percent larger. During the 1962-68
period trade with Communist China amounted to about half the total trade
volume, but the share of Communist China declined below that level
toward the end of this period. This decline was the result of a
successful effort by the leadership to expand the country's trade with
both Communist Eastern Europe and the non-Communist West.
Public-domain text, read in full here on John Shaqi.
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