East-West Trade Trends: Mutual Defense Assistance Control Act of 1951 (the Battle Act); Fourth Report to Congress, Second Half of 1953United States. Foreign Operations Administration
History
East-West Trade Trends: Mutual Defense Assistance Control Act of 1951 (the Battle Act); Fourth Report to Congress, Second Half of 1953
United States. Foreign Operations Administration
Military assistance; Mutual security program, 1951-; United States -- Commercial policy
In the summer of 1953 came the electrifying news of rioting in East
Germany.
Also in the summer of 1953, new economic targets were announced in the
U.S.S.R. and some of the satellites. These new targets--which will be
discussed further in a moment--were said to be a means of improving the
lot of consumers.
Some observers in the West assumed that economic difficulties in the
bloc were erupting with such force that they threatened to topple the
Malenkov regime. This interpretation is understandable--any democratic
nation would have long since replaced a regime that in peacetime so
subjugated the needs of the people--but such an interpretation of the
Soviet scene must be viewed with great skepticism. At this writing
there was some evidence that the problems faced by the Kremlin may in
some respects have become more difficult since Stalin's death, but one
could not infer that the chronic economic difficulties of the Soviet
bloc were especially different in nature from previous post-war years,
nor that the Communist governments with their inhuman police control
were about to collapse.
What the Communist rulers were facing was their perennial problem of
developing lopsided economies without letting the lopsidedness become
so repressive on the people as to upset the plans and timetables.
Even in police states there are physical and psychological limits
beyond which human beings cannot be driven without lowering their
incentives, their energy, their morale to the degree that production
is severely hampered. The Soviet leaders have always recognized this.
At three different periods in the thirty-odd years of their control of
the U.S.S.R. they have shown themselves adept at opening the valves
enough to relieve accumulating pressures and then shutting them
again--always without swerving very far in the basic drive to build the
industrial-military machine.
Many observers believe that even prior to Stalin's death the time
was ripe for a slight relaxation in the postwar consumption squeeze.
The Kremlin faced multiple problems in consolidating its new empire.
External foreign developments had been adding to the difficulties of
achieving the overambitious industrial and military goals. Western
export controls on the shipment of strategic goods into the bloc had
been impeding the planned development of the military sectors of the
economies.
In any event, a close examination of the new actions proposed by the
Malenkov regime to improve the consumer's lot, insofar as they have
been revealed, indicate that plans for heavy industry and for military
preparation will not be materially affected.
=The "New Economic Courses"=
Public-domain text, read in full here on John Shaqi.
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