The “extensive” progress mannequin was retarding progress in the CMEA as an entire, with member countries dependent upon provides of raw materials from the USSR and upon the Soviet market for gross sales of goods. The decline in progress charges reflected a mix of diminishing returns to capital accumulation and low innovation as well as micro-financial inefficiencies, which a high rate of saving and investment was unable to counter. The CMEA was supposed to ensure coordination of nationwide plans nevertheless it failed even to develop a standard methodology for planning which could possibly be adopted by its member states.
As every member state was reluctant to surrender nationwide self-sufficiency the CMEA’s efforts to encourage specialization was thwarted. There have been very few joint ventures and due to this fact little intra-enterprise know-how transfer and trade, which within the capitalist world was typically undertaken by trans-nationwide companies. The International Bank for … Read More