The System's Challenges
Interdependence of the World Economy
Interdependence is the catchword for today's global economy. Newly industrialized countries such as Taiwan and South Korea are nibbling away at the industrial prominence of the United States, Western Europe and Japan. These established industrialized giants are vulnerable to outside pressures, as they discovered in the 1970s when oil-rich nations, mostly in the Middle East, banded together to control the production and price of oil. Many of the less-developed nations of the Third World rely heavily on the industrialized world for investment and financial aid to fuel their own development.
Within the context of this increasingly interdependent global economy, the communist countries occupy a special place. The centrally planned economies of the Soviet Union and its allies in Eastern ...