Soviet Economic Dilemmas

Archive Report

Guns vs. Butter in 1980s

Economic Problems at Home and Abroad

Recent events, including the crisis in Poland, a succession of poor harvests in the U.S.S.R., and the shakiness and interdependence of world financial institutions, have focused attention on the Soviet economy. It is widely acknowledged, even by Russian leaders, that the performance of that economy leaves much to be desired. How bad the Soviet economy really is and what measures the Russians might take to improve it, or adversaries might impose to punish the Kremlin, are subjects of controversy.

What is certain is that the situation in Poland has compounded Soviet economic woes. To keep its Eastern European satellite afloat, Moscow has poured billions of dollars into Poland in the past year. Exactly how much the ...

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