Council For Mutual Economic Cooperation

Summary of Council For Mutual Economic Cooperation

Known commonly as Comecon, was organized by the Soviet Union in 1949, in response to the Marshall Plan. Comecon's objective is to facilitate trade among its members: consisting of the Soviet Union, the communist states of Eastern Europe (excepting Albania), Mongolia, and Cuba; Yugoslavia has been an associate member since 1965. A multinational trade plan among the members has not emerged, although some joint plans, including an East European electric power grid, have been accomplished. Trade among Comecon members is undertaken on a bilateral basis between the foreign trade organizations of the two nations. Settlements among the trading partners are normally resolved by the foreign trade banks on a bilateral basis. See also international Investment Bank.

(Main Author: William J. Miller)