World War II and Socialist Integration: In Search of the Theoretical Foundations for Building the Socialist Bloc (1940–64)

Abstract

This article presents the development of ideas on coordination between countries with socialist economic systems during World War II and in its immediate aftermath (1940–64). It studies the theoretical models of Hoselitz and the debates on the possibilities of interaction between socialist states after the war, as well as the first attempts to develop integration within the framework of the CMEA, or the Council for Mutual Economic Assistance, in practice. The lack of a clear theory made these processes difficult. Yugoslav economists considered nonequivalent exchange within the Marxist paradigm and attempts to create a monetary zone of the ruble encountered difficulties from the outset. Monetary reforms in socialist countries showed the need to adapt to the world (capitalist) market.