ABSTRACT

The Council for Mutual Economic Assistance (CMEA) forms the institutional basis of the many and varied attempts at and manifestations of the integration of the economies of the countries belonging to this organisation. The economic systems of most of these countries are characteristic of the type of centrally administered economy for which the Soviet system is the model. The only exceptions are Poland, in particular, and Hungary, where radical reforms have taken place. The highest state authority responsible for decision-making in this area is the Council of Ministers of the German Democratic Republic (GDR), which is furnished with all-embracing powers and to which is subordinated the State Planning Commission as the body directly responsible for planning and plan co-ordination, including foreign economic relations. GDR imports are, therefore, valued in valuta marks and are credited to the importing and exporting economic units at unrevealed internal rates of exchange.