chapter  5
31 Pages

The New East in Multilateral Economic Organizations

ByJozef M. van Brabant

This chapter discusses the key obstacles in associating the planned economies with the post-war international economic organizations and their underlying regimes. It considers potential incompatibilities between the missions assigned to the specialized organizations and the unique tasks that they have received in assisting the planned economies in transition. The Fund’s initial aim was to mobilize its resources for the stabilization of agreed-upon exchange rates with the objective of gradually eliminating exchange controls for transactions, promoting multilateralism, liberalizing capital flows, and similar developments whose positive functions in resource allocation are predicated on the existence of real markets. The emerging new framework for east-west economic cooperation offers opportunities for revamping management styles within the context of existing economic, financial, monetary, and trade regimes, with the full participation of the Eastern countries. The chapter focuses on key perspectives of regional economic organization and how it may affect the management of the global economy.