ABSTRACT
Despite substantial growth in trade since 1970, the USSR remains a relatively small player in the world economy. Energy and arms sales dominate its export sector. Weakening world energy prices in the early 1980s and Mikhail Gorbachev’s ambitious modernization program, however, have hammered home the need for Moscow to take measures to broaden its export base and make better use of its imports. To this end, Moscow has restructured its foreign trade apparatus and embarked on new forms of economic cooperation, such as joint ventures on Soviet soil. The benefits from these changes are not likely to be realized for a number of years, forcing Moscow to continue to rely on energy sales. Should the Soviets be unable to maintain their energy exports, total exports are likely to fall, leaving Moscow the choice of borrowing more heavily or letting imports fall.
