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By Christopher T. Saunders (eds.)

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Example text

The clarity of purpose and persistence of method that are needed to bring about such results are often lacking and so is the support through other governmental measures. And the tendency of the temporary to become lasting is proverbial It is not unthinkable that a country should decide to support certain industries for the indefinite future, but the cost of that support must be carried by the rest of the economy. That calls for two essential requirements: the output and efficiency of the rest of the economy must be large enough to bear the burden and there must be enough political support to make the policies acceptable.

One segment includes raw materials, semifinished goods and components that go into the western manufacturing process. A second segment starts in the West, the product being further processed or assembled in the East and either marketed in final form or returned once again for finishing in the West (as in traditional Veredlungsgeschiift). A third kind of transaction consists of exports to the West of products made in the East with capital goods and technology provided by the West (at least initially).

All this has been apparent for some time (10). It is precisely the paucity of activities of this sort, or their secondary importance even in total, that is one of the reasons why East-West economic relations have not been more significant to western industrial policies (11). If this were a study of how East-West relations had shaped the industrial policies of CMEA countries, it would be necessary to go into western export controls in some detail. But with the focus on western industrial policies, export controls have no real place.

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