Satellites and Commissars: Strategy and Conflict in the Politics of Soviet-Bloc Trade

(Paperback)

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Why did the Soviet Union squander the political leverage afforded by its trade subsidy to Eastern Europe Why did Soviet officials fail to bargain with resolve, to link subsidies to salient political issues, to make credible commitments and to monitor the satellites' policies Using formerly secret documents housed in archives in Moscow, Warsaw and Prague, as well as interviews with former Communist officials across Eastern Europe, this book attempts to answer these and other questions. The book argues that trade politics revolved around the incentives created by distorted prices on the Western market and those in the Soviet bloc. The Soviet Union made numerous attempts to reduce its implicit trade subsidy and increase the efficiency of the bloc, but the satellites managed consistently to outmanoeuvre Soviet negotiators. Drawing upon recent developments in bargaining and principal-agent theory, the book argues that the incentives created by domestic institutions weakened Soviet bargaining strategies. In effect, it suggests, perverse incentive structures in the Soviet economy were exported into Soviet foreign policy. Futhermore, the book argues, incentives to smother information were so deeply entrenched that they frustrated numerous attempts to reform Soviet institutions.

Reviews

"Randall Stone provides a theoretically sophisticated and empirically rich study... Masterfully linking theory and case study, Stone provides a provocative analysis that challenges a number of prevailing views... Skeptics may dispute Stone's conclusions but are less likely to question the quality of his analysis and research. Indeed, his careful study has set the terms for debate and an agenda for further research."--Philip Roeder, American Political Science Review "A major achievement in the field of Soviet studies. It is an original, carefully documented, and theoretically valuable contribution to the field. Moreover, this book effectively crosses disciplines of comparative political economy and international relations, making it essential reading both for theorists concerned with the process of integration and for students of Soviet-East European relations."--Alan Rousso, Political Science Quarterly "One of the best-researched analyses of trade between members of the Council for Mutual Economic Assistance... This is a book well worth reading."--Dale R. Herspring, Annals of the American Academy of Political and Social Science

Author Bio

Randall W. Stone is Associate Professor of Political Science at the University of Rochester. He is the author of Lending Credibility (see page 36).