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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 an unprecedented array of formerly secret documents housed in archives in Moscow, Warsaw, and Prague, as well as interviews with former Communist officials across Eastern Europe, Randall Stone answers these questions and others that have long vexed Western political scientists. Stone argues that trade politics revolved around the incentives created by distorted prices. The East European satellites profited by trading on the margin between 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 outmaneuver Soviet negotiators. Stone demonstrates how the East Europeans artfully resisted Soviet objectives. Stone draws upon recent developments in bargaining and principal-agent theory, arguing that the incentives created by domestic institutions weakened Soviet bargaining strategies. In effect, he suggests, perverse incentive structures in the Soviet economy were exported into Soviet foreign policy. Furthermore, Stone argues, incentives to smother information were so deeply entrenched that they frustrated numerous attempts to reform Soviet institutions.

Trade adjustment assistance --- 815 Geschiedenis --- 830 Economie --- 831.1 Handelspolitiek --- 836 (Multi-)nationale ondernemingen --- 841 Politiek Bestel --- 841.5 Bestuur en beleid --- 884.1 Oost-Europa --- Adjustment assistance, Trade --- Domestic adjustment assistance --- Europe, Eastern --- East Europe --- Eastern Europe --- Foreign economic relations --- Foreign relations --- Commercial policy --- Economic assistance, Domestic --- Foreign trade and employment --- Manpower policy --- Subsidies --- relations internationales --- relations economiques internationales --- Aide à l'ajustement de la commercialisation --- URSS --- Europe de l'Est --- Pologne --- Hongrie --- Tchecoslovaquie --- Relations economiques exterieures --- Politique economique --- Accountability. --- Accounting. --- Adverse selection. --- Adviser. --- Balance of trade. --- Bargaining power. --- Behalf. --- Bilateral trade. --- Capitalism. --- Case study. --- Central Committee. --- Chairman. --- Comecon. --- Commodity. --- Consideration. --- Construction. --- Consumer Goods. --- Credibility. --- Currency. --- Czechoslovakia. --- Debt. --- East Germany. --- Eastern Bloc. --- Eastern Europe. --- Economic development. --- Economic integration. --- Economic planning. --- Economic policy. --- Economics. --- Economist. --- Economy of Poland. --- Economy of the Soviet Union. --- Economy. --- Employment. --- Exchange rate. --- Export. --- Foreign direct investment. --- Foreign policy. --- Gosplan. --- Government budget. --- Grand strategy. --- Hard currency. --- Ideology. --- Implementation. --- Incentive. --- Information asymmetry. --- Institution. --- International Monetary Fund. --- International relations. --- Investment. --- Iron ore. --- Joint venture. --- Liberalization. --- Market price. --- Mikhail Gorbachev. --- Multilateralism. --- Negotiation. --- Nikolai Baibakov. --- Obstacle. --- Payment. --- Perestroika. --- Perverse incentive. --- Planned economy. --- Planning Commission (India). --- Planning. --- Policy. --- Politburo. --- Politics. --- Position paper. --- Pricing. --- Principal–agent problem. --- Proclamation. --- Productive capacity. --- Quality control. --- Quantity. --- Raw material. --- Receipt. --- Regulation. --- Requirement. --- Research and development. --- Ruble. --- Scarcity. --- Second World. --- Shortage. --- Socialist economics. --- Socialist state. --- Soviet Union. --- Strategy. --- Subsidy. --- Supply (economics). --- Supply and demand. --- Tax. --- Technical progress (economics). --- Technology. --- Trade-off. --- Treaty. --- Uncertainty. --- Wojciech Jaruzelski. --- Working group. --- World economy. --- Советский Союз --- Ber. ha-M. --- Związek Socjalistycznych Republik Radzieckich --- ZSRR --- Związek Socjalistycznych Republik Sowieckich --- ZSRS --- Szovjetunió --- TSRS --- Tarybų Socialistinių Respublikų Sąjunga --- SRSR --- Soi︠u︡z Radi︠a︡nsʹkykh Sot︠s︡ialistychnykh Respublik --- SSSR --- Soi︠u︡z Sovetskikh Sot︠s︡ialisticheskikh Respublik --- UdSSR --- Shūravī --- Ittiḥād-i Jamāhīr-i Ishtirākīyah-i Shūrāʼīyah --- Russia (1923- U.S.S.R.) --- Sovetskiy Soyuz --- Soyuz SSR --- Sovetskiĭ Soi︠u︡z --- Soi︠u︡z SSR --- Uni Sovjet --- Union of Soviet Socialist Republics --- USSR --- SSṚM --- Sovetakan Sotsʻialistakan Ṛespublikaneri Miutʻyun --- SSHM --- Sovetakan Sotsʻialistakan Hanrapetutʻyunneri Miutʻyun --- Unión de Repúblicas Socialistas Soviéticas --- Berit ha-Moʻatsot --- Rusyah --- Ittiḥād al-Sūfiyītī --- Rusiyah --- Rusland --- Soṿet-Rusland --- Uni Soviet --- Union soviétique --- Zȯvlȯlt Kholboot Uls --- Związek Radziecki --- ESSD --- Sahaphāp Sōwīat --- KhSHM --- SSR Kavširi --- Russland --- SNTL --- PSRS --- Su-lien --- Sobhieṭ Ẏuniẏana --- FSSR --- Unione Sovietica --- Ittiḥād-i Shūravī --- Soviyat Yūniyan --- Russian S.F.S.R. --- Č.S.R. --- C.S.R.S. --- Č.S.S.R. --- Cecoslovacchia --- Ceho-Slovacia --- Čehoslovakija --- Česká a Slovenská Federatívna Republika --- Česká a Slovenská Federativní Republika --- Češkoslovaška --- Československa republika --- Československá socialistická republika --- Československo --- Checoslovaquia --- Chekhoslovakii︠a︡ --- Chekhoslovat︠s︡kai︠a︡ Sot︠s︡ialisticheskai︠a︡ Respublika --- Chieh-kʻo-ssu-lo-fa-kʻo --- Chieh-kʻo-ssu-lo-fa-kʻo she hui chu i kung ho kuo --- ChSFR --- ChSSR --- Cseh-Szlovákia --- Csehszlovákia --- ČSFR --- ČSR --- CSRS --- ČSSR --- Czech and Slovak Federal Republic --- Czecho-Slovakia --- Czechoslovak Socialist Republic --- Czechosłowacja --- Republika československa --- Tchécoslovaquie --- Tschechische Sozialistische Republik --- Tschechoslowakei --- Tsechoslobakia --- Tsechoslovakia --- Ts'ekhoslovaḳyah --- Tshīkūslūfākiyā --- Tsjechoslowakije --- Tsjekkoslovakia --- Czech Republic --- Slovakia --- Dēmokratia tēs Oungarias --- Gweriniaeth Hwngari --- Hanekeria --- Hangarī --- Hongaarse Republiek --- Hongaria --- Hongarije --- Hongarye --- Hŏnggari --- Hongria --- Honharije --- Hunakalia --- Hungara Respubliko --- Hungari --- Hungaria --- Hungariako Errepublika --- Hungarian Republic --- Hungariar Errepublika --- Hungario --- Hungarujo --- Hungaryah --- Hungría --- Hungrii --- Hwngari --- Jamhuri ya Hungaria --- Lepulika o Hungary --- Lýðveldið Ungverjaland --- Macaristan --- Macaristan Cumhuriyeti --- Macarıstan Respublikası --- Mađarska --- Mad̕arská republika --- Maďarsko --- Madi︠a︡rshchyna --- Madjaristan --- Madžarska --- Madźary --- Madzhar --- Madzhar Respublika --- Magyar Köztársaság (Republic) --- Magyar Népköztársaság --- Magyar Republic --- Magyar Tanácsköztársaság --- Magyarország (Republic) --- Majarstan Jȯmḣu̇rii︠a︡te --- Majoriston --- Mazharstan --- Mazharstan Respublikasy --- Ohorsʹka Respublika --- Ongaria --- Ongiri --- Ongria --- Oonguri --- Oungaria --- Oгорська Республіка --- Pobblaght ny h-Ungaar --- Poblacht na hUngáire --- Republic of Hungary --- República da Hungria --- República de Hungría --- República d'Hongria --- Republica d'Ongria --- Republica Ungară --- Republica Ungaria --- Republica Ungrese --- Republiek van Hongarye --- Republik bu Oonguri --- Republik Hongaria --- Republik Ungarn --- Republika e Hungarisë --- Republika Mađarska --- Republika Madžarska --- Republika ng Unggarya --- Republika Ungarija --- Republika Węgierska --- Republikang Unggaro --- Republiken Ungern --- Republikken Ungarn --- République de Hongrie --- Repúvlika de Madjaristan --- Respublica Hungarica --- Tjóðveldið Ungarn --- Tlācatlahtohcāyōtl Hungria --- Uhorshchyna --- Uhorsʹka Respublika --- Ungaar --- Ungaïa --- Ungáir --- Ungar --- Ungari --- Ungari Vabariik --- Ungaria --- Ungarii︠a︡ --- Ungārija --- Ungārijas Republika --- Ungarn --- Ungarskata republika --- Ungerija --- Ungern --- Unggarya --- Unggriya --- Ungheria --- Unghirìa --- Ungri --- Ungverjaland --- Unkari --- Unkarin tasavalta --- V.N.R. --- Vengerskai︠a︡ Narodnai︠a︡ Respublika --- Vengerskai︠a︡ Respublika --- Vengrėjė --- Vengrėjės Respoblėka --- Vengrii︠a︡ --- Vengrii︠a︡ Respublikasy --- Vengrija --- Vengrijos respublika --- Vengriya --- Vengriya Respublikasi --- Venhryi︠a︡ --- VNR --- Węgry --- Xiongyali --- Xiongyali gong he guo --- Xiongyali Gongheguo --- Ουγγαρία --- Δημοκρατία της Ουγγαρίας --- Република Унгарија --- Република Мађарска --- Унгар --- Унгарската република --- Унгария --- Унгарија --- Угорська Республіка --- Угорщина --- Мажарстан --- Мажарстан Республикасы --- Мађарска --- Мадярщина --- Маджар --- Маджар Республика --- Венгрыя --- Венгрия --- Венгрия Республикасы --- Венгерская Республика --- אונגארן --- רפובליקא דא מאגיאדיסטאן --- מאגיאדיסטאן --- הונגריה --- ハンガリー --- 匈牙利 --- 匈牙利共和國 --- 헝가리 --- Austro-Hungarian Monarchy --- Poyln --- Polska Rzeczpospolita Ludowa --- Polʹsha --- P.N.R. --- P.R.L. --- Polish Commonwealth --- Polonia --- Warsaw (Duchy) --- Polska --- Polsko --- T︠S︡arstvo Polʹskoe --- Królestwo Polskie --- Polʹskai︠a︡ Narodnai︠a︡ Respublika --- PNR --- PRL --- Poljska --- Lehastan --- Polin --- Būlūniyā --- Polonyah --- République populaire de Pologne --- Polen --- Ppolsŭkka --- Polish People's Republic --- Republic of Poland --- Poland (Territory under German occupation, 1939-1945) --- Generalgouvernement (Poland) --- Generalne Gubernatorstwo (Poland) --- General Government (Poland) --- Heneralʹna hubernii︠a︡ (Poland) --- Rzeczpospolita Polska --- Polish Republic --- Congress Kingdom of Poland --- Congress Poland --- Królestwo Kongresowe Polskie --- Kongresówka --- Kingdom of Poland --- Lahistān --- لهستان --- Polandia --- Полшэ --- Polshė --- Pole --- Republiek van Pole --- Republik Pole --- Polaland --- Polisce Cynewise --- Полша --- Полониа --- بولندا --- Būlandā --- Polóña --- Tavakuairetã Polóña --- Польша --- Puluña --- Ripublika Puluña --- Polşa --- Polşa Respublikası --- Pulandia --- Ripublik Pulandia --- Pho-lân --- Pho-lân Kiōng-hô-kok --- Польшча --- Polʹshcha --- Рэспубліка Польшча --- Rėspublika Polʹshcha --- Polonya --- Република Полша --- Republika Polsha --- Poin --- Republika Poljska --- Польшо --- Polʹsho --- Bu̇gėdė Naĭramdakha Polʹsho Ulas --- Polská republika --- Polaki --- Gwlad Pwyl --- Gweriniaeth Gwlad Pwyl --- Republikken Polen --- Republik Polen --- Poola --- Poola Vabariik --- Πολωνία --- Pulógna --- Польша Мастор --- Polʹsha Mastor --- República de Polonia --- Pollando --- Respubliko Pollando --- Repúbrica de Poloña --- Poloniako Errepublika --- Pólland --- République de Pologne --- Poalen --- Poloonya --- Polonie --- An Pholainn --- Pholainn --- Poblacht na Polainne --- Yn Pholynn --- Pholynn --- Pobblaght ny Polynn --- A' Phòlainn --- Poblachd na Pòlainn --- Borandi --- Pô-làn --- Польшин Орн --- Polʹshin Orn --- 폴란드 --- P'ollandŭ --- Pōlani --- Polish-Lithuanian Commonwealth --- Crown of the Kingdom of Poland and the Grand Duchy of Lithuania --- Commonwealth of Poland --- Lehastani Hanrapetutʻyun --- Польшæ --- Polʹshæ --- Польшæйы Республикæ --- Polʹshæĭy Respublikæ --- IPoland --- IPolandi --- Lýðveldið Pólland --- Repubblica di Polonia --- פולין --- רפובליקת פולין --- Republiḳat Polin --- Poleni --- Kunngiitsuuffik Poleni --- Pòlskô Repùblika --- Poloni --- Polonye --- Polòy --- Puoleja --- Puolejis Republika --- Polija --- Polijas Republika --- Lenkija --- Lenkijos Respublika --- Polsca --- Republica de Polsca --- Pol'šu --- Polskas --- Bupoolo --- Bupolska --- Ripablik kya Bupoolo --- Lengyelország --- Lengyel Köztársaság --- General Government for Occupied Polish Territories --- Lithuania (Grand Duchy) --- BNUU --- БНУУ --- Bu̇gd Naĭramdakh Ungar Uls --- Ajustement de la commercialisation, Aide à l' --- Commerce international et emploi --- Politique de l'emploi --- Subventions --- Commerce extérieur --- Aide au développement économique régional --- Politique commerciale --- Politique industrielle --- Droit --- Soiouz Sovetskikh sotsialistitcheskikh respoublik --- Sojuz Sovetskih Socialističeskih Respublik --- Union des républiques socialistes soviétiques --- Union soviétique --- Ex-URSS --- Pays de la CEI --- Russie --- Asie --- Europe --- Československo --- République tchèque --- Slovaquie --- Magyarország --- Autriche-Hongrie --- Alföld (Hongrie) --- Europe du Centre-Est --- Pays de l'Union européenne --- Opinion publique polonaise --- Pays slaves --- Groupe de Visegrad --- Civilisation --- Conditions économiques --- Conditions sociales --- Histoire --- Moeurs et coutumes --- Politique et gouvernement --- Relations extérieures --- Vie intellectuelle --- Divisions politiques et administratives --- Antiquités --- Étude et enseignement --- Frontières