Council of Economic Mutual Assistance

The establishment of the Council of Economic Mutual Assistance in January 1949 was a logical and natural step in view of a de facto situation in Eastern Europe at that time. The Soviet Union had under its effective political and economic control a wide segment of Europe with a greatly diversified economy, varying economic traditions, and often conflicting economic objectives. As its hold of Eastern Europe grew tighter and tighter -- and its own economic policies more and more crystallized -- the Soviet Union felt a growing need for a mechanism which would serve as a focal coordinating point for the economic policies and programs in Eastern Europe.