INTERNATIONAL DIVISION OF LABOR IN CEMA: L REGRET STRATEGY,
Abstract
This RAND Memorandum assesses the path chosen by the member countries of the Council of Economic Mutual Assistance (CEMA) toward achieving an international socialist division of labor. Con flicting objectives; political, economic, and ideological constraints; and the lack of a satis factory theory of division of labor in East and West prevent an optimum solution whether judged by the criteria of Western economic theory or by bjectives of CEMA leaders. This Memorandum argues that the strategy followed by CEMA mem bers is one ''limited regret,'' a conservative policy based on risk aversion. This strategy consists of attempts to obtain some of the bene fits of a division of labor while avoiding risks of large losses; CEMA countries are able to reap the benefits of comparative advantage in those cases where these benefits appear obvious, and gain from economies of scale in other cases. In view of the serious impediments to the achieve ment of a more effective division of labor, the relatively small steps taken thus far in CEMA seem to be sensible ones. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1963
- Accession Number
- AD0426923
Entities
People
- By Egon Neuberger
Organizations
- RAND Corporation