The Graveyard Of Eastern European Socialism – OpEd

Key Takeaways:
Shoe, then collapse. The author starts with Khrushchev’s 1960 “we will bury you” and says CMEA (Comecon) after 1945 locked Albania, Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, and Romania—later Mongolia, Cuba, Vietnam—into state ownership, banned private initiative, and replaced prices with planners’ guesses.
Political specialization, shoddy goods. Examples: Hungary’s Ikarus buses; East Germany’s Trabant/Wartburg vs. the Beetle; Poland’s coal peak of 200 million tons in 1979, then 1980 strikes, an 80% drop in CMEA coal exports in two years, and recession; Czechoslovakia’s uncompetitive machines; Bulgaria’s Balkancar forklifts sold in the West at a loss; Ceaușescu’s debt payoff via rationing; Soviet cars costing years of wages.
Cuba as the hangover. After joining CMEA in 1972, ~80% of Cuban exports went there; when the USSR fell, GDP dropped about a third. Author’s line: output without market prices and competition looks strong in GDP tables and fails when buyers can choose.







