SOVIET REGIONAL POLICY AND CMEA INTEGRATION

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Abstract
An apparent reversal in Soviet regional policy, tending to favor further intensive development of the European USSR rather than Siberia, is being reinforced by plans for economic integration within the framework of the Council for Mutual Economic Assistance. The growing interplay between the Soviet Union and Eastern Europe, both in normal trade relations and in joint economic projects, is fostering the development of the western regions, particularly in electric power generating capacity (nuclear stations), iron-ore and, over the long term, perhaps steelmaking. These developments can be conceptualized as being within close proximity to Eastern Europe. A second tier of Soviet regional development, at medium distance from the CMEA partners, would be typified by the joint asbestos and natural gas projects in Orenburg Oblast of the Urals. But CMEA integration also involves long-distance linkages with Soviet regions, particularly as regards the oil and gas resources of West Siberia, woodpulp from East Siberia, ferrosilicon from northeast Kazakhstan, and ultimately perhaps phosphatic fertilizer raw material from the Karatau complex in southern Kazakhstan. CMEA integration also fosters the Soviet Union's maritime and seaboard development as an increasing share of trade with Poland and East Germany moves through the Baltic Sea, and the maritime link with Bulgaria through the Black Sea is strengthened by the new rail ferry between the Odessa outer port of Il'yichevsk and Varna.