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The Character of Soviet Economic Relations with Third World Countries

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  • Patrick Clawson
  • Patrick Clawson

    (Seton Hall University S. Orange, NJ 07106)

Abstract

The hypothesis examined here is that the U.S.S.R.'s economic ties with the Third World have essentially the same character as Western-Third World ties. The first section presents data to demonstrate that the U.S.S.R. draws considerable economic advantage from its large trade and loan (aid) activ ity in the Third World. The second section argues that Soviet-Third World eco nomic relations share three important characteristics with Western-Third World economic ties: high profits earned from high prices, reinforcement of an unequal international division of labor, and export of capital. The concluding section has some comments on the principles of socialist foreign economic relations and sug gests that the U.S.S.R.'s behavior is inconsistent with these principles. An appen dix presents evidence that the Soviet economy requires relations with the Third World to provide a market for Soviet output, a source for raw materials, and a site for superprofitable investment.

Suggested Citation

  • Patrick Clawson & Patrick Clawson, 1981. "The Character of Soviet Economic Relations with Third World Countries," Review of Radical Political Economics, Union for Radical Political Economics, vol. 13(1), pages 76-84, April.
  • Handle: RePEc:sae:reorpe:v:13:y:1981:i:1:p:76-84
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