SOVIET ASIAN-PACIFIC TRADE AND THE REGIONAL DEVELOPMENT OF THE SOVIET FAR EAST

During the 1970s and early 1980s it was generally accepted, by both Soviet and Western specialists, that in the Soviet Far East the expansion of exports to the nations of the Pacific Basin offered a solution to the region's economic problems. However, recent policy statements suggest the rejection of this export-led development strategy. This study examines the changing structure and dynamics of Soviet trade with the Asian-Pacific region. At present, for a combination of economic and political reasons, Soviet trade with the Asian-Pacific region is dominated by exports of machinery and equipment and petroleum to the socialist nations of the region, inasmuch as Japanese demand for Soviet natural resources is stagnant. Therefore, because of the resource orientation of the Far Eastern economy, contemporary trade relations do not favor the expansion of the Soviet Far Eastern export base. Consequently, the future role of the region in the national economic system will be determined largely by the availability of domestic capital investment funds.