Industrial Minerals in Eastern Europe and the Former Soviet Union

The countries of Eastern Europe are former members of the Council for Mutual Economic Assistance (CMEA). Geographically, they are located in Central Europe (Poland, Hungary, Czechoslovakia) and Southeastern Europe, largely in the Balkans (Yugoslavia*, Bulgaria, Romania and Albania*). It is important to remember that all of the countries of Eastern Europe had central planning imposed on them by the Soviet Union during the years following World War II. "Stalinist" policy for industrial development had three important tenets: • central economic planning, or a nonmarket-based command economy with administratively set prices; • economic priorities that stressed the development of heavy industries such as mining, metallurgy (steel) and heavy machine building; and • self-sufficiency at all costs, which was aimed at abolishing reliance on the world capitalist market, or reducing it to a minimum. Essentially, the system of industrialization that was used in the Soviet Union in the 1930s and 1940s was imposed on Eastern Europe. Organic market economic development in Eastern Europe ceased during this period. The flaws of this experiment became apparent when mineral processing facilities were set up in many areas of Eastern Europe that did not have reliable resources. Poland, Hungary and Romania are good examples of this situation. The Soviet Union became the principal supplier of iron ore and other minerals and mineral fuels, not only to these countries but to the Bloc as a whole.