By Friedrich Levcik

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Industrial Cooperation between East and West

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Extra resources for Industrial Cooperation between East and West

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9 total meets about half of Western standards Mechanical engineering Industrial branch meets standards fully does not meet standards Measured against Western standards, the product Enterprise's Evaluation of Own Product Quality,* 1974, in% of All Products Table 10 Industrial Cooperation between East and West quality of the products offered by the Eastern nations. Poor quality was the most serious obstacle: Table 10 shows how managers from Hungary, Czechoslovakia, and Poland assessed the quality of products manufactured in their own firms in 1974.

A government body usually places political, trade, or national economic interests above the interests of individual enterprises. There will often be conflicting interests between different groups of enterprises. Export industries generally promote East-West cooperation, while branches of industry that supply principally the domestic market, and hence feel themselves threatened by counter-deliveries of Eastern European products stemming from cooperative agreements, will tend to reject East-West cooperation.

Enterprise activity is steered in two ways: directly, by the terms 41 Industrial Cooperation between East and West of the plan, and indirectly, by a number of control instruments. 2 The enterprises respond to these prescribed conditions in a way designed to promote to the utmost the interests of the enterprise management, and perhaps the personnel in general, but which often runs counter to the intentions of the central authorities. An often criticized flaw here is that the enterprises consider their cardinal interest to lie in the fulfillment of quantitative planning indicators, which guarantees planned wage increases and management awards.

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