structural:scholar_edition, quality:correction
Economies

Because of the lack of market signals, Eastern Bloc economies experienced mis-development by central planners. The Eastern Bloc also depended upon the Soviet Union for significant amounts of materials.

Technological backwardness resulted in dependency on imports from Western countries and this, in turn, in demand for Western currency. Eastern Bloc countries were heavily borrowing from Club de Paris (central banks) and London Club (private banks) and most of them by the early 1980s were forced to notify the creditors of their insolvency. This information was however kept secret from the citizens and propaganda promoted the view that the countries were on the best way to socialism.