transition: to become a normal European state” (Lainela & Sutela, 1994, pg. 2). As a result of this, the USSR ’s economy was fatally wounded. This is because as part of the Soviet Union, theBaltic States provided the Soviet Union with the majority of its market for the goods it produced(Lainela & Sutala, 1994, pg. 2). No matter how much of a good you produce, if youdon’t have a market for your goods, they will not sell and you will not make any money. Withoutthe Baltic States trading with the Soviet Union, its ability to market is crippled, forcing itseconomy to nose dive.Due to the repercussions of trade between the Baltic States and the Soviet Union beingdiscombobulated, the Soviet economy did not survive. The USSR fell in 1991 and Gorbachevlost power due to his plunders in striving for Soviet autonomy and his ignorance of Sovietdependence on Baltic trade (Pope, 1991). The fall of the USSR occurs just about a year after theBaltic States gained independence. This is not a coincidence, but a cause and a consewuence.Although the Baltic States were declared independent for about a year before the fall of the USSR, they did not get to really try their hands at a free-market until after it fell. Besides, astate does not transition from being a communist satellite state to being a democratic free-marketstate overnight and this transition dis not go into full swing until after the USSR was gone(Lainela & Sutela, 1994, pg. 2). However, this transition presents a problem: almost as much asthe Soviet Union was dependent on the Baltic States for marketing their goods, the Baltic Statesrelied on the Soviet Union for raw materials to produce and market their own goods. Not tomention, having control of their own economies was a new frontier to the Baltic States , sincethey had never had this kind of responsibility before (Lainela & Sutela, 1994, pg. 2). Given their independence, the Baltic States took their own different courses of actions to try and benefitthemselves.
The Baltic Economies in Transition
elaborates in referrencinf the free tradeagreement of September 1993, “Latvia wants to protect its agricultural producers from its
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