Corecom
Encyclopedia
Corecom was a chain of hard-currency
stores during the Communist rule in Bulgaria (1944–1989). Goods were often priced cheaper than in the West
, however, they were still inaccessible for most Bulgarians because the national currency, the lev
, was not accepted at the stores. Apart from western diplomats and visitors, access to hard currency
was a privilege of the nomenklatura
(small, elite subset of the general population) and a few other people who were authorized to travel abroad or do business with westerners. Anyone purchasing goods at Corecom but not authorized to possess foreign currency was at risk of investigation by the authorities.
The stores operated on the same principle as East German Intershop
s, Czechoslovakia
n Tuzex
or Polish
Pewex
stores. In addition to major Western currencies, such as US dollars
, Corecom stores also accepted foreign exchange certificate
s. Western consumer goods sold at these stores were not available at regular retail outlets: imported spirits and tobacco products (e.g. Scotch whisky
and Marlboro cigarettes), consumer electronics (e.g. VCRs and video cameras), cosmetics, clothing, magazines, toys, and even foodstuffs such as Kinder Surprise
chocolate eggs (commonly known as "Корекомски яйца" or "Corecom eggs" at the time). There were also Bulgarian products that were either destined exclusively for export or ordinarily required signing up on long waiting lists.
Ironically, by making the significantly greater diversity and quality of Western consumer goods conspicuous yet inaccessible to the vast majority of the population, the communist party
elites inadvertently demonstrated not only some of the major constraints of planned economy
, but also the hypocrisy of their anti-Western rhetoric.
Hard currency
Hard currency , in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value...
stores during the Communist rule in Bulgaria (1944–1989). Goods were often priced cheaper than in the West
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...
, however, they were still inaccessible for most Bulgarians because the national currency, the lev
Bulgarian lev
The lev is the currency of Bulgaria. It is divided in 100 stotinki . In archaic Bulgarian the word "lev" meant "lion".It is speculated that Bulgaria, as a member of the European Union will adopt the Euro in 2015 .- First lev, 1881–1952 :...
, was not accepted at the stores. Apart from western diplomats and visitors, access to hard currency
Hard currency
Hard currency , in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value...
was a privilege of the nomenklatura
Nomenklatura
The nomenklatura were a category of people within the Soviet Union and other Eastern Bloc countries who held various key administrative positions in all spheres of those countries' activity: government, industry, agriculture, education, etc., whose positions were granted only with approval by the...
(small, elite subset of the general population) and a few other people who were authorized to travel abroad or do business with westerners. Anyone purchasing goods at Corecom but not authorized to possess foreign currency was at risk of investigation by the authorities.
The stores operated on the same principle as East German Intershop
Intershop
Intershop was a chain of government-run retail stores in the German Democratic Republic in which only hard currencies could be used to purchase high-quality goods. The East German mark was not accepted as payment...
s, Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...
n Tuzex
Tuzex
Tuzex, during the period of communist rule in Czechoslovakia, was a network of shops in which it was possible to use hard currency or Tuzex vouchers to purchase foreign, mainly western luxury goods, unavailable at regular stores. The Czechoslovak koruna was not accepted. The name Tuzex is a...
or Polish
People's Republic of Poland
The People's Republic of Poland was the official name of Poland from 1952 to 1990. Although the Soviet Union took control of the country immediately after the liberation from Nazi Germany in 1944, the name of the state was not changed until eight years later...
Pewex
Pewex
Pewex was a chain of hard currency shops in communist Poland...
stores. In addition to major Western currencies, such as US dollars
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
, Corecom stores also accepted foreign exchange certificate
Foreign exchange certificate
A foreign exchange certificate, sometimes abbreviated to FEC, is a type of currency. Foreign exchange certificates are sometimes used by governments as a surrogate for a national currency, where the national currency is usually subject to exchange controls or is not convertible...
s. Western consumer goods sold at these stores were not available at regular retail outlets: imported spirits and tobacco products (e.g. Scotch whisky
Scotch whisky
Scotch whisky is whisky made in Scotland.Scotch whisky is divided into five distinct categories: Single Malt Scotch Whisky, Single Grain Scotch Whisky, Blended Malt Scotch Whisky , Blended Grain Scotch Whisky, and Blended Scotch Whisky.All Scotch whisky must be aged in oak barrels for at least three...
and Marlboro cigarettes), consumer electronics (e.g. VCRs and video cameras), cosmetics, clothing, magazines, toys, and even foodstuffs such as Kinder Surprise
Kinder Surprise
Kinder Surprise, also known as a Kinder Egg or, in the original Italian, Kinder Sorpresa, is a confection manufactured by Italian company Ferrero. Originally intended for children, it has the form of a chocolate egg containing a small toy, often requiring assembly.-Overview:Kinder Surprise...
chocolate eggs (commonly known as "Корекомски яйца" or "Corecom eggs" at the time). There were also Bulgarian products that were either destined exclusively for export or ordinarily required signing up on long waiting lists.
Ironically, by making the significantly greater diversity and quality of Western consumer goods conspicuous yet inaccessible to the vast majority of the population, the communist party
Bulgarian Communist Party
The Bulgarian Communist Party was the communist and Marxist-Leninist ruling party of the People's Republic of Bulgaria from 1946 until 1990 when the country ceased to be a communist state...
elites inadvertently demonstrated not only some of the major constraints of planned economy
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
, but also the hypocrisy of their anti-Western rhetoric.
See also
- Shortage economyShortage economyShortage economy is a term coined by the Hungarian economist, János Kornai. He used this term to criticize the old centrally-planned economies of the communist states of the Eastern Bloc...
- BaltonaBaltonaBaltona is an enterprise created in 1946 in Poland. Nationalized and subordinated to Polish communist Ministry of Foreign Trade in 1950, it was tasked with resupplying Polish ships, planes, diplomatic posts, airports, seaports, border crossings, and even scientific expeditions...
- IntershopIntershopIntershop was a chain of government-run retail stores in the German Democratic Republic in which only hard currencies could be used to purchase high-quality goods. The East German mark was not accepted as payment...
- PewexPewexPewex was a chain of hard currency shops in communist Poland...
- TuzexTuzexTuzex, during the period of communist rule in Czechoslovakia, was a network of shops in which it was possible to use hard currency or Tuzex vouchers to purchase foreign, mainly western luxury goods, unavailable at regular stores. The Czechoslovak koruna was not accepted. The name Tuzex is a...
- BeryozkaBeryozkaBeriozka was a twin chain of state-run retail stores in the Russian SFSR that sold goods for hard currency. Beriozkas sold goods that were either unavailable or more expensive in regular shops...
- Eastern Bloc economiesEastern Bloc economiesAfter the Soviet Union's occupation of much of the Eastern Bloc during World War II, Soviet leader Joseph Stalin implemented socioeconomic transformations of each of the Eastern Bloc economies that comported with the Soviet Communist economic model...