The Role of the State in Economic Transformation: Comparing the Transition Experiences of Russia and China

David M. Kotz

Working Papers from Political Economy Research Institute, University of Massachusetts at Amherst

Abstract: This paper will examine the transition experiences of Russia and China, with the aim of drawing lessons about the relative effectiveness of the neoliberal and the state directed transition strategies. Section 2 considers Russia=s economic transition since 1992, which has been guided by the neoliberal strategy. Section 3 examines China=s economic experience since 1978, when it began a transition based on a different approach from the neoliberal one. Section 4 considers why, in countries that successfully pursue a state directed strategy, such as China, pressure builds up over time to shift to a neoliberal strategy. Section 5 offers concluding comments.

Date: 2004
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