This site uses cookies, tags, and tracking settings to store information that help give you the very best browsing experience. Dismiss this warning
View More View Less
  • 1 Non-Resident Fellow at Bruegel, Brussels, Belgium
  • | 2 Higher School of Economics, Moscow, Russia
  • | 3 Center for Social and Economic Research, Warsaw, Poland
Restricted access

Purchase article

USD  $25.00

1 year subscription (Individual Only)

USD  $700.00

Abstract

In the 1990s and early 2000s, comparison of transition strategies of China versus those in Central and Eastern Europe raised controversies in the economic and political science literature. However, differences between China and the countries of the former Soviet bloc in their transition strategies resulted not necessarily from a deliberate political choice but from different initial conditions. Low-income and largely rural China, after its first radical step (de-collectivisation of agriculture in 1978), could move more gradually due to its under-industrialisation and retaining administrative control over the economy. The over-industrialised Central and Eastern Europe (CEE) and former Soviet Union (FSU) countries where the previous command system of economic management spontaneously collapsed at the end of 1980s, did not have such an option. They had to conduct market-oriented reforms as quickly as they could, with all the associated economic and social pain. Regardless of speed and strategy of transition, almost all previously centrally-planned economies, including China, completed building basic foundations of a market system by the early 2000s although the quality of economic and political institutions and policies differ between the sub-regional groups and individual countries.

  • Abasov, M. (2017): Comparison of Chinese Reform Experience with Other Transition Economies (in the Example of Russia) .Middle East Technical University, Ankara, 27 May, Munich Personal RePEc Archive. https://mpra.ub.uni-muenchen.de/79841/1/MPRA_paper_79841.pdf.

    • Search Google Scholar
    • Export Citation
  • Abramowitz, M. J. (2018): Freedom in the World 2018: Democracy in Crisis. Freedom House. https://freedomhouse.org/report/freedom-world/freedom-world-2018.

    • Search Google Scholar
    • Export Citation
  • Balcerowicz, L. (1994): Understanding Post-communist Transitions. Journal of Democracy, 5(4): 7589. https://muse.jhu.edu/article/225365/pdf.

  • Bertelsmann Stiftung (2018): Democracy under Pressure: Polarization and Repression are Increasing Worldwide. Press Release, 22 March. https://www.bertelsmann-stiftung.de/en/press/press-releases/press-release/pid/democracy-under-pressure-polarization-and-repression-are-increasing-worldwide/.

    • Search Google Scholar
    • Export Citation
  • Blanchard, O. (1997): The Economics of Post-Communist Transition. Oxford: Clarendon Press.

  • China Daily (2018): China's Private Sector Contributes Greatly to Economic Growth: Federation Leader. ChinaDaily.com.cn, 6 March. https://www.chinadaily.com.cn/a/201803/06/WS5a9e7735a3106e7dcc13fef8.html.

    • Search Google Scholar
    • Export Citation
  • Cooper, J. (1998): The Military Expenditure of the USSR and the Russian Federation, 1987–97. Stockholm International Peace Research Institute, SIPRI Yearbook 1998, Appendix 6D, pp. 243–259. https://www.sipri.org/sites/default/files/SIPRI%20Yearbook%201998.pdf.

    • Search Google Scholar
    • Export Citation
  • Dabrowski, M. (1996): Different Strategies of Transition to a Market Economy: How Do They Work in Practice? Policy Research Working Paper, No. 1579, The World Bank, Washington, DC. http://documents.worldbank.org/curated/en/222981468764139023/pdf/multi0page.pdf.

    • Search Google Scholar
    • Export Citation
  • Dabrowski, M. (2018): Are Economic and Political Freedoms Interrelated? Bruegel Blog, 10 October. https://www.bruegel.org/2018/10/are-economic-and-political-freedoms-interrelated/.

    • Search Google Scholar
    • Export Citation
  • Dabrowski, M.Gomulka, S.Rostowski, J. (2001): Whence Reform? A Critique of the Stiglitz Perspective. Journal of Policy Reform, 4(4): 291324.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Dabrowski, M.Myachenkova, Y. (2018): The Western Balkans: Weak Performance since the Crisis. Acta Oeconomica, 68(S2): 85120. http://www.akademiai.com/doi/pdf/10.1556/032.2018.68.S2.5.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • de Melo, M.Denizer, C.Gelb, A.Tenev, S. (2001): Circumstances and Choice: The Role of Initial Conditions and Policies in Transition Economies. World Bank Economic Review, 15(1): 131. http://documents.worldbank.org/curated/en/111401468149391542/pdf/773440JRN020010cumstance0and0Choice.pdf.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Dewatripont, M.Roland, G. (1992): The Virtues of Gradualism and Legitimacy in the Transition to a Market Economy. Economic Journal, 102(411): 291300.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Dikotter, F. (2010): Mao's Great Famine: The History of China's Most Devastating Catastrophe. London: Bloomsbury, New York: Walker Books.

    • Search Google Scholar
    • Export Citation
  • European Commission (2017): Commission Staff Working Document on Significant Distortions in the Economy of the People's Republic of China for the Purposes of Trade Defence Investigations. European Commission – Directorate General for Trade, Brussels, 20.12.2017 SWD (2017) 483 final/2. https://trade.ec.europa.eu/doclib/docs/2017/december/tradoc_156474.pdf.

    • Search Google Scholar
    • Export Citation
  • Fukuyama, F. (2012): The Origins of Political Order: From Prehuman Times to the French Revolution. London: Profile Books.

  • Gaidar, E. (1989): Ekonomicheskie reformy i ierarkhicheskie struktury (Economic reforms and hierarchical structure). Moscow: Nauka.

  • Gaidar Institute for Economic Policy (GIEP) (2018): Russian Economy in 2017. Trends and Outlooks. Moscow. https://www.iep.ru/files/text/trends/2017-eng/Book.pdf.

    • Search Google Scholar
    • Export Citation
  • Havrylyshyn, O. (2020): Present at the Transition: An Inside Look at the Role of History, Politics and Personalities in Post-Communist Countries. Cambridge, UK: Cambridge University Press, DOI: .

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Hellman, J. S. (1998): Winners Take All: The Politics of Partial Reform in Post-communist Transitions. World Politics, 50(2): 203234. https://www.jstor.org/stable/25054036.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • IMF. (2019): World Economic Outlook, April 2019: Growth Slowdown, Precarious Recovery. Washington, DC. https://www.imf.org/∼/media/Files/Publications/WEO/2019/April/English/text.ashx?la=en.

    • Search Google Scholar
    • Export Citation
  • IMF. (2020): Fiscal Monitor: Policies to Support People During the COVID-19 Pandemic. April. Washington, DC. https://www.imf.org/∼/media/Files/Publications/fiscal-monitor/2020/April/English/text.ashx?la=en.

    • Search Google Scholar
    • Export Citation
  • Jefferson, G. H.Rawski, T. G. (1994): How Industrial Reform Worked in China: The Role of Innovation, Competition, and Property Rights. In: Proceedings of the World Bank Annual Conference on Development Economics, Supplement to the World Bank Economic Review and the World Bank Research Observer, pp. 129162. http://www.pitt.edu/∼tgrawski/papers/Jefferson-Rawski%201994%20World%20Bank%20Annual%20Conference%20paper%20with%20discussion.pdf.

    • Search Google Scholar
    • Export Citation
  • Jirusek, M.Kuchynkova, P. (2018): The Conduct of Gazprom in Central and Eastern Europe: A Tool of the Kremlin, or Just an Adaptable Player? Paper presented at the General Conference of the European Consortium for Political Research, Hamburg, 22–25 August. https://ecpr.eu/Filestore/PaperProposal/fa6c3563-6c95-49ec-9139-d08780925e16.pdf.

    • Search Google Scholar
    • Export Citation
  • Kornai, J. (1980): Economics of Shortage. Amsterdam: North-Holland.

  • Kornai, J. (1994): Transformational Recession: The Main Causes. Journal of Comparative Economics, 19(1): 3963. https://www.sciencedirect.com/science/article/pii/S0147596784710626.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Kornai, J. (1999): Reforming the Welfare State in Post-Socialist Economies. In: Brown, A. N. (ed.): When is Transition Over? Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, pp. 99–114. https://doi.org/10.17848/9780585282978.ch6.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Krueger, A. O. (1993): Political Economy of Policy Reform in Developing Countries (The Ohlin Lectures). Cambridge, MA: The MIT Press.

  • Lardy, N. R. (2019): The State Strikes Back: The End of Economic Reform in China? Washington, DC: Peterson Institute for International Economics.

    • Search Google Scholar
    • Export Citation
  • Lau, L. J.Qian, Y.Roland, G. (2000): Reform without Losers: An Interpretation of China's Dual-Track Approach to Transition. Journal of Political Economy, 108(1): 120143. https://doi.org/10.1086/262113.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Mau, V. (2013): Reformy i dogmy. Gosudarstvo i ekonomika v epokhu reform i revolyucii (1861—1929) (Reforms and dogmas. State and economy in the epoch of reforms and revolutions (1861–1929)) .Moscow: Delo Publishing House.

    • Search Google Scholar
    • Export Citation
  • OECD. (2019a): Pensions at a Glance 2019: OECD and G20 Indicators. Paris: OECD Publishing. https://doi.org/10.1787/b6d3dcfc-en.

  • OECD. (2019b): Pensions at a Glance 2019: Country Profiles – China. Paris: OECD Publishing. https://www.oecd.org/els/public-pensions/PAG2019-country-profile-China.pdf.

    • Search Google Scholar
    • Export Citation
  • Rawski, T. G. (2010): Is China's Development Success Transferable? In: Yao, Y. L.Wu, H.-M. (eds): Reform and Development in China: What Can China Offer the Developing World. London: Routledge, pp. 320348. https://doi.org/10.4324/9780203846308.

    • Search Google Scholar
    • Export Citation
  • Roland, G. (2002): The Political Economy of Transition. The Journal of Economic Perspectives, 16(1): 2950. https://www.jstor.org/stable/pdf/2696575.pdf?refreqid=excelsior%3A5279402217648b0535511c00af958a56.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Sachs, J. D. (1995): Reforms in Eastern Europe and Former Soviet Union in Light of the East Asian Experiences. CASE Studies and Analyses, No. 39, May. https://case-research.eu/upload/publikacja_plik/3414856_039.pdf.

    • Search Google Scholar
    • Export Citation
  • Sachs, J. D. (1997): An Overview of Stabilization Issues Facing Economies in Transition. In: Woo, W. T.Parker, S.Sachs, J. D. (eds): Economies in Transition: Comparing Asia and Eastern Europe. Cambridge, MA and London, UK: The MIT Press, pp. 243255. https://mitpress.mit.edu/books/economies-transition.

    • Search Google Scholar
    • Export Citation
  • Sachs, J. D.Woo W. T. (1997): Understanding China's Economic Performance. NBER Working Paper, No. 5935, February. https://www.nber.org/papers/w5935.pdf.

    • Search Google Scholar
    • Export Citation
  • Scharping, T. (2003): Birth Control in China 1949–2000: Population Policy and Demographic Development (Chinese Worlds). London & New York, NY: Routledge.

    • Search Google Scholar
    • Export Citation
  • Schenkkan, N. (2018): Nations in Transit 2018: Confronting Illiberalism. Freedom House. https://freedomhouse.org/report/nations-transit/nations-transit-2018.

    • Search Google Scholar
    • Export Citation
  • Stiglitz, J. (1999a): Whither Reform? – Ten Years of the Transition. Paper presented at the Annual Bank Conference on Development Economics, Washington, DC, April. https://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/1999_4_Wither_Reform.pdf.

    • Search Google Scholar
    • Export Citation
  • Stiglitz, J. (1999b): Ouis Custodiet Ipsos Custodies? Challenge, 42(6): 2667. https://doi.org/10.1080/05775132.1999.11472129.

  • Tagliapietra, S. (2017): The EU Antitrust Case: No Big Deal for Gazprom. Bruegel blog, 15 March. https://www.bruegel.org/2017/03/the-eu-antitrust-case-no-big-deal-for-gazprom/.

    • Search Google Scholar
    • Export Citation
  • Woo, W. T. (1997): Improving the Performance of Enterprises in Transition Economies. In: Woo, W. T.Parker, S.Sachs, J. D. (eds): Economies in Transition: Comparing Asia and Eastern Europe. Cambridge, MA and London, UK: The MIT Press, pp. 299323. https://mitpress.mit.edu/books/economies-transition.

    • Search Google Scholar
    • Export Citation
  • World Bank. (1996): World Development Report 1996: From Plan to Market. Oxford, UK and New York, NY: Oxford University Press. https://elibrary.worldbank.org/doi/pdf/10.1596/978-0-1952-1107-8.

    • Search Google Scholar
    • Export Citation
  • World Bank. (2002): Transition – The First Ten Years: Analysis and Lessons for Eastern Europe and Former Soviet Union. Washington, DC. http://documents.worldbank.org/curated/en/319481468770972868/pdf/multi0page.pdf.

    • Search Google Scholar
    • Export Citation
  • Zhang, C. (2019): How Much Do State-Owned Enterprises Contribute to China's GDP and Employment? Washington, DC: The World Bank, 15 July. http://documents.worldbank.org/curated/en/449701565248091726/pdf/How-Much-Do-State-Owned-Enterprises-Contribute-to-China-s-GDP-and-Employment.pdf.

    • Crossref
    • Search Google Scholar
    • Export Citation