Economic Transformation in Russia and China: How Do We Compare Success?

One of Europe's leading international economists compares the economic,, of Russia and China by tracing the evolution of their transformation from central planning to market-oriented systems. The paper singles out the respective structural and policy constraints and the importance of political decisions in moving ahead with reforms in crucial years when the dangers of reversals have materialized. It analyzes, inter alia. the reasons tor present growth in both countries, which is robust in Russia and impressive in China. While macroeconomic performance indicators are commonly used to compare success and work out projections, the author argues that underlying structural and political contexts as well as institutional problems of a different nature in each Country provide the key to our understanding of the respective obstacles to sustainable growth.