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By Peter Nolan

'A energetic and good written comparability of financial transformation in China and the USSR/Russia, combining a superb wisdom of the chinese language economic system with a thorough critique of Western transition orthodoxy, this very topical and extremely debatable booklet should be worthy studying for college students, directors in lots of international locations and foreign enterprises, and enterprise people.' - Michael Ellman, collage of Amsterdam `Peter Nolan makes a stinky problem to standard knowledge via arguing that the chinese language method of procedure reform has been enormously extra profitable than the surprise remedy utilized to Russia. His booklet relies on vast comparability and deep perception into the political financial system of either countries.' - John Toye, Institute of improvement reports, Sussex This publication is the 1st try and examine systematically the dramatic distinction within the result of post-Stalinist reform in China and Russia. It argues that there emerged a 'transition orthodoxy' approximately the best way to reform the communist platforms of political economic climate. even though, it was once deeply unsuitable. the recommendation which flowed from this orthodoxy was once the first reason behind the Soviet catastrophe. the choice to not stick with it was once the most explanation for China's huge, immense luck in its reform programme.

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Additional info for China’s Rise, Russia’s Fall: Politics, Economics and Planning in the Transition from Stalinism

Example text

Without these famines, the century would have a witnessed a steady decline in the total loss of life due to famine as a result of growth in the stability of farm output, growth of incomes in poor countries, and large improvements in transportation and communications (Nolan, 1993c). A less dramatic but still important impact of the totalitarian political system upon the economic performance of China and the USSR was the tight constraints on the range of discussion among economists. Under Stalin and for long periods in Maoist China, the 'liquidationist' view of economics under 'socialism' was dominant.

One such thesis was that greater 'pressure' of the 'Andropov' type would be able to improve substantially the performance of the system. Another was that limited introduction of market forces would be sufficient to improve substantially the performance of the system. Indeed, there still is a remnant of analysts who believe that the Soviet and Chinese path under communism was superior to that under any sort of market system. This chapter disputes the validity of these approaches. 1 25 POLITICS Similarities Internal party organisation The key features of centralised Party organisation had been established in the former USSR during the War Communism period (1917-21) under a de facto monopoly of political power exercised by the communist party.

But the vesting of what was in effect a monopoly of power in the [central organisation] of the party was to have far-reaching consequences'(Carr, 1979, p. 34). By the start of the NEP period in the USSR the characteristic features of the communist party dictatorship had been established and were to be replicated in China, with the establishment of its own communist party in 1921. In each case after the revolution the communist party remained a small •vanguard' party with a monopoly of political power.

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