Comparative Study Of Chinese And Russian’s Economic Reform

In the world history, China and Russia maintained centrally planned economy. Objectively both of these countries gained industrial power; however, this central planning initially had significant limitations and concealed a number of contradictions in various sectors of economy, so it did not last long. This system cannot guarantee further industrial growth and with time may become an obstacle for its development.China and Russia started to implement the transition from this type of centrally planned economy to a more market based economy. Taking a close look at transitional methods of economic systems, we can see that Russia chose "Radical Transition", whereas China chose "Progressive Transition". While in the process of implementing "Shocking Therapy", Russia did not take into account functioning of the economy. Economic transformation for Russia meant liberalization, privatization and stabilization. Taking a look at the results, we can see that "Radical transition" method lead to a complete chaos in politics, economy and society in Russia.China chose "Progressive transition" method, from simple to complex. One of the biggest advantages of "Progressive transition" is possibility to avoid social unrest; thus it is easier to regulate development and stability. Based on the results of35years of the reforms, the rate of economic growth is approximately10%, there are significant improvements in social economic development and stability, also improvement in income and life expectancy. China is trying to create the system that will work best under the system of socialism, and also increase its manufacturing power. These two great powers, China and Russia, chose absolutely different ways to reform economic system, and therefore the results are different. Both of these systems need to be studied.Economic reform process is a difficult process. In order to have a deeper understanding of the economic system reforms in China and Russia, it is essential to analyze reasons for a change, the process, and also detect all the problems during the transition. The closer analysis will help to develop the development strategy for both countries.This paper analysis the current economic situation and potential growth in Russia and China; compares the results and ways of economic change. This work consists of five chapters. The first chapter describes the economic development of China and Russia, including the analysis of GDP and economic growth. The second part describes the start of economic reforms in China and Russia. The third part is analysis of goals, content and measures of economic reforms. The fourth part describes differences between China and Russian economic reforms, including the government and division of the market. The fifth part describes results and perspectives of the reforms.