Why China Won and Russia Lost10

Why China Won and Russia Lost10 - Why China Won and Russia...

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Why China Won and Russia Lost: A Surprising Answer Paul Gregory Kate Xiao Zhou
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China had a reform constituency Great Leap famine (1958–1961 ) left 85% outside the state welfare system Tradition of private land system and entrepreneurship The Cultural Revolution made elite more interested in change.
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But Russia did not have a reform constituency the last famine lay three decades in the past. Political oppression was less in Russia after Nikita Khrushchev’s secret speech of 1956. “We pretend to work and you pretend to pay.” Russians were basically content with the system, comfortable in the bosom of their state enterprise or state farm.
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Rural Fence-breaking and market development in China China’s farmers decollectivized spontaneously from below/ baochan daohu (household economy) led to market development and rural industrialization. “Family farming is as natural as human desire to eat, to have sex, and to love grand children. We loved family farming because it gave us some freedom. The leaders thought they knew better how to live our lives. But it is our lives, isn’t it?” Death of Grain Coupon/Farmer-led Free markets boom
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China 150 million to 200 million migrants/The rise of free labor market By 2002, the non-state sector’s share exceeded two thirds of GDP with the share produced by truly private companies comprising more than half. By 2004, there were more than three
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This note was uploaded on 04/08/2011 for the course POLS 305 taught by Professor Zhou during the Spring '11 term at University of Hawaii, Manoa.

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Why China Won and Russia Lost10 - Why China Won and Russia...

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