Institutional basis of communist regimes Communist party dominance
No party competition Interest groups controlled by communist
party Communist party control over public policy
Economy – state-owned enterprises, central planning Lack of efficiency, productivity, innovation Few incentives for firms, workers,
managers to be more efficient; to promote intensive growth vs. extensive growth
Russia – Politics
Political cleavages Advocates of markets vs. state economy Political elites vs. oligarchs Regional leaders vs. central government Russians vs. Chechens
Economic policy “Shock therapy” – transition to market economy as quickly as possible
Prices set by markets; privatization of state-owned firms; reducing state expenditures; foreign investment
Replaced by new accommodation; increasing state control over key sectors; markets
Conservative government under Putin (United Russia Party) Market economy, promotion of middle class, nationalism, order and
stability Fragmented interest groups (both labor and business) “Competitive authoritarian regime”
Russia – Policies
Economy under Putin Markets plus significant state role in key
industries (state-owned, state-directed industries in oil and gas)
Redistribution of income from poor to rich Reduction in social spending Reduction in taxes Large numbers living in poverty
Russia – Institutions
Constitution (1993) (Figure 10.1, 310) Strong president
Broad appointment powers (including premier), rule by decree, commander-in-chief
Premier Manage business of government
Bicameral legislature Lower house – State Duma (returned by PR, as of 2007); more
powerful body; but still weak relative to executive Upper house – Federation Council (appointed by governors and
regional legislatures) Judiciary
Not a real check on executive power; widespread corruption Bureaucracy
Ineffective; corrupt Russia’s future?
China – Politics
Chinese Communist Party (CCP) the dominant institution; it holds a monopoly on political power
Cleavages resulting from economic reforms Social classes
Small capitalist class (highly successful business people) Middle class (small entrepreneurs, managers, white collar professionals) Urban poor Growing income inequality Challenge for CCP: to maintain support across growing divide
Urban vs. rural Increasing divide in income/wealth between urban and rural residents, as well
as access to social spending, health care, etc. CCP’s legitimacy
Socialism economic development Mix of co-optation and coercion Elite-based, exclusivist ruling coalition (central and provincial party and
government officials, PLA officers, wealthy capitalists, urban middle class)
China – Policies
“Socialism with Chinese characteristics” Markets set prices; large role for privately owned firms Small and medium-sized state-owned firms unable to function
privatized Competitive in world markets Socialist (large state-owned enterprises, ownership of farm land)
Outcome High growth rates; reduction in numbers in poverty Rising unemployment, income inequality, growth in urban areas
State attempting to address dark side of markets Problems: insufficient social welfare spending, deterioration in
health care, bias toward urban areas; declining rate of poverty reduction
New policies: lower agricultural taxes; increased access to health care; tuition reductions; increased infrastructure spending
China – Institutions
Dominance by CCP (Figure 10.2, 327) Power resides in “paramount leader” and
elite party officials All major political decisions made in
Politburo and Standing Committee Governmental institutions are
administrative arm of CCP No independent judiciary
China’s future?
Russia and China Compared
Table 10.1, 332 Russia considerably higher per capita income
Physical needs and informed decisions Russia’s record better overall, but China
catching up Safety
China’s record is better Civil and political rights
Nearly equally bad
Top Related