ECONOMICS

Effects of ensuing recession on political economic decisions in Russia and China

Effects of ensuing recession on political economic decisions in Russia and China

Introduction

The great recession impacted the political economic policies of many countries, including China and Russia. Both the countries adopted different strategies in order to remain stable during and after recession. Russia and China both have some differences as well as some similarities between their states in terms of political, social, and economical prospects. Both are among the powerful countries of the world, however, the transition paths of their economic reforms were different which led China to success but unfortunately, Russia faced fall. Though Russia faced such a downturn it again strengthened its economy in Putin's presidency.

Discussion

Differences/similarities between the Russia and China

Russia and China share various similarities, but they also have marked differences as well. Both, Russia and China are large countries of the world. Russia as well as China is multiethnic state with heterogeneous population, China dominated by Han China group and Russia dominated by ethnic Russians group. Both the countries are important and strong in terms of economic potential and military power. Capitalism pathways are being taken by both, simultaneously (Michailova & Hutchings, 2004, p.5).

In terms of politics, both are not liberal democracies, as China operates with one-party rule and Russia with multi-party politics, not regarded as particular democratic. Economies of both the countries differ markedly. Russia's current prosperity is mainly relates to its energy resources and it has used this energy as the weapon against neighboring states. On the contrary, China doesn't depend on natural resources only, but it is promoting development of a broader and innovative infrastructure (Berman, 2008, n.d). China's implementation of economic reforms and its consistent growth has made the country renowned as a success story. Another difference between both the countries is that China is a rising superpower, whereas Russia is struggling to gain again the position of superpower he had for more than 50 years (Michailova & Hutchings, 2004, p.6).

Comparison of political economic terms of Russia and China

Economic Transition Pathways

Russia and China both made the transition from predominantly centrally planned to largely capitalist economies (www.global-politics.co.uk). However, the respective national leadership of both the countries chose divergent development strategies for economic development of country and affected heavily the political economic terms. The key strategically differences in economic reforms are sequencing of reform, pace of reform, initiative, spirit, and western advice. The progress of both the economies since 1989 has been dominantly impacted by globalization on their economies operations as they followed different strategies (www.src-h.slav.hokudai.ac.jp). Major differences in their policies that impacted their growth and development lies with the sectors chosen for initial privatization and liberalization, price signal usage, exchange rates, financial markets and products, inequality and poverty, banking sector, freedom, democracy and accountability, and export strategy (www.cambridge.edu.au).

Recession Effects on Political Economic Decisions

The recession highly impacted countries all around the world, including Russia and China. Both had adopted different policies in order to deal with this credit ...