Two contrasting economies that transitioned to capitalism are China and Russia.
China's transition to capitalism was facilitated by factors such as gradual reforms, government control, and market-oriented policies. The Chinese government implemented economic reforms in the late 1970s under Deng Xiaoping, allowing for the gradual introduction of market mechanisms while maintaining a strong presence in the economy. This gradual approach helped ensure social stability and allowed the government to retain control over strategic sectors. As a result, China's form of capitalism, often referred to as "socialism with Chinese characteristics," combines elements of state control with market-oriented policies. The "face" of capitalism in China reflects this unique blend, with the government prioritizing poverty reduction, job creation, and sustainable development.
In contrast, Russia's transition to capitalism was marked by rapid reforms and faced challenges related to weak institutions and resource dependence. Following the collapse of the Soviet Union in the early 1990s, Russia implemented shock therapy, involving the rapid privatization of state-owned enterprises and the removal of price controls and trade barriers. However, weak institutions and corruption hindered the smooth transition to capitalism, leading to economic instability. Additionally, Russia's heavy reliance on natural resources, particularly oil and gas, shaped the "face" of capitalism in the country. The concentration of wealth in the hands of a few oligarchs became a prominent feature, highlighting the influence of resource dependence on the capitalist system in Russia.
