单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,chapter 09 Transition among Former Socialist Economies,In this chapter,well cover:,Eastern Germanys Road to Western Prosperity,Russias Uncertain Path to Reform,Chinas Socialist Market Economy,Poland:A Success Story in Central Europe,Cuba:A Country of Two Brothers,Eastern Germanys Road to Western Prosperity,Market-based economies in the Western world started to develop,Central Planned Economy(CPE),was almost entirely based on state-owned enterprises and capitals.,Eastern Germanys Road to Western Prosperity,CPE:,Advantages:,maximize the continuous utilization of all available resources,serves as a social fulfillment rather than individual,.,Eastern Germanys Road to Western Prosperity,Disadvantages:,the ignorance of the product quality,the ineffective use of resources,inefficient allocation of goods and services.,Eastern Germanys Road to Western Prosperity,Initiative New Social Market Economy(INSM),study,Despite Germanys robust economic recovery,eastern Germans continue to suffer disproportionately from unemployment.,Everyday lives had improved in the former East.,Russias Uncertain Path to Reform,Russias shift toward market capitalism has its roots in a reform process initiated during the final years of the existence of the Soviet Union.,Mikhail Gorbachev deserves due credit for initiating the transition to a market economy.,Russias Uncertain Path to Reform,The Soviet Union had a well-established system of command socialism.,Mikhail Gorbachev:radial reform,The Soviet people faced the worst of economic worlds in 1991.,Russias Uncertain Path to Reform,The demise of the Soviet Union in the fall of 1991 gave Boris Yeltsin new latitude to pursue truly far-reaching reform.,a leading proponent of market capitalism.,Despite the hurdles,Russian reformers have accomplished a great deal.,Russias Uncertain Path to Reform,In the early years of the 21st century,Russia achieved substantial growth,meanwhile government finances improved following a major tax reform and inflation went down near hyperinflation levels.,Problems:the over-importance of oil and high oil prices in the recovery.,Russias Uncertain Path to Reform,The reality of the Russian transition was a balancing act between maintaining the administrative integrity of Russia as a country and implementing a viable market economy with democratic institutions.,Chinas Socialist Market Economy,State Socialism in Maos Era,In 1958,the Great Leap Forward,greater emphasis on,collectivization,doomed to be an economic disaster,Chinas Socialist Market Economy,Opening-up and Reform,the market was to complement and support state planning,not replace it.,To catch the“outward-oriented East Asian economies,“open-door policy.,Chinas Socialist Market Economy,The first stage of economic reform(1978-84)concentrated on the rural areas.,Rural production rose rapidly as farms became more efficient,as surplus labour was used more productively in rural industry,and as rural entrepreneurship,saving and investment responded to the new opportunities.,Chinas Socialist Market Economy,The second stage of economic reform(1985-92),an incremental process of reforming the urban economy,in particular the SOEs,which were gradually given greater managerial autonomy.,Chinas Socialist Market Economy,The third stage of economic reform(1993)was ignited by Deng Xiaopings Southern Tour to mobilize support for more radical reforms.,The private sectorfor the first time acknowledged and acceptedwas invigorated.,Chinas Socialist Market Economy,Following Dengs famous maxim,“crossing the river by groping for stones,China gradually and sequentially adapted its reform policies to the fast-changing domestic and global political economy and seized opportunities as they arose.,Poland:A Success Story in Central Europe,Early Years of Hardship,After WWI Poland experienced economic difficulties and was partitioned once again by Germany and the USSR in 1939.,In World War II it was completely conquered by the Germans.,Poland:A Success Story in Central Europe,After 1956,Poland compiled a standard record for an East European system.,The martial law government,attempted more marketization and decentralization.,As internal tensions mounted in 1989,a Solidarity-led government came to power in Poland.,Poland:A Success Story in Central Europe,Peril and Promise of the Shock Therapy,1990,the Balcerowicz Plan,Objectives of this plan:,Freeing prices,devaluing the zloty and making it freely convertible,Moving toward strict monetary and fiscal policies to combat inflation.,Poland:A Success Story in Central Europe,The shocking therapy introduced Poland to the path of rapid economic growth since the early 1990s.,Ten years after launching an ambitious programe of economic transformation,Poland has established itself as one of the most successful transition economies,.,Poland:A Success Story in Central Europe,New Stand-out Performer,The growth of the economy,based on solid macroeconomic fundamentals,alo