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Communist regimes. Communist party dominance No competition Interest groups Public policy Economy – state-owned enterprises, central planning Lack of efficiency, productivity, innovation Few incentives. Russia – Politics. Political cleavages
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Communist regimes • Communist party dominance • No competition • Interest groups • Public policy • Economy – state-owned enterprises, central planning • Lack of efficiency, productivity, innovation • Few incentives
Russia – Politics • Political cleavages • Markets vs. State, Political elites vs. Oligarchs, Regional leaders vs. central government, Russians vs. Chechens • Economic policy • “Shock therapy” • More recently -- state control over key sectors; markets • Conservative governments (Putin and Medvedev) (United Russia Party) • Market economy, middle class, nationalism, order, stability • Fragmented interest groups • “Competitive authoritarian”
Russia – Policies • Economy • 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 • Premier • Bicameral legislature • Lower house – State Duma • PR • more powerful; weak relative to executive • Upper house – Federation Council • appointed by governors, regional legislatures • Judiciary • No check on executive power; widespread corruption • Bureaucracy • Ineffective; corrupt • Russia’s future?
China – Politics • Chinese Communist Party (CCP) dominant • Cleavages from economic reforms • Social classes = capitalist class, middle class, urban poor • Growing income inequality, class divide = challenge for CCP • Urban vs. rural • CCP’s legitimacy • Socialism economic development • Co-optation and coercion • Elite-based, exclusivist ruling coalition
China – Policies • “Socialism with Chinese characteristics” • Markets; privately owned firms • Small, medium-sized state-owned firms • Competitive • Socialist (state-owned enterprises, farms) • Outcome • Growth reduction in poverty • Unemployment, income inequality, urban growth • Dark side of markets • Insufficient social welfare spending • New policies
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