Question

Compare and contrast the shock therapy of the ussr with the open door policy of the china

Answer 1

1. Answer:  Explanation: Open door policy: generate higher productivty by investments of capital and technology from abroad. Shock therapy: The model of transition in russia,Cental Asia and East Europe that was infuenced by the World Bank and IMF came to be known as shock therapy.   * Deng Xiaoping adopted the open door policy.  The Chinese did not go for shock therapy but  opened their economy step by step. 1. 1982= China started privatisation in agriculture sector. 2. 1998= China started privatisation in industrial  sector.  3. Trade Barriers were removed from SEZ(special economic zone) where foreign investors could set up their enterprises. 4. In China, the state played and continues to play a central role in setting up a market economy. USSR a. Shock therapy Gorbachev ahead of his time with Perestroika and Demokratizatsiya and Glasnost. b. sudden shift to Liberal Capitalism collapse of Economy. Rise of Mafia-Garage sale of industries.