Compare and contrast the shock therapy …

Shock therapy in USSR was a painful and sudden transition from communism to capitalism. 1. Big industries and factories were sold at throwaway prices called the Largest Garage Sale in history. 2. High inflation rate 3. Free trade and FDI were the engines of change. Whereas, the chinese economic reforms were gradual while opened its ecomomy to the rest of the world. 1. End of isolation in 1972 2. Modernization of agriculture, industry, military, and technology in 1973 3. Open door policy in 1978 (Deng Xiapong) 4. Privatization of- -agriculture in 1982 -industry un 1998 5. SEZs

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.