History Question 3 and 4 Answers (Essay Sample)

Question 3 and 4 Student First and Last Name Institution Name Due Date Section A 3) Compare the transition from planned to market economies in China and (Central) Eastern Europe: Explain at least three significant differences and one commonality in the transition process (the commonality should not be a general feature of capitalism such as, e.g., the introduction of markets and the existence of private property). How did the different approaches affect the growth performance of the respective countries? Significant economic and political shifts occurred due to the transformation from a planned market-based economy in China and Central and Eastern Europe in the late 20th and early 21st century. The transition process in these two locations had certain similarities but also had some key distinctions. The amount to which outside forces influenced the change was a critical distinction. The fall of the Soviet Union and the influence of Western Europe and the United States were significant catalysts for change in Central and Eastern Europe. In contrast, China's transformation was led from the inside, with the government pushing market-oriented reforms to promote the country's economy. The state's function throughout this transition was also distinctive. Less emphasis was placed on governmental involvement in the economy and more on privatization and deregulation in Central and Eastern European countries. The Chinese government has maintained tight control over vital economic sectors, including energy, banking, and infrastructure, suggesting that it will continue to play a more significant role in the economy. The velocity of the change was the third distinction. As a result of the fall of the Soviet Union, most nations in Central and Eastern Europe adopted market-oriented reforms quickly (Chang, 2019, pg. 78). In China, the government introduced market reforms more slowly over an extended period, making for a smoother transition. Once the Soviet Union was gone, eastern Europe could pursue its own internal and foreign policies, including economic reform, without interference from Moscow. Eastern European nations made the domestic political transition from a one-party to a multi-party system, which paved the way for a successful economic transformation. The fall of the Soviet Union was unlike the succession changes in China or the political shifts in democracies. Politically and economically, it was a complete 180 from the status quo. When the Soviet model finally collapsed, it was in economic structure and development policy (Chang, 2019, pg. 78). There is no one-size-fits-all formula for economic change; instead, nations must start from their own experiences, work to coordinate their efforts with those of other countries and use scientific methods to achieve their goals. Market processes and the presence of private property were introduced during the transition period in both areas. Market mechanisms, such as pricing and competition, were used in China and Central and Eastern Europe to facilitate the allocation of resources and the expansion of their economies. Private property rights, which let people own and sell their own things, were also put in place in both places (Fantacci, 2013, pg. 8). Since economic change takes time, China had already spent the first 30 years, from 1949 to 1979, making corrections based on its experiences. Their respective transition strategies significantly impacted China's and CEE's growth performances. Even though most countries in Central and Eastern Europe have had strong economic growth since the change, the area did go through a time when the money was unstable and the standard of living went down. On the other hand, China's transition has been slower and more controlled, which has led to high levels of economic growth that have stayed steady despite big problems like income inequality and environmental damage. If socialism is seen as a market economy in which production for use rather than production for profit is the driving force behind economic activity, or if it is seen as a system in which the working class is the dominant class and tries to control the extra money made by the economy, then China does not need a version of socialism (Altvater, 2007, pg. 47). Neither broad self-management nor workplace democratization can be said to characterize the Chinese economy. Hence it cannot be considered socialist. 4) How did inequality change over the 20th century? Explain why it changed, how inequality contributed to the Great Recession, or if you disagree with the argumentation presented in the lecture, why it did not. Inequality changed dramatically over the twentieth century. Around the turn of the century, many wealthy individuals and businesses had disproportionately more money and power than the rest of the population in many countries. However, some countries observed a decline in inequality from the mid-twentieth century. Increases in educational possibilities and the number of the middle class are sometimes attributed to assisting in reducing inequality (Eichengreen, 2008, pg. 205). In many countries, the gap between rich and poor has shrunk because of better education and more middle-class jobs. The development and expansion of social welfare programs like unemployment insurance, employee provident funds, and health care programs also had a role. These programs reduced poverty and created a safety net for the jobless and low-income. The growth of labor unions and the use of collective bargaining agreements also had an impact. The activities of trade unions, which aided the accomplishment of higher pay and better working conditions for its members, helped to reduce income disparities. As underlined in the research, technological progress, internationalization, global price cycles, indigenous monetary reforms such as wealth redistributing economic plans, and labor and industry growth policies are some of the key variables driving the expansion in income distribution within nations (Eichengreen, 2008, pg. 208). Income and wealth gaps, on the other hand, have widened during the Great Recession. Because many middle- and working-class people invested the majority of their assets in real estate, many households saw their wealth erode during the mortgage crisis. During this time, the median wage stagnated until 2015. Despite record-...