The USSR entered the 1980s with an aged leadership.1 The new generation of leaders which came to power in the mid-1980s had grown up entirely during the Soviet period and had not experienced the turbulence of the first phase of Soviet industrialisation. The bulk of their working life had been conducted in the relative stability of post-war recovery, post-Stalinist growth and, finally, post-Krushchev stagnation. They had not experienced an economy and society in disintegration. They could only imagine that the Soviet Union’s reforms might lead to more or less rapid progress. It was beyond their comprehension that their policy initiatives might be responsible, in only a few years, for the disintegration, humiliation and impoverishment of their country. This contrasts strikingly with the high degree of risk aversion on the part of the Chinese leadership after the death of Mao Zedong.
KeywordsForeign Direct Investment Monetary Policy Capital Stock Financial Time Economic Reform
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