Were Chinese style reforms a potential alternative for Russia? A reflection on state capitalism, democratic socialism, and transition

Much of the literature concerning the legacy of transition presents China as representing a superior, alternative path to the policy choices made in Russia. This paper investigates that claim by providing an assessment of what type of transition occurred in China, whether it should be deemed a success, and whether it served as a potential option for Russia. We contrast state capitalism with democratic socialism and find support for the Hayek-Friedman hypothesis. We also find that state capitalism is neither a novel nor desirable alternative to democratic capitalism, and even if it were, it was not a feasible option for Russia in the early 1990s.