Russia and China: Against the Storm

Abstract

The anti-recessionary policies and popular reactions to them that were followed in Russia and China between 2008 and 2010 differed significantly, even though the responses to the crisis followed a similar pattern in the two. The authorities in China, free of a need to take public opinion into account, responded more swiftly than those in Russia, but the packages of policies differed. As China's export markets dwindled, factories closed and millions of workers lost their jobs, so the government attempted to stimulate domestic demand and invest in infrastructure. In Russia, major investment in the financial sector dominated the response, and the government faced severe social responses, including strikes and demonstrations across the country. The results were comparable, but the crisis revealed different approaches of the two regimes in markedly different socio-economic circumstances.