The concept of political economy is helpful in understanding the relationship between the policies adopted by a state and the economic trends of a country. Historical facts are in support that policies championed by states have far greater impacts on the market trends that affect generations of people. This will be found to be the case in the analysis of reforms by India, and Russia. India has undergone what I would call a tumultuous economic life. It suffered under the British colonial rule, which exploited its resources and conducted developments in areas that would further its goal of exploiting India followed by experimental leadership, which adopted communism at some point and later a liberal government. In contrast, China has had a sad history with socialism, which is merely communistic ideology. The country still gropes in the darkness created by socialistic ideologies even in its liberal form, market socialism. While Russia is a major economic and political player in the global stage, she is yet to be freed from communistic ideologies and this has cost her opportunity to grow beyond the current limits. These development records are a result of policies adopted by the state which indicates that the market and the state policies cannot be separated and that the later impact the former extremely.
Political Structure and Reforms in India
India has gone through tremendous reforms both in its political and economic structures. As Britain’s colony, India was highly exploited for its natural resources while industrial development was curtailed by the British policy which favored exportation of raw materials from India to British ( Balaam & Dillman, 2015 ). After independence, the country made reforms in its economic policies which saw the country’s economic growth surpass its state during the colonization period ( Balaam & Dillman, 2015 ). India’s new ruling party adopted a policy that discouraged external involvement or interference, borrowed economic ideologies from Russia while promoting democracy and the right to own property ( Balaam & Dillman, 2015 ). The government exercised great control of the industrial sector imposing restraints in form of licenses, regulations, and bureaucratic policies over important industrial sectors particularly the mineral, energy, and finance sectors ( Balaam & Dillman, 2015 ). The complete adoption of such principles was a manifestation of the socialist policy the government championed it then.
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However, these strategies proved less productive and the government amalgamated its ideologies to form a mixed economic strategy. The country opened its borders allowed other countries to invest in its borders as it began exporting and importing technology, goods and services and more importantly the green revolution that boosted the economy of India ( Balaam & Dillman, 2015 ). Eventually, India transformed to liberalization. The concept opened the floodgates to economic freedom in industries, local and international investors with reduced government restrictions ( Balaam & Dillman, 2015). On its path to economic liberation, India underwent through periods of mixed failure and success. However, the change of policy from a total avowed socialism to the mixed economy had a great transformation in the nature of India's economy.
Political Structure and Reforms in China
China has undergone massive transformations from a hardcore communistic state progressively to a more liberal state. However, in spite of these strides to be celebrated, it has not fully severed its grip on political and social freedom of its citizens a factor that has resulted to riotous protests and opposition to the government ( Balaam & Dillman, 2015) . China’s transformation cannot be considered to be a full transformation since it has only changed its form of socialism from classic socialism to liberal socialism ( Balaam & Dillman, 2015). Just like India, the communistic ideologies adopted in China led to a great failure in the market, industrial and agricultural system leading to the overthrow of the communistic government. The new government embarked on serious economic reforms. This blended political ideologies with liberal views such as the right to own property and free markets.
The combination of these principal elements resulted in the formation of market socialism the masterpiece that transformed the economy of China into a world giant capable of competing with superpowers ( Balaam & Dillman, 2015). China still remains a socialist country given the government's long-held grip on power and brutal response to any measures, protest in any way, shape or form with great brutality and excess police force. The government’s long strong grip has led to several economic downfalls such as misguided overinvestment on external consumption while its citizens are incapable of consuming much of its produces, industrial pollutions, and closure of industries and loss of jobs ( Balaam & Dillman, 2015). China has a great potential to become the greatest economic country. However, the communistic ideologies that limit to some extent free ownership of property and freedom of expression hold it back. Its trial with market socialism has given a positive indication of its potential but this would be surpassed if it had adopted more liberal views.
Comparing China and India's Reform Experiences to Russia
Russia remains the leading nation in exemplifying communistic ideologies. Her principles later inspired leaders around the world particularly eastern Europe as seen in the cases of China and India who practiced communism. Russia still remains impregnable to democracy as witnessed in the election of Vladimir Putin in 2000 which symbolically marked the end of attempts to shift to democracy ( Balaam & Dillman, 2015). Communist Russia has been plagued by a lack of effective economic reforms, a docile parliament that is weak to pass reforms and an oppressive presidency which has done more to control the media and suppress protests than offer freedom ( Balaam & Dillman, 2015). Russia has directed much of her energy towards oil and mineral exploitation as the backbone of its economy rather than develop a free market economy. This move is diabolic because the prices of oil, gas and other minerals are not always constant and are very volatile as compared to other forms of trade ( Balaam & Dillman, 2015). Overall, the economy of Russia, the living standards, and the life expectancy have suffered great blow leading to the death crisis and other crippled developments.
Although a major economic and political player in the world stage, Russia has remained behind in reforms as compared to China and India and former Soviet Union states. This has been caused by the policies adopted by the government, which has enriched oligarchs at the expense of its citizens ( Balaam & Dillman, 2015). The European Union (EU) has played a great role in emancipating former Soviet Union states by encouraging liberal policies and free-market strategies. This has been augmented by the fact that these countries had a well-established system and development records before being plagued by the communistic system ( Balaam & Dillman, 2015). It has been noted earlier on that China and India have made major progress in reforms by adopting market socialism and liberalism respectively while Russian's experiment with democracy was long ditched making India and China more progressive than their mentor, Russia.
Political Ideologies and Economy
Having reviewed the reform process in China, India and compared these countries with Russia the mastermind of communism and its former Soviet Union states, it is worth noting that it is impossible to separate the market policies and the state policies. These three cases have proved that the state controls the market sector in profound ways. The reviewed countries had a historical record of poor developments because of policies adopted by their colonizers or the state itself. However, tremendous developments were achieved as soon as a new government with new policies entered the stage shunning hardcore communistic policies and adopting liberalism in terms of free markets and right to property ownership. However, Russia has been shackled by its policies and is incapable of realizing its full economic potential considering that the government is still determined to exercise totalitarian rule on its citizens. Therefore, the state influences the market practices and the economy cannot change without the government’s intervention.
Conclusion
The development track in India, China and Russia cannot be discussed in the absence of political and social reforms in those countries. The policies embraced by the governments in these countries have shaped the economic activity in their markets by either encouraging public and private participation or inhibiting these while enforcing government infringement in public freedoms and right to own property. The paths of political reforms adopted by India and China have transformed the market of the two countries while Russia still wallows in regressive policies. The economy of Russia is supposed to be far greater than that of China but this is not the case as we see China taking strategic position and relation with the world market. The principles of political economy are in play in all these countries and transformation of the markets of this countries was not possible until the politics of the day was changed.
References
Balaam, D. N., & Dillman, B. (2015). ‘ Chapter 13: Moving into Position: The Rising Powers The Vortex of Rapid Growth .” In ‘ Introduction to international political economy .’ Routledge.
