Chapter 4: The Political Economy of Reform in the Three Giants

In an effort to keep pace with an increasingly dynamic and competitive international environment, the Soviet Union, China, and India have each begun to reform their economic and political institutions. Despite having achieved relatively high rates of savings and investment prior to the reforms, the economies of all three Giants have suffered from declining rates of growth. Furthermore, their emphasis on self-reliant development isolated them from rapid technological change in the global economy. This led to widening gaps between technological frontiers and the Giants’ domestic capabilities.