Chapter 19: Converging Economic Systems
Chapter 19 describes the worldwide movement from socialist
to capitalist economies. Section 1 describes the characteristics
of pure market capitalism and pure socialism. The section
also explores economic planning under capitalist and socialist
systems, focusing on the benefits of capitalism.
Section 2 describes how the Chinese economic system developed
after World War II, and explains the Chinese five-year plans
implemented in the 1950s. The section also deals with the
creation of special economic zones in China and explains why
those zones thrive. China's future economy, the chapter notes,
is toward more free enterprise.
Section 3 focuses on the privatization of Russian and eastern
European economies. The section also explores economic change
in Sweden and Latin America and explains the effect of incentive
structures on economies worldwide.