In every country in the world economical and political reforms have been undertaken and some have been very successful as some are yet struggling. Economy and politics are so interrelated that if one fails it affect the other one. This implies that, when good and genuine politics are of center stage, economical reforms are realized in a timely manner and in return the living standards of people are improved which is itself an index of measuring the economical growth of a country. This paper analyzes economical reform of three countries which have been sampled from three continents i.e. South America, Europe and Asia. These countries are Russia, Mexico and China which have put in place economical and political reforms and to an extent have created tensions but have achieved results of different levels.
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Economic and political reforms
China is a country in the world with an enormous population and in a few years time its economy has grown drastically and currently it is sending ripples in the whole world. The economy of China for many years was centralized as many companies were owned and controlled by the state. The reforms of China’s economy started in the 1970s. This is the time China opened its trade to the outside world. The backbone of China’s economy was initiated by agriculture which was the first step to feed its population and it was very successful. Thereafter other sectors of the economy started to pick up and the government put up pricing systems as they started privatizing many sectors.
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The timing of its reforms was accurate and today China is an economy giant as there is remarkable increase of manufacturing, processing and technological industries.
The Mexican economy for many decades has been in dilemma but fortunately in the 1980s the goodwill of the government played a major role by trying to bring down the inflation rate. (Ramsay and Draper 2007) note that, “in the mid 1980s the consumer price inflation went over 150 percent and the Mexican government of the time reduced inflation to below 50 percent”. The timing of the recovery of Mexican government was late compared to the Chinese but it has achieved commendable results although china is too far. However, the tension this recovery has created has been huge, like control on pricing has put a lot of pressure on profit margins, wages have been affected hence destabilizing the labor section of Mexico and cutbacks have been effected which have affected the country’s infrastructure. But there is hope now because the government has started being flexible in pricing. Other exports apart from petroleum have been very successful increasing the country’s revenue and improving its economy.
Russia’s economy and political reform has been in doldrums for many years. Russia has been experiencing the worst economical crisis before and after the cold war for the reason that it has been disintegrating. Many of the economical structures that have been in use in Russia have been borrowed from the Soviet Union. The first step has been to improve, adjust and or tremendously change these structures to allow economy growth. The transformation itself has been and is very expensive where corruption has been very rampant. This implies that Russia has not yet reached a point of realizing its economic reforms even though its political reforms are improving. Market conditions are not at all favorable at the moment.
These three countries have had their economic reforms in different times but Russia has not yet moved towards reforms. China currently is an economic giant and soon Mexico will be a force to reckon with in the near future. Political goodwill has been the force behind the growth because bureaucracy of any government matters a lot in any economic growth.