By Zhang Wei, Zhang Xin & Liu Peilin, Research Team on “Risk Prevention and Countermeasures in Economic Transitional Period”, DRC

Research Report, No.126, 2017 (Total 5201) 2017-09-28

Abstract: The general law of modern economic development indicates that different development drivers are related to different countries and regions in different development periods. Only by realizing economic transformation can relevant countries really achieve sustainable development. This is a theory governing the transformation of economic development in different periods. We need to be clearly aware of this objective law and consciously follow its rule. This is the key to grasping the historic opportunity, successfully leading the development in the state of new normal, and fulfilling the goal of achieving a better quality, more efficient and upgraded economy and the transformation of economic structure. The lessons drawn from the drastic changes of former Soviet Union and Eastern Europe show that the fundamental reason for their transformation failure lies in rigidly copying the highly concentrated planned institutional mechanism while ignoring the characteristics of economic development and transformation in different periods. As a result, transformation in these countries was led astray. The emerging economies have adopted a catching-up and surpassing development model and their experience shows that by introducing hi-tech mechanism and enhancing the capability of hi-tech re-innovation and independent innovation, we can realize the swift development of hi-tech industry and economic transformation.

Key words: Soviet model, emerging economies，economic transformation