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.

Changes in China
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.

Privatization
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.