> But aside from the mode of transition, the Chinese model
> cannot be imported into Russia, for the same reason that it cannot be
> imported into Iran: as Djavad Salehi-Isfahani says, the Chinese model
> "'doesn't apply because Iran is not a low-wage economy.
Only part of the initial stage of the Chinese boom (1979-1995 or so) can be explained by low-wage manufacturing, outsourcing from Hong Kong and Taiwan and the like. Since 2000, China's economy has been driven by high rates of investment, powerful state-industrial networks, rigorous control of exchange markets and foreign trade, rising real wages, and state control of the financial sector.
-- DRR