Date of Award

2017

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Hicks, Barbara

Area of Concentration

International and Area Studies

Abstract

The deaths of Mao Zedong and Francisco Franco in 1976 and 1975 respectively were the beginnings of major political and economic reform. In China’s case, the death of Mao led to a political transition that allowed for a more liberal and open economic policy to come to fruition. In Spain, Franco had already begun to push mild economic reforms in the early 1970s in response to political pressure. This study examines the methods taken by both transitioning governments to liberalize their economies in order to accelerate growth. The impact this growth has had on poverty and inequality in both countries is assessed. The policies implemented by China have led to stunning economic growth and a major reduction in poverty while also producing a quickly rising rate of inequality, Spain quickly restructured and opened its economy by joining the European Economic Community allowing for economic growth, a reduction in poverty, and assistance in limiting the increase in inequality. In both of these cases liberalization led to strong growth, a reduction in poverty, and increased inequality, but key differences in starting points and economic policies have affected the magnitude of these outcomes. China’s uneven opening, high growth rates, and unequal social policies have led to a quick rise in inequality, while Spain’s growth has been less dramatic and produced less inequality, but the policies only delayed the recent unemployment crisis. While accession to the European Economic Community, then the European Union, facilitated growth and constrained inequality, the unemployment crisis and budget issues are now increasing inequality.

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