China and Russia have both experienced unprecedented corruption during their transitions to the market, but there is an important difference between them. While Russia's economy has faltered amid rampant corruption, China has one of the better reformed economies, despite a level of corruption that once gave rise to the Tiananmen protests. Corruption has a somewhat less destructive impact on
... [Show full abstract] growth in China than in Russia. This divergence is linked to larger differences in the type of transition and the nature of the state in the two countries.