M A O , M A R X & T H E M A R K E T Capitalist Adventures in Russia and China Dean LeBaron with Donna Carpenter JOHN WILEY & SONS, INC. CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pagevi CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pagei M A O , M A R X & THE M A R K E T CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pageii ALSO BY DEAN LEBARON Dean LeBaron’s Treasury of Investment Wisdom: 30 Great Investing Minds Dean LeBaron’s Book of Investment Quotations Ins and Outs of Institutional Investing CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pageiii M A O , M A R X & T H E M A R K E T Capitalist Adventures in Russia and China Dean LeBaron with Donna Carpenter JOHN WILEY & SONS, INC. CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pageiv ∞ This book is printed on acid-free paper. Copyright © 2002 by Dean LeBaron. All rights reserved. Published by John Wiley & Sons, Inc., New York. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, E-Mail: [email protected]. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data: LeBaron, Dean. Mao, Marx & the market : capitalist adventures in Russia and China / Dean LeBaron, with Donna Carpenter p. cm. Includes index. ISBN 0-471-15315-X (alk. paper) 1. Russia (Federation)—1991– 2. China—Economic conditions—1976–2000. 3. China—Economic conditions—2000– 4. Capitalism—Russia (Federation) 5. Capitalism—China. I. Carpenter, Donna Sammons. II. Title. HC340.12 .LA 2001 330.947—dc21 2001045557 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pagev To my mother Irene, my daughter Stacy, and my granddaughters Rachel, Glennie, Hannah, and Leah ... modern women —D. L. CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pagevi CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pagevii It is more pleasant and more useful to live through the experience of a revolution than to write about it. —Vladimir Lenin There is a serious tendency towards capitalism among the well-to-do peasants. —Mao Zedong CCC-LeBaronFM(i-xxii) 11/9/01 12:17PM Pageviii