Drawing on experiences from China and Russia (the world's two largest
transitional economies), this paper empirically examines the impact of
economic reforms on health status. While China's overall health statu
s continued to improve after the economic reform, Russia experienced a
serious deterioration in its population health. The observed differen
ces in health performance between China and Russia can be explained by
the different impacts of economic reforms on three major socioeconomi
c determinants of health. Depending on whether or not the reform impro
ves physical environment (as reflected in income level and nutritional
status), social environment (including social stability and security
system), and health care, we would observe either a positive or a nega
tive net effect on health. Despite remarkable differences in overall h
ealth development, China and Russia share some common problems. Mental
and social health problems such as suicides and alcohol poisoning hav
e been on the rise in both countries. These problems were much more se
rious in Russia, where political and social instability was more prono
unced, associated with Russia's relatively radical reform process. Wit
h their economies moving toward a free market system, health sectors i
n China and Russia are undergoing marketization, which has had serious
detrimental effect on the public health services. (C) 1998 Published
by Elsevier Science Ireland Ltd. All rights reserved.