Tricky pronouns

tricky pronouns

I’m reading ‘Rational Optimist’ written by Matt Ridley. The passage below is from chapter three of the book. In this paragraph I’m not sure about whether I understand the last sentence 100 %.

Let me paraphrase it so you can see if there is any fault.

In between the nineteenth century and the late twentieth century, when capitalism gave way to various forms of state-directed totalitarianism and their (=various forms of state-directed totalitarianism) pale imitators, such virtues (=faith and courage) were noticeable by their (=faith and courage) retreat – while faith and courage revived.

Thank you in advance.

http://www.epubbud.com/read.php?g=H8AVF5J5&p=8

Unimaginable cruelty was commonplace in the precommercial world: execution was a spectator sport, mutilation a routine punishment, human sacrifice a futile tragedy and animal torture a popular entertainment. The nineteenth century, when industrial capitalism drew so many people into dependence on the market, was a time when slavery, child labour and pastimes like fox tossing and *** fighting became unacceptable. The late twentieth century, when life became still more commercialised, was a time when racism, sexism and child molesting became unacceptable. In between, when capitalism gave way to various forms of state-directed totalitarianism and their pale imitators, such virtues were noticeable by their retreat – while faith and courage revived.