Comparative Study of Indian and Chinese Economies
India and Pakistan became two independent countries of South Asia in 1947 whereas People’s Republic of China was formed in 1949. All the three countries initiated the five year plan pattern almost at the same time.
The economic system that prevailed in China was the communist system. The Government undertook large scale investment in physical and human capital for industrialisation. The Great Leap Forward (GLF) movement was initiated in China in 1958 to industrialise the country on massive scale and within a short period. For this people were encouraged to establish industries in their backyards. The three movements that contributed to the development of China are:
The Great Leap Forward (GLF)
The Great Proletarian Cultural Revolution
The reforms of 1978
The recent growth in China can be traced back to the reforms introduced in 1978. There are two key factors in Chinese economic growth. The first factor is high investment rate and the second factor is increase in productivity.
India and China have been experiencing high growth rate since 1981, but there are crucial differences in the growth patterns of these countries. China is ahead of India and Pakistan in most of the human development indicators, like proportion of people living below poverty line, literacy rate, mortality rate, etc.
The per capita income of the India and Pakistan countries has doubled. Food production has surpassed the pace of rise in population of the two countries. Nutritional level has improved along with food self-sufficiency. The common failure of India and Pakistan is that the high protection to domestic industries did not allow them to take the advantage of global integration.
China has an edge over India in terms of: Rural poverty. In China, rural poverty declined by higher proportion than India. China had brought a radical change in agriculture, whereas, Indian agricultural reforms are still in their stage of inception. China is invading the global markets in manufactured goods much better than that invasion from India and Pakistan.
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Foreign trade in China has accelerated after joining _____.Marks:1
After joining WTO, Chinas growth of foreign trade has accelerated. The growth rate of foreign trade between 1980s and 1990s was 15 %. It has emerged as a global economy.
During the period 1979-2011 Chinese economy increased at an annual rate of _________.Marks:1
During the period 1979-2011 Chinese GDP increased at an average annual rate of 9.8%. But now in recent years their GDP has grown at a rate of 13% was the highest growth rate in the world.
China’s population has dropped down tremendously due to the ________.Marks:1
one child norm
China has adopted one child norm, which has dropped its population growth tremendously.
According to Human Development Report, HDI of India in 2014 is _________.Marks:1
HDI for India was 0.609 with ranking 130 in world in 2014.
For widespread industrialisation, the Chinese government launched a campaign known as ________.Marks:1
Great Leap forward
Prior to 1978 reforms, the Chinese government focused on the development of heavy industries. For widespread industrialisation, the Great Leap forward campaign was launched.