India and China: Retrospective Views on Development

India and China have had contrasting economic growth rates, with China experiencing rapid progress while India has struggled. In 1988, both countries had similar living standards. However, China's supporters highlight poverty reduction, urbanization, and infrastructure developments, while India's supporters emphasize the democratic nature of its development. This book examines how China's economic reforms began in 1978 with Deng Xiaoping's fang-shou efforts and accelerated in a sustained manner, with the Family Responsibility System, opening up of the industrial sector, and efforts to make state-owned enterprises more efficient.

Format: Hardback
Length: 268 pages
Publication date: 15 January 2023
Publisher: Lexington Books

A comparison of India's slow economic growth with China's rapid progress has been a regular feature in almost every publication. However, it is important to note that in 1988, both countries had similar living standards. As of today, it is undoubtedly a tale of two countries and two systems. Supporters of India can point to the democratic nature of the country's development while ignoring the slow pace of change. On the other hand, China's supporters highlight exceptional poverty reduction, urbanization, and infrastructure developments while ignoring the social, religious, and environmental costs these efforts have created.

However, popular media has ignored the fact that the individual starting points of the two nations, a gap which this book fills. This study examines how China's economic reforms were initiated with Deng Xiaoping's fang-shou (letting go and tightening up) efforts between 1978 and 1989. It is important to note that until 1989, China had nothing much to demonstrate compared to India. Both countries had similar per head national income, but India was technologically much superior to China. The reforms in China then accelerated in a sustained manner, be it the Family Responsibility System that transformed agriculture, the opening up of the industrial sector for the growth of local enterprises and foreign investments, or the substantial effort to make state-owned enterprises more efficient.

The reforms in China have had a significant impact on the country's economy. China has become the world's second-largest economy, with a GDP of over $14 trillion. The country has also seen a significant reduction in poverty, with over 800 million people lifted out of poverty in the last 30 years. China has also made significant progress in urbanization, with over 60% of its population living in cities. The country has also invested heavily in infrastructure, with a vast network of highways, railways, and airports.

However, the reforms have also created some challenges for China. The country has faced increasing environmental pollution, with air and water quality deteriorating in many cities. The country has also faced social unrest, with protests and strikes becoming more common in recent years. The country has also faced tensions with its neighbors, particularly with India and the United States.

In conclusion, the comparison of India's slow economic growth with China's rapid progress is a complex issue that requires a nuanced understanding. While China's economic reforms have had a significant impact on the country's economy, they have also created some challenges for the country. India's democratic nature of development and slow pace of change may have its advantages, but it is important to recognize the country's potential for growth and development.

Dimension: 229 x 152 (mm)
ISBN-13: 9781666921922