NCERT Class 11 Economics Comparative Development Experiences Of India And Its Neighbours

COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS

10.1 INTRODUCTION

In the preceding units we studied the developmental experience of India in detail. We also studied the kind of policies India adopted, which had varying impacts in different sectors. Over the last two decades or so, the economic transformation that is taking  place in different countries across the world, partly because of the process of globalisation, has both short as well as long-term implications for each country, including India. Nations have been primarily trying to adopt various means which will strengthen their own domestic economies. To this effect, they are forming regional and global economic groupings such as the SAARC, European Union, ASEAN, G-8, G-20, BRICS etc. In addition, there is also an increasing  eagerness on the parts of variousnations to try and understand the developmental processes pursued by their neighbouring nations as it allows them to better comprehend their own strengths and weaknesses vis-à-vis their neighbours. In the unfolding process of globalisation, this is particularly considered essential by developing countries as they face competition not only from developed nations but also amongst themselves in the relatively limited economic space enjoyed by the developing world. Besides, an understanding of the other economies in our neighbourhood is also requiredas all major common economic activities in the region impinge on overall human development in a shared environment. 

In this chapter we will compare the developmental strategies pursued by India and the largest two of its neighbouring economies—Pakistan and China. It has to be remembered, that despite being endowed with vast natural resources, there is little similarity between the political power setup of India - the largest democracy of the world which is wedded to asecular and deeply liberal Constitution for over half a century, and the militarist political power structure of Pakistan or the command economy of China that has only recently started moving towards a democratic system and more liberal economic restructuring respectively.

10.2 DEVELOPMENTAL PATH—A SNAPSHOT VIEW

Do you know that India, Pakistan and China have many similarities in their developmental strategies? All the three nations have started towards their developmental path at the same time.While India and Pakistan became independent nations in 1947, People’s Republic of China was established Jawaharlal Nehru had said, “these new and revolutionary changes in China and India, even though they differ in content, symbolise the new spirit of Asia and new vitality which is findingexpression in the countries in Asia.” All the three countries had started planning their development strategiesin similar ways. While India announced its first Five Year Plan for 1951-56, Pakistan announced its first  five year plan, called, the Medium Term Plan, in 1956. China announced its First Five Year Plan in 1953. Till 1998,

Pakistan had eight five year plans whereas China’s tenth five year period was 2001-06. The current planning in India is based on Eleventh Five Year Plan (2007-12). India and Pakistan adopted similar strategies such as creating a large public sector and raising public expenditure on social development. Till the 1980s, all the three countries had similar growth rates and per capita incomes. Where do they stand today in comparison to one another? Before we answer this question let us trace the historical path of developmental policies in China and Pakistan. After studying the last three units, we already know what policies India has been adopting since its independence. 

China:  After the establishment of People’s Republic of China under oneparty  rule, all the critical sectors of theeconomy, enterprises and lands ownedand operated by individuals were brought under government control. The Great Leap Forward (GLF) campaign initiated in 1958 aimed atindustrialising the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under the Commune system,  people collectively cultivated lands. In1958, there were 26,000 communes covering almost all the farm population.

GLF campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflicts with China, it withdrew its professionals who had earlier been sent to China to help in the industrialisation process. In 1965, Mao introduced the Great Proletarian Cultural Revolution (1966-76) under which students and professionals were sent to work and learn from the countryside. The present-day fast industrial growth in China can be traced back to the reforms introduced in 1978. China introduced reforms in phases. In the initial phase, reforms were initiated inagriculture, foreign trade andinvestment sectors. In agriculture, for instance, commune lands were divided into small plots which were allocated (for use not ownership) to individual households. They were allowed to keep all income from the land after paying stipulated taxes. In the later phase, reforms were initiated in the industrial sector. Private sector firms, in general, and township and village enterprises, i.e. those enterprises which were owned and operated by local collectives, in particular, were allowed to produc.

EXERCISES

1. Why are regional and economic groupings formed?

2. What are the various means by which countries are trying to strengthen their own domestic economies?

3. What similar developmental strategies have India and Pakistan followed for their respective developmental paths?

4. Explain the Great Leap Forward campaign of China as initiated in 1958.

5. China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.

6. Describe the path of developmental initiatives taken by Pakistan for its economic development.

7. What is the important implication of the ‘one child norm’ in China?

8. Mention the salient demographic indicators of China, Pakistan and India.

9. Compare and contrast India and China’s sectoral contribution towards GDP in 2003. What does it indicate?

10. Mention the various indicators of human development.

11. Define the liberty indicator. Give some examples of liberty indicators.

12. Evaluate the various factors that led to the rapid growth in economic development in China.

13. Group the following features pertaining to the economies of India, China and Pakistan under three heads

• One-child norm

• Low fertility rate

• High degree of urbanisation

• Mixed economy

• Very high fertility rate

• Large population

• High density of population

• Growth due to manufacturing sector

• Growth due to service sector.

14. Give reasons for the slow growth and re-emergence of poverty in Pakistan.

15. Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.

16. Comment on the growth rate trends witnessed in China and India in the last two decades.

17. Fill in the blanks

(a) First Five Year Plan of ________________ commenced in the year 1956. (Pakistan/China)

(b) Maternal mortality rate is high in _____________. (China/ Pakistan)

(c) Proportion of people below poverty line is more in __________. (India/Pakistan)

(d) Reforms in ______________ were introduced in 1978. (China/ Pakistan)

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