Development Experience Of India a Comparison with Neighbours
Development
Experience Of India a Comparison with Neighbours
(Chapter-10)
Development Path of India,
Pakistan and China.
(i) All the three
countries started their development path at the same time. India and Pakistan
got independence in 1947 and People ’s Republic of China was established in
1949.
(ii) All the three countries had started planning their development strategies in
similar ways. India announced its First Five Year Plan in 1951, Pakistan
announced in 1956 and China in 1953.
(iii) India and Pakistan adopted similar strategies, such as creating a large
public sector and raising public expenditure on social development.
(iv) Both India and Pakistan had adopted ‘mixed economy’ model but China had
adopted ‘Command Economy’ model of economic growth.
(v) Till 1980s, all the three countries had
similar growth rates and per capita incomes.
(vi) Economic Reforms were implemented in China in 1978, in Pakistan in 1988
and in India in 1991.
Development Strategy:
A. China
(i) After the
establishment of People’s Republic of china under one party rule, all the critical
sectors of the economy, enterprises and lands owned and operated by individuals,
were brought under government control.
(ii) A Programme named ‘The Great leap Forward (GLF) campaign was initiated in
1958, which aimed at industrialising the country on a massive scale. Under
this programme, people were encouraged to set up industries in their backyards.
(iii) 1965, Mao Tse Tung introduced the ‘Great Proletarian Cultural Revolution
(1966-1976)’, under which students and professionals were sent to work and
learn from the countryside (rural areas).
(iv) In rural areas, commune system was started, under which people
collectively cultivated lands.
(v) Reforms were introduced in China in phases.
(vi) In the initial phase, reforms were initiated in agriculture, foreign trade
and investment sectors. In the later phase, reforms were initiated in the
industrial sector.
(vii) The reforms process also involved dual pricing. This means fixing the
prices in two ways; farmers and industrial units were required to buy and sell
fixed quantities of raw materials and products on the basis of prices fixed by
the government and rest were purchases and sold at market prices.
(viii) In order to attract foreign investors, special Economics Zones (SEZ)
were set up. SEZ is a geographical region that has economic laws different
from a country’s typical economic laws. Usually the goal is to increase foreign
investment.
B. Pakistan
(i) Pakistan followed
the mixed economy model with co-existence of public and private sectors.
(ii) Pakistan Introduced tariff protection for manufacturing of consumer goods,
together with direct import controls on competing imports.
(iii) The introduction of Green Revolution and increase in public investment in
infrastructure in select areas, led to a rise in the production of food grains.
(iv) In 1970s, Capital goods industries were nationalized.
(v) In 1988, structural reforms were implemented. Major thrust areas were
denationalisation and encouragement to private sector.
(vi) Pakistan also received financial support from western nations and
remittances from emigrants to the Middle countries. This helped the country in
stimulating economic growth.
C. India
After Independence,
India has adopted mixed economy as economic developmental strategy. Both public
and private sector co-exist side by side. In order to achieve rapid economic
growth, planned development economy was introduced.
Economic Development Strategy
after Independence:
(i) Both public and
private sectors were allotted to carry business activities. Public sector was
allotted activities like coal, mining, steel, power, roads etc. Private sector
was allotted to establish industries subject to control and regulations in the
form of law.
(ii) Public sector was given major push by the Government. Maximum revenues in
this sector was invested which increased from Rs. 81.1 crore in First Five-Year
Plan (1951-56) to Rs 34,206 crores in Ninth Five-Year Plan (1992-97)
(iii) Public sector was given importance in order to eliminate poverty,
unemployment etc.
(iv) Public sector contributed to the industrialisation of the economy. It also
helped Indian economy to achieve a considerable degree of self-sufficiency.
Comparative Study – India,
Pakistan and China:
1. Demographic Indicators:
a. The population of
Pakistan is very small and accounts for roughly about one-tenth of China and
India.
b. Though China is the largest nation geographically among the three, its
density is the lowest.
c. Population growth is highest in Pakistan followed by India and China. One
child norm which was introduced in China in the late 1970s is the
major reason for low population growth. But this measure led to a decline in
the sex ratio, that is the proportion of females per 1000 males.
d. The sex ratio is low and biased against females in all the three countries.
There is strong son-preference prevailing in all these countries.
e. The Fertility rate is low in China and very high in Pakistan.
f. Urbanisation is high in both China and Pakistan- with India having 28
percent of its people living in Urban areas.
2. Gross Domestic Product (GDP)
and Sectors :
a. China has the second
largest GDP (PPP) of 4.2 trillion
(approx) and $0.47 trillion (approx) respectively.
b. On this path of Development china’s average growth rate is about 9.5% while
India’s and Pakistan’s average growth rate is about 5.8% and 4.1% respectively.
c. In China, in the year 2011. with 37 percent of its workforce engaged in
agriculture, its contribution to GDP is 9 percent (approx). While in India and
Pakistan the contribution of agricultural sector in GDP is about 19% and 21%
respectively. In India about 56% are engaged in agricultural sector, while in
Pakistan this figure is about 45%.
d. In china, manufacturing contributes the highest to GDP at 47 percent
whereas in India and Pakistan, it is the service sector which contributes the
highest (more than 50 percent of GDP)
e. Though china has followed the classical development pattern of gradual shift
from agriculture to manufacturing and then to services, India and Pakistan’s
shift has been directly from agriculture to service sector.
f. In the 1980s, India, China and Pakistan employed 17, 12 and 27 percent of
its workforce in the service sector respectively. In 2011, It reached the level
of 25, 33 and 35 percent respectively (approx.).
g. China’s growth is mainly contributed by the manufacturing sector where as in
both India and Pakistan, the service sector is emerging as a major player of
development.
3. Human Development
Indicators:
a. In most areas of
human development, China has performed better than India and Pakistan. This is
true for many indicators-per Capita GDP or proportion of population below
poverty line, health indicators such as mortality rates, access to sanitation,
literacy, life expectancy or malnourishment etc.
b. Pakistan is ahead of India in reducing proportion of people below the
poverty line and also its performance in transferring labour force from
agricultural sector to industrial sector and access to water is better than
India.
c. Contrary to it, India is ahead of Pakistan is education sector and providing
health services.
d. India and Pakistan are ahead of China in providing improved water sources.
Success
and Failure of Strategies
The development strategies brought structural reforms in China, India and
Pakistan. Follow the description of their success and failure one by one.
Success of Structural Reforms in China
The success of structural reforms in China are
·
There was existence of
infrastructure in the areas of education and health and land reforms.
·
There was decentralised planning and
existence of small enterprise.
·
Through the commune system, there
was more equitable distribution of foodgrains.
·
There was extension of basic health
services in rural areas.
Failures of Structural Reforms in
China
The failures of structural reforms in China are
·
There was slow pace of growth and
lack of modernisation in the Chinese economy under the Maoist rule.
·
Maoist vision of economic
development based on decentralisation, self sufficiency and shunning of foreign
technology had failed.
·
Despite of extensive land reforms,
collectivisation, the great leap forward and other initiatives, the per capita
gain output in 1978 was the same as it was in the mid-1950s.
China has an Edge Over India
The Chinese reform process began more comprehensively during the 80s, when
India was in the mid-stream of slow growth process.
Rural poverty in China declined by
85% during the period 1978 to 1989. In India, it declined only by 50% during
this period, Global exposure of the economy has been far more wider in China
than in India. China’s export-driven manufacturing has recorded on exponential
growth, while India continues to be only a marginal player in the international
markets.
Common Success of Structural Reforms
in India and Pakistan
The common success of structural reforms in India and Pakistan are
·
Both India and Pakistan have
succeeded in more than doubling their per capita incomes inspite of high growth
rate of population.
·
The incidence of poverty has also
been reduced significantly. However, the level of poverty is lower in Pakistan.
·
Both the countries have achieved
self-sufficiency in the production of food.
·
Both the countries have succeeded in
developing their service and industry sectors at a fast rate.
·
The use of modern technology is
improving in both the countries.
Common Failures of Structural
Reforms in India and Pakistan
The common failures of structural reforms in India and Pakistan are
·
Growth rate of GDP and its sectoral
constituents have fallen in 1990’s.
·
Poverty and unemployment are still
areas of major concerns in both the countries.
Areas Where Pakistan has an Edge
Over India
Starting from almost the same level as India, Pakistan has achieved better
results with regards to
·
Migration of workforce from
agriculture to industry,
·
Migration of people from rural to
urban areas.
·
Access to improved water sources.
·
Reduction in below poverty line
population.
Areas where India has an Edge Over
Pakistan
There is little doubt that, in the area of skilled manpower and research and
development institutions. India is better placed than Pakistan. Indian
scientists excel in the areas of defence technology, space research,
electronics and avionics, genetics, telecommunications, etc. The number of
Ph.Ds produced by India in science and engineering every year (about 5000) is
higher than the entire stock of Ph.Ds in Pakistan. Issues of health facilities
in general and infant mortality in particular are better addressed in India.
A. India-India performed
moderately as is clear from
a. A majority of its
people still depend on agriculture.
b. Infrastructure is lacking in many parts of the country.
c. It is yet to raise the level of living of more than 22% of its population
that lives below the poverty line.
B. Pakistan-Pakistan has
performed poorly. The reasons for the slowdown of growth and re-emergence of
poverty in Pakistan’s economy are:
C. China-China has performed
comparatively the best as is clear from:
Comments
Post a Comment