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    PRESENTED BY:

    Group 2, FMG 19C

    Anshuman NarangAnushree Vij

    Arun V Sreenivasan

    Ashish Arora

    Bharat Gupta

    Chitwan Garg

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    Agenda

    Political Comparison

    Economic Comparison

    Social & Cultural Comparison Technological Comparison

    Comparison of Service & Manufacturing

    Sectors Conclusion

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    Comparison of the PoliticalComparison of the Political

    StructureStructure

    Govt. Type and Capital

    China : Communist state , BeijingIndia : Federal republic , New

    Delhi

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    Political StructurePolitical Structure

    Brief History:

    China: by and large a stable, centrally run

    state through its history with limited periodsof instability and lack of a single authority.

    India: exactly the reverse, ranging from

    periods when kings ruled to British rule to

    fights among political parties.

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    Political Structure ChinaPolitical Structure China

    China:

    Since Mao Ze-dongs victory China has been a

    communist state ruled by CCP.

    Other parties exist, authorized by CCP, operate

    under its leadership, effectively powerless.

    Political Structure of PRC comprised of:

    CCP headed by Party Politburo and its StandingCommittee;

    State Govt.

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    Political Structure ChinaPolitical Structure China

    Chinas View of Democracy and Political Reform someexamples: Govt. began experimenting with limited village elections in the

    1980s and allowed local elections.

    Democratic reforms in factory management, in 1950s allowedgovt. allowed factories to elect top management to fosterworkers support for new govt., identify better managers andimprove quality of factory operations.

    Regular rotation of provincial and military leaders.

    Equal representation and voting status for each province on

    the CCP Central Committee. Limitation of political reforms

    Not led to the establishment of opposition parties.

    Not led to political processes open for political debate.

    Not regularized successor selection.

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    Political Structure IndiaPolitical Structure India

    Only country never ruled by any single authority,not even British or even the present govt.

    Most populous democracy in the world.

    Since independence identified 6 major nationalparties and 40 regional parties.

    From 1950-90 barring 2 brief periods INCenjoyed parliamentary majority.

    Major domination by INC and BJP, but regionalparty influence led to multi-party coalitionformation.

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    Political parties andPolitical parties and leadersleaders

    China:

    Chinese Communist Party or CCP [HU

    Jintao]; eight registered small partiescontrolled by CCP

    India

    17 major parties including AIDMK, AITC,BSP, BJP, CPI, CPI-M, INC, JDU, Left Front,

    SP and dozens of national and regional

    parties.

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    Political pressurePolitical pressure groupsgroups

    China:

    No substantial political opposition exists.

    India: Bajrang Dal.

    Vishwa Hindu Parishad.

    Rashtriya Swayamsewak Sangh.

    Numerous religious or militant/chauvinistic

    organizations; various separatist groups seeking

    greater communal and/or regional autonomy

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    Economic Comparison

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    Basic economic indicators of India & China

    GDP(purchasing power parity)

    Year India (in Billion $) China (in Billion $)

    2005 3666 8883

    2006 4156 10170

    2007 2966 7099

    2008 3478 8204

    2009 3736 8950

    2010 4046 9872

    Year GDP real growth rate-

    India(%)

    GDP real growth rate-

    China(%)2005 8.4 10.2

    2006 9.2 10.7

    2007 9 11.9

    2008 7.4 9

    2009 7.4 9.1

    2010 8.3 10.3

    GDP real growth rate

    Source: CIA world fact book

    Year India (in Billion $) China (in Billion $)

    2005 3666 8883

    2006 4156 10170

    2007 2966 7099

    2008 3478 8204

    2009 3736 8950

    2010 4046 9872

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    Source: CIA world fact book

    Reserves of Foreign Exchange and Gold

    Year India (in Billion $) China (in Billion $)

    2005 126 609.9

    2006 136 825.6

    2007 165 1034

    2008 239.4 1493

    2009 274.7 2426

    2010 284.1 2622

    Labor Force

    Year India (in million) China (in million)

    2005 482.2 760.82006 496.4 791.4

    2007 509.3 798

    2008 516.4 800.7

    2009 523.5 807.3

    2010 467 813.5

    Unemployment Rate

    Year India (in %) China (in %)

    2005 9.2 9.8

    2006 8.9 9

    2007 7.8 4.2

    2008 7.2 4

    2009 6.8 4

    2010 10.7 4.3

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    Source: CIA world fact book

    Per capita GDP

    Year India (in billion US $) China (in billion US $)

    2005 809.723 2256.92

    2006 908.036 2712.92

    2007 1151.65 3494.24

    2008 1260.62 4519.95

    2009 1236.94 4984.73

    2010 1430.02 5745.13

    Industrial Production Growth Rate

    Year India (in %) China (in %)2005 7.4 17.1

    2006 7.9 29.5

    2007 7.5 22.9

    2008 8.5 13.4

    2009 4.8 9.3

    2010 9.3 9.9

    Investment (gross fixed)Year India (in % of GDP) China (in % of GDP)

    2005 23.8 46

    2006 28.1 44.4

    2007 29.2 44.3

    2008 33.9 42.7

    2009 39 40.5

    2010 32.4 46.3

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    Source: CIA world fact book

    Oil-production (bbl/day)

    Year India (in bbl/day) China (in bbl/day)

    2005 780,000 3392000

    2006 785,000 35040002007 785,000 3631000

    2008 880,500 3725000

    2009 880,500 3725000

    2010 878,700 3991000

    Oil- consumption

    Year India (in bbl/day) China (in bbl/day)

    2005 2130000 4956000

    2006 2320000 6391000

    2007 2450000 6534000

    2008 2722000 7578000

    2009 2722000 7880000

    2010 2980000 8200000

    Oil-importsYear India (in bbl/day) China (in bbl/day)

    2006 2090000 3226000

    2007 2090000 3181000

    2008 2159000 3190000

    2009 2159000 4210000

    2010 2900000 4393000

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    Source: CIA world fact book

    Oil-exports

    Year India (in bbl/day) China (in bbl/day)

    2006 350000 340300

    2007 350000 443300

    2008 450700 79060

    2009 450700 399000

    2010 738600 388000

    Exchange rates

    Year India (Indian rupees

    per US dollar)

    China (Renmibi Yuan

    per US dollar)

    2005 44.101 8.1943

    2006 45.3 7.97

    2007 41.487 7.61

    2008 43.319 6.9385

    2009 46.78 6.8249

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    The economy of China is more developed than that ofIndia.

    Compared to the estimated $4046 billion GDP ofIndia, China has an average GDP of around $9872billion.

    India was under the colonial rule of the British for

    around 190 years. This drained the country'sresources to a great extent and led to huge economicloss.

    On the other hand, there was no such instance ofcolonization in China. Hence, from the very beginning,

    China enjoyed a planned economic model whichmade it stronger.

    Source: CIA world fact book

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    Social and Cultural Factors

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    POPULATION India:

    0-14 years: 29.7% (male 187,450,635/female 165,415,758) 15-64 years: 64.9% (male 398,757,331/female 372,719,379)

    65 years and over: 5.5% (male 30,831,190/female 33,998,613) (2011 EST.)

    Median age :

    total: 25.9 years

    male: 25.4 years

    Female: 26.6 years (2010 EST.)

    China:

    0-14 years: 19.8% (male 140,877,745/female 124,290,090)

    15-64 years: 72.1% (male 495,724,889/female 469,182,087)

    65 years and over: 8.1% (male 51,774,115/female 56,764,042) (2010 EST.)

    Median age :

    total: 35.2 years

    male: 34.5 years

    Female: 35.8 years (2010 EST.)

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    POPULATION

    China is currently placed 1st in terms ofpopulation followed by India

    One child policy has led to an control in

    population India has an advantage in terms of the mean age

    of the population

    The number of youths can be taken as anadvantage if their potential is utilized

    We need to learn from the Chinese how toconvert this population into a resource

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    URBANIZATION

    India has an urban population of around 30%

    of its population with a rate of urbanization

    of around 2.4% annually as compared to that

    of China which has an urban population of

    around 47% of its population and a rate of

    urbanization of around 2.3%.

    China has a vast majority of area that is notdeveloped, its only the mainland that has

    been developed

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    Urbanization

    The rate of urbanization is slightly better inIndia

    Disadvantages :

    Inc in slums

    Unemployment

    Crime

    Pollution

    Water problems

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    Advantages

    Convenience

    Education

    Improvement in economy Healthcare

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    LITERACY

    INDIA :

    Of the total population 61 % are literate

    73.4% of males are literate

    47.8% of females are literate ( acc to 2001census)

    CHINA:

    91.6 % of the total population is literate 95.7% males are literate

    87.6% females are literate

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    Literacy

    We can see how we fare in terms of literacy when wecompare yourself with our neighbours. Any chance ofcoming head to head with them would require thisparticular statistic to go up exponentially. Even till

    date majority our population residing in our villagesare mostly illiterate, even though government hasdeclared it a right of every child to be educated butstill many of them are misfortunate.

    China has been very successful in this aspect, they

    have a very literate society in their hands whichmakes for a great human resource. This is preciselyhow they were able to convert their huge populationinto an asset. Unfortunately for India it is going tostay as a liability till the time they are not educated.

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    Ethnic Groups and Religion:

    India has a very wide diversity in terms of ethnicgroups and religious practices. This even thoughprovides a lot of cultural diversity but many a

    times it leads to disharmony and tensionbetween these groups.

    It is up to us to decide how we want to proceed.This can be used as a potent weapon by our

    enemies and we need to be careful not to playinto their hands. We have show the solidarityand keep the national interest above theindividual and group interest.

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    Ethnic Groups and Religion

    China even though much bigger than our

    country does not have that much diversity

    most of them follow Taoism and are Han

    Chinese. This lack of diversity has not been a

    hindrance for them rather it keeps them

    more united than us.

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    TECHNOLOGICAL COMPARISON

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    India and China Competitiveness

    High costing

    Less Specialized fabrics,

    orders China/ Hong Kong/Bangladesh

    Better Transportation

    Specialized in High end

    apparels and handicrafts Higher English Speaking

    Population

    Both Small and Large Scale

    Sales.

    Low costing

    Specializes in all kinds of

    fabrics

    All business operations

    from Hong Kong only.

    Casual and Simple

    Garments Concentrated to Hong

    Kong

    Majorly into Large Scale

    Production, Promotions`

    INDIA CHINA

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    PRACTICAL APPLICATION OF

    TECHNOLOGY BY INDIA

    Growth and development in agriculture due

    to new technology.

    Application of technology in the field onhealth and medicine.

    Development in electronics , defence & space

    due to technology advancement.

    India has the third largest scientific and

    technical man power in world.

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    INTERNETAND MOBILES

    Internet usage inIndia has not penetratedas

    much as it has in China.This despite various

    measures byIndian Government from low cost

    PCs to increasing competitionamongTelcos.

    Chinas mobile market has grown strongly over

    the past 10 years, whilstIndias marketgrowth

    has beenrelatively slow. However, overthe pastyear, Indias mobile marketgrowth has picked up

    strongly.

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    Parameters INDIA CHINA

    Median Age 26 yrs 35 yrs

    Wireless Users (June2010E) 617.5 mil 800 mil

    Wireless Internet Users 50 mil 277 mil

    PC Internet Users 31 mil 143 mil

    Total Internet Users 81 mil 420 mil

    Literacy level 66% 93%

    Major local Languages ~27 ~4

    Broadband >256 kbps >1 Mbps

    Broadband Internet price >$5/month >$10/month

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    DEFENCE COMPARISON

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    India has over 13.25 lakh active military personnel

    compared with China's 22.55 lakh troops.

    China's Air Force has 9,000 aircrafts with 2000

    fighter planes. The Indian Air Force has 3,000

    airplanes with 790 fighter planes. In strategic nuclear defence and delivery systems,

    China's army is miles ahead of India's nuclear

    forces with 200-400 active nuclear warheads. In

    comparison, India's strategic nuclear force isestimated to have stockpiled about 50-70 nuclear

    warheads.

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    Indian Navy

    It is the world's eighth largest navy with a fleet of 145 vessels

    Consisting of missile-capable warships, advanced submarines,the latest naval aircrafts, and an aircraft carrier in its inventory.

    It is experienced both in combat and rescue operations during

    wartime and peace, as seen from its wars with Pakistan in 1971,

    and the Tsunami that struck in December 2004.

    China's Navy

    With its fleet of 284 vessels is quantitatively larger but lacking in

    actual war experience, which could undermine its strategiccapability.

    China currently has no aircraft carriers in its naval fleet but is

    slated to build and induct an aircraft carrier by 2010.

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    STRENGTHS OF TECHNOLOGY

    1.Improved agronomic traits of crops.

    2.India has third largest technical manpower in

    world.

    3.Use of nuclear energy for power generation

    in agriculture ,medicine, industry research

    etc.

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    LIMITATIONS FACED BY THE 2

    COUNTRIES

    1.Global warming and pollution.

    2.Reduction in agriculture land.

    3.Pollution due electromagnetic effects etc.

    4.Focus on Business Process Outsourcing

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    CONCLUSION

    China has an edge over India in many

    aspects. It is a strong competitor of U.S.A .

    India is a developing nation in comparisonwith China having a large population and

    developing rapidly. Very soon it will prove to

    be a strong competition if it continues with

    the same rate as of now.

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    GDP COMPOSITION (2010)

    CHINA:

    Agriculture: 9.6%

    Industry: 46.8%

    Services: 43.6%

    INDIA:

    Agriculture: 16.1%

    Industry: 28.6%

    Services: 55.3%

    Source: CIA world Factbook

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    MANUFACTURING SECTOR

    COMPARISON

    China has emphasized majorly on the

    manufacturing sector (largest contribution

    among all three sectors), whereas in India, it

    plays the smallest role out of all the 3

    sectors.

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    Reasons for blooming manufacturing

    sector in China

    Productivity of Chinese workers can be 10 to300% higher than those of Indian workers,depending on the product.

    Chinese shipments reach the US less than amonth after they leave the factory gatecompared to six to 12 weeks for Indian exports.Delays in India are due to bureaucracy in

    customs, loading and unloading in ports andlong transit times.

    China has attracted 216bn in foreigninvestment (1980-2000) compared with 120bn

    in India.

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    Reasons contd.

    China's manufacturing sector in the 1990s expandedat a rate of 12% per year, double the increase in India.

    Whilst it is true that many Chinese state-owned

    companies receive loans from state banks at very lowinterest rates with long repayment periods, about70% of China's industrial output comes from theprivate sector, including multinational companies thathave prudent cost accounting.

    Source:http://www.time.com/time/world/article/0,8599,1957281,00.html

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    Product specific examples

    China produces more than 25% of the world's

    televisions and easily surpasses India in both

    domestic sales and exports.

    China produces eight times more ceiling fans

    than India and half the price advantage is

    because of India's high indirect taxes that

    affect domestic and export sales.

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    Reasons we feel:

    Indianotbeingat par with China Liberalization took place 10 years later than

    China

    Multiple Party System

    Lack of internal unity due to Multiple EthnicGroups and Religions

    Chalta hai attitude in Indian Mindset

    Indian Workforce not literate

    Restriction in import of technology from Japanand West initially (Socialist View of Govt.)

    Colonization for more than hundred years

    Lack of Implementation of Plans

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    Benefits India Has

    Median Age of India is 10 years younger

    than China (can be a decisive factor in

    growth)

    IT/BPO Sector more prosperous in India

    Tax Incentives more in India

    Indian Capital Market more transparentand predictable than Chinese Capital

    Market

    Banking System in India is better

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    Our Suggestions forIndiato come

    at par with China

    Manufacturing needs improvement

    New Labour Reforms required

    Delay in activities due to bureaucracy needsto be handled

    Protective Treatment to public sector units

    should be removed.

    Consumption of Resources should be reduced

    Use of Clean Energy should be promoted

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    THANK YOU