keec110.pdf

DEVELOPMENT EXPERIENCES OF INDIA: A COMPARISON

WITH NEIGHBOURS

UNIT

IIIUNIT

IV

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In today’s globalised world, where geographical

boundaries are slowly becoming meaningless, it

is important for neighbouring countries in the

developing world to understand the development

strategies being pursued by their neighbours. This

is more so because they share the relatively limited

economic space in world markets. In this unit, we

will compare India’s developmental experiences

with two of its important and strategic neighbours

— Pakistan and China.

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After studying this chapter, the learners will

• figure out comparative trends in various economic and humandevelopment indicators of India and its neighbours, China and Pakistan

• assess the strategies that these countries have adopted to reach theirpresent state of development.

COMPARATIVE

DEVELOPMENT EXPERIENCES OF INDIA

AND ITS NEIGHBOURS

10

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182 INDIAN ECONOMIC DEVELOPMENT

10.1 INTRODUCTION

In the preceding units we studied thedevelopmental experience of India indetail. We also studied the kind ofpolicies India adopted, which hadvarying impacts in different sectors.Over the last two decades or so, theeconomic transformation that is takingplace in different countries across theworld, partly because of the processof globalisation, has both short aswell as long-term implications foreach country, including India. Nationshave been primarily trying to adoptvarious means which will strengthentheir own domestic economies. To thiseffect, they are forming regional andglobal economic groupings such asthe SAARC, European Union,ASEAN, G-8, G-20, BRICS etc. Inaddition, there is also an increasingeagerness on the parts of variousnations to try and understand thedevelopmental processes pursued bytheir neighbouring nations as itallows them to better comprehendtheir own strengths and weaknessesvis-à-vis their neighbours. In theunfolding process of globalisation,this is particularly consideredessential by developing countries asthey face competition not only fromdeveloped nations but also amongstthemselves in the relatively limitedeconomic space enjoyed by thedeveloping world. Besides, an

understanding of the other economiesin our neighbourhood is also requiredas all major common economicactivities in the region impinge onoverall human development in ashared environment.

In this chapter we will compare thedevelopmental strategies pursued byIndia and the largest two of itsneighbouring economies—Pakistanand China. It has to be rememberedthat despite being endowed with vastnatural resources, there is littlesimilarity between the political powersetup of India - the largest democracyof the world which is wedded to asecular and deeply liberal Constitutionfor over half a century, and themilitarist political power structure ofPakistan or the command economyof China that has only recentlystarted moving towards a democraticsystem and more liberal economicrestructuring respectively.

10.2 DEVELOPMENTAL PATH—ASNAPSHOT VIEW

Do you know that India, Pakistan andChina have many similarities in theirdevelopmental strategies? All the threenations have started towards theirdevelopmental path at the same time.While India and Pakistan becameindependent nations in 1947, People’sRepublic of China was established in1949. In a speech at that time,

Geography has made us neighbours. History has made us friends. Economics

has made us partners, and necessity has made us allies. Those whom God has

so joined together, let no man put asunder.

John F. Kennedy

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183COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS

Jawaharlal Nehru had said, “these newand revolutionary changes in Chinaand India, even though they differ incontent, symbolise the new spirit ofAsia and new vitality which is findingexpression in the countries in Asia.”

All the three countries had startedplanning their development strategiesin similar ways. While Indiaannounced its first Five Year Plan for1951-56, Pakistan announced its firstfive year plan, now called the MediumTerm Development Plan, in 1956.China announced its First Five YearPlan in 1953. In 2013, Pakistan beganworking on 11th Five Year DevelopmentPlan (2013-18) whereas China’s twelfthfive year period is 2011-15. Thecurrent planning in India is based onTwelfth Five Year Plan (2012-17). Indiaand Pakistan adopted similarstrategies such as creating a largepublic sector and raising publicexpenditure on social development.Till the 1980s, all the three countrieshad similar growth rates and per capitaincomes. Where do they stand todayin comparison to one another? Beforewe answer this question let us tracethe historical path of developmentalpolicies in China and Pakistan. Afterstudying the last three units, wealready know what policies India hasbeen adopting since its independence.

China: After the establishment ofPeople’s Republic of China under one-party rule, all the critical sectors of theeconomy, enterprises and lands ownedand operated by individuals werebrought under government control.The Great Leap Forward (GLF)

campaign initiated in 1958 aimed atindustrialising the country on amassive scale. People were encouragedto set up industries in their backyards.In rural areas, communes werestarted. Under the Commune system,people collectively cultivated lands. In1958, there were 26,000 communescovering almost all the farmpopulation.

GLF campaign met with manyproblems. A severe drought causedhavoc in China killing about 30 millionpeople. When Russia had conflicts withChina, it withdrew its professionalswho had earlier been sent to China tohelp in the industrialisation process.In 1965, Mao introduced the GreatProletarian Cultural Revolution(1966-76) under which students andprofessionals were sent to work andlearn from the countryside.

The present-day fast industrialgrowth in China can be traced back tothe reforms introduced in 1978. Chinaintroduced reforms in phases. In theinitial phase, reforms were initiated inagriculture, foreign trade andinvestment sectors. In agriculture, forinstance, commune lands were dividedinto small plots which were allocated(for use not ownership) to individualhouseholds. They were allowed to keepall income from the land after payingstipulated taxes. In the later phase,reforms were initiated in the industrialsector. Private sector firms, in general,and township and village enterprises,i.e. those enterprises which were ownedand operated by local collectives, inparticular, were allowed to produce

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goods. At this stage, enterprises ownedby government (known as State OwnedEnterprises—SOEs), which we, inIndia, call public sector enterprises,were made to face competition. Thereform process also involved dualpricing. This means fixing the prices intwo ways; farmers and industrial unitswere required to buy and sell fixedquantities of inputs and outputs on thebasis of prices fixed by the governmentand the rest were purchased and soldat market prices. Over the years, asproduction increased, the proportion ofgoods or inputs transacted in themarket also increased. In order toattract foreign investors, specialeconomic zones were set up.

Pakistan: While looking at variouseconomic policies that Pakistanadopted, you will notice manysimilarities with India. Pakistan alsofollows the mixed economy model with

co-existence of public and privatesectors. In the late 1950s and 1960s,Pakistan introduced a variety ofregulated policy framework (for importsubstitution industrialisation). Thepolicy combined tariff protection formanufacturing of consumer goodstogether with direct import controls oncompeting imports. The introduction ofGreen Revolution led to mechanisationand increase in public investment ininfrastructure in select areas, whichfinally led to a rise in the production offoodgrains. This changed the agrarianstructure dramatically. In the 1970s,nationalisation of capital goodsindustries took place. Pakistan thenshifted its policy orientation in the late1970s and 1980s when the majorthrust areas were denationalisationand encouragement to private sector.During this period, Pakistan alsoreceived financial support from westernnations and remittances from

Fig. 10.1Wagah Border is not only a tourist place but also used fortrade between India and Pakistan

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continuously increasing outflow ofemigrants to the Middle-east. Thishelped the country in stimulatingeconomic growth. The then governmentalso offered incentives to the privatesector. All this created a conduciveclimate for new investments. In 1988,reforms were initiated in the country.

Having studied a brief outline ofthe developmental strategies of Chinaand Pakistan, let us now comparesome of the developmental indicatorsof India, China and Pakistan.

10.3 DEMOGRAPHIC INDICATORS

If we look at the global population, outof every six persons living in thisworld, one is an Indian and anotherChinese. We shall compare somedemographic indicators of India,China and Pakistan. The populationof Pakistan is very small and accountsfor roughly about one-tenth of Chinaor India.

Though China is the largest nationand geographically occupies the largestarea among the three nations, itsdensity is the lowest. Table 10.1 alsoshows the population growth as being

highest in Pakistan, followed by Indiaand China. Scholars point out the one-child norm introduced in China in thelate 1970s as the major reason for lowpopulation growth. They also state thatthis measure led to a decline in the sexratio, the proportion of females per1000 males. However, from the table,you will notice that the sex ratio is lowand biased against females in all thethree countries. Scholars cite son-preference prevailing in all thesecountries as the reason. In recent times,all the three countries are adoptingvarious measures to improve thesituation. One-child norm and theresultant arrest in the growth ofpopulation also have otherimplications. For instance, after a fewdecades, in China, there will be moreelderly people in proportion to youngpeople. This will force China to takesteps to provide social securitymeasures with fewer workers.

The fertility rate is also low inChina and very high in Pakistan.Urbanisation is high in both Pakistanand China with India having 32 percent of its people living in urban areas.

TABLE 10.1

Select Demographic Indicators, 2013

Country Estimated Annual Density Sex Fertility UrbanisationPopulation Growth of (per sq. km) Ratio Rate(in million) Population

(2001-2010)

India 1252 1.24 421 934 2.6 32

China 1357 0.49 145 929 1.6 53

Pakistan 182 1.65 236 947 3.3 38

Source: World Development Indicators, www.worldbank.org

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10.4 GROSS DOMESTIC

PRODUCT AND

SECTORS

One of the much-talkedissues around the worldabout China is its growthof Gross DomesticProduct. China has thesecond largest GDP (PPP)of $15.6 trillion whereasIndia’s GDP (PPP) is$6.6 trill ion andPakistan’s GDP is $ 0.83trillion, roughly about13 per cent of India’sGDP.

When manydeveloped countrieswere finding it difficult tomaintain a growth rate of even 5 percent, China was able to maintain neardouble-digit growth for more than twodecades as can be seen from Table10.2. Also notice that in the 1980sPakistan was ahead of India; Chinawas having double-digit growth andIndia was at the bottom. In 2005-13,there is a marginal decline in India and

TABLE 10.2

Annual Growth of Gross DomesticProduct (%), 1980-2013

Country 1980-90 2005-2013

India 5.7 7.6

China 10.3 10.2

Pakistan 6.3 4.4

Work These Out

Ø Does India follow any population stabilisation measures? If so, collect thedetails and discuss in the classroom. You may refer to the latest EconomicSurvey, annual reports or websites of Ministry of Health and Family Welfare(http://mohfw.nic.in).

Ø Scholars find son-preference as a common phenomenon in many developingcountries including India, China and Pakistan. Do you find this phenomenonin your family or neighbourhood? Why do people practice discrimination betweenmale and female children? What do you think about it? Discuss in theclassroom.

Fig. 10.2 Land use and agriculture in India, China and Pakistan

(Not to scale)

Source: Key Indicators for Asia and Pacific 2011,

Asian Development Bank, Phillipines.

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China’s growth rates whereas Pakistanmet with drastic decline at 4.4 per cent.Some scholars hold the reformprocesses introduced in 1988 inPakistan and political instability asreasons behind this trend. We willstudy in a later section which sectorcontributed to this trend in thesecountries.

First, look at how people engaged indifferent sectors contribute to GrossDomestic Product. It was pointed out inthe previous section that China andPakistan have more proportion ofurban people than India. In China,

due to topographic andclimatic conditions,the area suitable forcultivation is relativelysmall — only about 10per cent of its total landarea. The total cultivablearea in China accountsfor 40 per cent of thecultivable area in India.Until the 1980s, morethan 80 per cent of thepeople in China weredependent on farmingas their sole sourceof livelihood. Sincethen, the governmentencouraged peopleto leave their fieldsand pursue otheractivities such ashandicrafts, commerceand transport. In 2013,with 30 per cent ofits workforce engagedin agriculture, its

contribution to GDP in China is 10 percent (see Table 10.3).

In both India and Pakistan, thecontribution of agriculture to GDP wereat 18 and 25 per cent, respectively, butthe proportion of workforce that worksin this sector is more in India. InPakistan, about 44 per cent of peoplework in agriculture whereas in India itis 47 per cent. The sectoral share ofoutput and employment also showsthat in all the three economies, theindustry and service sectors have lessproportion of workforce but contributemore in terms of output. In China,

Fig. 10.3 Industry in India, China and Pakistan.

(Not to scale)

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manufacturing and service sectorscontribute the highest to GDP at 44and 46 per cent, respectively whereasin India and Pakistan, it is the servicesector which contributes the highestby more than 50 per cent of GDP.

In the normal course ofdevelopment, countries first shift theiremployment and output fromagriculture to manufacturing and thento services. This is what is happeningin China as can be seen from Table10.4. The proportion of workforceengaged in manufacturing in Indiaand Pakistan were low at 25 and 14per cent respectively. The contributionof industries to GDP is also just equalto or with a small difference in outputfrom agriculture. In India andPakistan, the shift is taking placedirectly to the service sector.

Thus, in both India and Pakistan,the service sector is emerging as amajor player of development. Itcontributes more to GDP and, at thesame time, emerges as a prospectiveemployer. If we look at the proportionof workforce in the1980s, Pakistanwas faster in shifting its workforce toservice sector than India and China.In the 1980s, India, China and

Pakistan employed 17, 12 and 27 percent of its workforce in the servicesector respectively. In 2013, it hasreached the level of 28, 39 and 42 percent, respectively.

In the last two decades, the growthof agriculture sector, which employs thelargest proportion of workforce in all thethree countries, has declined. In theindustrial sector, China has maintaineda double-digit growth rate whereas forIndia and Pakistan growth rate

TABLE 10.3

Sectoral Share of Employment and GDP (%) in 2013

Sector Contribution to GDP Distribution of Workforce

India China Pakistan India China Pakistan

Agriculture 18 10 25 47 31 44

Industry 25 44 21 25 30 14

Services 57 46 54 28 39 42

Total 100 100 100 100 100 100

Work These Out

Ø Do you think it is necessaryfor India and Pakistan toconcentrate on the manu-facturing sector as Chinadoes? Why?

Ø Scholars argue that theservice sector should not beconsidered as an engine ofgrowth whereas India andPakistan have raised theirshare of output mainly inthis sector only. What doyou think?

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has declined. In the case of service

sector, China and India were able toraise its rate of growth during 1980-

2013 while Pakistan stagnated with itsservice sector growth. Thus, China’s

growth is mainly contributed by themanufacturing sector and India’s

growth by service sector. During thisperiod, Pakistan has shown

deceleration in all the three sectors.

10.5 INDICATORS OF HUMAN DEVELOPMENT

You might have studied about theimportance of human developmentindicators in the lower classes and theposition of many developed anddeveloping countries. Let us look howIndia, China and Pakistan haveperformed in some of the selectindicators of human development.Look at Table 10.5.

TABLE 10.4

Trends in Output Growth in Different Sectors, 1980-2013

Country 1980-90 2005-2013

Agriculture Industry Service Agriculture Industry Service

India 3.1 7.4 6.9 4.0 6.9 9.1

China 5.9 10.8 13.5 4.5 11.0 10.9

Pakistan 4 7.7 6.8 3.4 4.3 4.8

TABLE 10.5

Some Selected Indicators of Human Development, 2012-13

Item India China Pakistan

Human Development Index (Value) 0.586 0.719 0.537

Rank (based on HDI) 135 91 146

Life Expectancy at birth (years) 66.2 75.2 66.4

Adult Literacy Rate (% aged 15 and above) 62.8 95.1 54.7

GDP per capita (PPP US$) 5238 11524 4549

People below poverty line (at $2 a day ppp)(%) 61 19 51

Infant Mortality Rate (per 1000 live births) 41 11 69

Maternal Mortality Rate (per 1 lakh births) 190 32 170

Population using improved sanitation (%) 36 65 48

Population with sustainable access to improved 93 92 91

water source (%)

Percentage of Children Malnourished (underweight) (<5) 43.5 3.4 31

Source: Human Development Report 2014 and World Development Indicators (www.worldbank.org)

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Table 10.5 shows that China ismoving ahead of India and Pakistan.This is true for many indicators —income indicator such as GDP percapita, or proportion of populationbelow poverty l ine or healthindicators such as mortality rates,access to sanitation, literacy, lifeexpectancy or malnourishment.Pakistan is ahead of India inreducing proportion of people belowthe poverty l ine and also itsperformance in education, sanitationand access to water is better thanIndia. But neither of these twocountries have been able to savewomen from maternal mortality. InChina, for one lakh births, only 32women die whereas in India andPakistan, about 190 and 170 womendie respectively. Surprisingly all thethree countries report providingimproved drinking water sources formost of its population. You will noticethat for the proportion of people belowthe international poverty rate of $ 2 aday, India has the largest share of pooramong the three countries. Find outfor yourself how these differences occur.

In dealing with or makingjudgements on such questions,however, we should also note a problemwhile using the human developmentindicators given above with conviction.This occurs because these are allextremely important indicators; butthese are not sufficient. Along withthese, we also need what may be called‘liberty indicators’. One such indicatorhas actually been added as a measureof ‘the extent of democraticparticipation in social and political

decision-making’ but it has not beengiven any extra weight. Some obvious‘liberty indicators’ like measures of ‘theextent of Constitutional protectiongiven to rights of citizens’ or ‘the extentof constitutional protection ofthe Independence of the Judiciary andthe Rule of Law’ have not evenbeen introduced so far. Withoutincluding these (and perhaps somemore) and giving them overridingimportance in the list, the constructionof a human development index maybe said to be incomplete and itsusefulness limited.

10.6 DEVELOPMENT STRATEGIES — AN

APPRAISAL

It is common to find developmentalstrategies of a country as a model toothers for lessons and guidance fortheir own development. It is particularlyevident after the introduction of thereform process in different parts of theworld. In order to learn from economicperformance of our neighbouringcountries, it is necessary to have anunderstanding of the roots of theirsuccesses and failures. It is alsonecessary to distinguish between, andcontrast, the different phases of theirstrategies. Though countries gothrough their development phasesdifferently, let us take the initiation ofreforms as a point of reference. Weknow that reforms were initiated inChina in 1978, Pakistan in 1988 andIndia in 1991. Let us briefly assess theirachievements and failures in pre- andpost-reform periods.

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Why did China introducestructural reforms in 1978? China didnot have any compulsion to introducereforms as dictated by the World Bankand International Monetary Fund toIndia and Pakistan. The newleadership at that time in China wasnot happy with the slow pace of growthand lack of modernisation in theChinese economy under the Maoistrule. They felt that Maoist vision ofeconomic development based ondecentralisation, self sufficiency andshunning of foreign technology, goodsand capital had failed. Despiteextensive land reforms, collectivisation,the Great Leap Forward and otherinitiatives, the per capita grain outputin 1978 was the same as it was in themid-1950s.

It was found that establishment ofinfrastructure in the areas ofeducation and health, land reforms,long existence of decentralisedplanning and existence of smallenterprises had helped positively inimproving the social and incomeindicators in the post reform period.Before the introduction of reforms,there had already been massiveextension of basic health services inrural areas. Through the communesystem, there was more equitabledistribution of food grains. Expertsalso point out that each reformmeasure was first implemented at asmaller level and then extended on amassive scale. The experimentationunder decentralised governmentenabled to assess the economic, socialand political costs of success or failure.For instance, when reforms were made

in agriculture, as pointed out earlierby handing over plots of land toindividuals for cultivation, it broughtprosperity to a vast number of poorpeople. It created conditions for thesubsequent phenomenal growth inrural industries and built up a strongsupport base for more reforms.Scholars quote many such exampleson how reform measures led to rapidgrowth in China.

Scholars argue that in Pakistanthe reform process led to worsening ofall the economic indicators. We haveseen in an earlier section thatcompared to 1980s, the growth rateof GDP and its sectoral constituentshave fallen in the 1990s.

Though the data on internationalpoverty line for Pakistan is quitehealthy, scholars using the officialdata of Pakistan indicate risingpoverty there. The proportion of poorin 1960s was more than 40 per centwhich declined to 25 per cent in 1980sand started rising again in 1990s. Thereasons for the slow-down of growthand re-emergence of poverty inPakistan’s economy, as scholars putit, are agricultural growth and foodsupply situation were based not onan institutionalised process oftechnical change but on good harvest.When there was a good harvest, theeconomy was in good condition, whenit was not, the economic indicatorsshowed stagnation or negative trends.You will recall that India had to borrowfrom the IMF and World Bank toset right its balance of paymentscrisis; foreign exchange is an essentialcomponent for any country and it is

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Country Exports from India ( Rs in crore) Imports to India (Rs in crore)

2004-2005 2012-2013 Rate of 2004-2005 2012-2013 Rate of

Growth (%) Growth (%)

Pakistan 2,341 11,233 380 427 2,944 589

China 25,232 73,733 192 31,892 2,84,385 792

Work These Out

Ø While India has perfromed relatively well vis-a-vis other developing

countries (including its Asian neighbours) in terms of economic growth,

India’s human development indicators are among the worst in the world.

Where India went wrong - why did we not take care of our human

resources? Discuss in the classroom.

Ø There is a general perception going around in India that there is sudden

increase in dumping of Chinese goods into India which will have

implications for manufacturing sector in India and also that we do not

engage ourselves in trading with our neighbouring nations. Look at the

following table, which shows exports from India to, and imports from,

Pakistan and China. Interpret the results and discuss in the classroom.

From newspapers and websites and listening to news, collect the details

of goods and services transacted in trading with our neighbours. In order

to get detailed information relating to international trade, you can log on

to the website: http://dgft.gov.in.

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important to know how it can be earned.If a country is able to build up its foreignexchange earnings by sustainable exportof manufactured goods, it need notworry. In Pakistan most foreign exchangeearnings came from remittances fromPakistani workers in the Middle-east andthe exports of highly volatile agriculturalproducts; there was also growingdependence on foreign loans on the onehand and increasing difficulty in payingback the loans on the other.

As reported in the Pakistan AnnualPlan for the year 2011-12, variousfactors contribute to slow growth of thePakistan economy. To quote, “theeconomy is under stress as the floods,delays in implementation of economicreforms; dilapidated security situationand low foreign direct investment inflowsare hampering growth in all majorsectors. Massive floods took a heavy tollon agriculture and infrastructure whileenergy crisis coupled with steep declinein foreign direct investment is soaking upbusiness activity during 2010-11.Pakistan's economy is provisionallyexpected to grow by 2.4 per cent during2010-11 over previous year against thetarget of 4.5 per cent.” Besides facing highrates of inflation and rapid privatisation,the government is increasing theexpenditure on various areas that canreduce poverty.

10.7 CONCLUSION

What are we learning from thedevelopmental experiences of ourneighbours? India, China and Pakistanhave travelled more than five decadesof developmental path with variedresults. Till the late 1970s, all of themwere maintaining the same level of low

development. The last three decadeshave taken these countries to differentlevels. India, with democraticinstitutions, performed moderately, buta majority of its people still depend onagriculture. Infrastructure is lacking inmany parts of the country. It is yet toraise the level of living of more than one-fourth of its population that lives belowthe poverty line. Scholars are of theopinion that political instability, over-dependence on remittances and foreignaid along with volatile performance ofagriculture sector are the reasons for theslowdown of the Pakistan economy. Yet,in the recent past, it is hoping to improvethe situation by maintaining high ratesof GDP growth. It was also a greatchallenge for Pakistan to recover fromthe devastating earthquake in 2005,which took the lives of nearly 75,000people and also resulted in enormousloss to property. In China, the lack ofpolitical freedom and its implications forhuman rights are major concerns; yet,in the last three decades, it used the‘market system without losing politicalcommitment’ and succeeded in raisingthe level of growth alongwith alleviationof poverty. You will also notice thatunlike India and Pakistan, which areattempting to privatise their publicsector enterprises, China has used themarket mechanism to ‘create additionalsocial and economic opportunities’. Byretaining collective ownership of land andallowing individuals to cultivate lands,China has ensured social security inrural areas. Public intervention inproviding social infrastructure even priorto reforms has brought about positiveresults in human development indicatorsin China.

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Recap

Ø With the unfolding of the globalisation process, developing countries

are keen to understand the developmental processes pursued by theirneighbours as they face competition from developed nations as alsoamongst themselves.

Ø India, Pakistan and China have similar physical endowments buttotally different political systems.

Ø All the three countries follow the five-year plan pattern of development.However, the structures established to implement developmentalpolicies are quite different.

Ø Till the early 1980s, the developmental indicators of all the threecountries, such as growth rates and sectoral contribution towardsnational income, were similar.

Ø Reforms were introduced in 1978 in China, in 1988 in Pakistan and in

1991 in India.

Ø China introduced structural reforms on its own initiative while theywere forced upon India and Pakistan by international agencies.

Ø The impact of policy measures were different in these countries — forinstance, one-child norm has arrested the population growth in Chinawhereas in India and Pakistan, a major change is yet to take place.

Ø Even after fifty years of planned development, majority of the workforce

in all the countries depends on agriculture. The dependency is greaterin India.

Ø 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 servicesector.

Ø China’s industrial sector has maintained a high growth rate while itis not so in both India and Pakistan.

Ø China is ahead of India and Pakistan on many human developmentindicators. However these improvements were attributed not to thereform process but the strategies that China adopted in the pre-reformperiod.

Ø While assessing the developmental indicators, one also has to consider

the liberty indicators.

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1. Why are regional and economic groupings formed?

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

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

4. Explain the Great Leap Forward campaign of China as initiated in1958.

5. China’s rapid industrial growth can be traced back to its reforms in1978. Do you agree? Elucidate.

6. Describe the path of developmental initiatives taken by Pakistanfor 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 andIndia.

9. Compare and contrast India and China’s sectoral contributiontowards 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 economicdevelopment 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.

EXERCISES

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

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

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

17. Fill in the blanks

(a) First Five Year Plan of ________________ commenced in theyear 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)

1. Organise a class debate on the issue of free trade between Indiaand China and India and Pakistan.

2. You are aware that cheap Chinese goods are available in the market,for example, toys, electronic goods, clothes, batteries etc. Do youthink that these products are comparable in quality and price withtheir Indian counterparts? Do they create a threat to our domesticproducers? Discuss.

3. Do you think India can introduce the one-child norm like China toreduce population growth? Organise a debate on the policies thatIndia can follow to reduce population growth.

4. China’s growth is mainly contributed by the manufacturing sectorand India’s growth by the service sector—prepare a chart showingthe relevance of this statement with respect to the structuralchanges in the last decade in the respective countries.

5. How is China able to lead in all the Human Development Indicators?Discuss in the classroom. Use Human Development Report of thelatest year.

SUGGESTED ADDITIONAL ACTIVITIES

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Books

DREZE, JEAN AND AMARTYA SEN. 1996. India: Economic Development and Social

Opportunity. Oxford University Press, Delhi.

Articles

RAY, ALOK. 2002. ‘The Chinese Economic Miracle: Lessons to be Learnt.’Economic and Political Weekly, September 14, pp. 3835-3848.

ZAIDI, S. AKBAR . 1999. ‘Is Poverty now a Permanent Phenomenon in Pakistan?’Economic and Political Weekly, October 9, pp. 2943-2951.

Government Reports

Human Development Report 2005, United Nations Development Programme,Oxford University Press, Oxford.

Pakistan: National Human Development Report 2003, United NationsDevelopment Programme, Second Impression 2004.

World Development Report 2005, The World Bank, published by OxfordUniversity Press, New York.

Labour Market Indicators, 3rd Edition, International Labour Organisation,Geneva.

Economic Survey, 2013-14, Ministry of Finance, Government of India.

Websites

www.stats.gov.cnwww.statpak.gov.pkwww.un.orgwww.ilo.orgwww.planningcommission.nic.inwww.dgft.delhi.nic.in

REFERENCES

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