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Economics · Ch 19 — Comparative Development Experiences of India and Its Neighbours

Conclusion

19.7

Conclusion

Seven decades of planned development have carried India, China and Pakistan to very different destinations, even though until the late 1970s all three shared a similarly low level of development. The last three decades opened up wide gaps between them.

India

With democratic institutions, India has performed moderately. It has taken many steps to build infrastructure and raise living standards, but a majority of its people still depend on agriculture.

Pakistan

Scholars point to political instability, heavy dependence on remittances and foreign aid, and a volatile agriculture sector as the reasons for Pakistan's slowdown. Even so, over the last few years many of its macroeconomic indicators have shown positive, moderate growth, signalling a recovery.

China

China's main concerns are the lack of political freedom and its implications for human rights. Yet over the last four decades it used the market system without abandoning its political commitment, raising growth while reducing poverty. Unlike India and Pakistan, which are trying to privatise their public enterprises, China used the market to create additional social and economic opportunities. By keeping land under collective ownership while letting individuals cultivate it, China provided social security in rural areas, and its public investment in social infrastructure even before reforms produced strong gains in human development.

Think About It

Suggested Additional Activities

  1. Organise a class debate on the issue of free trade between India and China, and India and Pakistan.
  2. Cheap Chinese goods — toys, electronic goods, clothes, batteries and more — are available in the Indian market. Do you think these products are comparable in quality and price with their Indian counterparts? Do they threaten our domestic producers? Discuss.
  3. Do you think India can introduce a one-child norm like China's to reduce population growth? Organise a debate on the policies India could follow to reduce population growth. …