presentation prajwal 19122014

8/10/2019 Presentation Prajwal 19122014

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COMPARATIVEDEVELOPMENT

EXPERIENCES OFINDIA AND ITSNEIGHBOURS


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Geography has made usneighbours. History hasmade us friends.Economics has made uspartners, and necessityhas made us allies.Those whom God has

so joined together, letno man put asunder.

John F. Kennedy


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There is also an increasingeagerness on the parts ofvarious nations to try and

understand the developmental

processes pursued by theirneighbouring nations as it

allows them to better

comprehend their ownstrengths and weaknesses vis-

-vis their neighbours.


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In the unfolding process ofglobalization, this is particularly

considered essential by developingcountries as they face competition

not only from developed nations butalso amongst themselves in the

relatively limited economic space

enjoyed by the developing world.


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In this chapter we willcompare thedevelopmental strategies

pursued by Indiaand thelargest two of itsneighbouring economies

Pakistanand China


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!"#!$

%$&!'T$" (H!"$


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these new andre!"#t$!nar% &han'es $nCh$na and Ind$a( een

th!#'h the% d$)er $n&!ntent( s%*+!"$se thenew s,$r$t !- As$a and

new $ta"$t% wh$&h $sF$nd$n' e.,ress$!n $n the&!#ntr$es $n As$a/0

1awahar"a" Nehr#


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ndia announced its first Five Year Plan for 1951-5

Pakistan announced its first five year plan,

called, the Medium erm Plan, in 1956!

"hina announced its First Five Year Plan in

195#!

$ll the three countries had star ted

plannin% their developm ent strate%ies in

similar &ays!

Till *++0, %akistan had eight 1ve

year plans whereas (hinas tenth1ve year period is 233*-34. Thecurrent planning in !ndia is basedon Tenth 5ive 6ear %lan 72332-38.


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$fter the establishment of %eoples

/epublic of (hina under one partyrule , all the critical sectors of theeconomy, enterprises and landsowned and

operated by individuals werebroughtunder government control.


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!n rural areas, communes were started. :nder the(ommune system, people collectively cultivatedlands.

!n *+;0, there were 24,333 communescovering almost all the farm population.Then Gicts with (hina,it withdrew its professionals who hadearlier been sent to (hina to help in theindustrialisation process.


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Ch$na $ntr!d#&ed re-!r*s$n ,hases/ In the $n$t$a",hase( re-!r*s were

$n$t$ated $n a'r$"t#re(-!re$'n trade and$nest*ent se&t!rs/


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A g r i c u l t u r e

?commune lands were divided into small plotswhich were allocated 7for use not ownership8 toindividual households.

?They were allowed to keep all income from theland after paying stipulated ta9es.

n "hina, due to topo%raphic and

climatic conditions, the area suita'le

for cultivation is relatively small ( only

a'out 1) per cent of its total land area!

he total cultiva'le area in "hina

accounts for *) per cent of the

cultiva'le area in ndia!


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:ntil the *+03s, more than 03 per cent of thepeople in (hina were dependent on farming astheir sole source of livelihood

'ince then, the government encouragedpeople to leave their 1elds and pursue otheractivities such as handicrafts, commerce and

transport


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Industrial sector

%rivate sector 1rms, in general, andtownship and village enterprises, i.e. thoseenterprises which were owned and operate

by local collectives, in particular, wereallowed to produce goods.

$t this stage, enterprises owned by

government 7known as 'tate @wnedEnterprisesA'@Es8, which we, in !ndia, callpublic sector enterprises, were made toface competition.


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The reform process also involved dual pricing.

This means 19ing the prices in two waysB

farmers and industrial units were reCuiredto buy and sell 19ed Cuantities of inputsand outputs on the basis of prices 19ed bythe government and the rest were

purchased and sold at market prices.

@ver the years, as production increased,the proportion of goods or inputstransacted in the market was alsoincreased. !n order to attract foreigninvestors, special economic Dones were

set up.


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o akistan also follows te !i"e# econo!$

!o#el wit co%e"istence of &u'lic an# &ri(ate

sectors)

In te late *+,-s an# *+.-s/ Pakistan intro#uce# a (ariet$ of

regulate# &olic$ fra!ework for i!&ort su'stitution

in#ustrialisation!

IT 0OM1AINEDotariff &rotection for !anufacturing of consu!er goo#s

togeter wit #irect i!&ort controls on co!&eting i!&or


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The introduction of Green /evolution led

to mechanisation and increase in publicinvestment in infrastructure in selectareas, which 1nally led to a rise in theproduction of food grains. This changed

the agrarian structure dramatically.!n the *+3s, nationalisation ofcapital goods industries tookplace.


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P a k i s t a n t e n s i f te # i t s & o l ic $ o r i e n t a t i o n i n t e l a t e * + 2 - s

a n # * + 3 - s w e n t e ! a 4 o r t r u s t a r e a s w e r e # e n a t i o n a l i s a t i o n

a n # e n c o u r a g e ! e n t t o & r i ( a te s e c t o r)

D#r$n' th$s ,er$!d( Pa2$stan a"s! re&e$ed3nan&$a" s#,,!rt -r!* western nat$!ns and

re*$ttan&es -r!* &!nt$n#!#s"%/

DEMOGRAPHIC INDICATORS


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DEMOGRAPHIC INDICATORS

Out of every six persons living in thisworld, one is an Indian and another

Chinese.

The population of Pakistan is very smalland accounts for roughly about onetenth

of China or India.

China is the largest nation andgeographically occupies the largest areaamong the three nations

The fertility rate is also low in China and very highin Pakistan. !rbani"ation is high in both Pakistanand China with India having #$ per cent of itspeople living in urban areas.


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S e l e c t e ! o g r a & i c I n # i c a t o r s / 5 - - - % -


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GROSS DOMESTIC PRODUCT AND SECTORS

o"hina has the second lar%est +,P -PPP. of /0!trillion

oIndia2s +,P -PPP. is /#!# trillion

oPakistan2s +,P is rou%hly a'out 1) per cent of India2s

+,P!

6 r o w t o f 6 r o s s o ! e s t i c P r o # u c t 7 8 9 / * + 3 - %

5 - - :


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!n the *+03s %akistan was ahead of!ndiaB (hina was having double-digitgrowth and !ndia was at the bottom. !nthe *++3s, there is a marginal decline in

!ndia and (hinas growth rates whereas%akistan met with drastic decline at =.4per cent.


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!n both !ndia and %akistan,the contribution of agricultureto G#% is the same, at 2= percentbut the proportion of

workforce that works in thissector is more in !ndia

!n %akistan, about + per centof people work in agriculturewhereas in !ndia it is 43 percent


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Se&t!ra" Share !- E*,"!%*entand GDP 456

Th t l h f t t d


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The sectoral share of output andemployment also shows that in all thethree economies, the industry and servicesectors have less proportion of workforcebut contribute more in terms of output.

anufacturing contributes thehighest to G#% at ;= per cent whereasin !ndia and %akistan, it is the servicesector which contributes the highest.

!n both these countries, service

'ector accounts for more than;3 per cent of G#%.


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Thus, in both !ndia and %akistan, the servicesector is emerging as a major player ofdevelopment.

!t contributes more to G#% and, atthe same time, emerges as aprospective employer.

!f we look at the proportion

of workforce in the*+03s, %akistanwas faster in shifting its workforce toservice sector than !ndia and (hina.


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In the "ast tw!de&ades( the 'r!wth !-a'r$"t#re se&t!r( wh$&he*,"!%s the "ar'est

,r!,!rt$!n !- w!r2-!r&e$n a"" the three&!#ntr$es( has de&"$ned/


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Ch$na7s 'r!wth $s *a$n"%&!ntr$+#ted +% the*an#-a&t#r$n' se&t!r and Ind$a7s

'r!wth +% ser$&e se&t!r

In the $nd#str$a" se&t!r( Ch$na has*a$nta$ned a d!#+"e8d$'$t 'r!wth rate

whereas -!r Ind$a and Pa2$stan 'r!wthrate has de&"$ned/


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Trends $n O#t,#t Gr!wth$n D$)erent Se&t!rs(

9:;


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(hinais moving ahead of !ndia

and %akistan. This is true formany indicators - incomeindicator such as G#% percapita, or proportion ofpopulation below poverty lineor health indicators such asmortality rates, access to

sanitation, literacy, lifee9pectancy ormalnourishment.

%akistan is ahead of !ndia in


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%akistanis ahead of !ndiainreducing proportion of people

below the poverty line and

also its performance ineducation, sanitation and

access to water is better than!ndia. Fut neither of these two

countries have been able tosave women from maternal

mortality.

6ou will notice that for the


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6ou will notice that for theproportion of people below theinternational poverty rate of

* a day, both (hina and %akistanare in similar positions whereasthe proportion is almost two

times higher for !ndia.


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,34356PM37 89$3+ 38

( $7

$PP9$ 8$5

!t is common to 1nd developmental strategiesof a country as a model to others for lessonsand guidance for their own development.

!n order to learn from economic performance ofour neighbouring countries, it is necessary tohave an understanding of the roots of theirsuccesses and failures.

reforms were initiated in (hina in *+0,reforms were initiated in %akistan in *+00reforms were initiated in !ndia in *++*


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Ch$na d$d n!t hae an% &!*,#"s$!n t!$ntr!d#&e re-!r*s as d$&tated +% the ?!r"dBan2 and Internat$!na" M!netar% F#nd t! Ind$a

and Pa2$stan/

The new "eadersh$, at that t$*e $n Ch$na wasn!t ha,,% w$th the s"!w ,a&e !- 'r!wth and"a&2 !- *!dern$sat$!n $n the Ch$nese e&!n!*%#nder the Ma!$st r#"e/They felt that aoist vision of economicdevelopment based on decentraliDation, selfsuciency and shunning of foreign technology,

goods and capital had failed. #espite e9tensiveland reforms, collectivisation, the Great


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(@"(


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!ndia, with democratic institutions, performedmoderately, but a majority of its people stilldepend on agriculture. !nfrastructure is lacking inmany parts of the country. !t is yet to raise the

level of living of more than one-fourth of itspopulation that lives below the poverty line.

'cholars are of the opinion that politicalinstability, over-dependence on remittances andforeign aid along with volatile performance ofagriculture sector are the reasons for theslowdown of the %akistan economy

!t is also a great challenge for %akistan to

recover from the devastating earthCuake in233;, which took the lives of nearly ;,333people and also resulted in enormous loss toproperty.


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6ou will also notice that unlike !ndia


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6ou will also notice that unlike !ndiaand %akistan,which are attempting to privatiDe their

public sector enterprises, (hina hasused the market mechanism to Icreateadditional social and economicopportunities. Fy retaining collective

ownership of land and allowingindividuals to cultivate lands, (hinahas ensured social security in ruralareas. %ublic intervention in providingsocial infrastructure even prior toreforms has brought about positiveresults in human development

presentation prajwal 19122014

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