China Vs India

For yesterday’s post, Auxi asked me, why everybody talk about China and then India? Why not India and then China!!! See there are many reasons why people talk about China first. Namely

Ø It began opening its economy three decades ago, the nation has lifted more people out of poverty than any other nation in modern times and is poised to become the world’s third largest economy (Till now they have lifted 250+ million people from BPL, below poverty line).

Ø In 1992 itself China created 6 million private jobs.

Ø China’s Economic Reforms contains

o Except profitable government industries, they privatized/disinvested the other government industries.

o They study other Asian countries strategies and implement the useful ones. Because of this their import/export policy very strong.

o Promoting FDI.

o Development of Human Resource and creating a development friendly environment.

o They target 20% of GDP annually.

Ø China’s per capita income is round about $ 2300 and India’s is $ 950

Ø India implemented Family Planning in 1952 and China in 1970. But in 2001 birth rate in India is more than tripled as compared to China.

Ø China’s Labor sincerity. Not like ours.

Now coming to problems of China, it is facing some problems like…

Ø Chinas population is growing older. According to one survey in 2020 China is going to face 10 million people scarcity. A smaller number of workers will have to support an increasing number of elderly. The United Nations projects that China working age population will account for a decreasing share of the total after 2010, and will start shrinking in absolute terms after 2015.

Ø The strategies that have helped China grow from poverty to its current levels will not yield the same dividends in the future, says Homi Kharas, a scholar at the Brookings Institution and the World Banks former chief economist for Asia.

Ø In recent months, China has been plagued by shortages of petrol and electricity, illustrating the limits to its consumption. Chinas 1.3 billion people each consumed the equivalent of 1.4 tonnes of oil in energy last year. If each Chinese were to consume the same amount of energy as each person in the US does” the equivalent of 7.82 tonnes of oil” then China alone would consume nearly as much energy as the entire world does now.

Ø Just 30 years after it began moving away from socialism, China has become one of the world’s most unequal societies, based on measures of the gap between richest and poorest. Initially, the widening disparity was beneficial” forced equality under Mao Zedong prevented people from being productive. Today, it increasingly contributes to social instability, as people who lose their homes to make way for factories and others displaced by development express displeasure in sometimes violent protests.

Ø And many more, which I am not know………….

Now talking about India, I can’t say when India can take over US or China. But India has some advantages like it can become human power. According to one study, now 36% of population is under 15 years. By 2020 India can outsource 17, 10, 19, 6, million human power to US, China, Japan and Russia respectively.

And in addition this I can only say that, India needs to lot of reforms as China & Japanese did in 80 and 90s.

Resources

Udayvani (Kannada news paper)

Mint