Friday, 13 April 2012

Comparative study of Indo-Pak-China in terms of Development.



DR BALRAJ BISHNOI
Faculty member RICEM Cooperatives (government of Rajasthan INDIA)
And convener human rights for disabled (India & Asia-Pacific)
RTI activist & Author. (email:jnvishnoi@gmail.com / braj2026@rediffmail.com)

Paper represents comparative study of development strategies and their outcomes of India, Pakistan and China after their emergence as an independent state. It compares the economic structure, development strategies adopted, history of reforms and economic outcomes of reforms.    AND reveals the importance of deep, historically-rooted determinants of comparative economic development.  Advances and empirically establishes the hypothesis that migratory distance from the geographical origin of Homo sapiens in INDIAN Subcontinent & China, significantly affected the pattern of economic development across societies. In the course of advancing development" diffusion of humans into the Chinese counterpart, variation in migratory distance generated heterogeneity in the degree of intra-population genetic diversity, which, consistently with the economic trade-off associated with diversity, had a persistent non-monotonic effect on development outcomes in the post-Industrial Revolution era. The findings suggest that while the intermediate level of diversity prevalent among Indo-Pak & Chinese populations was conducive for development, the high degree of diversity among the trio of Asian populations and the low degree of diversity among Native counterpart of our baby Pakistan populations is a detrimental force in the historical development of these regions. Variations in the interplay between cultural assimilation and cultural diffusion played a significant role in the advent of divergence and overtaking in the process of development. Economic development of Societies of Indo Pak & China that were geographically less vulnerable to cultural diffusion, benefited from enhanced assimilation, lower cultural diversity and, thus, more intense accumulation of society-specific human capital, enabling them to flourish in the technological paradigm that characterized the agricultural stage of development. The lack of cultural diffusion and its manifestation in cultural rigidity, however, diminished the ability of these economies to adapt to a new technological paradigm, which delayed their industrialization and, thereby, their take-off to a state of sustained economic growth. Finally,  the first cross-country empirical examination of the predictions of the influential Malthusian theory regarding population dynamics and income per capita stagnation in the post-Industrial Revolution/globalization era. Using exogenous sources of cross-country variations in land productivity and the timing of the liberalization era, the analysis demonstrates that, in accordance with the Malthusian theory, economy of these countries were characterized by higher land productivity and an earlier onset of agriculture had higher population densities.
Abstract:
  
After independence India adopted mixed economics system. Public sector was assigned the responsibility of developing strong industrial base for economic development of the nation till 1990. We see that on account of development state of agriculture, industry and foreign trade, Indian economy could not perform according to our expectations. Initially public sector was given leading role in the development of industrial sector. We adopted the policy of protection for the development and protection of our domestic industries. We experienced that our industrial sector could not developed according to our expectations. That is why we thought about change our development strategy. We introduced new economic policy in 1991 which is also known as economic reforms. Under economic reforms, we adopted the policy of liberalization, prvatisation and globlisation. We noticed that after introduction of new economic reforms, Indian economy performed well in all respect.
            China’s economy is socialistic economy. Similar to Indian economy, China’s economy also adopted the policy of nationalization. China’s economy nationalized their agriculture and industrial sector. But like India, China also realized that their economy could not produced the results according to their wish .That is why china’s economy also liberalized their economy. Commune land was given to individual cultivators and peoples ere encouraged to setup industries in their Backyard. After adaptation of economic reforms in late 1980’s China’s economy well. During last three decades China’s economy performed better than Indian and Pakistani economy.
            As far as Pakistan is concerned, it also adopted mixed economic system. In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework for growth of domestic industries. In the 1970’s capital goods industries were denationalized and encouragement was given to increase the role of private sector through various incentives.
            Thus we see that all the three nations have the history of reforms in their economies due to depressing economic growth & development but after adoption of economic reforms China’s economy performed better than Indian economy and Pakistani economy. Performance of Indian economy can be said moderate but as far as concerned Pakistani’s economy it is behind the China’s and Indian economy in almost all economic aspects. 
Development Experiences of India

Economy: After independence India has adopted the mixed economic system. The mixed economy is the mixed combination of capitalism and socialism where both private and public sectors co-exists. Therefore, in this economic system the market and the government answers the three question of what, how and for whom to produce. At the initial stage of development India has adopted the path of economic planning and active role of state in industrialisation.

    

Development Strategies of India

Economic planning – Economic planning is essentially a way of organising and utilising resources to the maximum advantage in terms of defined social ends.

Necessities and important of planning - When India became free it got a poor, backward and stagnant economy in legacy. Experiences the world over suggested that the market forces work inadequate, insufficient and incapable of meeting the challenges and problems of Indian economy. It was thus realised that the solution of problem would require an active role of the government in economic development. It was from this view point that independent India chose the path of economic planning for its development. Importance of economic planning is as under:
(i)                       To break the vicious circle of poverty – We know that India was entangled in a vicious circle of poverty and stagnation at the time of independence. This vicious circle can be broken only through centralized planning.
(ii)                     Priority to Social interest – Private entrepreneurs give more importance to individual interest than social interest. It is through economic planning that we can compel individual’s interest also work under social interest.
(iii)             Fair balance between present and future – Private entrepreneurs interested in profits in the short run are generally apt to ignore future interest of the community. Therefore, it becomes more essential for the government to strike a fair balance between the claims of present and future generation through planning.
(iv)             Optimum utilization of resources – Optimum utilization of all available resources is the requirement for the rapid development of the economy. This can easily be done by adopting and implementing the process of economic planning.
(v)                     To build Social and Economic Infrastructure – Private enterprises are not much interested in undertaking those types of investments which are not profit making directly and immediately. But buildings of these infrastructural facilities are essential for the development of the country. That is why this work is undertaken by the government through planning.
(vi)             To increase Capital Formation – Being an underdevelopment economy at the time of independence, India’s economy had a very low level of saving, investment and capital formation. Since capital formation and mobilization of savings require deliberate state attempts via planning process, India preferred to adopt economic planning.
(vii)           The success of Economic Planning in the USSR – The initial success of economic planning in the USSR also played an important part in adopting and popularizing the concept of planning in India.
(viii)         Other Reasons – Removing economic inequalities, controlling economic fluctuations and other such reasons also prompted our leaders to adopt the path of economic planning in India.


Planning Commission

Immediately after the adaptation of new constitution on January 26, 1950, the planning commission came in to existence. Planning commission is a constitutional body. Prime minister is ex-officio chairman of this commission. The broad functions of planning commission are:
(i)                 assessment of material, capital and human resources,
(ii)               formulation of plan for their most effective and balance utilization,
(iii)             Determination of priorities and allocation of resources etc.


Chronology of different five year plans:


              Plan                                      Time Period
1st        Plan                                         1951-1956
2nd        Plan                                         1956-1961
3rd        Plan                                         1961-1966
Three one year Plan              1966-1969 (It is also known as plan holiday)
4th        Plan                                         1969-1974
5th        Plan                                         1974-1979
One year Plan                                    1979-1980
6th        Plan                                         1980-1985
7th        Plan                                         1985-1990
One year Plan                                    1990-1992      
8th        Plan                                         1992-1997
9th        Plan                                         1997-2002
10th      Plan                                         2002-2007
11th      Plan                                        2007-2012


Goals of Five Year Plans

Situations and circumstances have been different during different five year plans. Hence development goals have varied from plan to plan, depending upon the immediate problems and situations faced during each plan. However the common goals of economic planning of India are as follows:

(i)         Economic growth - The high rate of growth by raising GDP and per capita GDP has been the first and foremost goal of all the plans in the country .Economic growth refers to the growth of countries production as well as productivity.

(ii)        Equity - The directive principles of our constitution have proclaimed justice as a basic national commitment. Hence one of the objectives of economic planning is to ensure economic and social justice. This objectives has three dimension-
              a) Deduction in economic inequality.
              b) Curving concentration of economic power
              c) Uplifting the weaker section of the society

(iii)       Self Reliance - In early stage of development of the country is forced to depend upon foreign aid. Self-reliance implies avoiding dependents on import of those goods which could be produced in the country itself. The goal of self-reliance was emphasized in order to reduce a dependent on foreign country. This objective has many aspects such as expansion of exports, substitutions of imports, self-reliance in food grains, defense equipment and capital goods.

(iv)       Modernisation - Modernisation refers to adoption of new technology in the field of production and change in social outlook.

Role of state in India’s industrial development

Leading role to public sector – Considering the demand of the situation in the post-independence year public sector was assigned a greater role in the industrial development of an economy. Development of heavy and basic industries is very essential for creating strong industrial based in the country. Heavy industries require high investment and they have long gestation period but low profitability. Hence these industries do not find favour with the private sector. Thus public sector has to play leading role in the industrial development. Besides this, public sector can also help in the redistribution of income and prevention of concentration of economic power. It can also help to ensure balanced regional growth.

History of reforms: After four decades of development planning Indian economy was stagnant and sick economy under the vicious circle of poverty unemployment, inflation, lack of money, death and global imbalances, balance of payment disequilibrium. Thus Indian economic scenario in 1991 was very much depressing as the economy was on the bunk of the collapse. Inflation was out of control. Exports were declining foreign exchange reserve had decline to no more than two weeks import and industry was virtually crippled.

Meaning and objectives of Economic Reforms – After the four decades of economics planning it was realized that many of the control and regulation on economic activity had lost their usefulness and worked infect rather than helping, growth and development. Therefore it was needed to give the highest priority to restore macroeconomic stability and to bring the economy back to a part of rapid and equitable economic growth.
                         A set of stabilization and structural adjustment measure started since July 1991, in response to the emerging crisis is termed as new economic policy or new economic reforms.      

Broad directions of New Economic Policy:
(i)                 Reducing the extent of government controls over various aspects of the domestic economy.
(ii)                Increasing the role of private sector.
(iii)             Redirecting scare public sector resources to areas where the private sector is unlikely to enter
(iv)             Opening up of the economy to trade and foreign investments and thus integrating it with the global economy.

New economic policy can be classified into two main groups – stabilization measure and structural reform measure. Stabilization measure refers to the policies intended to restore viability to the balance of payment to bring inflation under control. On the other hand, structural reform policies were long termed measure aimed at improving the efficiency of the economy and increasing its international competitiveness.              

LIBERALISATION

Meaning: An economic policy which gives relaxations to enable entrepreneurs to make their decisions themselves and open freedom to economic activities at all levels is termed as policy of economic liberalization.

Objectives of liberalization - The main objectives of liberalization are as follows –
(i)                 To lower the Indian industries from needless and useless controls.
(ii)               To release the growth promoting    entrepreneurs energies.
(iii)             To provide the right full control for market    mechanism.
(iv)             To get it off costly.
(v)               To produce variety of goods.
(vi)             To upgrade technology.
(vii)           To develop international competitiveness  

Area of liberalization
1.                  Industry policy reforms – In post-independence India were raised tariff walls to protect our industrial development and raised subsidies. We also control the old private sector with device of licensing system. Thus industry operated within the complex system of controls and regulations India had become a high cost economy and couldn’t stand global competition. Hence, India had to adopt Industrial reforms. The main industrial reforms are as follows-
(i)                 Reduction in industrial licensing.
(ii)               The reservation industries for public sector.
(iii)             Reforms in small scale industries-Many goods produced by small scale sector have now been reserved.              
2.                  Financial sector reforms - The main financial sector is as follows:
(i)                 It includes reforms in the field of financial institution such as commercial, investment banks, stock exchange operation and foreign exchange market.
(ii)               Movement to market determines interest rate structure.
(iii)             Capital market development promotion of stock exchanging 
(iv)             Reduction in the statutory liquidity ratio.
(v)               Increase in the foreign investment limit in banks up to 50%.
(vi)             Foreign institutional investors such as merchant bankers, mutual funds to be allowed to invest in Indian financial market.           
3.                  Trade policy reforms – The main aim of new trade policy were to create a free environment for trade to improve efficiency and sharpen India’s competitiveness in the world market. In this following measures are adopted-
(i)                 Abolition of import licensing system. Except in case of hazardous and environmentally sensitive industries.
(ii)               Removal of quantitative restrictions on imports.
(iii)             Reduction in tariff rates.
(iv)             Strengthening the export promotion structure.     
4.                  Foreign exchange reforms - In order to overcome balance of payment crisis an important measure that was adopted was devaluation of Rupee. Convertibility of rupee on the current account, and a rapid build-up of foreign exchange reserves were initiated. A number of restrictions on foreign investment and foreign technology have been withdrawn.
5.                  Tax Reforms – Reforms in the field of taxation and public expenditure were also initiated. Main tax reforms are :
(i)                 Reduction in the rates of income tax and corporate tax so that tax evasion could be reduced.
(ii)               Reforms are also made in indirect taxes so that common national market of goods and services can be established.
(iii)             Simplification of tax structure.               
        
                                                          PRIVATISATION
Meaning: - “It may be defined as transfer of ownership and control from public sector to private sector”. It can take place in two ways -
1.      Transfer of ownership and management of public enterprise to the private sector.
2.      Sale of all or some of the assets of the public sector enterprise.
                   
            A large portion of public sector enterprises have been privatized through policy of disinvestment. The sale of the shares of Public Sector Undertakings (PSUs) to the public is known as disinvestment.     
 
Policy of NAVARATANAS - The government has decided to give special treatment to some of the important profit making public sector undertakings and they were given the status of Navaratans. The Navaratans were granted financial and operational autonomy in the working of the companies.     
                                              GLOBLISATION

Meaning: Globalization means the integration of economy worldwide through trade, financial flows, and technology spillover and information networks.
            Globalization refers to the growing economic interdependence of countries worldwide through the cross border transaction in goods and services and international capital flows and also through the more rapid and wide spread diffusion of technology.
In short globalization means the unification of integration of domestic economy with the rest of the world through trade capital and technology flows.
Components of Globalization
  1. Reduction of trade barriers so as to permit free flow of goods that flows national; frontier.
  2. Free of capital among nation states that means no restriction on foreign investment.
  3. Free flow of technology
  4. Free movement of labour among different countries of the world.              

Out Sourcing - Out Sourcing implies obtaining goods and services by contract from outside source especially with the growth of information technology. Out Sourcing has acquired an international dimensions and it has intensified in recent time. The main services which are being Out Sourced from India by developed countries are voice based business (process known as BPO), banking services, railway enquiry, record keeping, accountancy, music recording, bank transactions, chemical advices and teaching etc. the cost for these services in developing countries are much less than in the developed countries. Therefore it is more profitable for developed countries to contract these services from developing countries like India. India has become an important destination for global outsourcing because of low wage rates and availability of vast skilled manpower.
                Development Experiences of China

Economy: China is the second largest economy of the world. After the establishment of People’s Republic of China under one party rule, all the critical sectors of the economy, enterprises and lands owned and operated by individuals, were brought under government control.


Development Strategies of China:
1.      A programme named ‘The Great Leap Forward’ campaign was initiated in 1958, which aimed at industrializing the country on a massive scale. Under this programme, people were encouraged to set up industries in their backyard.
2.      In 1965, Mao introduced the Grate Proletarian Cultural Revolution (1966-76), under which students and professionals were sent to work and learn from the countryside.
3.      In rural areas, communes were started, under which people collectively cultivated lands.

History of Reforms: The present day fast industrial growth in China can be traced back to the reforms introduced in phases in 1978. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. In agriculture, commune lands were divided into small plots which were allocated for use to individual households. They were allowed to keep all income from the land after paying stipulated taxes.
                        In the later phase, reforms were initiated in the industrial sector. Private firms were allowed to produce goods. As a result public sector enterprises (PSUs) had to face competition from such private sector. The reform process also involved dual pricing, under which farmers and industrial units had to buy and sell fixed quantities of inputs and outputs at price fixed by the government and rest were purchased and sold at market prices. In order to attract foreign investors, special economic zones (SEZs) were set up.
In June 1990 the People Republic of China / PRC government opened the Pudong New Area in Shanghai to overseas investment, and additional cities along the Yangtze River valley, with Shanghai's Pudong New Area as its "dragon head."Since 1992, the State Council has opened a number of border cities, and in addition, opened all the capital cities of inland provinces and autonomous regions.
In addition, 15 free trade zones, 32 state-level economic and technological development zones, and 53 new and high-tech industrial development zones have been established in large and medium-sized cities. As these open areas adopt different preferential policies, they play the dual roles of "windows" in developing the foreign-oriented economy, generating foreign exchanges through exporting products and importing advanced technologies and of "radiators" in accelerating inland economic development.
Primarily geared to exporting processed goods, the five special economic zones are foreign-oriented areas which integrate science and industry with trade, and benefit from preferential policies and special managerial systems. In 1999, Shenzhen's new-and high-tech industry became one with best prospects, and the output value of new-and high-tech products reached 81.98 billion yuan, making up 40.5% of the city's total industrial output value.
Since its founding in 1992, the Shanghai Pudong New Zone has made great progress in both absorbing foreign capital and accelerating the economic development of the Yangtze River valley. The state has extended special preferential policies to the Pudong New Zone that are not yet enjoyed by the special economic zones. For instance, in addition to the preferential policies of reducing or eliminating Customs duties and income tax common to the economic and technological development zones, the state also permits the zone to allow foreign business people to open financial institutions and run tertiary industries. In addition, the state has given Shanghai permission to set up a stock exchange, expand its examination and approval authority over investments and allow foreign-funded banks to engage in RMB business.
In 1999, the GDP of the Pudong New Zone came to 80 billion yuan, and the total industrial output value, 145 billion yuan.
In May 2010, the PRC designated the city of Kashgar in Xinjiang a SEZ. Kashgar's annual growth rate was 17.4 percent from 2009, and Kashgar's designation has since increased tourism and real estate prices in the city. Kashgar is close to China's border with the independent states of former Soviet Central Asia and the SEZ seeks to capitalize on international trade links between China and those states.

Development Experiences of Pakistan

Economy: Pakistan followed the mixed economic system with co-existence of public and private sectors. In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework for growth of domestic industries. In the case of agriculture, the introduction of Green Revolution and increase in public investment led to rise in the production of food grains.
            In the 1970s, capital goods industries were nationalized. But in the late 1970s, these industries were again denationalized. In the late 1970s and 1980s, encouragement was given to increase the role of private sector through various incentives. During this period, Pakistan also received financial support from western nations, which helped the country in motivating economic growth.
   Since the beginning of 2008, Pakistan's economic outlook has taken stagnation. Security concerns stemming from the nation's role in the War on Terror have created great instability and led to a decline in FDI from a height of approximately $8 bn to $3.5bn for the current fiscal year. Concurrently, the insurgency has forced massive capital flight from Pakistan to the Gulf. Combined with high global commodity prices, the dual impact has shocked Pakistan's economy, with gaping trade deficits, high inflation and a crash in the value of the Rupee, which has fallen from 60-1 USD to over 80-1 USD in a few months. For the first time in years, it may have to seek external funding as Balance of Payments support. Consequently, S&P lowered Pakistan’s foreign currency debt rating to CCC-plus from B, just several notches above a level that would indicate default. Pakistan’s local currency debt rating was lowered to B-minus from BB-minus. Credit agency Moody’s Investors Service cut its outlook on Pakistan’s debt to negative from stable due to political uncertainty, though it maintained the country’s rating at B2.The cost of protection against a default in Pakistan’s sovereign debt trades at 1,800 basis points, according to its five year credit default swap, a level that indicates investors believe the country is already in or will soon be in default. The middle term however may be less turbulent, depending on the political environment. The EIU estimates that inflation should drop back to single digits in 2010, and that growth should pick up to over 5% per annum by 2011. Although less than the previous 5 year average of 7%, it would represent an overcoming of the present crisis wherein growth is a mere 3.5-4%
Economic comparison of Pakistan
Since 2009 onwards Pakistan is facing economic crisis due to ITS ISI /TERRORIST ORGANIZATIONS & Curtail of
Resources & aid by peace loving countries.
Year
Gross Domestic Product
US Dollar Exchange
Inflation Index
(2000=100)
Per Capita Income
(as % of USA)
1960
20,058
4.76 Pakistani Rupees
3.37
1965
31,740
4.76 Pakistani Rupees
3.40
1970
51,355
4.76 Pakistani Rupees
3.26
1975
131,330
9.91 Pakistani Rupees
2.36
1978
283,460
9.97 Pakistani Rupees
21
2.83
1985
569,114
16.28 Pakistani Rupees
30
2.07
1990
1,029,093
21.41 Pakistani Rupees
41
1.92
1995
2,268,461
30.62 Pakistani Rupees
68
2.16
2000
3,826,111
51.64 Pakistani Rupees
100
1.54
2005
6,581,103
59.86 Pakistani Rupees
126
1.71
Indicator
1999
2007
2008
2009
GDP
$ 75 billion
$ 160 billion
$ 170 billion
$ 185 billion
GDP Purchasing Power Parity (PPP)
$ 270 billion
$ 475.5 billion
$ 504 billion
$ 545.6 billion
GDP per Capita Income
$ 450
$ 925
$1085
$1250
Revenue collection
Rs. 305 billion
Rs. 708 billion
Rs. 990 billion
Rs. 1.05 trillion
Foreign reserves
$ 1.96 billion
$ 16.4 billion
$ 8.89 billion
$ 14 billion
Exports
$ 7.5 billion
$ 18.5 billion
$ 19.22 billion
$ 18.45 billion
Textile Exports
$ 5.5 billion
$ 11.2 billion
-
-
KHI stock exchange (100-Index)
$ 5 billion at 700 points
$ 75 billion at 14,000 points
$ 46 billion at 9,300 points
$ 26.5 billion at 9,000 points
Foreign Direct Investment
$ 1 billion
$ 8.4 billion
$ 5.19 billion
$ 4.6 billion
External Debt & Liabilities
$ 39 billion
$ 40.17 billion
$ 45.9 billion
$ 50.1 billion
Poverty level
34%
24%
-
-
Literacy rate
45%
53%
-
-
Development programs
Rs. 80 billion
Rs. 520 billion
Rs. 549.7 billion
Rs. 621 billion



Comparative Study of Indo- Pak- China 

  1. Demographic Indicators:
(iv)             Population – China is the most populated country in the world with 1,303.7 million people and India is the second most populated country with 1,103.6 million people. As compared to China and India, population of Pakistan is very less (162.4 million people)
(v)               Growth Rate of Population – Though China is the most populated country, but its annual growth rate of population is lowest (1%) as compared to India (1.7%) and Pakistan (2.5%)
(vi)             Density of Population – Density of population of China is the lowest (138 persons per sq. km) as compared to India (358 persons per sq. km) and Pakistan (193 persons per sq. km).
(vii)           Sex Ratio – due to preference of son, sex ratio is low and biased against females in all the three countries. Sex ratio is lowest in Pakistan with 922 females per 1,000 males. In India and China, the corresponding figures are 933 and 937.
(viii)         Fertility Rate – Fertility Rate is calculated as the number of children borne by a woman in the reproductive age (15-45 years) on an average. The fertility rate in China has fallen from over 3 births per women in 1980 to approximately 1.8 births. Fertility rate is highest in Pakistan at 5.1 births per women and India comes second with 3 births per women.
(ix)             Urbanization – Urbanisaion is high in both Pakistan (33.4%) and China (36.1%). In India, only 28% of its people live in urban areas.

2.      Growth Indicators:
(i)           Growth Rate of Gross Domestic Product (GDP) – China with second largest GDP, as measured purchasing power parity (PPP), is estimated to be of $7.2 trillion. India’s GDP at (PPP) is $ 3.3 trillion and Pakistan’s GDP is roughly about 10 % of India’s GDP.
                        In 1980s, China was having double-digit growth rate of 10.3%, while for Pakistan’s and India; the corresponding figures were 6.3% and 5.7%. In 1990s, China was having growth rate of 9.7%, while for Pakistan’s and India; the corresponding figures were 3.6% and 5.8%.


(ii)         Sectoral Contribution – The sectoral contribution in GDP in all the three countries in 2003 were as follows:

Sector
Contribution to GDP (2003)
India
China
Pakistan
Agriculture
Industry
Service
23
26
51
15
53
32
23
23
54
Total
100
100
100

3.      Human Development Indicators – Human development index (HDI) is an important indicator to study human development. Higher value of HDI shows higher level of growth and development of a country. In 2003, HDI for India, China and Pakistan was estimated to be 0.602, 0.755 and 0.527 respectively. Some selected indicators of HDI for comparison are as follows:
(i)                 Life Expectancy at Birth – Life expectancy to the average number of years for which people are expected to live. China has the highest life expectancy of 71.6 years. India and Pakistan have the life expectancy of 63.3 and 63 years respectively.
(ii)               Infant Mortality Rate (IMR) – Infant Mortality Rate refers to number of infants dying before reaching one year of age per 1,000 live births in a year. IMR is lowest in China with 30 infants and highest in Pakistan with 81 infants. IMR in India is 63.
(iii)             Adult Literacy Rate – Adult literacy rate refers to the ratio of literate adult population to the total adult population in a country. It is 90.0 % in China, 61 % in India and 48.7 % in Pakistan.
(iv)             People Below Poverty Line – In Pakistan and China, people below poverty line are 13.4 % and 16.6 % respectively. Where as in India it is 26 % in 2000.
(v)               Maternal Mortality Rate – In China, for one lakh births, only 50 women die, where as in India and Pakistan, maternal mortality rate is 540 and 500 respectively.
(vi)             GDP per Capita – In 2003, China’s GDP per capita was estimated to be US $5003, while it was just US $2892 for India and US $2097 for Pakistan.


Similarities of Development Path of Indo- Pak- China 

1.      All the three nations started their development path at the same time. India and Pakistan got independence in 1947 and People’s Republic of China was established in 1949.
2.      All the three countries had started planning their development strategies in similar ways. India announced its first five year plan 1951, Pakistan announced in 1956 and China in 1953.
3.      India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development.
4.      Till 1980s, all the three countries had similar growth rates and per capita income.

Conclusion: In conclusion it can be said that these three countries have had more than five decades of development planning. The results have been different for all of them. They had almost similar level of development till the late 70’s. But during the last three decades, the results have been quite different. India is a democratic country with very strong institutional organs. Its performance can be called moderate.
                        So far as Pakistan is concerned, scholars point out various problems like political instability, dependence on foreign remittances and huge foreign aid, particularly from USA. Agriculture sector does not perform consistently. All these reasons account for the slow-down of the Pakistan economy.
                        China is widely seen as a country without political freedom. Its human rights record is not that straight. But in the last three decades, it has adapted itself to the market economy without much compromising its political standpoint. It has succeeded in raising the level of growth and removing poverty. Whereas India and Pakistan have tried to privatize their public sector enterprises, china has gone in its own way to create more social and economic opportunities. It tried to provide social security in the villages. It has focused on providing social infrastructure before initiating reforms. This approach has shown positive results which are also reflected in the human development indicators.



1 comment:

  1. Thank you for the good writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how can we communicate? Also see my page :: study in china

    ReplyDelete