brief discussion about the Chinas economy and its past.

1. COMPARATIVE DEVELOPMENT
EXPERIENCES OF INDIA AND ITS
NEIGHBOURINGS….
DEVELOPMENT OF CHINA…
NAME: AKANKSHYA NAYAK

2. INTRODUCTION:
In the post cold war world, nations have been primarily trying to adopt
various means which will strengthen their domestic economies. To this
effect, they are also forming various regional and global economies. To this
effect, they are also forming various regional and global economic
groupings such as SAARC, G-20 and BRICS.
Moreover, various nations are also trying to understand the developmental
processes pursed by their neighboring countries as it allows them to
realize their own strengths and weakness in comparison to their neighbors.
In the process of globalization the developing countries are facing
competition not only from developed nations but also from other
developing nations. So, an understanding of the other economies in our
neighbouring is required.
This Photo by Unknown Author is licensed
under CC BY-NC

3. 1. HISTORICAL BACKGROUND:
China's history is rich with art, politics, science, and philosophy. It is home to the oldest of the major world
civilizations.
China was ruled by various dynasties for much of its history. The first dynasty is believed to be the Xia dynasty
which formed somewhere around 2250 BC. The Shang or Yin dynasty gained power around the 14th century BC.
The Han Dynasty, which lasted over 400 years from 206 BC to 220 AD, was one of the most influential in China's
history. Much of the culture today was created during the Han Dynasty. Later famous dynasties, like the Song
and the Tang, continued to refine the culture and bring new innovations to the world including printed money, a
permanent navy, and a complex government that ruled over 100 million people.
This Photo by Unknown Author is licensed under CC BY

4.  .
The Chinese Civil War broke out between the KMT and the communists. A new leader, Mao
Zedong took over the communists and led the CCP on a famous "Long March" to a distant
area of China. There they regrouped and eventually gained the strength to force Chiang Kai-
shek out of China and to the island of Taiwan. Mao Zedong established the Peoples Republic
of China on October 1, 1949. This new government was strongly allied with the Soviet Union
and modelled its government after Soviet communism.
In 1958, Mao Zedong embarked on a new plan called the Great Leap Forward. Unfortunately,
this plan backfired and China experienced a terrible famine including much starvation and
death. Over the next several decades China would struggle with political reforms and economic
policy, slowly recovering and becoming a major world power again. Today, China is a major
world power and the second largest economy in the world..
“The Great Wall of China”

5. 2.GEOGRAPHY:
Stretching 3,100 miles (5,000 kilometres) from east to west and 3,400 miles (5,500 kilometres)
from north to south, China is a large country with widely varying landscapes. Its territory includes
mountains, high plateaus, sandy deserts, and dense forests.
One-third of China's land area is made up of mountains. The tallest mountain on Earth, Mount
Everest, sits on the border between China and Nepal.
China has thousands of rivers. The Yangtze and the Yellow Rivers are the most important. At 3,915
miles (6,300 kilometres) long, the Yangtze is the world's third largest river.

6. 3. PEOPLE & CULTURE :
With a population of 1.4 billion, China has more people than any
other country on Earth. About a third of the population lives in
cities. The rest of the people live in the country.
Arts and crafts have a long history in China. Thousands of years
ago the Chinese were some of the first people to use silk, jade,
bronze, wood, and paper to make art. The artistic writing called
calligraphy was invented in China.
Much of China's modern beliefs and philosophies are based on
the teachings of a government official who lived nearly 3,000
years ago. Kongfuzi, also known as Confucius, taught people the
value of such things as morality, kindness, and education.

7. 4.GOVERNMENT & ECONOMY:
China is an authoritarian state ruled by a very powerful central government.
A huge workforce and lots of natural resources have driven economic
change. This has forced the communist government to permit more
economic and personal freedoms, but it has come at a huge cost to the
environment’s.
Many experts predict that the 21st century will be the "Chinese century."
Whether or not that proves to be true, there is no doubt that what happens
in China will affect many other nations.

8. ECONOMY:
Being one of the oldest civilizations in the world,
China has been the worlds largest economy. After
the establishment of peoples 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.

9. 1.Great leap forward campaign: in 1958, a programme named “the
great leap forward” campaign was initiated by Mao to modernise
China’s economy.
 The aim of this campaign was to transform agrarian economy into a
modern economy through the process of rapid industrialisation.
 Under this programme, people were encouraged to set up industries
in their backyards.
 In rural areas, ’communes’ were started. Commune is a system of
collective farming under which people were made to cultivate farm
land in China ,i.e. people collectively cultivated lands.
 In 1958, there were 26,000 communes, covering almost all the
farm population.

10. m
 GLF campaign met with many problems. A severe drought caused havoc in China
killing about 30 million people.
2. Great proletarian cultural revolution: in 1965, Mao Zedong introduced the great
proletarian cultural revolution (1966-76), under which students and professionals were
sent to work and learn from the countryside. However, when Russia had conflicts with
China, it withdrew its professionals, who had earlier been sent to China to help in the
industrialialisation process.
3. Reforms Introduced in China: The present day fast industrial growth in China can be
traced back to the reforms introduced in 1978. China introduced reforms in phases.
• IN THE INTIAL PHASE, reforms were initiated in agriculture, foreign trade and
investment sectors.
In agriculture, commune lands were divided into small plots which were allocated to the
individual households.
They were allowed to keep all income from the land after paying stipulated taxes.

11. This Photo by Unknown Author is licensed under CC BY
IN THE LATER PHASE, reforms were initiated in the industrial sector.
 Private sector firms and township and village enterprises were allowed produce goods.
 At this stage, enterprises owned by government, were made to face competition.
4. Dual Pricing in the reform process: The reform process also involved dual pricing. This
means fixing in two ways:
. Farmers and industrial units were required to buy and sell fixed quantities of inputs and
outputs on the basis of prices fixed by the government.
. For others transactions, the inputs and outputs were purchased and sold at market
prices.
5. Special economic Zones: In order to attract foreign investors, special economic zones
were set up.

12. CURRENT SCENARIO OF CHINA’S ECONOMY:
When Xi Jinping came to power a decade ago, China had just overtaken Japan to
become the world’s second largest economy.
It has grown at a phenomenal pace since then. With an average annual growth
rate of 6.7% since 2012, China has seen one of the fastest sustained expansions
for a major economy in history. In 2021, its GDP hit nearly $18 trillion, constituting
18.4% of the global economy, according to the World Bank.
China’s rapid technological advances have also made it a strategic threat to the
United States and its allies. It’s steadily pushing American rivals out of long-held
leadership positions in sectors ranging from 5G technology to artificial intelligence.
Until recently, some economists were predicting that China would become the world’s biggest
economy by 2030, unseating the United States. Now, the situation looks much less promising.
As Xi prepares for his second decade in power, he faces mounting economic challenges, including
an unhappy middle-class. If he is not able to bring the economy back on track, China faces slowing
innovation and productivity, along with rising social discontent.
“For 30 years, China was on a path that gave people great hope,” said Doug Guthrie, the director of
China Initiatives at Arizona State University’s Thunderbird School of Global
Management, adding that the country is “in deep trouble right now.”

13. Economic slowdown and rare dissent
While Xi is one of the most powerful leaders China and its ruling Communist Party have
seen, some experts say that he can’t claim credit for the country’s astonishing progress.
“Xi’s leadership is not causal for China’s economic rise,” said Sonja Opera, a professor
at Bocconi University in Italy who studies China’s economy. “Xi was able to capitalize on
an ongoing entrepreneurial movement and rapid development of a private [sector]
economy prior leaders had unleashed,” she added.
Rather, in recent years, Xi’s policies have caused some massive headaches in China.
A sweeping crackdown by Beijing on the country’s private sector, that began in late
2020, and its unwavering commitment to a zero-Covid policy, have hit the economy and
job market hard.
“If anything, Xi’s leadership may have dampened some of the country’s growth
dynamic,” Opera said.
More than $1 trillion has been wiped off the market value of Alibaba and Tencent — the
crown jewels of China’s tech industry — over the last two years. Sales growth in the
sector has slowed, and tens of thousands of employees have been laid off, leading to
record youth unemployment.

14. China's GDP
China's transformation from a poor country focused on subsistence farming to a
highly industrialized economy with a large services sector brought infrastructure
development, urbanization, rising per capita income, and a big shift in the composition
of its GDP.
Notably, the World Bank now defines China as "an upper-middle-income country."
While China remains a manufacturing powerhouse, it has a large and fast-
growing service sector befitting its newfound wealth. The services sector accounted
for 54.5% of China's GDP by 2020, up from 44.2% a decade earlier. The once
dominant agricultural sector, in contrast , shrank from 9.3% to 7.7% of the country's
GDP over the same span.
The economic reforms of 1978 changed the face of agriculture in China. Previously,
four out of five Chinese worked in agriculture. This changed as property
rights encouraged private farming and fueled the growth of small businesses in rural
areas.
Private farming led to big gains in productivity and output. China is a global supplier of
rice, cotton, pork, fish, wheat, tea, potatoes, corn, peanuts, millet, barley, apples,
cotton, oilseed, pork, fish, and more. Government support and low labor costs help

15. The Industry Sector
The industry sector, which includes manufacturing, construction, mining,
and utilities, accounted for 39.4% of China's GDP in 2021.
The chart below shows the industry sector's share of China’s GDP from
1960 to 2021. The trend is flat until it begins to dip in the 2010s,
reflecting the growth of services. But manufacturing remains a powerful
contributor to China's economy. China is the world leader in industrial
output, including mining and ore processing, processed metals, cement,
coal, chemicals, and fertilizer. It's also a leader in machinery
manufacturing, armaments, textiles, and apparel.
China is also a top manufacturer of consumer products, processed
foods, and telecommunications equipment.
It's a growing supplier of automobiles, trains and related equipment,
ships, aircraft, and space vehicles, including satellites.

16. mm
The Service Sector
China's service sector has doubled its share of economic output over the last
two decades to account for 53.3% of GDP in 2021. It surpassed the industry
sector in 2013.
The service sector includes transportation, storage, and shipping, the
wholesale and retail trades, hotel and catering services, financial services, and
real estate, among others.
Despite its rapid gains, China’s services sector accounts for a much lower
share of GDP than services in the U.S., which amounted to nearly 78% of U.S.
GDP in 2018.
The Bottom Line
China's economy has grown rapidly for decades. The central growth trend has
slowed notably in recent years, however, amid a real estate downturn, a
regulatory crackdown on large privately-owned companies, and a policy
preference for state-owned enterprises. The absence of a social safety net has
fueled private saving and discouraged consumer spending. Lockdowns of

17. APPRAISAL OF DEVELOPMENT STRATEGIES:
Developmental strategies of a country act as a model to others for lessons and guidance for their own
development. In order to learn from economic performance of our neighboring countries, it is necessary to
understand the roots of their success and failures and different phases of their strategies.
Though different countries go through their development phases differently, let us take the initiation of
reforms as a point and India in 1991. Let us briefly assess their achievements and failures in pre and post
reform periods.
CHINA:
China did not have any compulsion to introduce reforms as dictated by the world bank and International
Monetary Fund to India and Pakistan. But some adverse situations of the economy prior to 1978, forced
China to go for reforms.
PRE REFORM PERIODS:
. There had been massive extension of basic health services in rural area.
. Developmental of infrastructural facilities in the areas of education and health, land reforms etc.
. Through the commune system, there was more equitable distribution of food grains.
POST REFORM PERIODS:
• There had been massive extension of basic health services in rural areas.
• Through the commune system, there was more equitable distribution of food grains.
• Despite extensive land reforms, collectivization, the Great Leap Forward and other initiatives, the per
capita grain output in 1978 was the same as it was in the mid 1950’s.

18. In 1978, the then government of China was not satisfied with the slow pace of economy
and lack of modernisation under the Maoist vision of economic development had failed. As
a result, a number of reform measures were introduced in 1978.
POST REFORM PERIOD:
The various reform measures led to rapid growth in China.
• Each reform measures was first implemented at a smaller level and then extended on a
massive scale.
• Development of infrastructural facilities in the areas of education and health, land
reforms, long existence of decentralised planning and existence of small enterprises
helped positively in improving the social and income indicators.
• Agricultural reforms brought prosperity to a vast number of poor people. It created
conditions for the subsequent phenomenal growth in rural industries and build up a
strong support base for more reforms.

19. This Photo by Unknown Author is licensed under CC BY-NC
DEMOGRAPHIC INDICATORS :
1. Population: China is the most populous country in the world with 1,393 million people.
2. Growth rate of population: through, China is the populated county but its annual growth
rate of population is the lowest.
One child policy: one-child policy, official program initiated in the late 1970s and early ’80s by the
central government of China, the purpose of which was to limit the great majority of family units in the country to
one child each. The rationale for implementing the policy was to reduce the growth rate of China’s
enormous population. It was announced in late 2015 that the program was to end in early 2016.
Consequences of China’s one-child policy:
The one-child policy produced consequences beyond the goal of reducing population growth. Most notably, the
country’s overall sex ratio became skewed toward males—roughly between 3 and 4 percent more males than females.
Traditionally, male children (especially firstborn) have been preferred—particularly in rural areas—as sons inherit
the family name and property and are responsible for the care of elderly parents. When most families were restricted
to one child, having a girl became highly undesirable, resulting in a rise in abortions of female foetuses' (made
possible after ultrasound sex determination became available), increases in the number of female children who were
placed in orphanages or were abandoned, and even infanticide of baby girls. (An offshoot of the preference for male
children was that tens of thousands of Chinese girls were adopted by families in the United States and other
countries.) Over time, the gap widened between the number of males and females and, as those children came of age,
it led to a situation in which there were fewer females available for marriage.

20. 3. Density of the population: China is the third largest country in the world and the
growth rate population is lowest in China as compared to India and Pakistan. As a
result, density of population of China is the lowest 148 person per sq.km.
4. Sex ratio: in China the corresponding figure is 949 females per thousand males.
5. Fertility rate: since the introduction of the one child policy, the fertility rate in
China has fallen from over 3 births per women in 1980 to approximately 1.7 births.
6.Urbanization: it is highest in China 59%.

21. This Photo by Unknown Author is licensed under CC BY-NC
Conclusion
China:
• In China, the lack of political freedom and
its implications for human rights are major
concerns.
• However, in the last four decades, it used
the ‘market system without losing political
commitment’ and succeeded in raising the
level of growth along with alleviation of
poverty.