Compare Development Experiences of india pak china Term 2 FULL SPCC_8f5e113e-e159-4ce6-a53d-531e75c1a81a.pptx

Compare Development Experiences of
India and its Neighbours.
SUNIL PANDA COMMERCE CLASSES

AKHAND BHARAT
INDIA
PAKISTAN
BANGLADESH
NEPAL
BHUTAN
TIBET
SRILANKA
MYANMAR

Comparative development of India and its neighbours is an important
knowledge to possess as an Indian citizen. As a rational citizen of a
country, it is important to have a deep understanding of the
developments in your country as well as your neighbouring countries. This
understanding enables comparison of strengths and weaknesses of yours
as well as the neighbouring countries. Hence, it is important to study the
comparative development of India and its neighbours. India, Pakistan and
China are neighbouring countries. All these countries are sharing boarder
to each other. All these countries India, Pakistan and China began towards
their economic development at the same time. In addition, India and
Pakistan attained independence in the year 1947. However, China was an
independent economy in the year 1949 and soon began working on
raising public expenditure on social development.

In the post-cold war* world, nations have been primarily trying to adopt
various means which will strengthen their own domestic economies. To
this effect, they are also forming various regional and global economic
groupings such as SAARC, European Union, ASEAN, G-8, G-20, BRICS,
etc.
*Cold war was a period (1947-1991) of geopolitical tension between
the Soviet Union with its satellite states, and the United States with its
allies after World War-II.
The history of the conflict began between 1946 and 1947
World war I (1949- 1918)
World war II (1939- 1945)

CHINA
China, officially the people’s Republic of China, is a country in East
Asia and is the World’s most populous country, with a population of
around 1.428 billion in 2017. It is the third largest country by area.
It was established in 1949 (1st October)
It’s official language is Mandarin.
More than 70% of the Chinese population speaks Mandarin

China Economy
China is one of the oldest civilization in the world, China has been
the world’s largest economy. After the establishment of people’s
republic of China under one-party rule, all the critical sectors of the
economy, enterprises and land owned and operated by individuals,
were brought under government control.

1. Great Leap Forward (GLF) Campaign: The great leap forward campaign
was a five-year plan of forced agricultural collectivization and rural
industrialization that was initiated by Mao to modernise China’s economy
in 1958. 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. Under the commune system,
people collectively cultivated lands.
→ In 1958 there were 26,000 communes, covering almost all the farm
population.
→ GLF campaign met with many problems about 30 to 55 million deaths
by starvation, execution, torture, forced Labour and suicide out of
depression.

Four pest Campaign (1947)

2. Great Proletarian Cultural Revolution: In 1965, Mao introduced the
Great Proletarian Cultural Revolution (1966-76), Its aim was to weed out
people who opposed to the communist ideology. under which students
and professionals were sent to work and learn from the country side.
However, when Russia had conflicts with China, it withdrew its
professionals, who had earlier been sent to China to help in the
industrialisation process

Died on 9 September 1976

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.
→ Initial Phase, reforms were initiated in agriculture, foreign trade and
investment sectors.
• In agriculture, commune lands were divided into small plots which were
allocated (only for use and not as ownership) to the individual households.
• They were allocated to keep all income from the land after paying stipulated
taxes.
→ In the later Phase, reforms were initiated in the industrial sector.
•Private sector firms, township and village enterprises (enterprises which
were owned and operated by local collectives) were allowed to produce
goods.
• At this stage, enterprises owned by government (known as state owned
enterprises or SOEs), were made to face competition

4.Dual pricing in the reforms process: The reform process also involved
duel pricing. This means fixing the prices in two ways.
→ Farmers and industrial units were required to buy and sell quantities
of inputs and outputs on the basis of prices fixed by the government.
→ For other transactions, the inputs and outputs were purchased and
sold at market prices.
5.Special Economic Zones (SEZ): In order to attract foreign investors,
special economic zones were set up

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Compare Development
Experiences of
India and its Neighbours.

PAKISTAN
Pakistan, officially the Islamic republic of Pakistan, is a country in
South Asia. It is the world’s fifth-most populous country with a
population exceeding 212.7 million people, gained independence
on 14 August 1947. In 1971, a Civil War in East Pakistan resulted in
the independence of Bangladesh. It is the 33rd largest country.
Its history has been characterized by periods of economic growth,
military rule and political Instablity. It has the second largest
Muslim population in the world after Indonesia. The national
language is Urdu and English is the official language.

Pakistan Economy
1. Mixed Economic System: Pakistan follows the mixed economy
model with co-existence of public and private sectors.
2. Importance to role of public sector in early 1970s: In the early
1970s, nationalization of capital goods industries took place.
3. Importance to role of private sector in late 1970s: In the late
1970s, there was a shift in the government policy, when it
adopted the policy of Denationalisation. Government
encouraged the private sector and also offered various
incentives to them. All this created a conductive climate for new
investments

It is estimated that
members of the Pakistani
military and supporting pro
Pakistani Islamist militias
killed between 300,000 and
3,000,000 civilians in
Bangladesh. As a result of
the conflict, a further eight
to ten million people fled
the country to seek refuge
in India.

Sheikh Mujibur Rahman vs Pakistan people party
SUNIL PANDA COM

4. Financial support during late 1970s: During this period, Pakistan also
received financial support from:
(i) Western nations; and
(ii)remittances from emigrants to the middle-east. This helped the
country in stimulating economic growth.
5. Green revolution: In case of agriculture, the introduction of green
revolution and increase in public investment in infrastructure led to a
rise in the production of food grains.
This changed the agrarian economy structure.

Compare Development
Experiences of
India and its Neighbours

Comparative Study - India, China and Pakistan
The overall development of these 3 economies are broadly
classified into demographic indicators, gross domestic products,
sectorial contributions and human development indicators.
We shall now comparatively analyze the development of India,
Pakistan and China

Demographic Indicators

GDP Growth Rate
When the economy is expanding, the GDP growth rate is positive. If
it’s growing, it shows more income generation in the economy. if it
is negative, then the country’s economy is in a recession. China
with second largest GDP, as measured by purchasing power parity
(PPP) is estimated to be 19.8 trillion dollar. India’s GDP (PPP) is 8.07
trillion and Pakistan’s GDP is about 12% of India’s GDP

(Purchasing power parity (PPP): It is an economic theory that allows the
comparison of the purchasing power of various world currencies to one
another. It is a theoretical exchange rate that allows you to buy the
same amount of goods and services in every country. PPP comparisons
are done by world bank in 2017, PPP, (US-India) was $1 = ₹ 17.73.
US dollar is the universally accepted currency. Therefore, GDP of
different countries are expressed in US dollars and called PPP ‘US $’).

Sectoral Contribution
In all the three economies, the industry and service sectors have
less proportion of workforce, but they contribute more in terms of
output.

HUMAN DEVELOPMENT INDICATORS

• Liberty indicators: These are those indicators which represents
the degree of civil and political freedom to individuals in a
country. Examples: Extent of democratic participation in social
and political decision making, the extent of constitutional
protection of the independence of the judiciary and the rule of
law etc. Human development index may be said to be incomplete
unless such indicators are included.

APPRAISAL OF DEVELOPMENT STRATEGIES
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 Reforms Period
• 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, collectivisation, the Great Leap
Forward and other initiatives, the per capita grain output in 1978
was the same as it was in the mid 1950s. In 1978, the then
Government of China was not satisfied with the slow pace of
economy and lack of modernisation under the Maoist rule. They
felt that Maoist vision of economic development had failed. As a
result, a number of reform measures were introduced in 1978

Post Reforms Period
• Each reform measure 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 (handing over plots of land to individuals for
cultivation) brought prosperity to a vast number of poor people. It
created conditions for the subsequent phenomenal growth in rural
industries and built up a strong support base for more reforms.

Pakistan
In Pakistan, the reform process led to worsening of all the
economic indicators. As compared to 1980s, the growth rate of
GDP and its sectoral constituents decreased in 1990s. The
proportion of poor in 1960s was more than 40 per cent which
declined to 25 per cent in 1980s and started rising again in 1990s.
The reason for the slow-down of growth and re-emergence of
poverty in Pakistan’s economy are:
• Agricultural growth and food supply situation was based on good
harvest and not on institutionalized process of technical change.
When there was a good harvest, the economy was in good
condition, when it was not , the economic indicators showed
stagnation or negative trends.

•Foreign exchange is an essential component for any country and it is
always preferred to build foreign exchange reserves through exports of
manufactured goods. However, in Pakistan, most of the foreign exchange
earnings came from remittances from Pakistani workers in the Middleeast
and the exports of highly volatile agricultural products.
•There was growing dependence on foreign loans on the one hand and
increasing difficulty in paying back the loans on the other. However, during
the last few years, Pakistan has recovered its economic growth and has
been sustaining. As per Annual Plan of 2016-17, GDP registered a growth
of 4.7% in 2015-16, highest when compared to the previous eight years.
While agriculture recorded growth rate far from satisfactory level,
industrial and service sectors grew at 6.8% and 5.7% respectively. Many
macroeconomic indicators also began to show stable and positive trends.

Conclusions
• India, China and Pakistan have travelled more than five decades of
developmental path with varied results. Till the late 1970s, all of
them were maintaining the same level of low development. The
last three decades have taken these countries to different levels.

India
• Indian economy performed moderately, but majority of its
people still depend on agriculture.
• Infrastructure is lacking in many parts of the country.
• It is yet to raise the standard of living of more than one-fourth of
its population that lives below the poverty line

Pakistan
•Political instability, over-dependence on remittances and foreign
aid along with volatile performance of agriculture sector are the
reasons for the slowdown of the Pakistan economy.
• In the recent past, it is hoping to improve the situation by
maintaining high rates of GDP growth.
• Many macroeconomic indicators began showing positive and
higher growth rates reflecting the economic recovery

China
• In China, the lack of political freedom and its implications for human
rights are major concerns.
• However, in the last three decades, it used the ‘market system
without losing political commitment’ and succeeded in raising the level
of growth alongwith alleviation of poverty.
• China has used the market mechanism to create additional social and
economic opportunities.
• By retaining collective ownership of land and allowing individuals to
cultivate lands China has ensured social security in rural areas.
• Public intervention in providing social infrastructure brought positive
results in human development indicators in China

Compare Development Experiences of india pak china Term 2 FULL SPCC_8f5e113e-e159-4ce6-a53d-531e75c1a81a.pptx

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Compare Development Experiences of india pak china Term 2 FULL SPCC_8f5e113e-e159-4ce6-a53d-531e75c1a81a.pptx