Ch- 14 Development experience of India,

china and Pakistan

Q1. What were the similarities in the development strategies of India, china and
Pakistan?
1. All the three started towards their developmental path at the same time. While India
and Pakistan became independent in 1947, republic of china was established in 1949.
2. All the three countries started planning their development strategies in similar ways.
While India announced its first five year plan for 1951-56, Pakistan announced its first
five year plan, called the medium term plan, in 1956. China announced its first five
year plan in 1953.
3. Economic reforms took place in all the three countries. Reforms started in India in
1991, In China in 1978, and in Pakistan in 1988.
4. All the three countries have similar physical endowments.
Q2. What were the differences in the development strategies of India, china and
Pakistan?
1. India has the largest democracy of the world. Pakistan has authoritarian militarist
political power structure. China has communist single party regime.
2. Both India and Pakistan followed a mixed economic approach. Both countries created
a large public sector and plan to raise public expenditure on social development. On
the other hand, china followed approach where the government has a central role in
all decisions that are made and the emphasis is on centralization.

Q3. Explain the development strategy of China?

1. The Great leap Forward (GLF) - The people’s republic of china came into being in 1949.
There is only one party i.e. the communist party of china that holds the power there.
All the sectors of economy including various enterprises and all land owned by
individual was brought under governmental control. A program called The Great leap
Forward was launched in 1958. Its aim was to industrialize the country on a large scale
and in as short time as possible. For this people were even encouraged to setup
industries in their backyards. In villages, village communes or cooperatives are setup.

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 Communes means collective cultivation of land. Around 26000communes covered
almost all the farm population in 1958. The great leap forward program faced many
problems, these were-
● In the earlier phase a severe drought occurred in China and it killed some three
crore people.
● Soviet Russia was a comrade to communist China but they had border dispute.
As a result, Russia withdrew its professionals who had been helping China in
Industrialisation.
2. The Great Proletarian Cultural revolution- In 1966, Mao Tse Tung Started a cultural
revolution on a large scale, Its aim was to weed out people opposed to the communist
ideology.In this revolution students and professional were sent to work in the country
side. This revolution resulted in many hardships for the people. A large number of
people were also massacred.
3. Reforms in 1978- Starting in 1978, Several reforms were introduced in phases in China.
First, agriculture, foreigh trade and investment sector were taken up. Commune lands
were divided into small plots. These were allotted to individual households for
cultivation. However, they were not given ownership rights on these farms. They could
keep income from these land after paying taxes.The reforms were expanded to
industrial sector. Private firms were allowed to setup manufacturing units. Also local
collective could produce goods.
This kind of reform in China brought in the necessity of Dual pricing. This meant that the
farmers and Industrial unit were to buy and sale fixed quantities of raw material and
products on the basis of prices fixed by the government.
Special economic Zones(SEZ) were setup in China to attract foreign investors. A Special
Economic Zone Is a geographical region that has economic laws different from a
country’s typical economic law.

Q4. Explain the development strategy of Pakistan.

1. Pakistan followed a mixed economic system wgere both public and private sector co-
existed .
2. In the late 1950’s and 1960s Pakistan introduced a variety of regulated policy
framework. The policy combined tariff protection for manufacturing of consumer
goods together with direct import controls on competing imports.
3. The introduction of green revolution led to mechanization of agriculture.It finally led
to a rise in the protection of foodgrains. This change the agrarian structure
dramatically.
4. In the 1970s nationalization of capital goods industries took place.
5. In 1988 Structural reforms were introduced. The thrust area were denationalization
and encouragement to private sector.

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 6. Pakistan received financial support from western nation and remittances from
emigrants to the middle east. It helped in raising economic growth of the country.

Q5. Compare the GDP Growth rate Of India, China and Pakistan.
1. After Independence in 1947, India and Pakistan embarked upon plan development
programs. They relied largely on Public sector to spearhead the process of growth and
development. China adopted a more Rigorous Model of growth. China adopted
‘statism’ a model of growth in which ownership of all resources vested with the state,
and the state was to decide what to produce, how to produce and for whom to
produce.
2. Till about 1980, the economy of India, China and Pakistan did not show much
divergence in the GDP growth rate. They were growing similarly and at a slow pace.
Their GDP growth rate was around 4% per annum.
3. It was around early 1980s in China, mid 80s in Pakistan and early90s in India that a
breakthrough in GDP growth was achieved. In all the three countries GDP growth rate
showed a substantial rise, moving around 8-9% per annum.
4. The breakthrough in economic growth is attributed to economic reforms in terms of
greater reliance on FDI and a greater leaning towards market economy.

Q6. Compare the Structure of growth of India, China and Pakistan.

1. All the three countries have experienced a noticeable structural transformation. No
longer primary sector is the principal contributor to GDP.
2. In terms of the sectoral contribution to GDP, economy of India and Pakistan are now
relying more on tertiary sector. While the economy of china is relying more on
secondary sector. Experience of China in this respect is like the experience of most
developed nations in the world.
3. In terms of employment the shift from primary to secondary and tertiary sector has
not been so significant in India as compared to China and Pakistan. India has virtually
failed in this respect. People here have struck to primary activities, despite a
substantial reduction in percentage contribution of this sector to GDP.

Q7. Compare the demographic profile of India, China and Pakistan.

.India with more than 1.2 billion people is habitat for nearly 16% of the world’s population.
China with nearly 1.34 billion people is a habitat for nearly 20% of the world’s population.
Together India and China are a habitat for nearly 36% of the world’s population. In
comparison, Pakistan is a small country. Its population is just 1/10th of China or India.
. Both for India and China large size of population is a hindrance in the process of growth, as it
requires a huge amount of maintenance investment.

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 . ‘One Child Policy’ adopted by China in 1979has been very successfully pursued. Consequently
growth rate of population which was nearly 1.33% in 1979 has now been reduced to
0.47% per annum. Growth rate of population continues to be fairly high in
India (1.7%) and alarmingly high in Pakistan (1.8%).
. Fertility rate is also very low in China, compared to India and Pakistan. Low fertility rate is
check on the growth rate of population.
. Low density of population has been of great advantage to China compared with India and
Pakistan. Large geographical area of China has kept the density of population to a low
level despite its large size of population. It is 142 persons per square kilometer of area
compared to 382 and 225 persons in India and Pakistan.
. Both China and Pakistan are showing brighter sign of urbanization than India. In India 31.2%
of population is urbanized compare with 51.3% in China and 37.2% in Pakistan.
. Sex Ratio is found to be biased against female in all the three countries. It is estimated to be
940, 950, and 952 for India, China and Pakistan. Low sex ratio points to social
backwardness.

Q8. What are the common successes shared by India and Pakistan?
❖ Both India and Pakistan have succeeded in more than doubling their per capita
income. This is a remarkable achievement considering that population Pakistan
increased fourfold and that of India has increased threefold.
❖ The incidence of absolute poverty has also been reduced significantly although the
number of poor below poverty line remains very high.
❖ Food production has successfully kept pace with the rise in population. Both countries
are self sufficient in food.
❖ Food self sufficiency has been accompanied with improved nutritional status. Daily
calorie intake and protein intake has risen by one-third.
❖ A well developed modern sector has found global recognition in both the countries.

Q9. What are the common failures of India and Pakistan?

❖ The relatively inward looking economic policies and high protection to domestic
industry did not allow India and Pakistan to take timely advantage of globalization.
❖ The mindset of the politicians and bureaucrats did not show a progressive change.
Control continues to be preferred option rather than freedom of choice to consumer
and producer.
❖ In terms of fiscal management, the record of both the countries is disappointing.
Higher fiscal deficit averaging about 7-8% of GDP has persisted for fairly long period
of time.
❖ Deficient urban services in both countries are a big hurdle in their process of growth
and development.

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 ❖ In both the countries the politicians are yet to provide a sincere and a strong
leadership focusing on social rather than political gains.

Q10. What are the areas where India has performed better than Pakistan?
❖ In the area of skilled manpower and research and development institution, India is
better place than Pakistan. India has shown a breakthrough in the export of software
after economic reforms of 1991.
❖ Indian scientists excel in the areas of defence equipments, space research, electronics
and aeronotics etc. The number of PhDs produced by India in science and engineering
every year is higher than the entire stock of Ph.ds in Pakistan.
❖ India also has better record of investment in education. The adult literacy rate, female
literacy rate, gross enrollment ratio have tended to increase much faster in India than
in Pakistan.
❖ Issue of heath facilities in general and infant mortality rate in particular are better
addressed in India. Accordingly, the overall picture of social indicator is found to be
much better in India.

Q11. What are the areas where Pakistan have edge over India?
❖ Pakistan achieved better results with regard to migration of workforce from
agriculture to industry, migration of people from rural to urban areas, access to
improved water sources and reduction in below poverty line.
❖ External trade has expanded much faster in Pakistan than in India. The trade GDP ratio
in Pakistan is twice that of India. In fact in the area of external trade Pakistan have
performed better than all south-asian countries.
❖ Although the rate of investment have been lower than in India , efficiency of
investment has been higher.

Q12. What are the areas where China has performed better than India?
❖ Rural poverty in China declined by 85% during the period 1978 to 1989, In India it
declined by only 50% during this period.
❖ Restructuring of Chinese agriculture went a long way. Thos brought about a structural
transformation in agriculture. In India agricultural reforms are still limping.
❖ Global exposure of the economy has been far more wider in China than in India. China
allowed foreign investor 100% equity investment. It also offered them a lucrative
infrastructure. Besides, china was liberal in allowing FDI in retail. India lagged behind
in all these aspects.
❖ China is emerging to be 2nd largest economy in the world while India is lagging way
behind. China’s export driven manufacturing has recorded an exponential growth
while India continues to be only a marginal player in international market.

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