CHAPTER -10: - COMPARATIVE DEVELOPMENT

EXPERIENCES OF INDIA & IT's NEIGHBOURS

OVERVIEW OF THE CHAPTER

(A). INTRODUCTION: - (B). DEVELOPMENT PATHOF

INDIA, CHINA, PAKISTAN: -
I). Trading Blocs & Regional
Associations
I). Similarities
II). Analysis Of Structure of China
& Pakistan
III). Analysis Of Economyof China
IV).Analysis Of Economy of
Pakistan

(C). COMPARATIVE STUDY: -

(D). APPRAISAL OF DEVELOPMENT
I). Demographic Indicators STRATEGIES: -
II). Growth Indicators
II).Sectoral Contribution I). China
IV). Human Development Indicators I|). Pakistan
li). India
IV).Conclusion
(A).INTRODUCTION: -
" In tne process of globalization, the developing countries are facing competition from both developed &other
developing countries.
Various nations tried to understand the processes pursued by their neighbour countries
to realise
development
their own strengths & weakness in comparison to their
neighbours.
" Inthe post-cold war world, nations have formed various groupos for mutual economic &social cooperation
which will strengthen their own domestic
economies.
" VARIOUS REGIONAL ASSOCIATIONS/ TRADING BLocs/ GLOBAL ECONOMIC REFORM: -
NAME FULL FORM No. of MEMBER COUNTRIES
Countries
India, Pakistan,Sri Lanka, Nepal, Neighbour
South Asian Association For Bhutan, Maldives Bangladesh, of India
(1)SAARC
Regional Cooperation Afghanistan

Association of South East Thailand,Singapore, Malaysia,

(2) ASEAN Tourism
10 Cambodia, Laos, Vietnam, etc.
Asian Nations
nations
UK, US, Germany, Japan, Italy,
France, Canada Powerful
(3) G-8 Group of Eight 7
Russia was suspended in 2014 nations

China, India, Brazil, South Africa,

G-8+ emerging powerful
(4) G- 20 20 Argentina, European Union, etc.
nations

Brazil, Russia, India,China, Brazil, Russia, India, China, South

(5) BRICS South Africa 5 Africa

" INDIA ’ The largest democracy of world with a secular &liberal constitution
(has 2 principal neighbours)

CHINA PAKISTAN

(Recently started toward liberalizing its (Have an authoritarian militarist

command economy) political power structure).
So, in this chapter, we will compare the trends in various
China &
Economic indicators & Of India with
Human development indicators Pakistan
 B). DEVELOPMENT PATH OFINDIA, PAKISTAN & CHINA: -
I). SIMILARITIES:

1) SAMESTARTING TIME: - All the three nations started their development path at the same time.

2) SIMILAR DEVELOPMENT STRATEGIES:

" All of them started planning their development strategies in similar ways i.e. 5 years plans
India's 1st5-year plans ’ in 1951
Pakistan's 1*5-year plan ’ in 1956
China's 1t5 Year plan ’ in 1953
" India &Pakistan adopted similar strategy of creating a large public sector & raising public expenditure on
social development.
3) TILL 1980's: - all three countries had
’ Similar growth rate &
’ Similar per capita income.

). ANALYSIS OFSTRUCTURE OF CHINA& PAKISTAN:

CHINA PAKISTAN
HISTORICAL The people's Republic of China(PRC), The Islamic Republic of Pakistan, known
BACKGROUND known as CHINA commonly, was as Pakistan,gained independence on
established in 1949 14th August, 1947
China has one of the world's oldest In 1971, due to a civil war in
people & continuous civilization, It has EAST PAKISTAN ’ BANGLADESH was
cultures dating back more than6 independent
millennia
GEOGRAPHY " Pakistan is situated in South ASIA &
" China is situated in EasternASIA, borders central Asia & middle east.

" It is 3d largest country in world. Countries in its border are China, Iran,
(by area) Afghanistan & India.

POPULATION " Most populous country in world " It is 6h populous country in worid.
" With 1,371 million people "With 188 million people
" With growth rate of population = 0.5% " With growth rate of 2%p.a.
p.a. Second largest Muslim population in
world after Indonesia.
LANGUAGE Most of the languages in China belong " National language ’ Urdu
to the Sino-Tibetan language family " Official language ’ English
 u). ANALYSIS OF ECONOMY OF CHINA:
In China, allthe critical
’ Sectors of economy
’ Enterprises & is under government control
Land owned & operated by individuals

1) GREAT LEAP FORWARD (GLF) CAMPAIGN: -

" In 1958
Started by Mao
" To modernize China's economy
By transforming Agrarian economy- into Modern economy

" Through rapid industrialization

In rural areas
In urban areas
collective
(by Setting up of industries) (by starting communes for
cultivation of lands)

" GLFCampaign failed miserably

KLeads to)
Severe & biggest famine in China

Killing about 30 million people

COMMUNES: -
’Communes is a system of collective farming under which people were made to cultivate farmland
in China collectively
>In 1958, there were 26,000 Communes covering almost all the farm population.

2) GREAT PROLETARIAN CULTURAL REVOLUTION

" Started In 1965
By Mao Zedong
" Under this revolution,students &professionals were sent to work &learn from the countrvside.
 3) REFORMS INTRODUCED IN CHINA: -
reforms introduced in 1978.
The present-day growth in China is due to
" Reforms were introduced in

2PHASES

IN THE LATER PHASE

IN THE INITIAL PHASE
Reforms initiated in industrial sector.
" Reforms initiated in
- Agriculture
Foreign trade &
- Investment sector Private sector were allowed to produce
goods.
In agriculture, commune lands divided into
small plots &given to individuals to use for
farming & allowed to keep income after
paying tax.

4) DUAL PRICING IN THEREFORM PROCESS: -

PRICE ARE FIXED IN 2 WAYS

FARMERS &INDUSTRIAL OTHER TRANSACTION

Have to buy &sell at prices fixed by government Buy & sell at market prices.

5) SEZ (Special Economic Zone): - SEZ were set up to attract foreign investors.
 ANALYSISSOF
ECONOMY OF PAKISTAN:-
MIXED
1) ECONOMIC SYSTEM: - Co existence of private & public sector.
2) INTRODUCTION OF VARIOUS
In late 1950's& 1960's PakistanPOLICIES:
-
to promote domestic industries
introduced various regulated policy framework
R control over im port

a) GREEN REVOLUTION: -
Green revolution &
-better
Infrastructure (due to public investment)
L{Leads to)
-Increase in production of food grains.
A IMPORTANCE TOROLE OF PUBLICSECTOR: - In early
1970's
- Nationalization of capital goods industries took place
5) IMPORTANCE TOROLE OF PRIVATE SECTOR: - In late 1970's
- Policy of denationalization was adopted
To encourage private sector various incentives were offered

6) FINANCIAL SUPPORT DURING LATE 1970's: -Pakistan received financial support, which helped the country in
stimulating economic growth from:
(a) Western nations.
(b) Remittances from emigrants to Middle-East.

7) REFORMS: - In 1988, major reforms were initiated in the country.

 PAKISTAN
(C. COMPARATIVESTUDY: INDIA, CHINA &
1) Demographic Indicators
2) Growth Indicators
3) Sectoral contributions
4) Human development indicators

|DEMOGRAPHICINDICATORS (2017- 18):

DENSITY SEX RATIO FERTILITY
ESTIMATED
POPULATION
ANNUAL
GROWTH OF (PER. SQ KM) RATE
URBANISATION
(IN POPULATION
MILLIONS) (%)
INDIA 1,352 1.03 455 924 2.2 34
CHINA 1,393 0.46 148 949 1.7 59
PAKISTAN 212 2.05 275 943 3.6 37

1) POPULATION: -China is the most populous country in the world and India is the second most populated
country. Population of Pakistan is com paratively very less &is only 1/10th of China/India.
2) GROWTHRATE OF POPULATION: - Annual growth rate of population is the lowest in
China (0.46%) as
compared to India (1.03%) and Pakistan (2.059%).
" ONE CHILD POLICY'(was introduced in 1979 & abolished in
2015) of China has successfully reduced
growth rate of population.
3) DENSITY OF POPULATION: Density of population of chain is the lowest as
compared to India & Pakistan.
4) SEX RATIO: -Due to preference of son,sex ratio is
biased against females in all three countries. Sex ratio is
lowest in India (with 924 females per 1000 males).
5) FERTILITY RATE: - FertilityRate =
Average Number of Children Born by a Woman in the
Reproduction age i.e.,
" Highest in Pakistan, Second in India &
least in China. (15-45 years)
" Due to 'one child policy' fertility
rate in China has fallen down & is lowest now.
6) URBANISATION:
Urbanization is highest in China (59%). In India & Pakistan the
corresponding figures are 34% &37%.
I). GROWTHINDICATORS:
2017)
ANNUAL GROWTHOF GDP IN % (1980 -
2015 - 17
COUNTRY 1980-90
India 7.3
5.7
China 10.3
6.8
Pakistan 6.3
5.3

" China has second largest GDP (PPP) in world $ 22.5 trillion
India's GDP (PPP) $9.03 trillion (i.e., 41% of China's GDP)
Pakistan GDP $0.94 trillion (i.e., 11% of India's GDP)

" During 1980-90, China was having double dieit growth rate of 10.3% which fell to 6.8% during 2015 - 1/.

" Pakistan's growth rate was 6.3% of 1980-90 which drasticallv fell to 5.3% due to reform processes & poliICal
instability.
" Indiawas at the bottom with just 5.79% growth rate during 1980-90, and recorded an increase to /.3% during
2015 -17.

GDP (PPP): -
PPP is Purchasing Power Parity &it shows the equality of purchasing power among counties.
The value of each currency is different in different countries.
US dollar is the universally acceptedcurrency. Therefore, GDPs of different countries is expressed in US$&
called PPP US $.

IID). SECTORAL CONTRIBUTION:

Sectoral share of GDP & Employment % in 2015 - 17

SECTOR
CONTRIBUTION T0 GDP DISTRIBUTION OF WORKFORCE
INDIA CHINA PAKISTAN INDIA CHINA PAKISTAN
7 24 43 26 41
AGRICULTURE 16
41 19 25 28 24
INDUSTRY 30
52 57 32 46 35
SERVICE 54
100 100 100 100 100
TOTAL 100

AGRICULTURE (PRIMARY SECTOR)

" In China
- Due to topographicand climatic conditions, the area suitable
for cultivation is /ust 10% of its totalland aro
for 40% of the cultivable area in India
The total cultivable area in China accounts
tarming as their sole source of livelihood
-

. Till 1980 more than 80% of its population was dependent on

 leave their fields and pursue other activities, such as
Since then, the government encouraged people to
handicrafts, commerce and transport. to
agriculture reduced to 26% in 2018-19, with contribution
As a result, proportion of workforce engaged in
GVAat 7%.

" In India
of workforce engaged in agriculture was 420/
The contribution of agriculture to GVA was 16%. The proportion

" In Pakistan
workforce engaged in agriculture was
The contributionof agriculture to GVÀ was at 24%, but proportion of
41% as compared to 43% of India.

> INDUSTRY (SECONDARY SECTOR)

" Contribution to GVA
whereas in India and Pakistan, the share of
In China, secondary sector contributed 41% to China's GVA,
secondary sector was 30% and 19% respectively.

" Proportion of Workforce

- In the normal course of development, China has been shifting employment
and from agriculture to
manufacturing and then to services. In India and Pakistan, the shift is taking place directly to the service
sector.
was low at
The proportion of workforce engaged in manufacturing sector, in India and Pakistan in 2018-19,
25% and24% respectively, whereas 28% of population was engaged in China.

> SERVICE (TERTIARY SECTOR)

" Contribution to GVA
In all the three countries, service sector contributes highest share of GVA. In both India and Pakistan, the
service sector is emerging as a major player of development. Service sector contributes the highest to their
GVA, With contribution of 54% iin case of India and 57% for Pakistan.
The contribution of service sector to the GVA in China was 52%.

" Proportion of Workforce

- In the 1980s, Pakistan was faster in shifting its workforce to service sector than India and China.
The proportion of workforce engaged in service sector in 1980 for India, China and Pakistan were 179%, 12%
and 27%. It reached the level of 32%, 46% and 35% respectively in 2018-19.

Trends in output growth in Different Sectors, 1980 - 2018

1980- 90 2014- 18
COUNTRY Service
Agriculture Industry Service Agriculture Industry
India 3.1 7.4 6.9 3.1 6.9 7.6
China 5.9 10.8 13.5 3.1 5.3 7.1
Pakistan 4 7.7 6.8 1.7 4.8 5.0

CONCLUSION
INTHE LAST TWO DECADES: -
" In the Agriculture Sector: -
The contribution of agriculture sector to GDP in allthe three countries has declined.
 Ih thê lndustrial Sector: -
China has
declined. maintained a double - digit growth rate in 1980's, whereas for India & Pakistan growth rate has
. Inthe Service Sector: -
ChinaWas able to raise its rate of growth duripg
service sector output. 19g0-1990 while there was a positive BOW

So, Cnina s growth is mainly contributed by themanufacturinG soctor and India's growth by service sector.
During this period, Pakistan has shown
deceleration in allthe three sectors.

IV). HUMAN
DEVELOPMENT INDICATORS: -
Some selected Indicators of human development (2017 - 19)
ITEMS INDIA CHINA PAKISTAN
Human Development Index (Value) 0.645 0.761 0.557
Rank (Based on HDI) 130 87 154
Life expectancy at birth (years) 69.7 76.9 67.3
Mean year of school ing (% ages 15 & above) 6.5 8.1 5.2
Gross National Income per capita (PPP us &) 6,681 16,057 5,005
People below poverty line (at $3.1 a day PPP)% 21.9 1.7 24.3
Infant mortality rate (per 1000 live birth) 29.9 7.4 57.2
Maternal martialing rate (per 1 lakh birth) 133 29 140
Population using improved sanitation (%) 60 75 60
Population with sustainable access to Improved water
93 96 91
source (%)
Percentage of undernourished children 37.9 8.1 37.6

i) HUMANDEVELOPMENT INDEX (HDI)

" HDI is important indicator of human development.
" Higher HDI shows the higher levelof growth &development
Country HDI Global Rank
China 0.761 97
India 0.645 130
Pakistan 0.557 154

ii) LIFE EXPECTANCY AT BIRTH: -

" Life expectancy refers to the average numbers of years for which people are expected to live.
" China(has highest) ’ 76.9 years
India ’ 69.7 years
Pakistan ’ 67.3 years

ii) MEANYEARS OF SCHOOL: -

China (highest) ’ 8.1%
India ’6.5%
Pakistan ’ 5.2%
 1,000live birth.
iv) INFANT MORTALITY RATE (IMR):number-
infants dying before reaching one year of age per
refers to of
" Infant Mortality Rate
in ayear.
better health & sanitation.
" Low IMRshows
China (lowest) ’ 7.4
India ’ 29.9
Pakistan ’ 57.2

Poverty Line): - expenditure

v) PEOPLE BPL (Below people who do not even have that level of income &
People below the poverty line are theminimum levels of calorie intakes.
specified
which is necessary to meet number of poor people among the 3 countries.
Pakistan has highest & China has the smallest
People Below Poverty Line (in%): -
China (lowest) ’ 32%
India ’ 37%
Pakistan ’ 44%

vi) MATERNAL MORTALITY RATE (for 1 lakh births): - women from maternal mortality.
Situation of India & Pakistan is critical when come to safety of
China(lowest) ’ 29
India ’ 133
Pakistan ’ 140

vii)GNP per capita (PPP Capita US$): -

China(highest) ’ $16,057
India ’$6,681
Pakistan ’$5,005

vii) ACCESS TO BASIC DRINKING WATER SOURCE:-

It refers to the percentage of population which has reasonable access to safe drinking water.
China(highest) ’ 96%
India ’ 93%
Pakistan ’ 91%

ix) ACCESS TO IMPROVED SANITATION: -

China(highest) ’ 75% of population
Pakistan ’ 64% of population
India ’ 60% of population
China's performance in providing sanitation is better than India & Pakistan,
x) POPULATION UNDERNOURISHED: -
The percentage of population, which is not to obtain adequate diet, is termed as undernourished population.
China (lowest) ’ 8.1%
India ’37.9%
Pakistan ’37.6%
 LIBERTY INDICATORS: - (Low in China)
Liberty ndicator may be defined as the measure of the extent of demographic participation in the social &
political decision making.
Example: - i)) Extent of the constitutional protection rights given to the citizens
EXent or protection given by constitution for independence of law &iudiciary.