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Comparative Development Experiences of India and Its Neighbours

Comparative Development Experiences of India and Its Neighbours

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Study Action Plan (Sorted by Difficulty)
Comparative Development Strategies
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Demographic and Human Development Indicators
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Five Year Plans
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Great Leap Forward and Economic Reforms in China
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Impact of Population Policies
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Macroeconomic Indicators and Growth Trends
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Policy Reforms and Economic Outcomes
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Sectoral Contributions to GDP
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Trade and Economic Relations
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Learning Objectives

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Learning Objectives

  • Figure out comparative trends in various economic and human development indicators of India and its neighbours, China and Pakistan.
  • Assess the strategies that these countries have adopted to reach their present state of development.
  • Understand the importance of neighbouring countries in the developing world to comprehend their development strategies.
  • Compare India's developmental experiences with those of Pakistan and China.
  • Evaluate the implications of globalisation on the economic strategies of India, Pakistan, and China.
  • Discuss the similarities and differences in the political systems and economic structures of India, Pakistan, and China.
  • Analyze the impact of reforms initiated in China, Pakistan, and India on their respective economic growth and human development indicators.

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Revision Notes & Summary

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Comparative Development Experiences of India and Its Neighbours

Introduction

  • Importance of understanding development strategies among neighbouring countries in a globalised world.
  • Focus on comparing India's development with Pakistan and China.

Developmental Snapshot View

  • India, Pakistan, and China began their developmental paths around the same time (1947 for India and Pakistan, 1949 for China).
  • All three nations have similarities in their developmental strategies.

Economic Growth Trends

GDP Comparison

  • China: $35 trillion (PPP)
  • India: $15 trillion (PPP)
  • Pakistan: $1.5 trillion (PPP)
  • India's GDP is about 42% of China's GDP.

Annual Growth of GDP (%), 1980-2017

Country1980-902015-20172022
India5.77.37.0
China10.36.83.0
Pakistan6.35.34.8

Human Development Indicators (2017-2019)

IndicatorIndiaChinaPakistan
Human Development Index (Value)0.6440.7880.540
Rank (based on HDI)13475164
Life Expectancy at Birth (years)67.778.666.4
Mean years of Schooling (aged 15 and above)6.68.14.4
Gross National Income per Capita (PPP US$)6,95118,0255,374
People living Below Poverty Line (%)21.9*0.0**21.9***
Infant Mortality Rate (per 1000 live births)26.85.152.5
Maternal Mortality Rate (per 1 lakh births)10323154
People using at least basic Sanitation (%)759469
People using at least basic drinking Water (%)939790
Prevalence of undernourishment (%)17319

Development Strategies and Appraisal

  • Reforms initiated: China (1978), Pakistan (1988), India (1991).
  • China’s reforms were self-initiated; India and Pakistan's were influenced by international agencies.
  • China has maintained high growth in the industrial sector, while India and Pakistan have not.

Conclusion

  • India, China, and Pakistan have varied developmental outcomes despite similar starting points.
  • China leads in many human development indicators, attributed to pre-reform strategies.
  • Importance of considering liberty indicators alongside traditional human development indicators.
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Practice Test – MCQs, True/False

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Multiple Choice Questions

A.

Agriculture

B.

Industry

C.

Services

D.

Manufacturing
Correct Answer: C

Solution:

In all three countries, the service sector contributes the highest share to GDP.

Chapter Concept:

Sectoral Contributions to GDP

A.

China's reforms were driven by international pressure.

B.

China's reforms focused initially on agriculture and foreign trade.

C.

China's reforms involved immediate privatization of all industries.

D.

China's reforms were primarily about reducing the workforce in agriculture.
Correct Answer: B

Solution:

China's economic reforms in 1978 were initiated in phases, starting with agriculture and foreign trade, unlike India and Pakistan where reforms were influenced by international agencies.

Chapter Concept:

Great Leap Forward and Economic Reforms in China

A.

Increased urbanization

B.

Higher fertility rate

C.

Decline in population growth

D.

Rise in agricultural production
Correct Answer: C

Solution:

The 'one-child norm' in China led to a significant decline in population growth.

Chapter Concept:

Trade and Economic Relations

A.

All three countries adopted a socialist model with a focus on heavy industrialization.

B.

India and Pakistan focused on creating a large public sector, while China implemented the Great Leap Forward.

C.

China and Pakistan adopted open-market policies, while India followed a closed economy.

D.

India, China, and Pakistan all prioritized agricultural development over industrialization.
Correct Answer: B

Solution:

India and Pakistan initially focused on creating a large public sector and increasing public expenditure on social development. China, on the other hand, implemented the Great Leap Forward campaign aimed at rapid industrialization.

Chapter Concept:

Comparative Development Strategies

A.

The reforms led to the nationalization of all industries.

B.

China's industrial sector experienced a decline in growth rates.

C.

The reforms allowed private sector participation and increased competition, boosting industrial growth.

D.

The reforms focused solely on agriculture, leaving the industrial sector unchanged.
Correct Answer: C

Solution:

The economic reforms of 1978 in China allowed private sector participation and increased competition, which significantly boosted industrial growth.

Chapter Concept:

Comparative Development Strategies

A.

Rapid industrial growth

B.

A severe drought causing massive casualties

C.

Immediate improvement in GDP per capita

D.

Increased foreign investment
Correct Answer: B

Solution:

The Great Leap Forward met with problems, including a severe drought that caused havoc in China, killing about 30 million people.

Chapter Concept:

Great Leap Forward and Economic Reforms in China

A.

Agriculture

B.

Industry

C.

Services

D.

None of the above
Correct Answer: C

Solution:

In all three countries, the service sector is emerging as a major player of development, contributing the highest share to GDP.

Chapter Concept:

Sectoral Contributions to GDP

A.

Pressure from the World Bank and IMF

B.

Desire to modernize the economy and increase growth

C.

Need to reduce the population growth rate

D.

To increase reliance on agricultural exports
Correct Answer: B

Solution:

The new leadership in China in 1978 was dissatisfied with the slow pace of growth and lack of modernization under the Maoist rule, which led to the introduction of structural reforms.

Chapter Concept:

Great Leap Forward and Economic Reforms in China

A.

To increase the workforce

B.

To control population growth

C.

To improve gender ratio

D.

To boost economic growth
Correct Answer: B

Solution:

The one-child norm was introduced in China to control population growth, which was a major concern for the country.

Chapter Concept:

Policy Reforms and Economic Outcomes

A.

2018

B.

2020

C.

2015

D.

2017
Correct Answer: A

Solution:

Since 2018, Pakistan is working on the basis of its 12th Five Year Development Plan (2018–23).

Chapter Concept:

Five Year Plans

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Comparative Development Experiences of India and Its Neighbours

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True or False

Correct Answer: True

Solution:

India and Pakistan shifted directly from agriculture to the service sector, while China followed the classical development pattern of moving from agriculture to manufacturing and then to services.

Chapter Concept :

Comparative Development Strategies

Correct Answer: True

Solution:

China's leadership at the time was dissatisfied with the slow pace of growth and lack of modernization under Maoist rule, leading them to initiate reforms independently. In contrast, India and Pakistan were influenced by the World Bank and International Monetary Fund.

Chapter Concept :

Trade and Economic Relations

Correct Answer: True

Solution:

India announced its first Five Year Plan for 1951–56, Pakistan announced its first five year plan in 1956, and China announced its First Five Year Plan in 1953.

Chapter Concept :

Five Year Plans

Correct Answer: False

Solution:

China's GDP (PPP) is 35trillion,whereasIndia′sGDP(PPP)is35 trillion, whereas India's GDP (PPP) is 15 trillion, making India's GDP approximately 42% of China's GDP, not the other way around.

Chapter Concept :

Macroeconomic Indicators and Growth Trends

Correct Answer: False

Solution:

The Great Leap Forward campaign faced many problems, including a severe drought and withdrawal of Russian professionals, leading to its failure.

Chapter Concept :

Policy Reforms and Economic Outcomes

Correct Answer: True

Solution:

The Great Leap Forward campaign was indeed initiated in 1958 with the aim of rapidly industrializing China.

Chapter Concept :

Great Leap Forward and Economic Reforms in China

Correct Answer: True

Solution:

The service sector is emerging as a major player of development in all three countries, contributing more to GDP than other sectors.

Chapter Concept :

Sectoral Contributions to GDP

Correct Answer: False

Solution:

China introduced structural reforms on its own initiative due to dissatisfaction with the slow pace of growth and lack of modernization under Maoist rule, not due to pressure from international agencies.

Chapter Concept :

Five Year Plans

Correct Answer: True

Solution:

China has the second largest GDP (PPP) of 35trillion,whereasIndia′sGDP(PPP)is35 trillion, whereas India's GDP (PPP) is 15 trillion.

Chapter Concept :

Macroeconomic Indicators and Growth Trends

Correct Answer: True

Solution:

During the 1980s, Pakistan's GDP growth rate was 6.3%, which was higher than India's growth rate of 5.7%.

Chapter Concept :

Macroeconomic Indicators and Growth Trends

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