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COMPARATIVE DEVELOPMENTEXPERIENCES OF INDIAAND ITS NEIGHBOURS

COMPARATIVE DEVELOPMENTEXPERIENCES OF INDIAAND ITS NEIGHBOURS

INDIA and PAKISTAN got independence in 1947 and Peoples Republic of CHINA was established in 1949.All the three countries had started planning their developmental strategies in similar ways. India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development. India announced its first Five Year Plan in 1951, Pakistan announced In 1956 and China in 1953.

CHINAHISTORICAL BACKGROUNDChina has one of the worlds oldest people and continuous civilizations, consisting of states and cultures dating back more than six millennia. The Peoples Republic of China, commonly known as China, was established in 1949.

GEOGRAPHYChina is situated in eastern Asia, bounded by the Pacific in the east. It is the third largest country in the world, next to Canada and Russia, with an area of 9.6 million sq. kilometers.

ECONOMYChina has been the world's 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.In 1958, a programme named The Great Leap Forward (GLF) campaign was initiated by Mao to modernise Chinas economy. The aim of this campaign was to transform agrarian economy into a modern economy through the process of rapid industrialization. In order to attract foreign investors, special economic zones were set up.

PAKISTANHISTORICAL BACKGROUNDPakistans history has been characterized by periods of economic growth, military rule and political instability.

GEOGRAPHYPakistan is located in South Asia and borders Central Asia and the Middle East. Its borders are with China in the North and towards East and Southeast, its borders are with India. The country has an area of 7,96,095 sq.km. The total cultivated area is 2,21,300 sq.km. whereas the area under forest is 42,300 sq.km.

ECONOMYPakistan follows the mixed economy model with co-existence of public and private sectors.In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework for growth of domestic industries. The policy combined tariff protection for manufacturing of consumer goods, together with direct import controls on competing imports.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 structure dramatically.

India, China and Pakistan can be compared on the following basis :

DEMOGRAPHIC INDICATORS

GROWTH INDICATORS

HUMAN DEVELOPMENT INDICATORSCOMPARATIVE STUDY-INDIA, CHINA AND PAKISTAN

DEMOGRAPHIC INDICATORSCOUNTRY ESTIMATEDPOPULATION(in millions) ANNUALGROWTH OF POPULATION(1990-2003)DENSITY(per sq. km) SEX RATIOFERTILITY RATEURBANISA-TIONINDIA 1,103.6 1.7 358 933 3.0 27.8CHINA 1,303.7 1.0 138 937 1.8 36.1PAKISTAN 162.4 2.5 193 922 5.1 33.4 DEMOGRAPHIC INDICATORS (2000-01)China is the most populous country in the world but its annual growth rate of population is the lowest as compared to India and Pakistan. The reason for the low growth of population is the One-Child policy introduced in China in the late 1970s.

Density of population of China is the lowest as compared to India and Pakistan.

Sex ratio is the lowest in Pakistan with 922 females per 1,000 males. In India and China, the corresponding figures are 933 and 937.

The fertility rate in China has fallen from over 3 births per woman in 1980 to approximately 1.8 births. Fertility rate is the highest in Pakistan at 5.1 births per woman and India comes second with 3 births per woman.

Urbanisation is high in both Pakistan and China. In India, only 28% of its people live in urban areas.Comparison Of Demographic Indicators

COUNTRY 1980-90 2010-11INDIA 5.7 4.9CHINA 10.3 8.8PAKISTAN 6.3 1.1GROWTH INDICATORSIn 1980sChina was having double-digit growth of 10.3%Pakistans growth rate was 6.3%India was at the bottom with just 5.7% growth rate.In 2010-11Pakistan met with a drastic decline in growth rate from 6.3% to 1.1% due to reform processes introduced in 1988 and political instability. There was a marginal fall in Chinas growth rate from 10.3% to 8.8%In India also there was a marginal fall in growth rate from 5.7% to 4.9%GROWTH OF GROSS DOMESTIC PRODUCT IN PERCENT ( 1980-2011)

SECTORAL CONTRIBUTIONSECTORContribution to GDPDistribution of WorkforceIndiaPakistanChinaIndiaPakistanChinaAgriculture 18 22 10 37.1 18.1 36.7Industry 27 24 47 18.7 18.5 28.7Service 55 54 43 44.2 63.4 34.6Total100 100 100 100 100 100Sectoral Share of GDP and Employment in 2009 (%)In all the three economies, the industryand service sectors have less proportion of workforce, but they contribute more in termsof output.

AGRICULTURE (Primary Sector)In ChinaDue to topographic and climatic conditions, the area suitable for cultivation is just 10% of its total land area.The total cultivable area in China accounts for 40% of the cultivable area in India.Till 1980, more than 80% of its population was dependent on farming as their sole source of livelihood.Since then, the government encouraged people to leave their fields and pursue other activities, such as handicrafts, commerce and transport.As a result, proportion of workforce engaged in agriculture reduced to 36.7% in 2009, with contribution to GDP at 10%.

In IndiaThe contribution of agriculture to GDP was 18%. The proportion of workforce engaged in agriculture was 37.1%

In PakistanThe contribution of agriculture to GDP was at 22%. The proportion of workforce engaged in agriculture was 18.1%.

INDUSTRY ( Secondary Sector)Contribution to GDP

In 2009, secondary sector contributed the highest to Chinas GDP at 47%, whereas in India and Pakistan, the share of secondary sector was 27% and 24% respectively.

Proportion of Workforce

In the normal course of development, China has been shifting employment and output from agriculture to manufacturing and then to services. In India and Pakistan, the shift is taking place directly to the service sector.

The proportion of workforce engaged in manufacturing sector, in India and Pakistan in 2009, was at 18.7% and 18.5% respectively, whereas 28.7% of population was engaged in China.

SERVICE (Tertiary Sector)Contribution to GDP

In both India and Pakistan, the service sector is emerging as a major player of development. Service sector contributes the highest to their GDP, with contribution of 55% in case of India and 54% for Pakistan. The contribution of service sector to the GDP in China was 43%.

Proportion of Workforce

The proportion of workforce engaged in service sector in India, Pakistan and China was 44.2%, 63.4% and 34.6% respectively.

ITEMSINDIACHINAPAKISTANHuman Development Index 0.602 0.755 0.527Rank 127 85 135Life Expectancy at birth (Years) 63.3 71.6

63.0Infant Mortality Rate 63 30

81Adult Literacy Rate (% aged 15 and above) 61.0 90.9 48.7People below Poverty Line (%) (PPP 1$ a day) 34.7 16.6 13.4Maternal Mortality Rate 540 56 500GDP per capita (PPP US $) 2.892 5,003 2,097Population with sustainable access to an improved water source (%) 86 77 90Population with sustainable access to improved sanitation (%) 30 44 54Population undernourished(% of total) 21 11 20HUMAN Development INDICATORS

HUMAN DEVELOPMENT INDEX is an important indicator to study the human development. Higher value of HDI shows the higher level of growth and development of a country.LIFE EXPECTANCY refers to the average number of years for which people are expected to live. A higher life expectancy indicates longer and a more active average life span.INFANT MORTALITY RATE refers to number of infants dying before reaching one year of age per 1,000 live births in a year. Low IMR shows better health and sanitation facilities as most of the infants die due to unhygienic and insanitary environments.ADULT LITERACY RATE refers to the ratio of literate adult population to the total adult population in a country.PEOPLE BELOW POVERTY LINE are the people who do not even have that level of income and expenditure, which is necessary to meet specified minimum levels of calorie intake.MATERNAL MORTALITY RATE is the annual number of female deaths per 1,00,00 live births from any cause related to or aggravated by pregnancy.ACCESS TO IMPROVED WATER SOURCES refers to the percentage of population which has a reasonable access to water and is able to obtain at least 20 liters per person per day.POPULATION UNDERNOURISHED refers to the percentage of population, which is not able to obtain adequate diet.

China is moving ahead of India and Pakistan. This is true for many indicators- income indicator such as GDP per capita, or proportion of population below poverty line or health indicators such as mortality rates, access to sanitation, literacy, life expectancy or malnourishment.

Pakistan is ahead of India in reducing proportion of people below the poverty line and also its performance in sanitation and access to water is better than India. But neither of these two countries have been able to save women from maternal mortality.

India and Pakistan are ahead of China in providing improved water sources.comparison OF HUMAN DEVELOPMENT INDICATORS

APPRAISAL OF DEVELOPMENT STRATEGIESDevelopmental 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 neighbouring countries, it is necessary to understand the roots of their success and failures and different phases of their strategies.

Different countries go through their development phases differently. Reforms were initiated in China in 1978, Pakistan in 1988 and India in 1991.

CHINASome adverse situations of the economy prior to 1978, forced China to go for reforms.

Pre Reforms PeriodThere had been massive extension of basic health services in rural areas.Through the commune system, there was more equitable distribution of food grains and resources.

In 1978, the then Government of China was not satisfied with the slow pace of economy and lack of modernization under the Maoist rule. As a result, a number of reform measures were introduced in 1978.

Post Reforms PeriodEach 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.

PAKISTANIn 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 the 1990s.The reasons for the slow-down of growth and re-emergence of poverty in Pakistans economy are:Agricultural growth and food supply situation was based on good harvest and not on institutionalised 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 a 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 Middle-east and the exports of highly volatile agricultural products.

Yet, in the recent past, it is hoping to improve the situation by maintaining high rates of GDP growth. Pakistan economy witnessed GDP growth at about 8% for three consecutive years (2002-2005) due to the combined contribution of agriculture, manufacturing and service sector.

CONCLUSIONSIndia, 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.

INDIAIndian 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.

PAKISTANPolitical 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.

It is also a great challenge for Pakistan to recover from the devastating earthquake in 2005, which took the lives of nearly 75,000 people and also resulted in enormous loss to property.

CHINAIn 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 along with alleviation of poverty.

China has used the market mechanism to create additional social and economic opportunities.

Public intervention in providing social infrastructure brought positive results in human development indicators in China.

BIBLIOGRAPHYwww.encyclopedia.com

www.books.google.com

www.google.com

THANK YOU MADE BY ABHA ARORA SHEETAL JAIN