DEVELOPMENT EXPERIENCE : COMPARISON WITH NEIGHBOURS

Important terms and concept

Every country aims at strengthening its domestic economy. To achieve its objectives in todays world of globalisation , it is important for the developing countries to also understand the strategies being pursued by their neighbours to understand the functioning of the world markets The nations are forming regional and global grouping like SAARC ,EUROPEAN UNION, ASEAN, G-8, G-20 etc. to promote development of their economies in the globalised world.

Dissimilarity in the development strategies : India , China and Pakistan

Basis of difference
Type of economicsystem

India

China

Pakistan

Mixed economic system

Socialistic economic system

Mixed economic system

Governmen Democracy Peoples Democracy t rule with federal Republic of govt. china one party rule

DEVEPMENT STRATEGIES- A Birds eye view

Similarities in the development strategies : India ,China and Pakistan

Basis Independan ce 1st five year plan Completion of plan till 1998

India

China

Pakist an 1947 1956

1947 1949 1951 1953

8 five 10 five 8 five year year year plan plan till plan 2006

Development status at Present China:

The GLF (Great Leap Forward ) campaign was initiated in 1958. It aimed at the industrialisation of the country on a very large scale. People were encouraged to set up industry in the backyard Communes were started in rural areas. Under Commune system land was collectively cultivated. In 1958, there were 26000 Communes covering almost all farmers. GLF campaign met with many problems . Severe drought caused the death of 30 million people . The conflict with Russia was also harmful for China.

In 1965, Mao introduced the Proletarian Cultural Revolution (1966-76). The revolution sent students professionals to work and learn from countryside. The reform introduce by china in 1978 resulted in fast economic growth. Reforms were introduced in phases. Dual pricing system was introduced as part of reforms. Farmers and industrial units were required to buy and sell fixed quantities of inputs and output on the basis of price fixed by the government and the rest were purchased and sold at market price. Special economic zones were set up in order to attract foreign investors.

Developmental Path (India ,China and Pakistan)

Indicators
Estimated population (in millions) Annual growth of population(1990-2003) Density (per sq. Km)

India 1103.6 1.7 358

China 1303.7 1.0 138

Pakistan 162.4 2.5 193

Sex ratio

933
3.0 27.8 30 %

937
1.8 36.1 44 %

922
5.1 33.4 54 %

Fertility Rate

Urbanisation

Improved sanitation facilities

Showing Growth of Gross Domestic Product (%) (1980-2003)

Country India China Pakistan 1980-90 5.7 10.3 6.3 19902002/2003 5.8 9.7 3.6

Table Showing Sectoral Share of Employment and GDP(2003)

Sector Contribution to GDP(2003) India China Pakistan

Agricultu 23 re Industry 26

15 53

23 23

Service Total

51 100

32 100

54 100

Table Showing Sectoral Distribution of Workforce

SECTOR DISTRIBUTION OF WORKFORCE
CHINA (1997) 54 27 19 100 PAKISTAN (2000) 49 18 33 100 INDIA (2000) Agriculture 60 Industry Service Total 16 24 100

Table showing Some Select Indicators of Human Development (2003)

Basis HDI(value) Rank Life Expectancy at Birth(years) Adult Literacy Rate GDP per capita (PPP US $) People Below Poverty Line Infant Mortality Rate Maternal Mortality Rate (Per 1 lakh live birth) Population under- nourished ( %of total) India 0.602 127 63.3 61.0 2892 34.7 63 540 21 China 0.755 85 71.6 90.9 5003 16.6 30 56 11 Pakistan 0.527 135 63 48.7 2097 13.4 81 500 20