Is India as developed as China?

Résumé du document

China is currently catching everyone's attention. Being the host of the Olympic Games, places it in the midst of every discussion. The development of the country is fascinating, but criticism against Beijing is getting violent. This leaves another fast developing country, almost as crowded and dynamic as India. Some analysts think it would be a mistake to underestimate the Indian economy. It is booming and this rising giant will definitely raise concerns in the next coming decades. Some are very optimistic about it, even claiming that India could be the leader of the BRIC group: Brazil, Russia, India and China. Is India able to surpass China in the run for development? China is currently far ahead of India. It started way before, with an effective strategy and well implemented reforms. It is impossible for India to catch up if the current trends of China are not stopped. New Delhi could only bet on a Chinese slow down which would threaten the political stability of the country. Then India will have to count on its own strengths and most of all, have the courage of implementing long-needed structural reforms. Whoever the winner of the race will be, the global economy will be deeply changed by the rise of these two Asian giants. Their influence and potential moves will increase. China and India are already reshaping globalization.

Extraits

[...] It amounts to more than billion. As a point of comparison, the American budget is at about of the GDP and it represents 46% of the declared global defence budget evaluated at billion. Some experts think is could be as much as triple that. The people's Liberation Army is getting very modern. It proved it by destroying satellites in space, by sending a taikonaute (colonel Yang Liwei) in orbit and by launching more and more satellites. China needs a strong army to keep threaten Taiwan and protect its interest all around the world. [...]

[...] For the newly independent nation, the main objectives were to reach self- reliance and economic autonomy. The policy of import-substitution between the 1950's and the early 1970's prevented India from taking part of the International trade. Nehru made the mistake to develop capital-intensive industries instead of labour-intensive industries. It was nonsense as India was lacking capital but was rich in cheap labour. It created big companies but no job. The economy was also very restricted by prohibitive laws that crippled the development of companies. The growth rate stayed constantly low. [...]

[...] Chinese and Indian economies are already interdependent. More and more summits are held in order to promote bilateral trade. Chinese and Indian senior officials met on January in Beijing during the Trade and Investment Cooperation Summit. They pledge to strengthen cooperation in construction, investment, financial services, technology, education and tourism. The trade between the two countries amounts to $ 38.7 billion in 2007 with an annual growth of 34%.It is 33 times more than in 1995. China has become the second largest trade partner of India and India the tenth largest for China. [...]

[...] Is India as developed as China? Summary INTRODUCTION: 1 China is ahead of India and is likely to remain so The divergent histories and development strategies account for the lead of China China 2 India 3 Chinese success 4 It seems hard for India to catch up 6 An uncertain future depending on Chinese challenges and India's long–run stability 7 The limits of the Chinese development 7 India's comparative advantages 8 An uncertain future 9 China and India are changing the world 11 The competition is shaking the world 11 A strengthening cooperation 12 From a new international work division to another global order 13 CONCLUSION: 14 Appendices: 15 Bibliography 17 Introduction China is currently catching everyone's attention. [...]

[...] Soon, it was made in Hong Kong or Taiwan. In the 1990's it was often “made in Indonesia or Thailand”. Last Christmas it was hard to find a toy that was not produced in China. Akamatsu, a Japanese economist, explains what happens to toy, textile, electronic or car industries with his Flying Geese Paradigm. He gives theoretical tools to analyse the Asian Development model. As a birds flight (with a shape), Asian countries took off one after the other, starting with Japan in the 1950's. [...]