Class 12 Economics Chapter 10 COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS
NCERT Notes for Class 12 Economics Chapter 10 COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS, (Economics) exam are Students are taught thru NCERT books in some of the state board and CBSE Schools. As the chapter involves an end, there is an exercise provided to assist students to prepare for evaluation. Students need to clear up those exercises very well because the questions inside the very last asked from those.
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NCERT Notes for Class 12 Economics Chapter 10 COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS
Class 12 Economics Chapter 10 COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS
Geography has made us neighbours. History has made us friends. Economics has made us partners, and necessity has made us allies. Those, whom God has so joined together, let no man put asunder— by John F. Kennedy
- Nations have been primarily trying to adopt various means which will strengthen their own domestic economies.
- To this effect, they are forming regional and global economic groupings such as the SAARC, European Union, ASEAN, G-8, G-20, BRICS etc.
DEVELOPMENTAL PATH-INDIA, CHINA AND PAKISTAN
- All the three nations- India, Pakistan and China have started towards their developmental path at the same time.
- India and Pakistan became independent nations in 1947.
- People’s Republic of China was established in 1949.
- The three countries had started their planning strategies in similar ways.
- India announced its first Five Year Plan for 1951–56,
- Pakistan announced its first five year plan, now called the Medium Term Development Plan, in 1956.
- China announced its First Five Year Plan in 1953.
- India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development.
- All the three countries had similar growth rates and per capita incomes till 1980s.
China:
- After the establishment of People’s Republic of China under one party rule, all critical sectors of the economy, enterprises and lands owned and operated by individuals were brought under government control.
- The Great Leap Forward (GLF) campaign initiated in 1958 aimed at industrialising the country. People were encouraged to set up industries in their backyards.
- In rural areas, communes were started. Under the Commune system, people collectively cultivated lands.
- In 1965, Mao introduced the Great Proletarian Cultural Revolution, under which students and professionals were sent to work and learn from the countryside.
- The present day fast industrial growth in China was the result of, industrial reforms introduced in 1978.
- China introduced reforms in phases.
- In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors.
- In the later phase, reforms were initiated in the industrial sector. (Enterprises owned by government is known as State Owned Enterprises—SOEs). In India it is called Public Sector enterprises
- Dual pricing. This means fixing the prices in two ways: farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices.
- To attract foreign investors, special economic zones were set up.
Pakistan:
- Pakistan follows the mixed economy model with co-existence of public and private sectors.
- Pakistan introduced import substitution-based industrialisation.
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- This policy combined tariff protection for manufacturing of consumer goods together with direct import controls on competing imports.
- In Pakistan nationalisation of capital goods industries took place in 1970s.
- In 1988, industrial reforms were initiated in the country which leads to a favorable climate for new investments.
DEMOGRAPHIC INDICATORS
- India density (per sq.km): 441, China:146, Pakistan:245
- Sex ratio(2015)-India:929,China:941, Pakistan:947
- Urbanisation (2015) –India:33, China:56, Pakistan:39
- When compared to India, Pakistan, China’s density is the lowest.
- Population growth is highest in Pakistan.
- One child norm introduced in China in the late 1970s as the major reason for low population growth, this measure led to a decline in the sex ratio.
- The fertility rate is low in China and very high in Pakistan.
- Urbanisation is high in China.
GROSS DOMESTIC PRODUCT AND SECTORS
- China has the second largest GDP (PPP) of $19.8 trillion, India’s GDP (PPP) is $8.07 trillion and Pakistan’s GDP is $ 0.94 trillion.
- India’s GDP is about 40 per cent of China’s GDP.
- China was able to maintain near double-digit growth.
- Political instability over a long period was the reason behind the low rate of GDP of Pakistan.
- In China due to topographic and climatic conditions, the area suitable for cultivation is relatively small.
- Government encouraged people to leave their fields and follow other activities such as handicrafts, commerce and transport etc.
- In both India and Pakistan, the contribution of agriculture to GDP was 17 and 25 per cent, respectively.
- In China, manufacturing and service sectors contribute the highest to GDP at 43 and 48 per cent, respectively whereas in India and Pakistan, it is the service sector which contributes the highest by more than 50 per cent of GDP.
- China’s growth is mainly contributed by the manufacturing and service sectors and India’s growth by the service sector.
INDICATORS OF HUMAN DEVELOPMENT
(Income indicator — GDP per- capita, or proportion of population below poverty line
Health indicators — mortality rates, access to sanitation, literacy, life expectancy,
‘liberty indicators’— democratic participation in social and political decision-making’, Constitutional protection given to rights of citizens etc.)
- Life Expectancy at Birth (years)- India :68.3, China:76 , Pakistan:66.4
- Infant Mortality Rate (per 1000 live births)- India:38 ,China:9, Pakistan: 66
- Rank (based on HDI)- India:131, China: 91, Pakistan: 148
- Maternal Mortality Rate (per 1 lakh births)- India:174 , China:27, Pakistan: 178
- Pakistan is ahead of India in reducing proportion of people below the poverty line and also its performance in sanitation.
- In China, for one lakh births, only 27 women die whereas in India and Pakistan, about 178 and 174 women die respectively.
- Public intervention in providing social infrastructure even prior to reforms has brought about positive results in human development indicators in China.
DEVELOPMENT STRATEGIES — AN APPRAISAL
- The reforms were initiated in China in 1978, Pakistan in 1988 and India in 1991.
- China did not have any compulsion to introduce reforms as dictated by the World Bank and International Monetary Fund to India and Pakistan.
- The new leadership at that time in China was not happy with the slow pace of growth and lack of modernisation in the Chinese economy under the Maoist rule.
- They felt that Maoist vision of economic development based on decentralisation, self-sufficiency and shunning of foreign technology, goods and capital had failed.
- In China, establishment of infrastructure in the areas of education, health, land reforms, long existence of decentralised planning and existence of small enterprises helped positively in improving the social and income indicators in the post reform period.
- Experts point out that in China, each reform measure was first implemented at a smaller level and then extended on a massive scale.
- In Pakistan, scholars argued that reform process led to worsening of all the economic indicators.
a)It was very clear that compared to 1980s, the growth rate of GDP and its sectoral constituents have fallen in the 1990s.
- The reasons for the slow-down of growth and re-emergence of poverty in Pakistan’s economy was that,
- agricultural growth and food supply situation were based not on an institutionalized process of technical change but on good harvest. When there was a good harvest, the economy was in good condition, when it was not, the economic indicators showed stagnation or negative trends.
- During the last few years, Pakistan has recovered its economic growth and has been sustaining. Agriculture recorded growth rate far from satisfactory level, industrial and service sectors grew at 6.8 and 5.7 per cent, respectively.