Different Growth Path China vs India

EMERGING
 ECONOMIES
  RODRIGO
 ADÃO
 DA
 FONSECA
  GEMBA
 2012
 
  DL
 OUTLINE:
 Different
 Growth
 Path:
 China
 vs.
 India
 
 
  What
 are
 the
 main
 differences
 in
 their
 courses
 to
 economic
 growth?
 
 
  China
  and
  India
  had
  a
  parallel
  expansion
  approaches
  prior
  to
  their
  option
  to
  open
 their
 countries
 to
 the
 rest
 of
 the
 World
 by
 exploring
 the
 benefits
 of
 a
 global
  economy
  based
  in
  open
  markets
  and
  liberal
  values.
  For
  decades,
  China
  and
  India
  embraced
 socialist
 visions
 of
 the
 organization
 of
 economy
 and
 society,
 favoring
  the
 visible
 hand
 of
 government
 over
 the
 invisible
 hand
 of
 markets.
 This
 visions
  putted
  their
  countries
  and
  economies
  in
  a
  poverty
  situation,
  with
  real
  per
  capita
  incomes
 in
 the
 lowest
 levels
 of
 the
 economic
 development
 indexes’.
 
 
  In
 different
 moments
 –
 China
 started
 slowly
 in
 the
 late
 70’s,
 India
 made
 the
 main
  option
 in
 the
 early
 90’s
 –
 to
 push
 their
 economies,
 both
 change
 their
 strategies,
  partially
  and
  selectively
  letting
  private
  enterprise
  display
  and
  opening
  markets
  to
  trade
  and
  investment.
  The
  new
  policies
  have
  led
  to
  rapid
  economic
  development.
  Both
  China
  and
  India’s
  real
  per
  capita
  income
  has
  grown
  with
  significant
 rates
 –
 between
 5... [continues]

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