A Summary of China and India: Idiosyncratic Paths to High Growth
Econ 387
Assignment 1
Yilong Li
Summary of “China and India: Idiosyncratic Paths to High Growth.”
The article “China and India: Idiosyncratic Paths to High Growth” by Kaushik Basu particularly described the specific economy growth of China and India. She illustrates the growth through several points, such as, special labor force, capita income, social policy and market liberalization. In this essay, I’m giving a summary about her article through theses points and some personal opinions related to her ideas.
To begin with, Kaushik Basu discussed about the special labor forces in both China and India. “China’s labor force is one of the most disciplined and also acquiescent, and its civil society line up behind the government in ways that is true of few other societies, developed and developing.” (Page 44, Paragraph 7) she discussed that China has larger union of labor force and Chinese labor is less expensive and has huge potential powers compare to westerns’. However, this huge potential labor power has not been realized until 1978. Similarly, Indian’s labor is less expensive even though they are small unionized labor force. In addition, another reason that causes the less expensive labor is due to the large population of both two countries.
Further, Kaushik Basu discussed about the capita income of China and India. China grows rapidly after year 1978 and 1991 of India since the India Market Liberalization. She believes that “At the same time, in terms of annual growth rate of per capita GDP over that last two decades, the fastest-growing nation in the world is China, followed by Vietnam and India.” (Page 45, paragraph 3) The growth rates of these two countries were increasing rapidly through last 10 years. It brings dramatically changes to China and India’s economy.
More often, she discussed the social policy is another main reason that effect the growth rate of economy. She firstly discussed about the Chinese social policy which is communism.
Assignment 1
Yilong Li
Summary of “China and India: Idiosyncratic Paths to High Growth.”
The article “China and India: Idiosyncratic Paths to High Growth” by Kaushik Basu particularly described the specific economy growth of China and India. She illustrates the growth through several points, such as, special labor force, capita income, social policy and market liberalization. In this essay, I’m giving a summary about her article through theses points and some personal opinions related to her ideas.
To begin with, Kaushik Basu discussed about the special labor forces in both China and India. “China’s labor force is one of the most disciplined and also acquiescent, and its civil society line up behind the government in ways that is true of few other societies, developed and developing.” (Page 44, Paragraph 7) she discussed that China has larger union of labor force and Chinese labor is less expensive and has huge potential powers compare to westerns’. However, this huge potential labor power has not been realized until 1978. Similarly, Indian’s labor is less expensive even though they are small unionized labor force. In addition, another reason that causes the less expensive labor is due to the large population of both two countries.
Further, Kaushik Basu discussed about the capita income of China and India. China grows rapidly after year 1978 and 1991 of India since the India Market Liberalization. She believes that “At the same time, in terms of annual growth rate of per capita GDP over that last two decades, the fastest-growing nation in the world is China, followed by Vietnam and India.” (Page 45, paragraph 3) The growth rates of these two countries were increasing rapidly through last 10 years. It brings dramatically changes to China and India’s economy.
More often, she discussed the social policy is another main reason that effect the growth rate of economy. She firstly discussed about the Chinese social policy which is communism.