India and China Comparative Economic Analysis
Economic models of India and China: Looking back and looking ahead
[5400 words]
China and India are two of the world’s oldest civiliza¬tions, each with the quality of resilience that has enabled it to survive and prosper through the ages and against the odds. Existing in close proximity to each other, the ancient civilizations of India and China surprisingly had little political and economic interac¬tion for the past many centuries. Historically and culturally India never played second fiddle to China and so is the case with China. Therein lies the root cause of volatile and strained relationship. Both see themselves as great Asian powers whose time has finally come. There is no doubt that China and India will be dominant economic powers by the middle of this century but in many key respects they are quite different from one another. This is reflected in the position each has in the areas of economic and social indicators, where the score card is continually changing. Infact, the strengths of India are very often the weaknesses of China and the strengths of China are the weaknesses of India. Notwithstanding their recent economic growth stories, each has its weak point— regional conflicts, pov¬erty, linguistic and religious divisions for India; the contradiction between a capitalist economy and Communist politics, growing regional divide and growing unemployment for China. Both are plagued with domestic politico- economic troubles that could be their undoing if not managed properly. Yet, China and India also share remarkable similarities in economic outlooks and policies. Both are focusing on increasing comprehensive national strength on a solid economic- technological base. Both are major competi¬tors for foreign investment, capital, trade, resources, and markets. Burgeoning economic ties between the world’s two fastest- growing economies have become the most salient aspect of their bilateral relationship. Both have begun to behave like normal
[5400 words]
China and India are two of the world’s oldest civiliza¬tions, each with the quality of resilience that has enabled it to survive and prosper through the ages and against the odds. Existing in close proximity to each other, the ancient civilizations of India and China surprisingly had little political and economic interac¬tion for the past many centuries. Historically and culturally India never played second fiddle to China and so is the case with China. Therein lies the root cause of volatile and strained relationship. Both see themselves as great Asian powers whose time has finally come. There is no doubt that China and India will be dominant economic powers by the middle of this century but in many key respects they are quite different from one another. This is reflected in the position each has in the areas of economic and social indicators, where the score card is continually changing. Infact, the strengths of India are very often the weaknesses of China and the strengths of China are the weaknesses of India. Notwithstanding their recent economic growth stories, each has its weak point— regional conflicts, pov¬erty, linguistic and religious divisions for India; the contradiction between a capitalist economy and Communist politics, growing regional divide and growing unemployment for China. Both are plagued with domestic politico- economic troubles that could be their undoing if not managed properly. Yet, China and India also share remarkable similarities in economic outlooks and policies. Both are focusing on increasing comprehensive national strength on a solid economic- technological base. Both are major competi¬tors for foreign investment, capital, trade, resources, and markets. Burgeoning economic ties between the world’s two fastest- growing economies have become the most salient aspect of their bilateral relationship. Both have begun to behave like normal
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