Chapter: Comparative Development Experiences of India and its Neighbours
Introduction
In today's globalized world, it is important for countries, especially developing nations, to understand the development strategies of their neighbors. India, China, and Pakistan have similar challenges but have adopted different approaches.
This chapter compares the development experiences of India with its neighbors, Pakistan and China, looking at how these nations pursued economic growth and development, and how their strategies have differed.
Developmental Path — A Snapshot View
Similar Starting Points: India, Pakistan, and China started their developmental journey around the same time. India and Pakistan became independent in 1947, while China became the People's Republic of China in 1949.
All three nations adopted Five-Year Plans as a way to guide their economic development. India began its first Five-Year Plan in 1951, Pakistan in 1956, and China in 1953.
Key Differences: Despite starting at the same time, each country has followed different political and economic strategies. India pursued a democratic path with a mixed economy, China followed a socialist model, and Pakistan combined public and private sector efforts with heavy reliance on foreign aid and remittances.
Demographic Indicators
Population: China is the most populous country, followed by India, with Pakistan having a much smaller population.
Population Growth: Pakistan has the highest population growth rate, while China’s is the lowest, largely due to its one-child policy. India falls in between.
Sex Ratio and Fertility Rates: China has a higher sex ratio compared to India and Pakistan, but all three nations face gender imbalances. Fertility rates are lowest in China, followed by India, while Pakistan has the highest.
Urbanization: China is the most urbanized, with over half its population living in cities. India and Pakistan are less urbanized.
Gross Domestic Product (GDP) and Sectors
GDP Comparison: China has the largest GDP, followed by India and then Pakistan. In terms of growth rates, China experienced double-digit growth in the 1980s, which helped it outpace India and Pakistan.
Sectoral Contributions:
Agriculture: Agriculture's contribution to GDP is decreasing in all three countries. In India, 43% of the workforce is employed in agriculture, but it contributes only 16% to GDP.
Industry: China leads in industrial growth, with industries contributing 41% to its GDP. India and Pakistan have lower contributions from industry.
Services: The service sector is the largest contributor to GDP in all three countries, but it plays a particularly dominant role in India.
Indicators of Human Development
Human Development Index (HDI): China has the highest HDI among the three nations, followed by India and Pakistan. The HDI measures factors like life expectancy, education, and income.
Life Expectancy: China has the highest life expectancy, while Pakistan has the lowest.
Education: China outperforms India and Pakistan in terms of mean years of schooling.
Income and Poverty: China’s per capita income is the highest, and it has the lowest poverty rate. India and Pakistan have higher poverty levels.
Health Indicators: China has better health outcomes, with lower maternal and infant mortality rates compared to India and Pakistan.
Development Strategies — An Appraisal
China’s Reforms: China introduced economic reforms in 1978, focusing on agricultural and industrial reforms. The reforms allowed private sector growth and foreign investment, leading to rapid industrialization and economic growth.
Pakistan’s Reforms: Pakistan's reform process started in 1988, but the country has faced challenges like political instability and over-reliance on foreign aid. Economic growth has been inconsistent, and poverty rates have fluctuated.
India’s Reforms: India introduced reforms in 1991, opening up its economy to foreign investment and privatizing many public sector enterprises. While this led to growth, India continues to face challenges such as poverty, inequality, and dependence on agriculture.
Conclusion
Over the last several decades, India, China, and Pakistan have taken different paths toward development. China has emerged as the fastest-growing economy with significant industrial output, while India has focused more on the service sector. Pakistan has experienced slower growth due to political and economic challenges.
Each country’s development strategies have shaped their current economic and social outcomes, with China leading in industrial growth, India in services, and Pakistan facing ongoing challenges.
Recap
All three countries share similar geographical features but differ in political systems.
India, China, and Pakistan started their development journeys with Five-Year Plans, but China has grown the fastest due to its structural reforms.
China leads in human development indicators, followed by India, while Pakistan lags behind in most indicators.
Economic reforms were introduced at different times in these countries, with varying outcomes in terms of growth and poverty reduction.
