In the 20th century, the world’s economy was dominated majorly by the wealthy countries of Europe and North America. However, according to contemporary surveys, many economists are of the notion that there will be a shift of things in the 21st century. According to these economists, this will be an era of countries in the developing world. The world’s next most populated country after China is India. These two nations have the biggest market owing to their ever escalating middle-class society. Since 2000 India and China have managed an average of 10% increase in their growth rate per annum. Such a performance is prone to lead to a convergence between these developing nations and the rich world.
Despite the large competition between the two nations in proving who is more dominant in Asia, they both have one common resource, which is the young employed population ambition to stand out in the world economically (Rigi, 2011). This age bracket is the best as they are not only competitive, but they are also more interactive with the rest of the world. This is not an implication that the prior generation or elders were not exposed to civilization, but the contemporary youths are more vulnerable because of the widespread of the internet in almost every household. A tremendous positive change in political, economic power and general living standards of citizens in China and India has been noted over the years.
As records show, Chins is way ahead of India, as its economic growth rate is way faster than India and it earns ten times as India does from direct investment. After considering the last five years, it can be seen that the gross domestic product of India has been increasing by roughly 5 percent while on the other hand, that of China has always been around 10 percent. At this rate China is being regarded as a threat and leaders from other countries in the developing world are curious to find out what is the secret behind this triumph.
Based on China’s annual earnings in the last 40 years, the nation has been saving a lot. These high saving rates are then channeled into critical projects. Some of these projects are not beneficial immediately but with time the start to pay off. This is possible one reason as to why India is not at the same level with China. As for India with its small or almost no saving rate when funding is required to finance essential local projects they have to go out the wealthy nations to ask for debts. Although at the end of the day the project will be done with when it comes to repaying the debt interest rates are usually high (Jadhav & Raj, 2009).
Chinese political leaders have always made it their priority to invest on models and showcases. In turn, this has made it possible for foreign investment to be canalized into the nation creating local economic development. A majority of models displayed to the world are developed in such a manner that they do not only sell a region but the whole country in general. An example of such is the Beijing airport which is an inspiring gateway for non-citizen investors visiting. The effects of such sites are lucrative and capture person’s attention in a big way. Also, leaders in China are not biased they carry the country’s welfare as their interest at heart.
Unfortunately for India, almost all sectors of its government are corruption infested. In the country this unethical act has a stronger grip when it comes to entitlement of programmes and expenditure on schemes intended to improve the wellbeing of the society. This brings the economy steps back making it impossible to be at the same level with China. Owing to this selfishness programs intended to help the less fortunate in China become futile and worse of things as the poor are denied of their rightful wants.
The Chinese government has made a lot of free trade zones and export processing zones with a well-connected network of infrastructure. Such efforts motivate citizens to invest and work to their level best as they are protected from the stiff competition of industries in the rich countries (Adhikari & Ganguly, 2017). The good infrastructure also goes a long way in avoiding losses and time wastage. China puts a lot of emphases when it comes to its road networks. China’s constitution allows the government to acquire land quickly which made is easy for the nation to build its airports, roads, and railways at a pace like never before. On the other hand, India’s constitution has policies that have a lot of bureaucracy when it comes to rapid land acquisition (Rana, 2014).
Although India has tried imitating this by creating export processing regions, it has not yet been able to avail quality and standard infrastructure. So areas in India are almost inaccessible, especially during the rainy seasons. As a result of this, a foreign investor might be willing to invest in the nation but have a change of thought because of poor infrastructure.
Quite a large population of Chinese lives in other countries in the world, and they always give back immensely to China through investments and remittance. China’s Diaspora has played a significant role in shaping the country’s economy, and as a result, the government has set a cabinet to strictly only handle matters of citizens abroad. Moreover, they are offered incentives to make them want to return home to do their socio-economic activities. On the contrary, the government of India does is not consistent with policies for Non-Resident Indians. Therefore if India wants to be as China, it ought to bind the capital and knowledge of its Diaspora and initiate strategies of how citizens living abroad can participate in the economic development.
China has branded itself as a strong manufacturing base in the world. Most products in the global market are manufactured in China due to the low cost incurred. The country’s success when it comes to manufacturing makes it an epitome of a manufacturing base any company will want to associate itself with. And it is because of this fact that China can offer more job opportunities to residents than India. To add on China has a much lower rate of illiteracy in comparison to India. If the majority of a nation’s population is literate, then it is in a much better position of utilizing its endowment entirely to improve economically.
China puts its interest above other things. It only pays attention to projects that will make its economy better off than it is. It might be good for India if its citizens became selfless and worked in unity towards pushing the economy high. In as much as India dreams of becoming a superpower the fact that it has the largest percentage of malnourished children in the world makes the dream blurry. In becoming a superpower, any developing country should strive to fight poverty from its borders at all cost
Adhikari, A., & Ganguly, S. (2017). A Comparative Analysis Between Green Industrial Policies of India and China: Review and Implications. Industrial Policy and Sustainable Growth, 1-17.
Jadhav, N., & Raj, J. (2009). Financial System in India and China: A Comparative Study. Economic Reforms in India and China: Emerging Issues and Challenges, 115-139.
Rana, K. S. (2014). Diplomacy Systems and Processes: Comparing India and China. China Report, 50(4), 297-323.
Rigi, F. (2011). A Brief Comparisson Between India and Chinaas emerging econmy in Asia, 2(6), 125-130.