Summary of China and Indian’s Groth Path Essay Sample
- Pages: 3
- Word count: 667
- Rewriting Possibility: 99% (excellent)
- Category: economics
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Introduction of TOPIC
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 th
e world is China, followed by Vietnam and India.” (Page 45, paragraph 3) The growth rates of these
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. Under the communism policy, the entire country work as a whole towards the goal. However, it facing opportunity cost as the same time. India, in contrast, the social policy is more democracy and free market. However, it still special and takes a position between China and U.S.A. Under the communism policy, the government could control the labor force and the business. For instance, “In China, there were periods of wage repression and strikes and work stoppages were simply not allowed.” (Page 44, paragraph 7) Another instance would be the China Great Leap Forward policy. This is a failure policy which directed by Chairman Mao Zedong. During the period of Great Leap Forward, the government was focused on the quantity but not the quality. Thus, lots of wastes were created as the result. This caused a big collapse on Chinese economy.
Last but not least, the market liberalization brings high economy growth to both countries. The market liberalization policy is known as following, increase investment, allow foreign investors set up businesses, unleashed the policy of foreign business and building free trade ports. Since 1979 when Deng Xiaoping opens the Chinese market to the world, the Chinese GDP was dramatically increased. Meanwhile in 1991 when India has market liberalization, its GDP grows faster than it is before. There is no doubt to say that the market liberalization is the key for both countries of their economic growth.
To sum up, Kaushik Basu discussed the economy growth of both China and India through special labor force, capita income, social policy and market liberalization which are idiosyncratic paths to high growth for both two countries.
Personal opinion, even though China and India has rapid economy growth, there are still some hidden troubles. For instance, the increasing number of slum in India and the gap between rich and poor is increased in China. These problems are hard to solve in current situation of both two counties. The government would take lots of time and money to solve these two problems in the future time.