Website review: Foreign Affairs - The India Model -...
laodan discovered this in India
•1 reviews since Jun 26, 2006
india
•foreignaffairs.org/20060701faessay85401/gurch...
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laodan discovered 25 months ago
The India Model An interesting perspective but... "What has been peculiar about India's development so far is that high growth has not been accompanied by a labor-intensive industrial revolution that could transform the lives of the tens of millions of Indians still trapped in rural poverty". India's gini index shows a flatter income inequality than China. This is positive. But I'm afraid that the comparison of this index's results between China and India means nothing. This should indeed be viewed in light of each country's real GDP. The GDP "ppp calculation" shows indeed that China's gdp should be between 7.6 (World Bank) and 9.4 trillion dollars (IMF) while India's would only be some 3.6 trillion. This means that China's economy is over 2 times larger than India's... So the GDP per Chinese people should be over 2 times what it is per Indian people... It seems to me that China has succeeded to unleash the mechanism that diverts farm jobs into industrial jobs but India has not. This is what is called the spread of modernity. China seems to succeed at bringing its entire population into modernity but not India. Only because of this, the economic future should be brighter in China than in India, and if so, the future social realities will compare more favorably in China than in India. The question of national well-being is indeed given by the total amount of economic value that can be shared among all members of a country's population... and there is no doubt that China is far ahead at that count, today and in the foreseable future. in Foreign Affairs by Gurcharan Das """ Rather than adopting the classic Asian strategy -- exporting labor-intensive, low-priced manufactured goods to the West -- India has relied on its domestic market more than exports, consumption more than investment, services more than industry, and high-tech more than low-skilled manufacturing. This approach has meant that the Indian economy has been mostly insulated from global downturns, showing a degree of stability that is as impressive as the rate of its expansion. The consumption-driven model is also more people-friendly than other development strategies. As a result, inequality has increased much less in India than in other developing nations. (Its Gini index, a measure of income inequality on a scale of zero to 100, is 33, compared to 41 for the United States, 45 for China, and 59 for Brazil.) Moreover, 30 to 40 percent of GDP growth is due to rising productivity -- a true sign of an economy's health and progress -- rather than to increases in the amount of capital or labor. """ URL: The India Model
