China and India now are widely acknowledged as the planet’s next economic superpowers |
China and India are two neighbouring countries in Asia who share the two largest population of the world and in fact added together they represent nearly one third of humanity. Globalisation has imposed internal pressure and external pressure to bear on both India and China. For most Chinese and Indians alike, economic life is hard despite the fact that reforms and globalisation have created various new opportunities and as such both countries have witnessed an emerging middle class with Americanised tastes and preferences, irrespective of this however, both countries ...view middle of the document...
The phenomenon of globalisation has however affected both these countries. Given their large populations, big land mass and abundant resource bases, they have both relied on indigenous capabilities to a large extent to develop a wide range of goods for their internal markets.
The changes incurred on the road to globalisation are explored as well as some of their differences and similarities are discussed and furthermore some of the reasons as to why China has overtaken the Indian economy is highlighted.
India became independent in 1947 from the British and its population grew from 340 million to exceed one billion in 2000. Its per capita GDP is US $475 making it one of the poorest countries, although paradoxically it has had nuclear capabilities since 1974 and is one of the few countries in the world which has its own satellite in orbit due to an indigenous space program. India has always faced internal problems connected to caste and wealth, religion and language issues amongst others and as a democracy it has survived and can boast to have a free press, regular elections and an independent judiciary .
It has definitely opened itself to globalisation especially as a result of changes in economic policies in the early 90’s and will have to face increasing world competition given its commitments at the WTO.
China is the world’s most populated country with 1.3 billion people. The GDP per head is US$ 870 and had a total GDP of US$1.1trn in 2000 as compared to India’s total GDP of US$2233 billion for the same period. Plagued by a series of civil wars and invaded by Japan until the end of World War II, China then experienced communism under Chairman Mao. Relying strongly on autarky to achieve labour-intensive industrialisation which subsequently failed, China suffered from a severe setback during the cultural revolution which saw several cadres being taken to the countryside to work as peasants. Deng Xiao Ping however recognised the backwardness of China and realised the suffering done to their own people. He then steered the country towards a progressively open economy under the control of the Communist party whereby in the 1980s various special economic zones were established to attract foreign capital . Also the approach to reforms in China have been different to that of the Soviet Union in what has been termed a gradualist strategy as opposed to shock therapy.
What is globalisation? This contemporary issue has been formulated differently by many academics while the basic notion that some cross-border trade and investment are happening between nations due to interdependency and an increasingly integrated international economic system, should be a starting point in developing any such paradigm. One could then argue about whether the concept is new and if not how does it differ from the old ‘globalisation’? The main difference comes from the impact of technological progress and also from the idea of free...