Question

In: Economics

How is regional development in China similar/different to regional development in India?

How is regional development in China similar/different to regional development in India?

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Expert Solution

Two countries that have proved to be faster than the other so-called ‘developing nations’ of the world especially in the South Asian region are India and China. The Countries are often compared for their similarity in geographical (both are large countries), demographical ( both are thickly populated), social and economic similarities.

Their sustained development process has accelerated the economic growth rate in both nations over a period of time and both have ‘noticeable nations’ for their attempts at reducing income inequalities and regional disparities.

The financial Sector comprises of banks, largely controlled by the ‘State’ and yet provided with the state of the art technology to enable exporters to deal effectively with foreign exchange transactions.

The transport and communications have been given prominence early on itself since the Chinese government realised that trade and economic development heavily rely on an effective and accessible infrastructural facilities. Solar energy and alternative resources have also been tapped into to make way for newer and more environment friendly techniques of production processes.

Chinese government has been striving with zeal to reduce economic poverty since it has perceived that ‘poverty’ is a major road block in the path of economic growth.

The Southern and eastern parts of China are relatively more compatible for development process since they are covered by hills and low mountain ranges and fertile soil generously contributed by the major rivers present in the region, In comparison, the western part of the country is dominated by high landscapes and arid dry plateaus which are not easily conducive for infrastructure development.

These essential features have impacted the economic growth in these regions since the regional growth has been more dominant in areas that are geographically endowed rather than those which are hard to access. This had initially led to a rapid growth of those regions which were having higher agricultural productivity rather than those regions that needed irrigation facilities to boost their performance. This disparity has led to the formulation of policies by the government to ensure that the geographically less endowed regions are the targets for infrastructural development since a lop sided regional growth can prove to be a major road block in the ongoing economic development .   

India, a country , diverse in various aspects-geographical, economic and social aspects, has been largely affected by the predominance and exploitation of the British rule for more than centuries. Yet since its independence in 1947, India has adopted a sustained growth strategy and has always been a fore runner in the race of one of the fastest growing nations in the category of’ developing nations’

The nation has a vast and a well developed transport, financial and communication sector which has accelerated the economic growth rate .The major ports called ‘presidencies’ which were initially developed by the British have expectedly been the dominant centres of development since their infrastructural facilities have already been laid by the British who were using India as a platform for the raw materials needed by the British industries in England.

The onus on the Indian government lay in developing the other parts of the country which were largely left uncared for by the British. The major infrastructural facilities like railways , roadways were highly lopsided , since only those ports and cities which were accessed by t7he British were developed while the others were left untouched. Hence the Indian government has been actively working towards improving the facilities across various parts of the country especially in the north eastern region, which is mountainous and not easily accessible, as well as parts of the western India which has desert lands and is dry.

The nation is also heavily divided on the basis of cultural differences and hence regions that have high levels of poverty and gender inequality have been major road bottle necks that have adversely affected the overall economic growth of the country. India’s literacy rate is also been comparatively lesser than the Chinese literacy rate hence this has affected the overall regional growth and development.

The huge population which is serving as a base for skilled and unskilled workforce has been effectively utilised by other international labour markets, hence we find many Indian and Chinese emigrants working in other countries and remitting income home, a newer source which has effectively helped the governments tap into the growing factor income from abroad sector.


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