INDIA PAKISTAN CHINA 15TH

15TH AUG 1947 14TH AUG 1947 1ST OCT 1949

ASIA ASIA ASIA

MIXED MIXED MIXED

POP-NO 2 1311 million POP- NO 3 208 million POP – NO 1 1376 million

AREA- 3,287 MILLION KM 888,913 KM2 9,597 MILLION KM2

All the economies are classified into developed and developing
nations

 World economies are trying to adopt various means which will

strengthen their own domestic economy.

 They themselves form regional and economic groupings such as

SAARC, European union ,ASEAN ,G-8,G-20,BRICS

 Various economies trying to understand the developmental

processes pursued by their neighbouring countries as it
allows them to realise their own strengths and weaknesses
in comparison to their neighbours.
 Focus of this
lesson

We will be comparing the trends in various

economic and human development indicators
of India with its two principal neighbours.
India is a Democratic country
.
China is moving towards more liberal restructuring of
its command economy.
.
Pakistan having an authoritarian militarist political
power structure.
All these three countries development dates back to six
decades ‘

In this lesson we will be focussing on their development

strategies to reach their present status.
India announced its
five year plan in
1951.
China announced
in 1953

Pakistan
announced in 1956
  Pakistan is in 12th five year
At nt plan
es e
pr
 China is in 13th five year
plan (2016=2020)

 Until march 2017 , India has

been following five year plan –
based developmental model.
CHINA
HISTORICAL BACKGROUND
• China is one of the oldest
civilization ,consisting of
states and cultures dating
back more than six
millennia.
Geography
 China is situated in eastern
Asia, bounded by the pacific
ocean in the east.
 It is the third largest
country in the world ,next
to Canada and Russia ,with
an area of 9.6 million square
kilometres
 China has been the world’s largest
economy
 People’s republic of china under one –
party system

 Factors of production are owned and operated by

government
 GREAT LEAP FORWARD
IN 1958
Initiated the Great Leap
Forward (GLF)

The aim of this campaign was to transform

agrarian economy into a modern economy
through the process of rapid
industrialisation.

MAO ZEDONG
Under this programme, people were encouraged to set up
industries in their backyards
COMMUNE SYSTEM
In rural areas ,communes were started. Under the commune system,
people collectively cultivated lands. In 1958 ,26000 communes were
there.
 Under which the
students and
professionals were sent
to work and learn from
the country side.

 However Russia had

conflicts with china, it
withdrew its
professionals ,who had
earlier sent to china to
help in the
industrialisation process.
Reforms introduced in china (1978)
In the initial phase
• Reforms were initiated in
agriculture, foreign trade and
investment.
• Commune lands were divided into
small plots which were allocated
to the individuals .People can keep
their income after paying taxes.
In the later phase
• Reforms were initiated in the
industrial sector.
• Private sector firms and township
and village enterprises were allowed
to produce goods.
• At this stage ,enterprises owned by
government (SOE) were made to
face competition.
DUAL PRICING IN THE FIXING PRICES IN TWO
REFORMS PROCESS. WAYS.

 Farmers and industrialists units were required to

buy and sell fixed quantities of inputs and outputs
on the basis of prices fixed by the government.

 For other transactions , the inputs and outputs

were purchased and sold at market prices.
Special economic
zones
Aim: to attract
foreign
investment
PAKISTAN
HISTORICAL BACKGROUND
• Islamic Republic of Pakistan gained
independence on 14th Aug 1947
• 1971 civil war in east Pakistan
resulted in the independence of
Bangladesh.
• Military rule and political instability.
GEOGRAPHY
 Located in south Asia and
borders central Asia and
the middle east.
 7,96,095 sqkm

 Cultivated area
2,21300sqkm
 Forest 42,300 sqkm
POPULATION AND LANGUAGE
• Sixth most populous country in the
world 188(2015) 208.57(2020)
• Growth rate 2.1% p.a (-0.5%)
• 1/3rd population lives below poverty
line.
• Second largest Muslim country.
• National language Urdu and English
is the official language
 Public sector
ECONOMY

Mixed economic system

Co-existence of
public and private Private sector
sector.
INTRODUCTION OF VARIOUS
POLICIES

IN 1950 and 1960s, Pakistan introduced a variety of regulated

policy framework for growth of domestic industries.

The policy combined tariff protection for

manufacturing of consumer goods, together with
direct import controls on competing industries.
 GREEN REVOLUTION

 Green revolution and increase in

public investment in
infrastructure led to a rise in the
production of food grains .
 This changed the agrarian
structure dramatically.
 f o r
e o c t
l se
Ro blic
pu

In the early 1970s,

nationalisation of capital
goods industries took
place.
 o r
f c t
o s e
le te
Ro iva
pr
 In 1970;s there was a shift in the
government policy, when it
adopted the policy of
denationalisation.
 Government encouraged the
private sector and also offered
various incentives to them.
This initiative created conducive
climate for new investments.
 Financial support during late
1970’s
During this period ,
Pakistan also received
financial support from

o Western nations
o Remittances from emigrants to the middle east.

o Stimulated economic growth

 REFORMS

IN 1988 ,REFORMS WERE INITIATED IN THE

COUNTRY.

Privatization Nationalization
COUNTRY ESTIMATED ANNUAL DENSITY PER SEX RATIO FERTILITY URBANISATIO
POPULATION GROWTH OF SQ,KM 2015 RATE N
IN MILLIONS POPULATION 2015 2015
2015

INDIA 1311 1.2 441 929 2.3 33

CHINA 1371 0.5 146 941 1.6 56

PAKISTAN 188 2.1 245 947 3.7 39

 POPULATION

China is the most populous next is

India .

Every six person living in this world one is

an Indian and another Chinese.

The population is very small and accounts for

roughly about one-tenth of china or India.
 Growth rate of population

China’s annual population growth rate is

the lowest (0.5%)

India’s population growth

rate is 1.2%

Pakistan is with 2.1%

One-child policy
Advantage :
 Reduced the population
growth rate.
 Provides a better health
service for women and has
reduced the risk of death and
injury associated with
pregnancy.

Disadvantage:
 After few decades there will be
more elderly people in
proportion to young people in
china
 China has to spend more on
social security scheme.
 Density of population
China is the largest country in the world by area and
growth rate is less .as a result density of population is
the lowest(146 persons per sq.km)

India (441 sq,km)

Pakistan (245 persons

sq,km)
 Sex ratio

 Due to preference of son, sex ratio is low and biased

against females in all the three countries.

 Sex ratio is the lowest in India with 929 females per 1000
males
 China 941 female per 1000 male

 Pakistan 947 female per 1000 male.

 Fertility rate

Fertility rate is calculated as the

number of children borne by a
woman in the reproductive age
(15-45) on an average

China fertility fallen from 3 births

per woman to 1.6 births
Pakistan 3.7 births per women
India comes second with
2.3 per woman
 URBANISATION

Highest in china (56%)

India 33%

Pakistan
39%
 GROWTH INDICATORS
COUNTRY 1980-90 2011-15

INDIA 5.7 6.7

CHINA 10.3 7.9

PAKISTAN 6.3 4.0

 DURING 1980- 90
o china was having double digit growth
of 10.3%
o Pakistan's growth rate was6.3%
o India was at the bottom with just
5.7% growth rate
DURING 2011-15
o There was a drastic fall in china’s
growth rate from 10.3% to 7.9%
o Pakistan also met with a drastic
decline in growth rate from 6.3%
to4% .as per some scholars, reform
processes in 1988 and political
instability were the main reasons
behind this decline.
o India recorded an increase from
5.7% to 6.7%
 CONTRIBUTION IN GDP DISTRIBUTION OF WORKFORCE
Sector India China Pakistan India China Pakistan

AGRICULT 17 9 25 50 28 43
URE

INDUSTRY 30 43 21 21 29 23

SERVICE 53 48 54 29 43 34

TOTAL 1009 100 100 100 100 100`

  AGRICULTURE
(PRIMARY SECTOR)
1. Due to topographic and
climatic conditions, the area
suitable for cultivation is just
10% of its total land area.
2. The total cultivable area in china
accounts for 40% of the cultivable
area in India .
3. Till 1980 , more than 80% of its
population was dependent on
farming as their sole source of
livelihood.
 IN CHINA
4. Since then, government
encouraged people to leave
their fields and pursue other
activities ,such as
handicrafts, commerce and
transport.
5. As a result ,proportion of
workforce engaged in
agriculture reduced to 28%
in 2014-15 with contribution
to GDP at 9%
 IN INDIA IN PAKISTAN

The contribution of The contribution of

agriculture to GDP was agriculture to GDP was
17%. The proportion of same at 25% , but
workforce engaged in proportion of workforce
agriculture was 50% engaged in agriculture
was 43% as compared to
50% of India.
China’s contribution
to GDP
China’s manufacturing
industries contribute to 43%

China has shifted its

employment and output
from agriculture to industries

29% of china’s population is

engaged in manufacturing
sector.
 Contribution to GDP

India and Pakistan are emerging

players in service sector with the GDP
contribution of 53% and 54%

IN CHINA the service sector contributes

to 32%.

In the 1980, Pakistan was faster in shifting

its workforce to service sector than India.
The contribution of agriculture sector with the largest
workforce had declined in all the countries.

In the industrial sector china maintained a double digit growth rate where as
India and Pakistan’s growth gone down

In case of service sector china was able to raise up its growth rate whereas
India and Pakistan remained stagnant in their growth rate.
Items s India china Pakistan

Human development 0.624 0.736 0.550

index(value)

Rank (based on HDI) 131 91 146.3

Life expectancy at birth(years) 68.3 76 66.5

Mean years of schooling (% 6.3 7.5 5.1

aged 15 and above)

People below poverty line (at $ 37% 32% 44%

3.10 a day PPP) % 2011

Infant mortality rate (per 1 lakh) 38 9 66

Maternal mortality rate (1lakh 174 27 178

births)
Population using 40 77 64
mproved
sanitation(%)

Population with 94 96 91
sustainable access to
mproved water source
(%)

Percentage of under 39 9 45
nourished children
GDP PER CAPITA 6092 14400 4866
 Liberty indicator
Liberty indicator may be defined as the measure of
the extent of demographic participation in the
social and political decision making.

Measures of the extent of the

constitutional protection rights
given to the citizens,

Extent of the constitutional

protection of the independence of the
judiciary and rule of law .

Human development index may be

said to be incomplete unless such
indicators are included.
China appraisal of development strategy(1978)
Pre reforms
•Massive extension of basic
health services in rural areas.
•Through the commune
system there was equitable
distribution of food grains.
•Due to collectivisation and
great leap forward there was
no notable change in per
capita output.
Post reforms
• Each reforms measure was implemented in
smaller level and extended to larger scale.
• Development in infrastructure(education,
health and land reforms)
• Decentralised planning
• Existence of Small enterprises increased
social and income indicators.
• Agricultural revolution (handing over the
land to individuals improved the life of poor
people.
 Pakistan

Pre-reforms
Post reforms
• Agricultural growth and food • Pakistan has recovered its
supply chain depend on good economic growth and has been
harvest and not on institutionalised sustaining.
process of technical change . • Agriculture ,industry and service
• Foreign exchange earnings came sector shows a positive trends .
from the remittances of Pakistan
workers and not from export.
• Growing dependence of foreign
loans and increasing difficulty in
paying back the loans.
 India
 Majority of the people still
depend on agriculture.
 Infrastructure is lacking in many  Showing a positive trends in
parts of the country.
 More than one –fourth of the
people living below poverty
line.
 Pakistan
 Political instability, over-
dependence on foreign
remittances, poor performance
of agriculture – reasons for the
slow down of Pakistan
economy.
GDP rate.
 Positive trends in growth
indicators shows Pakistan
economy is recovering.
 China
 Lack of political freedom and
human rights are major
concerns.
 In recent years china used
market system without losing
political commitment and
succeeded in raising the level of
growth and poverty line.
 Allowing individuals to cultivate
lands china has ensured social
security in rural areas.
 Public intervention in providing
social infrastructure brought
positive results in human
development indicators in
china.