11g1 economics

8/7/2019 11G1 economics

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Basis India China Pakistan

Independence 1947 1949 1947

1st five year plan 1951 1953 1956

Completion of

plan till 1998

8 five

yearplan

10 five year

plan till2006

8 five year

plan

Basis ofdifference

India China Pakistan

Type ofeconomic-system

Mixedeconomicsystem

Socialisticeconomicsystem

Mixedeconomicsystem

Governmentrule

Democracywith federalgovt.

PeoplesRepublic ofchina oneparty rule

Democracy


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Sector Contribution to GDP(2003)

India China Pakistan

Agriculture

Industry

Service

23

26

51

15

53

32

23

23

54

Total 100 100 100

SectoralSectoral Share of Employment and GDPShare of Employment and GDP


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China represents a huge market due to its population and theeconomy can still enjoy a very high growth rate in the nearfuture. Despite political and social uncertainties, we areconfident because of the quality of the Chinese youth. 400Million are aged between 20 and 39 (Only 110 million in

Western Europe ) and constitute the main labor force.

Given the current saving and investment rate as well as theproductivity of capital, India can hope to attain about 6percent growth per annum in the coming decades.

With the projected economic growth of 5.5% per annum andpopulation of 2% per annum, Pakistan by 2020 would haveachieved:(i)Base of $150 bn (real terms)(ii)Economy: $270 bn(iii)Population: 198 million.


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COUNTRIES

_____________

POPULATION

In the foll. Years

INDIA CHINA PAKISTAN

1950 562,579,779 369,880,000 39,448,232

1980 687,029,282 984,736,460 85,219,117

2000 1,002,708,291 1,268,853,362 146,342,958

2009 1,338,612,968 1,156,897,776 174,578,558

SOURCE - US CENSUS BUREAU ,INTERNATIONALDATABASE and other sources


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at birth: 1.14 male (s)/femaleunder 15 years: 1.17 male (s)/female15-64 years: 1.06 male (s)/female65 years and over: 0.93 male (s)/femaletotal population: 1.06 male (s)/female (2010 est.)

CHINA

INDIAat birth: 1.12 male (s)/femaleunder 15 years: 1.13 male (s)/female15-64 years: 1.07 male (s)/female65 years and over: 0.91 male (s)/femaletotal population: 1.08 male (s)/female (2010 est.)

PAKISTANat birth: 1.05 male (s)/female

under 15 years: 1.06 male (s)/female

15-64 years: 1.09 male (s)/female

65 years and over: 0.92 male (s)/female

total population: 1.07 male (s)/female (2010 est.)


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Indicators India China PakistanEstimatedpopulation (inmillions)

1103.6 1303.7 162.4

Annual growth ofpopulation(1990-2003)

1.7 1.0 2.5

Density (per sq. Km) 358 138 193Sex ratio

933 937 922Fertility Rate 3.0 1.8 5.1Urbanisation 27.8 36.1 33.4Improved sanitationfacilities 30 % 44 % 54 %

As on2000

-2001


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India

China

Infant mortality rate

and birth rate


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GDP India vs.GDP China

The growth rate in GDP India vs. GDP China has increased outstandingly in the recentperiod due to several factors leading to an economic upsurge in both the countries.

China and India jointly account for 2.4 billion people, which is roughly 40 percent of the

total population of the world. . It has been assumed that China is likely to excel Japan in

terms of population by the year 2016. By the end of the year 2045, China is expected to

surpass United States in the population strength also. According to a survey report on

the growth rate of China and India GDP, it has been stated that the institutional investors

have made a notable contribution in the country's economy, which led to the hike in the

GDP of both the countries.

India GDP and China GDP are likely to grow in their own ways. To be precise, in 25 years

from the current period it has been assumed that China will have a more superior

economy as it already leads the total output in the world. On the other hand, soon in the

coming years India will have superior investor returns than China. This is because of the

augmented institutional development in India which is higher and more efficient than

that of China. Considering the expected conflicts in China's economic and political

systems, it can be inferred that a wide diversification of the investors is an essential

factor that is required for a sustainable growth in the country's GDP.

Former World Bank Chief James Wolfensohn declared in one of his speeches that soon

GDP India and GDP China will witness an overwhelming growth that will transcend the

G7 countries.


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India

Pakistan

China


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Service Sector Growth in IndiaService Sector Growth in India

and Chinaand ChinaDuring the 1950s and 1960s, research by Kuznets and Chenery suggested thatDuring the 1950s and 1960s, research by Kuznets and Chenery suggested thatdevelopment would be associated with a sharp decline in proportion of GDPdevelopment would be associated with a sharp decline in proportion of GDP

generated by the primarygenerated by the primary sector,sector, counterbalanced by a significant increase incounterbalanced by a significant increase in

industry and a modest increase in the service sector. Kongsamut (2001)industry and a modest increase in the service sector. Kongsamut (2001)

conducted a study on 123 countries and showed that the sector share given upconducted a study on 123 countries and showed that the sector share given upby agriculture as the economy matures goes more to the service sector andby agriculture as the economy matures goes more to the service sector and

less to the industry.less to the industry.

Furthermore, the modern view also suggests that the share of agricultureFurthermore, the modern view also suggests that the share of agriculture

declines as the economy grows with an increase in the service sector, and fitsdeclines as the economy grows with an increase in the service sector, and fits

in this pattern, quite perfectly. In the four decade period 1950in this pattern, quite perfectly. In the four decade period 1950--1990,1990,

agricultures share in GDP declined by 25 % while industry and services, bothagricultures share in GDP declined by 25 % while industry and services, bothgained equally. The share of industry has stabilized since 1990 and the entiregained equally. The share of industry has stabilized since 1990 and the entire

subsequent decline in agriculture has been picked up by the service sector.subsequent decline in agriculture has been picked up by the service sector.

However, we see that despite a considerable decline in the share of agricultureHowever, we see that despite a considerable decline in the share of agriculture

in GDP, there has been no significant decline in the share of agriculture inin GDP, there has been no significant decline in the share of agriculture in

employment. On the other hand, the share of services in GDP has risen butemployment. On the other hand, the share of services in GDP has risen butwith no increase in the share in employment.with no increase in the share in employment.


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Service Sector Growth in India andService Sector Growth in India and

China(cont)China(cont)

Software is one of Chinas fastest growing service industries. The Chinese softwareSoftware is one of Chinas fastest growing service industries. The Chinese software

industry is inherently different than Indias and will likely take different paths. Theindustry is inherently different than Indias and will likely take different paths. The

majority of Chinese software services producers are domestic companies withmajority of Chinese software services producers are domestic companies with

domestic consumers. Since software development creates more efficientdomestic consumers. Since software development creates more efficient

manufacturing processes, Chinas software industry is in high demand. In addition,manufacturing processes, Chinas software industry is in high demand. In addition,more and more Chinese are acquiring personal computers and mobile phones thatmore and more Chinese are acquiring personal computers and mobile phones that

require software advances.require software advances.

The Indian information and technology industry has been the source of muchThe Indian information and technology industry has been the source of much

discussion on the successful growth of a knowledge industry in a largely poor anddiscussion on the successful growth of a knowledge industry in a largely poor and

developing country. IT in India is spread across four key sectorsdeveloping country. IT in India is spread across four key sectors-- IT services, IT enabledIT services, IT enabled

services (ITES), software, and eservices (ITES), software, and e--business. These sectors combine for a 2008 annualbusiness. These sectors combine for a 2008 annual

revenue forecast of $87B (NASSCOM) with numerous analysts suggesting higherrevenue forecast of $87B (NASSCOM) with numerous analysts suggesting higher

revenue. Highlighting the rapid growth of IT in India, software was a small $150MMrevenue. Highlighting the rapid growth of IT in India, software was a small $150MM

industry in 1991, but grew to $5.7B in 2000, which is an annual growth rate of 50%industry in 1991, but grew to $5.7B in 2000, which is an annual growth rate of 50%

(NASSCOM).(NASSCOM).


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India: A Few Facts

7th largest country by area and 2nd bypopulation

The capital of India is New Delhi.The total area of India is 3,287,590 sq miles.

The type of government of India is democraticrepublic.

The life expectancy is for males is 62.55 and for

female is 63.93.The literacy rate is 52 %.The birth rate is 23.79 per 1,000.The death rate is 8.62 per 1,000.


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China: A Few FactsChina: A Few Facts 3rd largest country by area and 1st by population. The capital of China is Bejing. The population of the country of China is 1,236,914,658. The total area of China is 9,596,960 sq miles. The type of goverment of China is communist state. The currency is 1 yaun=10 jiao. The religon of China is Doasism (Toaism). The language of China is Chinese. The life expectancy is for males is 69.9 and for female is 72.7. The literacy rate is 73%.

The death rate is 6.99 per 1,000. The birth rate is 15.73 per 1,000. The major imports are: mineral fuels, plastics, and fabrics. The exports: footware, toys, leather, and plastics. The natural resources of China is coal, iron ore, and petroleum. Chief crops are tea, cotton, and rice.


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Pakistan: A Few FactsPakistan: A Few Factsy Population: 149 milliony Growth Rate: 2.06%y Literacy rate: 51%

y

Male 53%y Female 29%

y GDP (per capita): $492y Population below poverty line: 32%

y Urban 22%y Rural 39%

y Health Expenditure 0.7% of GDP

y Rural population access to:(i) Safe drinking water 48%(ii)Sanitation: 23%


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The World Bank assessments report theThe World Bank assessments report theextent and causes of poverty and proposeextent and causes of poverty and proposestrategies to reduce it. Countries havestrategies to reduce it. Countries havevarying definitions of poverty, andvarying definitions of poverty, and

comparisons can be difficult. Nationalcomparisons can be difficult. Nationalpoverty lines tend to have higherpoverty lines tend to have higherpurchasing power in rich countries,purchasing power in rich countries,where standards used are more generouswhere standards used are more generousthan in poor countries. Poverty measuresthan in poor countries. Poverty measures

based on an international poverty linebased on an international poverty lineattempt to hold the real value of theattempt to hold the real value of thepoverty line.poverty line.

PovertyPoverty

India

Pakistan

China


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Data here cover child labor, gender issues, refugees, and asylum seekers. ChildrenData here cover child labor, gender issues, refugees, and asylum seekers. Childrenin many countries work long hours, often combining studying with work for pay.in many countries work long hours, often combining studying with work for pay.Gender disparities are measured using a compilation of data on key topics such asGender disparities are measured using a compilation of data on key topics such aseducation, health, labor force participation, and political participation.education, health, labor force participation, and political participation.

Social DevelopmentSocial Development

India Pakistan China


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Natural and manNatural and man--made environmentalmade environmental

resourcesresources fresh water, clean air, forests,fresh water, clean air, forests,grasslands, marine resources, and agrograsslands, marine resources, and agro--ecosystemsecosystems provide sustenance and aprovide sustenance and afoundation for social and economicfoundation for social and economicdevelopment. The need to safeguarddevelopment. The need to safeguardthese resources crosses all borders.these resources crosses all borders.

Today, the World Bank is one of the keyToday, the World Bank is one of the keypromoters and financiers ofpromoters and financiers ofenvironmental upgrading in theenvironmental upgrading in thedeveloping world. Data here coverdeveloping world. Data here coverforests, biodiversity, emissions, andforests, biodiversity, emissions, andpollution. Other indicators relevant topollution. Other indicators relevant to

the environment are found under datathe environment are found under datapages for Agriculture & Ruralpages for Agriculture & RuralDevelopment, Energy & Mining,Development, Energy & Mining,Infrastructure, and Urban Development.Infrastructure, and Urban Development.

EnvironmentEnvironment India

Pakistan

China


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To reduce poverty faster, begin with Agricultural Reforms.

Make Reforms gradually and carefully.

Reform incentives before opening markets.

Improve health, education, infrastructure.

Land use at an early stage.

Focus on public investments that can boost Agricultural Productivityefficiently.

Promote Rural Diversification and Vertical Coordination.

Use Well-Targeted Antipoverty Programs and Safety Nets to Help thePoorest.

Work to Make Governance Both Effective and Transparent.


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