Introduction to Development in China,

India and JapanSara Hsu

Introduction What is development?

Gunnar Myrdal Washington Consensus Stiglitz and Sen Institutionalism

• China, India and Japan Reform in China: 1979 at the Third Plenum Reform in India: Independence in 1947 Reform in Japan: 1868 with the Meiji Restoration

China, India and Japan Individual paths but reform in all 3

countries Role and type of institutions:

• China: PBOC, SEZs, TVEs, SOEs• Japan: Feudal system private land

ownership, MITI• India: Planning Commission

Political Economy of Development

Economic development in China, India and Japan has changed the way economists understand political economy of development

Different histories has led to different political economies of development: colonialism, industrialization

Data Trends

China and India, GDP Per Capita

(2000 US$)

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

500

1000

1500

2000

2500

3000

ChinaIndia

Japan, GDP Per Capita (2000 US$)

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Exports of Goods and Services (% of GDP)

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

0

5

10

15

20

25

30

35

40

45

ChinaJapanIndia

Japan Infant Mortality Rate (per 1000 live births)

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

0

5

10

15

20

25

30

35

China Infant Mortality Rate (per 1000 live births)

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

0

20

40

60

80

100

120

ChinaIndia

Poverty in China

Poverty in India

Poverty in Japan

Bottom Line Development Different periods of development,

different development trajectories for China, India and Japan

What do the data tell us?

Did You Know? The UN Millennium Development Goals were laid

out in 2000, and included the following: 1.Eradicating extreme poverty and hunger, 2.Achieving universal primary education, 3.Promoting gender equality and empowering

women, 4.Reducing child mortality rates, 5.Improving maternal health, 6.Combating HIV/AIDS, malaria, and other

diseases, 7.Ensuring environmental sustainability, and 8.Developing a global partnership for development

Looking Forward