Comparative Development Experiences

Regional and economic groupings (like EU, ASEAN, SAARC, BRICS, G-20) are formed to:

• Strengthen Economies: Nations try to strengthen their own domestic economies by forming alliances.
• Global Understanding: To better understand the developmental processes of neighbouring nations and learn from them.
• Counter Globalisation: To safeguard against the negative effects of globalisation and mass liberalisation.
• Mutual Trade: To facilitate free trade and cooperation among member nations.

Countries are strengthening their economies by:

• Forming regional and global economic groupings (SAARC, EU, ASEAN).
• Liberalising their economies to allow foreign investment (FDI).
• Undertaking economic reforms (like China in 1978, India in 1991).
• Analyzing the development strategies of neighbours to identify strengths and weaknesses.

Both India and Pakistan followed similar strategies initially:

• Mixed Economy: Both adopted a mixed economy model where public and private sectors coexist.
• Planning: Both initiated development through Five-Year Plans (India in 1951, Pakistan in 1956).
• Public Sector Dominance: Both relied heavily on the public sector for growth in the initial decades.
• Economic Reforms: Both introduced reforms to their economies (Pakistan in 1988, India in 1991).

The Great Leap Forward (GLF) campaign, initiated in 1958 by Mao Zedong, aimed to industrialise China on a massive scale.
Key Features:

• Backyard Furnaces: People were encouraged to set up small industries (like steel furnaces) in their backyards.
• Commune System: In rural areas, the Commune system was started where people collectively cultivated lands. By 1958, there were 26,000 communes covering almost all the farm population.

Yes, I agree.
China introduced reforms in phases starting in 1978:

• Phase 1 (Agriculture): Communes were divided into small plots allocated to individual households. They kept the income after paying taxes, incentivising higher production.
• Phase 2 (Industry): Private sector firms and Village and Township Enterprises (VTEs) were allowed to produce goods.
• Dual Pricing: Farmers and industrial units bought/sold fixed quantities at fixed prices, and the rest at market prices.
• SEZs: Special Economic Zones were set up to attract foreign investors.

Pakistan’s developmental path involved:

• Mixed Economy & Planning: Adopted in the late 1950s and 1960s.
• Import Substitution: Regulatory policy framework protected domestic industries.
• Green Revolution: Introduction of mechanisation and public investment in infrastructure increased food grain production.
• Nationalisation: Capital goods industries were nationalised in the 1970s.
• Denationalisation: In the late 1970s/80s, policy shifted towards denationalisation and encouragement of the private sector.
• Financial Support: Relied heavily on remittances from the Middle East and loans from Western nations.

The ‘One Child Policy’ introduced in the late 1970s successfully reduced China’s population growth rate.
Implication: It halted population explosion but led to an aging population. There will be more elderly people in proportion to young people, forcing China to eventually relax the policy (allowing two/three children recently) to maintain its workforce.

• Population: China has the largest population, followed closely by India. Pakistan is much smaller (about 1/10th of India/China).
• Growth Rate: Pakistan has the highest population growth rate (>2%), followed by India, while China has the lowest due to the one-child policy.
• Density: India and Pakistan have high density; China has low density due to its vast land area.
• Sex Ratio: All three have a skewed sex ratio (preference for sons), with low female-to-male ratios.
• Urbanisation: China is the most urbanised (>60%), followed by Pakistan, with India being the least urbanised among the three.

Sector	China	India
Agriculture	Low contribution (~7%)	Moderate contribution (~15-16%)
Industry	High contribution (~40%)	Lower than China (~25-30%)
Service	High contribution (>50%)	Highest contribution (>50%)

Indication:
China’s growth is driven by both Industry (Manufacturing) and Services. India skipped the industrial phase and jumped directly from Agriculture to Services. China’s industrial base is much stronger than India’s.

The Human Development Index (HDI) includes indicators such as:

• Life Expectancy at Birth: Indicates health and longevity.
• Mean Years of Schooling: Average education level of adults.
• Maternal Mortality Rate: Health of women during childbirth.
• Infant Mortality Rate: Health of infants.
• Per Capita Income (PPP): Standard of living.
• Access to Sanitation: Percentage of population using improved sanitation.

Liberty Indicator: Ideally, human development should include indicators that measure the extent of democratic participation and civil freedoms, which are not covered by HDI. These are called liberty indicators.
Examples:

• Extent of democratic participation in social and political decision-making.
• Protection of human rights.
• Freedom of judiciary/Rule of Law.

Factors include:

• Initial Infrastructure: Before reforms (1978), the state had already ensured basic health and education for all, building a strong human capital base.
• Decentralised Agriculture: The Commune system and later land reforms incentivised farmers.
• Gradual Reforms: Reforms were introduced step-by-step (first agriculture, then industry), unlike the “Shock Therapy” of Russia.
• Export-Oriented Industrialisation: Creation of SEZs and massive foreign investment made China the “factory of the world.”

India	China	Pakistan
High density of population Growth due to service sector Mixed economy Large population	One-child norm Low fertility rate Growth due to manufacturing sector High degree of urbanisation Large population	Very high fertility rate Mixed economy High degree of urbanisation (relative to India)

Reasons include:

• Agricultural Dependence: Growth was based on good harvests (rainfall dependent), not stable technological progress.
• Reliance on Foreign Loans/Remittances: The economy grew on borrowed money and remittances rather than domestic savings or industrial earnings. When these inflows dried up, growth collapsed.
• Political Instability: Frequent shifts between military and democratic rule hindered long-term policy making.
• High Defence Spending: Diverted resources from development to military.

• China: Leads in almost all indicators. Highest life expectancy, lowest infant mortality, highest sanitation coverage, and highest per capita income.
• India vs Pakistan:
  • India generally performs better in health outcomes (lower infant/maternal mortality) and education (adult literacy).
  • Pakistan historically had reduced the proportion of people below the poverty line faster than India (until recently), but India is catching up.
  • Both lag significantly behind China.

• China: Maintained double-digit growth for decades but has recently slowed down (to around 6% or less) as it transitions to a mature economy facing demographic challenges.
• India: Showed a rising trend in growth (moderate to high), becoming one of the fastest-growing major economies, often surpassing China’s current growth rate, though on a smaller base.

(a) First Five Year Plan of Pakistan commenced in the year 1956.
(b) Maternal mortality rate is high in Pakistan.
(c) Proportion of people below poverty line is more in India (historically, by absolute numbers and some international poverty headcount metrics compared to China/Pakistan ratios in specific periods, though Pakistan’s recent crises have worsened its data). *Note: NCERT text usually cites Pakistan’s BPL ratio as lower than India’s based on international standards in the early 2000s, but India’s recent multidimensional poverty reduction is rapid.*
(d) Reforms in China were introduced in 1978.