The role of India and China is expanding in the global economy. A whole new array of economic and financial issues are emerging which need to be tackled if the current period of growth is to endure. The issues that need attention include how to expand the services sector, especially financial services; how to keep pace with the incredible growth of the manufacturing sector; how to ensure the widest possible diffusion of the huge economic gains seen over the last ten years and how to provide the framework for the development of two-fifths of the human race.
Economic Reforms in India and China: Emerging Issues and Challenges aims at providing the goals, strategies and policies to tackle these issues. It discusses the efforts to address issues like encouraging less successful sectors of the economy that have been complicated by forces of globalization and the ever-changing realities of today's global economy and appraises issues pertaining to economic reforms. The articles explore ways to improve the well-being of the poor, to design effective structures and institutions for poverty reduction and how the reforms, in their economic, political and social dimensions can be used to tackle global developmental issues.
Chapter One: Political Economy of Post-1991 Reforms1
Political Economy of Post-1991 Reforms1
A comparative in-depth analysis of the Indian and Chinese economic reforms—two most populous countries and oldest civilizations in the world—would indeed be a fascinating enterprise. We confess upfront, however, that we have only a long distance (and hence, aerial) view of the Chinese economy in the Asian growth perspective (Tendulkar and Sen, 2003). In contrast, we have been long-time and close-distance (and hence, microscopic) observers of the Indian growth experience. Consequently, we can claim somewhat better familiarity (while admittedly groping like the fabled six blind men in search of an elephant) with the Indian institutional and political economy details than those of China. With these differences in positional objectivity with respect to China ...