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 Two: Institutional Reform, Trade and Growth: The Experiences of India and China in a Global Economy
Institutional Reform, Trade and Growth: The Experiences of India and China in a Global Economy
China and India are remarkable in that not only are they fast growing poor countries but they also have enormous populations. Sustaining growth in these countries offers the prospect of lifting over a third of the world's poor out of poverty in the foreseeable future. Their growth naturally raises a number of questions. Can it be sustained? What is the source of their rapid growth? How is it related to their integration with the rest of the world? Why do the growth experiences of China and India differ?
The conventional wisdom is that institutional ...