Archive for March 27th, 2014

The Worst Question

At news aggregator Real Clear World, Frank Ching’s recent article comparing the economic performance of the earth’s two demographic giants was given the tantalizing headline Why India Keeps Falling Behind China. There’s no sign of the “Why?” at the original, published in Taiwan’s China Post. No surprise there.

As Ching notes:

While India and China are both being hailed as rapidly developing emerging markets, the gap between the two countries is widening with India being left behind as China continues to power ahead. China’s growth in 2013 was 7.7 percent while that of India hit a low for the decade of 4.5 percent in the 2012-13 fiscal year.

Despite being positioned for catch-up (i.e. being far poorer), India simply doesn’t grow as fast as China. “The average estimated productivity growth rate of China (5.9%) is more than double that of India (2.4%).” India hasn’t matched Chinese growth rates in any single year since the end of the Mao-era in the late 1970s, even after launching its own much-heralded market-oriented economic reform program in the early 1990s. Despite pulling itself from the dismal 3% “Hindu” growth rate, which was roughly doubled to a 5-6% range, China’s average 9.8% growth rate, sustained over three decades, has remained far out of reach.

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March 27, 2014admin 31 Comments »
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