Economics 2.0 Flashcards
India’s urbanisation %
China’s
Who’s % rate of urbanisation is greater?
India : 32.5%
China : 55.5% (from 2010)
China’s urbanisation rate = greater
Agriculture as % of GDP
India :
China :
India : 18%
China : 10%
Services as % of GDP :
INDIA :
CHINA :
why is this?
India : 54%
China : 48%
India leapfrogged over adopting mass industrial employment
Gini Coefficients:
India :
China :
What does this show?
India : 33
China : 47
China has greater inequality than India
GDP per capita;
India :
China :
USA:
India : $1,580
China : $7,590
US : $54,000
What figure suggests that China will surpass the USA in GDP between 2030-50?
Figure 12
What does Figure 12 represent the following dates as;
2030 :
2050 :
2030 : bipolar
2050 : unipolar
What % of global GDP does the USA make up?
24%
2016 GDP growth rates;
India :
China :
USA :
India : 7.3%
China : 6.9%
USA : 2.2%
What is happening to the following growth rates?
India :
China :
India : on increasing trend for next couple of years
China : on declining trend
currently at 25yr low
Fortune 500 companies;
China :
India :
USA :
What has been happening to each since 2004?
China : most rapidly growing rate
95
India : doubled
8
USA : declining
128
What is notable about CHina’s GDP and GDP per capita in Asia?
largest GDP in Asia - unipolar
but definitely not in GDP per capita (Japan / S. Korea)
What happened in 2016 in relation to GDP growth rates?
India overtook China’s GDP growth rate for first time since 1999
Name of the trade bloc currently proposed between ASEAN and 6 New Countries?
Regional Comprehensive Economic Partnership
RCEP
Who would the RCEP include?
ASEAN and 6 New Countries
What view suggests that Chinese labour decreasing can be an opportunity for India?
Livemint (view 3)
What will an increase in growth / incomes for China and India mean for TNCs?
drives increased consumption
new markets for TNCs
What % of China’s exports are now telecommunications?
25%
All top 5 exports are
Fraction of oil imported;
India :
China :
India : 2/3
China : 1/3
What industry in India is the 4th largest in the world?
Why is this?
Pharmaceuticals
Clinical trials cost 10% of in the USA
What is India lacking to compete effectively with China’s manufacture and production?
- reliable power supply
- infrastructure for ‘just in time’ markets
- attractiveness to FDI / TNCs
Reasons for the USA remaining global economic hegemony?
- 80% of transactions still $
- largest stock market globally
- IMF / WB HQs
- currently highest GDP
- higher income per capita than China / India
Factors converging to slow China’s growth;
- industrial overcapacity
- debt overhang
- decline in population
- competition from other BRICs
- inefficient allocation of foreign investment
Define : INFRASTRUCTURE
the basic physical systems and services that a country or organisation require to work effectively
How much does China spend of its budget on infrastructure?
Half of its budget
Accounts for half of all infrastructure in the Asia-Pacific
X3 examples of Chinese infrastructure
- Maglev HSR 430kmph
- S-N Water diversion
- 3Gorges
Education spending as % of GDP
and literacy rate
China -
India -
China - 16.3% GDP
95% literacy rate
India - 11.3% GDP
under 70% literacy rate
Number of people in poverty;
and % of population
China -
India -
China - 157million
11% of population
India - 400million
almost 1/3 of population
How many lifted out of extreme poverty since 1980 in China?
80million
% of India’s budget spent on subsidies
amount spent on subsidies
Why are subsidies required?
15% of spending
$60billion
to help lower-income families to afford basic needs for survival
Why isn’t India’s subsidy spending sustainable?
growing population
BR highest in poor, rural areas
energy and food prices will increase as scarcity increases
Life expectancy at birth:
% of GDP spent on healthcare
China -
India -
China - 76
12%
India - 68
8%
% of GDP spent on military;
China -
India -
USA -
China - 2%
India - 2.5%
USA - 4%
Actual spending on military;
China -
India -
USA -
China - $190billion
India - $50billion
USA - $580billion
What fraction of USA’s spending does China spend?
only 1/3
Trend on military spending;
China -
India -
USA -
China - increasing
India - plateau since 2009
USA - decreasing
Global weapons exports as % of total global exports;
China -
India -
USA -
China - 5%
ranks 3rd
India - lacks indigenous defence industry
USA - 30%
ranks 1st
Reasons why each may have greater military dominance;
China -
USA -
China - largest military by man power
USA - greater technological advancement
bases in all countries
powerful alliances
Define DEMOCRATIC DEFICIT
e.g
when a country’s development is greater than its level of democratic governance
e.g China
Why are countries with democratic deficits arguably fragile / volatile?
since increase in per capita growth has historically been a trigger for democratisation
e.g S.Korea
What does India’s democracy index rank India?
What does this suggest?
35th globally
suggests it is a ‘flawed democracy’
since it is the biggest but tainted w/ corruption
Democracy index score: / category
India -
China -
USA -
India - 7.7
flawed demcoracy
China - 3
authoritarian
USA - “full democracy”
% of parliamentary seats which are held by women;
India -
China -
India - 12%
China - 25%
Which figure shows comparison between democracy and economic development?
Figure 7
What was the trend for Asian tiger economies and democracy?
industrialise rapidly and then move towards increased democracy
When were the Umbrella Riots in Hong Kong?
When was the Tiananmen Square protests?
When have the Communist party been in power since in China?
2014 - umbrella riots
1989 - Tiananmen square
Communist gov since 1949
Who do you vote for in China?
Who do you vote for in India?
China - only the Local People’s Congress
India - the LOK SABHA (lower house)
who then chooses the PM
What has Indian protectionism resulted in which makes it more difficult for consumers?
How can this be tackled?
high inflation rates raise domestic prices
allowing FDI into India more would allow for competition and lower inflation
= less requirement for subsidies
Why is value added output not as beneficial for a country when in an SEZ?
value added output is from foreign owned plants
much of wealth isn’t translated into domestic increase in QoL
What does the World Trends Report 2030 suggest about the USA’s position and China overtaking it economically?
USA will remain FIRST AMONGST EQUALS
USA will remain predominant despite China overtaking via GDP
since USA has preeminence across a range of POWER DIMENSIONS + LEGACIES OF LEADERSHIP
Examples of Indian cultural influence
- Bollywood ticket sales X2 than of Hollywood
- Cuisine
A factor in spreading Indian cultural influence around the world;
and example
- Emigration
e. g UAE is one of India’s top 5 export destinations - largely due to high Indian expat population
