Week 8 - Alternative Development Trajectories: India and China Flashcards
How much of the world population do India and China account for together?
35%
How much of the global GDP do India and China account for together?
20.5%
At the time of India’s independence and China’s liberation, what were they roughly comparable on?
comparable in developmental terms
What were the social movements in 20th century “developing world”?
nationalist movements (centred on national consolidation or independence)
developmentalist movements to catch up with rich countries
“peasant” or rural movements fighting for security or survival
What did political organisations do?
built coalitions of various social groups and classes to compete for state power (winners generally captured the leadership of the three social movements (nationalist, developmentalist, “peasant”/rural))
How did the CCP defeat KMT in China?
CCP defeated KMT through a protracted civil war under slogan of “national democratic revolution”
What was the Congress Party in India?
Congress Party was broad alliance that united causes of nationalism and development weakly addressing the peasantry and advocating a mixed economy and liberal democracy (division with Islamist Pakistan)
What were the other Asian countries experiencing?
Korea and Vietnam experienced major civil wars with substantial external support for contending sides
Southeast Asian countries saw various shades of nationalism combat communist insurgencies (Indonesia, Philippines, Thailand, Malaysia)
What was Latin America experiencing?
independent states of the 19th century experienced similar political contestation as in the North, but around strategies to “catch up with the North” (communist movements everywhere, but only won in Cuba)
What was the Middle East and North Africa experiencing?
old and new states, saw political movements for secular republics in tension with Islamists, pursuing mixed economic like in India but usually without its liberal democracy
What was Sub-Sahran Africa experiencing?
competing political currents in movements for decolonisation and development
What was the China nationalist democratic revolution (1949-1958)?
promoted a mixed economy
role for patriotic private entrepreneurs along side state enterprises
heavy industry and military industries (features of heavy industry were long gestation, import technology and equipment, huge capital requirement)
How was the China land reform and agricultural cooperatives?
peasant security on land
social revolution (eliminating landlords as a class and political actor)
modest improvement of rural incomes and equality of incomes
farm households sell surplus to the state (guarantee an income but purchasing price kept low, resources for industrialisation and rural development)
What was the China agriculture and industry relationship?
cheap grain kept wages low in non-agricultural sector
state had to control market
price scissors operates (peasants relatively low prices for produce and high prices for manufactured goods, surplus for export to finance industrial machinery and rural development, kept wages low in cities during formative period (Lewisian logic))
What happened during 1953-1954 of China’s incremental development of cooperatives?
mutual aid teams (share animals and labour)
What happened during 1954-1956 of China’s incremental development of cooperatives?
primary cooperatives at village level (pool land + allocation according to contribution)
What happened during 1956-1957 of China’s incremental development of cooperatives?
advanced cooperatives of several villages (pool land and tools + allocate according to work)
What happened during 1949-1956 of China’s incremental development of cooperatives?
impressive record (annual crop production increased 70%)
What was the China “Great Leap Forward” (1959-1961)?
acceleration of collectivisation
abolish family plots (communal farming to meet state targets (overestimation of harvests))
labour mobilisation for infrastructure projects
backyard steel furnaces
What was China darkest period (famine 1959-1961)?
regionally specific rural famine led to 30 million deaths
four hypotheses of weather, bad policies and management, poor incentives to work, defy provincial comparative advantage
What was China economic adjustment (1962-1965)?
reorganisation of the communes (under new leadership)
realism in production organisation
relaxation of ban on home plots, household life, toleration of informal markets
continuation of price scissors and extraction of surplus from agriculture
What was the China “Cultural Revolution” (1966-1976)?
Mao’s come back (campaign against “capitalist roaders”
mobilised youth and workers (and continued mobilisation of labour in infrastructure projects)
bureaucrats and managers sent to the countryside
production still within commune but disruption of agricultural production ended
What is China Era of Reform (1978-now) from 1978-1984?
adjusted agricultural prices relative to industrial ones
What is China Era of Reform (1978-now) from 1985-1992?
some prices kept under plan, others determined by market exchange
What is China Era of Reform (1978-now) by 1999?
95% of commodity prices determined by market
What is China Era of Reform (1978-now) during 2020s?
curbing the size of private conglomerates and attacking rampant inequality
What is China Era of Reform (1978-now)?
agriculture is top policy document each year
confronting increasing Western hostility towards China’s high technology industries
What was the World Bank China 2013 pro-market arguments?
market-driven economy by 2030 (allow markets to allocate resources, private firms is paramount)
agriculture (make farmers’ ownership rights over land absolute, reform under hukuo (encourage permanent urban migration), expand land rental market, end subsidies, off-farm investment and jobs
Xi Jinpin’s government more cautious today (curbing market induced inequalities and reducing some big private conglomerates)
Was was India liberal democratic capitalist development?
democratic electoral system heavily reliant on local elites
strategy for rural development without significant land reform
promotion of heavy industry
(Indian National Congress party came top power under Nehru)
What was India rural development and heavy industry (1950s)?
extension services and community development programmes (underfunded and local councils established controlled by elites)
cooperative movement in rural areas (undermined by landowning elites)
invested in heavy industry (like China) (steel, cement, machine making machinery and its already viable textile industry, but did not invest in small-scale industry for domestic consumption to any extent)
How was India during 1960s and 1970s?
string of central state and state level employment programmes failed to significantly employ underemployed labour (chronically underfunded) (could not pay the expected wages for work on rural infrastructure and other projects, management left in hands of panchayat and local councils saw resources siphoned into private hands)
harvest failure in 1965 (created huge dependence on US food aid)
subsequent adoption of “green revolution” (new seed varieties boosted agricultural production without land redistribution)
How was India during 1950s-1980s?
rural political elites blocked efforts to tax agriculture
irrigation not maintained and irrigated area in some cases fell below what it had been in colonial times (water fees not collected) (ground water relied upon, essentially household provided)
unsustainable state provided electricity
35 years after independence, India’s textile industry collapsed (relied heavily on foreign borrowing and failed to adopt new technologies
How was India from 1991-2010s?
tentative liberalisation in 1991 ran out of steam in 5 years
failed to attract the kind of FDI that China attracted
“stunted structural transition”, where diversification away from agriculture has been to low value-added services
How was India from 2014-now?
since Modi came to power, fast economic growth has “Gujarat model” may have led to growth with high inequality and slow advances in human development
Modi rallies Hindu middle class voters against Muslims, Dalits, Adivasis
What is the experience of China and India compared like?
China’s revolution in 1949 revitalised an ancient state whereas Indian state was created by British colonialism
China’s post-1949 structural transformation more far reaching than India’s
both leaders understood the only route forward was to mobilise underemployed rural labour and extract value from agriculture
What is the experience of China and India compared like in the 1950s?
similar per capita income (death rate per 100 China 20 and India 27.4, life expectancy China 35 and India 32, literacy rate China 20% and India 12.1%)
similar per capita agricultural production (1952 irrigated land about 18%, <1% villages with electricity)
similar industrial production of steel and cement
What is the experience of China and India compared like in the 2000s?
China 2 times greater in per capita income (lower poverty, higher literacy, better child nutrition)
China twice yield per hectare (wheat, rapseed, rice)
China’s industry 54% of GDP, India’s industry 26% of GDP
How is aid different in India and China?
India world biggest aid recipient, China net aid donor
How was human development in China vs India?
China’s big achievements in education
caste system in India blocked advancement
What is the summary of China as a development trajectory?
land reform transformed rural social/political structure
industrialisation and rural improvement
surplus from agriculture for industrialisation and rural development
rural collectives “engines of accumulation”, integrated agriculture and rural industry
land productivity led to improved incomes
forward and backward linkages
women in farm work allowed male migrant labour
improved human development
What is the summary of India as a development trajectory?
partial land reforms left stratified rural society
industrialisation and rural neglect
subsidised rural elite (industrialisation had very little impact on the countryside)
rural cooperatives failed
land productivity captured by rich peasants
few linkages agriculture and industry
women participated less in farm work
arrested human development
What are China’s challenges today?
vertical fiscal imbalance
local government debt
rapid state-led urbanisation
environmental degradation
real estate bubble
stock market crashes
How is India today?
set to grow far faster than China in the coming years (but China’s economy is 6 times bigger than India’s)
industrial base is far smaller than while big progress in reducing poverty, per capita income still far lower than China’s
(Hindu nationalist state legitimised despite high inequality, with reinforcement of privileged castes and “crony capitalists”)
Which two countries were among the poorest in 1950?
China and India
How was India’s GDP per capita compared to China’s?
India’s consistently above China’s since 1870 (both countries poor, but China significantly more)
situation changed completely in decades following Indian independence (1947) and Chinese Revolution (1949)
China’s rural economy developed much more rapidly than India’s in post-1950 era (rural economy dominated in both until the 1980s, influencing growth trajectories)
What is a very brief summary of China vs India?
China less liberal, received less foreign assistance, and did not spend more
What does mainstream scholarship attribute China’s economic success to (over India’s)?
liberalisation
What is a key reason for China’s economic success (over India)?
the different capacity to mobilise labour force and financial resources of rural population
How much of the total population did the rural population comprise of in China and India in 1980?
3/4 of the total population
How were India and China in the early 1950s?
great majority of both villages lacked basic infrastructure (electricity, irrigation), technology, and a healthy, literate, relatively skilled labour force that were necessary for achieving rapid economic development
significant surplus rural labour
How were the Indian elites?
efforts of elites (e.g. Zamindars) who mobilised surplus labour force without/with little payment was abolished, however institution which it represented was not replaced (by institution involving organised action based on considerations of community’s interest)
How were the Chinese rural collectives?
land reform (1947-1952) and rural collectivisation (1952-1956) left no elite intermediary standing between state and peasantry
three-tiered hierarchical structure comprising production team at bottom, brigade in middle, commune at top (each team had to distribute its net annual profit among members based on their labour contributions (after paying taxes and contributing to collective accumulation and welfare funds))
created giant non-salaried bureaucracy in countryside (reduced rural administration financial cost significantly)
mobilised over 1/4 of total rural labour force in infrastructure works (e.g. irrigation systems, schools, clinics) in 1960s and 1970s (large scale projects (e.g. irrigation, hydropower) often funded and executed through local collective efforts)
female labour force participation surged to over 70% in rural areas by late 1970s
What was ‘compulsory labour’ in China?
Chinese government required all collective members to allocate about 3% of their total workdays to capital construction projects without seeking payment
What did the Great Leap Forwards (1958-1961) lead to?
led to economic disaster with GDP/capita decreasing by 20%
massive transfer of labour and financial resources to infrastructure construction negatively impacted grain production (dramatically decreased labour input in food production)
highlighted risks of overconfidence and poor planning (turning mobilisation strategies into disadvantages)?
How were India’s rural collectives?
village councils were established nationwide but became institutions dominated by private economic interests
programs relied significantly on government funds for paid employment instead of labour mobilisation and self-finance, and funds were insufficient for nationwide infrastructure needs (relied heavily on subsidies for electricity and irrigation, burdening state finance without promoting large-scale infrastructure development)
minimal agricultural taxation due to political opposition from rural elites
How was irrigation and electrification in China and India?
in China irrigated land expanded significantly from 18% in 1952 to 49% in 1982, and 98% of villages had electricity by 2005 (township and village enterprises (TVEs) drove rural industrialisation, contributing over 30% of GDP by 2000)
in India irrigated land increased modestly from 17% in 1951 to 42% by 2005, rural electricity consumption lagged, hampering industrialisation and rural industries contributed less than 10% of national output (at beginning groundwater irrigation rose, indicating decreased financial reliance on the government and increased reliance on individual households)
How was healthcare and education in China and India?
in China massive literacy (20% in 1950, 90% by 2005) and healthcare campaigns (e.g. barefoot doctors) mobilised rural labour and life expectancy improvements significantly outpaced those of India during same period
in India relied on government-funded schools and clinics, constraining outreach, rural literacy reached only 67% by 2011. limited healthcare access contributed to lower life expectancy compared to China
What policy adjustments were there in China and India?
in China lessons fro Great Leap Forward mitigated over-mobilisation risks in later decades, retained organisational benefits of collectivisation even after partial market reforms
in India land reforms failed due to elite opposition, and populist policies prioritised over resource mobilisation
What were the divergent performance of rural economies in China and India?
due to different capabilities of Chinese and Indian governments to mobilise the labour force and financial resources of the rural population
What do some scholars say authoritarianism is?
a myth that delivers much more than democracy, particularly early on
What was the hope of democrats regarding China?
Chinese middle class prospers, its members will demand what their counterparts in South Korea and Taiwan got (movement toward political democracy)
Is authoritarianism necessary or sufficient for development?
not necessary for development (today’s industrial democracies and scattered by cases of development success like Costa Rica, Botswana, India)
not sufficient for development (disastrous authoritarian regimes in Africa and elsewhere)
What do democracies provide?
generally experience more intense pressure to share development benefits among the people (more sustainable)
provide more scope for popular movements against capital excesses and environmental degradation (more political opportunities to mitigate social inequalities that act as barriers to socioeconomic mobility and full individual development)
provide better environments for nurturing information technology development (important in the current knowledge-driven global economy)
How was democracy in India?
political clientelism and populism, which prioritises short-term benefits (e.g. employment projectors, subsidies, loan waivers) over long-term infrastructure investments (e.g. public health, sanitation, development)
ethnic and caste mobilisation often hijacked by elites (poverty alleviation takes backseat to multidimensional demands)
governance inefficiencies (reliance on popular mobilisation over deliberation weakens the legislative process, decision deadlocks are frequent with large political and economic costs)
the poor are assortative, yet fail to hold politicians accountable for unresolved issues (e.g. poverty, disease, illiteracy), perceiving them as complex phenomena with limited governmental responsibility)
How is conflict management in China vs India?
in China there is overreaction to dissent, heavy-handed suppression of information, and censorship exacerbate tensions and hinder crisis management
in India democratic pluralism allows more robust conflict resolution mechanisms, though decision-making is slow and prone to deadlocks
How is corruption in China vs India?
in China officials’ promotions are tied to local economic performance aligning personal gain with public goals, defined lines of authority reduce collective action problems in decision-making, (though sometimes politically motivated) crackdowns on corruption are decisive
in China risks of centralised corruption (lack of checks and balances increases risk of systemic abuses and heavy reliance on censorship undermines transparency)
in India multiple veto powers, fragmented authority create inefficiency (even after paying bribes, outcomes are uncertain)
in India high election costs compel politicians to amass funds (worsening corruption)
in India efforts like Right to Information Act reflect public activism against corruption (institutionalised accountability)
How is governance in China?
centralised authority (clear hierarchies streamline decision-making and collective action problems (e.g. fiscal centralisation in mid-1990s addressed local fiscal erosion))
decentralisation success (encourages local initiatives driving rural industrialisation and economic growth, promotes innovation through a mix of autonomy and performance-based promotions)
challenges of decentralisation (increased regional inequalities and unfunded local mandates lead to public services disparities, local resistance to central policies often due to collusion with businesses interests and suppressed information)
policy execution (technocratic leadership ensures decisive policy formulation and execution)
social stability (nationalistic pride and economic growth maintain middle-class support for centralised control)
How is governance in India?
democratic decentralisation (constitutionally mandated decentralisation aims to empower local governments but often lacks proper funding, skilled personnel and autonomy, some regions show healthy competition and success in poverty alleviation though most rely on top-down programs)
centralised weaknesses (fragmented authority leads to inefficiency and unclear accountability, electoral coalitions dilute national goals)
strengths are independent judiciary, election commission and legal frameworks ensure institutional resilience and legitimacy
What are the challenges China faces?
local fiscal challenges persist, especially in rural regions (lagging areas facing cuts in services)
cyber censorship and state control hinder creativity and knowledge flow, risking future technological progress
What are the challenges India faces?
lack of investment in roads, electricity, and irrigation due to populist policies (infrastructure bottlenecks)
public services delivery undermined by absenteeism, inadequate resources, and lack of accountability
caste and ethnic mobilisation often dilute the focus on poverty-related issues
political fragmentation prioritises short-term measures over structural reforms
How is innovation and technology in China vs India?
in China cybercensorship limits creativity and delays crisis responses (e.g. SARS outbreak) and state control leads to delays in recognising and handling crises due to information suppression
in India open media leads to greater transparency and innovation driven by independent NGOs and media watchdogs, however infrastructure weaknesses (persistent bottlenecks) limit technological growth
What were the structural similarities in the initial conditions of China and India (1950-1960)?
Both had mass rural poverty under feudal systems, embedded patriarchy with gender oppression, maturing non-agricultural economies, and lacked institutional frameworks for modern economic growth
Key statistics: GDP/capita (China: 65, India: 62), agricultural labor force share (China: 77%, India: 72%), and industry labor force share (China: 7%, India: 11%)
How did cultural and social conditions differ between China and India?
China had cultural homogeneity with Han dominance and one dominant language, while India had cultural heterogeneity with caste divisions, religious diversity, and fractious social structures
How did land reforms differ between China and India?
China implemented equitable land redistribution and collectivised agriculture, dismantling feudal structures
India’s land reforms were piecemeal and largely ineffective, preserving landowning elites’ power
How did rural transformation differ between the two countries?
China used rural collectives as engines of accumulation, integrating agriculture and rural industry, while in India, rural surpluses were often invested in urban trade and property, neglecting rural development
What was the primary sector driving development in China and India?
China focused on manufacturing-led development with labor-intensive methods, while India relied on services-led growth, benefiting from a colonial inheritance of a skilled middle class educated in English
How did labour-displacing technological change affect the two countries?
In China, productivity gains benefited workers and freed time for other activities. In India, technological changes displaced labor, leading to job losses and reduced wages
How did the constitution of state power differ in China and India?
In China, the communist party represented peasants and workers, enabling mass mobilisation for development
In India, the independence movement was led by elites, limiting mass participation and reforms
How did colonial experiences shape post-independence trajectories?
Japanese colonial violence radicalized China, hastening its revolution
British colonial rule in India ensured power remained with the elite, enabling business continuity post-independence
What were the structural differences between China and India by 2003?
China’s GDP per capita was twice India’s, literacy rate was 91% in China vs. 65% in India, and underweight children under five were 8% in China vs. 47% in India
Life expectancy in China was six years longer
How does agricultural performance differ between the two countries?
China outperformed India in agricultural productivity, employment generation, and poverty reduction. Hunger remains a daily reality in India but not in China
What socio-economic vulnerabilities have arisen in China despite its growth?
Rising inequality, limited access to expensive health and education, and socio-economic vulnerabilities among the rural population
How does India’s agrarian crisis manifest today?
Few rural households earn poverty-line incomes from agriculture, and non-agricultural growth has not significantly increased labor absorption
In what ways are China and India converging and diverging?
Convergence: India’s growth rate is approaching China’s.
Divergence: India lags in manufacturing, agricultural performance, and poverty reduction, while China lacks political democracy.
Pervergence: Both face rising inequality, gender bias, environmental stress, and governance deficits.
How does corruption differ between China and India?
In India, political parties, judiciary, and police rank poorly on corruption indices
In China, big business is embedded in the communist party, reducing the need for bribes
How did per capita income growth compare between China and India from 1913 to 1998?
China’s per capita income grew sevenfold, while India’s only trebled
What key reforms did China implement under Deng Xiaoping in 1978?
China focused on export-driven growth and foreign investment, embracing an open-door policy
When did India liberalize its economy, and what was the focus before that?
India liberalised in 1991, but prior to that, policies emphasized self-reliance, leading to slower growth
Why did China outpace India in Human Development Index (HDI) growth?
Due to significant investments in education and healthcare
What was China’s per capita FDI by 1998 compared to India’s?
China’s per capita FDI was $183, while India’s was $14
How does China’s historical governance differ from India’s?
China has a history of centralized, stable governance with uniform systems, while India’s political history is fragmented with diverse regional rule
What legacies did British colonialism leave in India?
English language, modern legal systems, railways, and challenges in governance
How does China’s political system differ from India’s?
China has a unitary, centralized system allowing rapid policy shifts, while India’s federal democracy progresses through consensus, slowing reform
What characterized the first phase of development (1947/49–1978/80) in China and India?
China: Centralised governance led to better outcomes in human development and agrarian reform
India: The Green Revolution improved agriculture, but small-scale industrial strategies hampered growth
How did China and India differ in the second phase of development (1980–2003)?
China: Adopted an open-door policy with FDI and SEZs, driving rapid growth
India: Liberalised its economy post-1991, achieving slower reforms due to democratic constraints
What political risks does China face with economic liberalisation?
Economic liberalisation may lead to demands for political freedoms and risks of centralized mismanagement
What challenges hinder India’s economic growth?
Corruption, structural issues, and a democratic system that slows decisive policy implementation
How does governance accountability differ between China and India?
China, as a one-party state, can implement policies without public opposition, whereas India’s democracy makes implementing unpopular but necessary policies challenging
How did China mobilize resources and labor more effectively than India?
By leveraging local taxation at higher levels in communes and transitioning to a market-oriented economy
What inequalities persist in China despite its growth?
Growing urban-rural inequality and dissatisfaction among farmers
Why does India’s dynamic private sector have limited impact on rural areas?
Corruption and structural issues hinder the sector’s benefits from reaching rural populations
What is China’s likely trajectory in global power dynamics?
China is poised to re-emerge as a global power due to its effective resource mobilisation and centralised governance
How might India’s growth compare to China’s in the long term?
India may lag in growth convergence with China but will retain its vibrant democracy.
Why is India’s democracy both a strength and a challenge?
It ensures responsiveness to the population but limits the implementation of long-term beneficial policies like tax increases or subsidy cuts
