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Class 11 Economics Chapter 10 Comparative Development Experience of India with its Neighbours Notes

Please carefully read the Comparative Development Experience of India with its Neighbours Notes for Class 11 Economics provided below. Use them prior to your exams as this will help you to revise the entire chapter easily. We have also provided MCQ Questions for Class 11 Economics which will be asked in the upcoming exams.

In this chapter we will study about a comparative study between the 3 countries (India, Pakistan and China) and look after the outcomes of their policies after Independence.
♦ All the 3 countries started their path of development at the same time, India and Pakistan got independence in 1947 whereas the republic of China (commonly known as China) was established in 1949.

♦ All the 3 countries started their planning in similar ways. India has announces its first five yeat plan in 1951, China in 1953 and Pakistan in 1956.
♦ India and Pakistan has adopted mixed economy whereas China has adopted ‘Statism’ (Public sector is assigned a key role in all the 3 economies).

Statism refers to a political system in which the state has substantial centralized control over social and economic affairs.
(also known as central planned economy)

Development strategies

1. China

After the establishment of republic of china in 1949, China adopted these strategies to proceed in the path of development.

♦ Government control

The first and most important decision which builds the economy of china is to brought all the sector of the economy, enterprises and lands owned and operated by the individuals under government control.

♦ Great leap forward

In 1958, Great leap forward campaign was launched by the government of china for the process of industrialization. This campaign aims at modernizing the economy by rapid industrialization. Peoples were encouraged to set up industries in the backward areas. This process of industrialization aids to the growth rate of the economy of china.

♦ Great proletarian cultural revolution (by Mao tse tung)

In 1965, Mao tse tung the chairman of the communist party of china has introduced Great proletarian cultural revolution (1966-76).
According to this revolution, Students and profesesionals were sent to work and learn from rural areas. This help the people of china to understand the basic problem of the economy and to help others in the path of development.

♦ Reforms in Phases

The government of china has introduced reforms in 2 different phases. In initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. It inculdes allocation of land to general public who were allowed to keep all the income from the land after paying certain minimum taxed.
In the later phase, reforms were initiated in industrial sector. Under this, private firms and village enterprises are allowed to produce goods.

♦ Dual pricing system

According to this system, the farmers and the industrial units are obliged to buy and sell fixed quantities on inputs at the price fixed by the government and rest were sold and purchase at market price.

♦ Special economic zones (SEZs)

In order to attract foreign investors, special economic zones were set up.

It refers to a region that has economic laws different from countries economic laws.

Example – cheap labour, lower rate of tax, subsidized rate of electricity etc. These zones are set-up with the aim to increase foreign investment.

2. Pakistan

India and Pakistan both gets its independence in 1947, the pathway of development of Pakistan after independence is as follows

♦ Mixed economy

As like Indian economy, Pakistan also adopted the concept of mixed economy for the path of development.
It is a type of economy in which both private and public sector are participating in productive activities. The allocation of resources is made by the government for removing the central problem of economy with the help of private sector. Since, Private sector is guided for maximizing their profit.

♦ Green revolution

The green revolution was started in 1953 in Pakistan.

Green revolution refers to the sudden and spectacular increase the production of food grains.
Increase in public investment on infrastructure and green revolution gives rise to the production of food grains in Pakistan.

♦ Development policies

After independence, Pakistan introduced various policies to protect the domestic traders and to grow the economy.
Pakistan introduced import substitution, tariff protecting for manufacturing of consumer goods and so on.

♦ Role of private sector

After 1987, Pakistan realized that private sector plays an important role in the development of any economy and hence in 1988 structural reforms were implemented. The thrust areas were denationalized and encouragement to private sector.

♦ Financial support

Pakistan received financial support from western nations and remittances from emigrants to the middle countries. It boost the growth of the economy. Comparative study of India, Pakistan and China.

1. Demographic indicators

(Relating to the structure of the population)

♦ Population

China is regarded as the country with highest population in the worls, India ranks at number 2 whereas Pakistan is far behind both of them.

♦ Population growth rate

Population growth rate is highest in Pakistan (2% per year) followed by India (1.1%) and China (0.6%).

China has the lowest population growth rate among India and Pakistan due to the policy of Single child norm (One Child Policy) which was introduced in China in 1979.

♦ Sex ratio

It refers to the ratio of males to females in a population. In other words, Number of females over 100 males.
All of the 3 countries has low sex ratio which represents the son prevailing mentality of the economy.
It is estimated to be 940 in India, 950 in China and 952 in Pakistan.

♦ Population density

It refers to the number of people per unit of area, usually quoted per square kilomete or square mile.
Due to huge area and single child norm the population density of China is very low (138 persons sq.km) in comparison to India (358 persons per sq.km) and Pakistan (193 persons per sq.km).

2. Gross Domestic product and sectors

♦ The average growth rate of China is about 9.5% which was highest in all the 3 countries, whereas the rate of growth in India is 5.8% and Pakistan is 4.1%.

♦ Agriculture contributes 9% in gross domestic product in china with 37% of its workforce engagement and in Pakistan it is 21% with engagement of 45% of population.

♦ After independence, china has been shifting employment and output from agriculture to manufacturing and then to services.

In India and Pakistan, the shift is taking place directly to service sector.

3. Human development indicators

♦ Human development index (HDI) – higher is better

It is a statistic composite index of life expectancy, education and per capital income indicators, which are used to rank countries into four tiers of human development.
The HDI of China is 0.752 whereas India and Pakistan is estimated to be 0.64 and 0.562 respectively.

♦ Infant mortality rate – lower is better

Infant mortality rate refers to the number of infants dying before the age of 1 year per thousand live births annually.

The IMR is lowest in China with 11.8 per thousand, followed by India with 37.8 per thousand and Pakistan with 50.4 per thousand.

♦ Sanitation

In context of sanitation, China has the best performance among all with 76% of its population has access to improved sanitation compared with 39.6% in India and 63.5% in Pakistan.

♦ Undernourished population – lower is better

An undernourished person is one who consumes less than the required minimum amount of nutritious foods necessary for health and development. The percentage of undernourished population in China is 11% which is lower than India and Pakistan (both at 20%).
By going through the above discussion we can conclude that China has performed in much better way than the other 2 economies, it can be easily seen by growth rate and other indicators.
After china the next economy which performed well the path of development is India, as the majority of people still depends upon agriculture and its rate of growth is increasing year after year. Moreover India has the maximum percentage of workforce in population across the globe which helps the economy to grown at much faster pace.
At last, Pakistan wont be able to perform well after independence as the economy is primarily depends upon remittances and foreign loans moreover political instability also restricts its path of development. 

Summary

♦ Development strategies

♦ China

♦ Pakistan

♦ India

♦ Comparative study of India, Pakistan and China

♦ Demographic indicators

♦ Population

♦ Population growth rate

♦ Sex ratio

♦ Population density

♦ Gross Domestic product and sectors

♦ Human Development indicators

♦ Human development index (HDI) – higher is better

♦ Infant mortality rate – lower is better

♦ Sanitation

♦ Undernourished population – lower is better