Comparative Development Experiences Of India And Its NeighboursClass 11 Indian Economic Development NCERT Solutions
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Q1EXERCISES
Why are regional and economic groupings formed?
Solution
Regional and economic groupings are formed by nations to achieve several strategic objectives in a globalised world. Based on the chapter, the primary reasons are:
- To Strengthen Domestic Economies: The main goal is to adopt various means that will strengthen their own domestic economies.
- To Enhance Competitiveness: Developing countries form these groups to better compete in the global market. They face competition not only from developed nations but also amongst themselves for the limited economic space.
- To Understand Neighbours' Strategies: Forming groups allows nations to understand the developmental processes and strategies pursued by their neighbours. This helps them to better comprehend their own strengths and weaknesses.
- To Promote Human Development: These groupings can help address common economic activities in a region that impinge on overall human development in a shared environment.
Examples of such groupings mentioned in the text include SAARC, European Union, ASEAN, G-8, G-20, and BRICS.
Q2EXERCISES
What are the various means by which countries are trying to strengthen their own domestic economies?
Solution
According to the chapter, countries are trying to strengthen their domestic economies through the following means:
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Forming Regional and Global Economic Groupings: Nations are creating alliances such as the SAARC, European Union, ASEAN, G-8, G-20, and BRICS. These groupings help them to collaborate, increase trade, and present a united front in the global economic landscape.
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Understanding Neighbouring Economies: There is an increasing effort by nations to understand the developmental processes and strategies pursued by their neighbouring countries. This comparative understanding allows them to identify their own strengths and weaknesses, learn from the successes and failures of others, and adapt their policies accordingly.
Q3EXERCISES
What similar developmental strategies have India and Pakistan followed for their respective developmental paths?
Solution
India and Pakistan have followed several similar developmental strategies since their independence. The key similarities mentioned in the chapter are:
- Five Year Plans: Both countries adopted a planned development model. India announced its first Five Year Plan for 1951-56, and Pakistan announced its first plan in 1956.
- Mixed Economy Model: Both nations followed a mixed economy model, which allows for the co-existence of a large public sector and a private sector.
- Dominant Public Sector: Both countries created a large public sector to lead industrial development and invested heavily in it.
- Public Expenditure on Social Development: Both India and Pakistan focused on raising public expenditure on social development as part of their strategy.
- Import Substitution: In their initial years (late 1950s and 1960s), both countries adopted a regulated policy framework focused on import substitution-based industrialisation, which involved tariff protection and import controls to protect domestic industries.
- Green Revolution: Both countries introduced the Green Revolution to increase foodgrain production and modernise agriculture.
Q4EXERCISES
Explain the Great Leap Forward campaign of China as initiated in 1958.
Solution
The Great Leap Forward (GLF) was a campaign initiated in China in 1958 under the leadership of Mao Zedong. Its primary objective was to industrialise the country on a massive scale and transform it from an agrarian economy into a modern industrial society rapidly.
Key features of the GLF campaign were:
- Backyard Industries: People were encouraged to set up industries in their backyards to accelerate steel production and other industrial output.
- Commune System: In rural areas, communes were established. Under this system, people collectively cultivated lands. By 1958, there were about 26,000 communes covering almost the entire farm population.
The campaign, however, encountered severe problems:
- Famine: A severe drought, combined with the disruptions caused by the GLF policies, led to a catastrophic famine that caused the death of about 30 million people.
- Withdrawal of Soviet Support: During this period, Russia had conflicts with China and withdrew its professionals who had been sent to help with the industrialisation process, which was a major setback.
Q5EXERCISES
China's rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.
Solution
Yes, I agree with the statement. The chapter clearly states that "The present day fast industrial growth in China can be traced back to the reforms introduced in 1978." These reforms were introduced because the new leadership was unhappy with the slow pace of growth under the Maoist rule.
The reforms were implemented in phases and systematically led to rapid growth:
- Initial Phase (Agriculture and Foreign Trade): Reforms first began in the agriculture, foreign trade, and investment sectors. In agriculture, commune lands were divided into small plots and allocated to individual households. They could keep all income after paying taxes. This single measure brought prosperity to a vast number of poor people and created a strong support base for more reforms.
- Later Phase (Industrial Sector): Reforms were then extended to the industrial sector. Private sector firms and Township and Village Enterprises (TVEs) were allowed to produce goods. State Owned Enterprises (SOEs) were made to face competition, which increased their efficiency.
- Dual Pricing: The reform process involved dual pricing, where farmers and industrial units had to buy and sell fixed quantities at government-fixed prices, and the rest at market prices. This ensured a smooth transition from a command economy to a market-based system.
- Special Economic Zones (SEZs): To attract foreign investment, technology, and expertise, China set up Special Economic Zones.
These strategic, phased reforms unleashed the productive potential of the Chinese economy and laid the foundation for its subsequent phenomenal industrial growth.
Q6EXERCISES
Describe the path of developmental initiatives taken by Pakistan for its economic development.
Solution
The developmental path of Pakistan has seen several policy shifts since its independence, often mirroring India's strategies in the initial years.
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Early Phase (1950s-1960s): Pakistan adopted a mixed economy model and a regulated policy framework. The focus was on import substitution-based industrialisation, which involved protecting domestic consumer goods industries through tariff protection and direct import controls.
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Green Revolution: Like India, Pakistan introduced the Green Revolution. This led to mechanisation and increased public investment in infrastructure, resulting in a rise in foodgrain production and a significant change in the agrarian structure.
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Nationalisation (1970s): During this period, the government shifted towards nationalisation, particularly of capital goods industries.
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Denationalisation and Privatisation (Late 1970s-1980s): The policy orientation shifted again towards denationalisation and encouragement of the private sector. The government offered incentives for private investment. This period was also marked by significant financial support from Western nations and large remittances from Pakistani emigrants in the Middle East, which helped stimulate economic growth.
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Economic Reforms (1988): Formal economic reforms were initiated in 1988, continuing the process of liberalisation and privatisation.
Q7EXERCISES
What is the important implication of the 'one child norm' in China?
Solution
The 'one-child norm', introduced in China in the late 1970s, had several significant implications for its society and demography:
- Low Population Growth: The most direct and intended implication was a drastic reduction in the population growth rate. The chapter notes this policy as the major reason for China's low population growth, which even became negative (-0.01%) by 2022 according to the data provided.
- Decline in the Sex Ratio: The policy is stated to have led to a decline in the sex ratio, meaning the proportion of females per 1000 males decreased. This is attributed to a strong 'son preference' prevailing in the country, which led to sex-selective abortions and other discriminatory practices.
- Ageing Population: A major long-term consequence is a shift in the age structure of the population. The text points out that after a few decades, there will be more elderly people in proportion to young people. This demographic imbalance creates challenges for social security, healthcare, and the labour force, which eventually led China to relax the policy and allow couples to have two children.
Q8EXERCISES
Mention the salient demographic indicators of China, Pakistan and India.
Solution
Based on the data and analysis in the chapter (Table 8.1 for the year 2022), the salient demographic indicators for the three countries are as follows:
- Population Size: China (1417 million) and India (1412 million) are the world's most populous countries. Pakistan's population (236 million) is significantly smaller, about one-tenth of either India or China.
- Annual Population Growth: Pakistan has the highest population growth rate at 1.89%. India's growth rate is 0.68%, while China's is negative at -0.01%, largely due to its one-child policy.
- Density: India has the highest population density at 473 persons per sq. km, followed by Pakistan at 300. Despite its large population, China's vast geographical area results in the lowest density of 150 persons per sq. km.
- Sex Ratio: All three countries have a low sex ratio, indicating a bias against females. The number of females per 1000 males is 938 in India, 959 in China, and 982 in Pakistan.
- Fertility Rate: Pakistan has a very high fertility rate of 3.4. India's is 2.0, while China's is very low at 1.2.
- Urbanisation: China is the most urbanised of the three, with 65% of its population in urban areas. Pakistan follows with 38%, and India is the least urbanised at 36%.
Q9EXERCISES
Compare and contrast India and China's sectoral contribution towards GVA/GDP. What does it indicate?
Solution
The comparison of sectoral contributions to GVA (Gross Value Added) and workforce distribution for India and China reveals significant differences in their economic structures, as per the 2021 data in the textbook.
Comparison of Sectoral Contribution (2021):
| Sector | Contribution to GVA (%) | Distribution of Workforce (%) |
|---|---|---|
| India | China | |
| Agriculture | 19 | 8 |
| Industry | 29 | 39 |
| Services | 52 | 53 |
Contrast and Analysis:
- Agriculture: In India, agriculture contributes 19% to GVA but employs a massive 46% of the workforce. In contrast, China's agricultural sector contributes only 8% to GVA and employs a much smaller share of the workforce (23%). This indicates lower productivity and a higher dependency on agriculture in India.
- Industry: China has a much stronger industrial base. Its industrial sector contributes 39% to GVA and employs 32% of the workforce. India's industrial sector contributes less (29%) and employs a smaller proportion of the workforce (25%).
- Services: Both countries have a dominant service sector, contributing over half of the GVA (52% for India, 53% for China). However, China's service sector employs a significantly larger portion of its workforce (45%) compared to India (29%).
What it indicates:
This comparison indicates that China has followed a more traditional and successful path of structural transformation. It has effectively shifted its workforce from agriculture to industry and then to services. This has led to higher productivity and rapid economic growth.
India, on the other hand, shows a pattern where the workforce has not moved out of agriculture in large numbers, despite the sector's declining contribution to the economy. The shift in GVA has been directly from agriculture to the service sector, bypassing a robust manufacturing-led growth phase. This suggests that while India's service sector is strong, the industrial sector has not been able to absorb the surplus labour from agriculture, which remains a key challenge for development.
Q10EXERCISES
Mention the various indicators of human development.
Solution
The chapter discusses several indicators used to measure human development, comparing the performance of India, China, and Pakistan. The key indicators mentioned are:
- Human Development Index (HDI): A composite index that measures overall achievement in key dimensions of human development. It includes a country's value and its global rank.
- Life Expectancy at Birth: The average number of years a newborn infant is expected to live.
- Mean Years of Schooling: The average number of years of education received by people aged 15 and above.
- Gross National Income (GNI) per Capita: The total income of a country divided by its population, adjusted for purchasing power parity (PPP US$).
- People Living Below Poverty Line: The percentage of the population living below the national poverty line.
- Infant Mortality Rate: The number of deaths of infants under one year of age per 1000 live births.
- Maternal Mortality Rate: The number of maternal deaths per 100,000 live births.
- Access to Basic Sanitation: The percentage of the population using at least basic sanitation services.
- Access to Basic Drinking Water: The percentage of the population using at least a basic drinking water source.
- Prevalence of Undernourishment: The percentage of the population whose food intake is insufficient to meet dietary energy requirements continuously.
Q11EXERCISES
Define the liberty indicator. Give some examples of liberty indicators.
Solution
Definition:
A liberty indicator is a measure used to assess the extent of civil and political freedoms and democratic rights available to the citizens of a country. The chapter suggests that standard human development indicators are important but not sufficient, and that liberty indicators are needed to provide a more complete picture of human well-being. They measure aspects of freedom that are not captured by economic or social statistics.
Examples:
The chapter provides the following examples of liberty indicators:
- The extent of democratic participation in social and political decision-making.
- Measures of the extent of Constitutional protection given to the rights of citizens.
- The extent of constitutional protection of the Independence of the Judiciary and the Rule of Law.
Q12EXERCISES
Evaluate the various factors that led to the rapid growth in economic development in China.
Solution
The rapid economic growth in China can be attributed to a combination of foundational policies in the pre-reform period and a strategic, phased implementation of reforms from 1978 onwards.
1. Foundational Factors (Pre-1978):
Even before the reforms, the Maoist rule had laid a crucial foundation that helped in the post-reform period. These factors include:
- Investment in Social Infrastructure: There was a massive extension of basic health and education services, which improved the quality of the workforce.
- Land Reforms: Extensive land reforms were carried out, which, along with collectivisation, helped in ensuring a more equitable distribution of food grains through the commune system.
- Decentralised Planning: The existence of decentralised planning and small enterprises helped in building local capacity and experience.
2. Strategic Reforms (Post-1978):
China’s leadership introduced market-oriented reforms without a political compulsion from international agencies. The key factors were:
- Phased Implementation: Reforms were not introduced abruptly. Each measure was first implemented at a smaller level, its success or failure was assessed, and then it was extended on a massive scale. This experimental approach minimised risks.
- Agricultural Reforms: The reforms began with agriculture, where commune lands were handed over to individuals for cultivation. This move brought prosperity to millions of poor people and created strong political support for further reforms.
- Dual-Track System: China used a dual pricing mechanism, which allowed a gradual transition from a command to a market economy, avoiding the 'shock therapy' that disrupted many other economies.
- Market Mechanism with State Control: China successfully used the 'market system without losing political commitment'. It created economic opportunities by allowing private enterprises and foreign investment (through SEZs) while retaining state control over key sectors and collective ownership of land, which provided social security in rural areas.
Q13EXERCISES
Group the following features pertaining to the economies of India, China and Pakistan under three heads One-child norm Low fertility rate High degree of urbanisation Mixed economy Very high fertility rate Large population High density of population Growth due to manufacturing sector Growth due to service sector.
Solution
Based on the information provided in the chapter, the features can be grouped under the three countries as follows:
India
- Mixed economy: India follows a mixed economy model.
- Large population: India has the second-largest population among the three.
- High density of population: India has the highest population density among the three countries.
- Growth due to service sector: India's recent growth has been primarily driven by its service sector.
China
- One-child norm: This policy was a unique feature of China for several decades.
- Low fertility rate: As a result of its population control measures, China has a very low fertility rate.
- High degree of urbanisation: China has the highest proportion of its population living in urban areas.
- Growth due to manufacturing sector: China's rapid economic growth is largely attributed to its strong manufacturing sector.
Pakistan
- Mixed economy: Pakistan also follows a mixed economy model, similar to India.
- Very high fertility rate: Pakistan has the highest fertility rate among the three nations.
Q14EXERCISES
Give reasons for the slow growth and re-emergence of poverty in Pakistan.
Solution
The chapter highlights several reasons cited by scholars for the slowdown of economic growth and the re-emergence of poverty in Pakistan, especially when compared to its performance in the 1980s.
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Volatile Agricultural Growth: Pakistan's agricultural growth and food supply situation were not based on an institutionalised process of technical change (like sustained R&D and infrastructure). Instead, they depended heavily on good harvests. This made the economy unstable; it performed well when harvests were good and stagnated or declined during bad years.
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Dependence on Remittances and Foreign Aid: A significant portion of Pakistan's foreign exchange earnings came from remittances sent by Pakistani workers in the Middle East and from foreign aid. These sources are often volatile and not a sustainable substitute for export earnings from a robust industrial base.
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Lack of Sustainable Export Earnings: Unlike countries that build foreign exchange reserves through the export of manufactured goods, Pakistan relied on the export of highly volatile agricultural products.
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Growing Debt Burden: The country showed a growing dependence on foreign loans, coupled with increasing difficulty in repaying them, which put a strain on the economy.
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Political Instability: The text also mentions political instability over a long period as a reason behind the declining growth rate in Pakistan.
Q15EXERCISES
Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.
Solution
A comparison of India, China, and Pakistan on salient human development indicators (based on Table 8.5) shows that China is significantly ahead of both India and Pakistan, while India and Pakistan have varied performances.
Overall Performance:
- China: Leads in almost every indicator. Its Human Development Index (HDI) value (0.788) and rank (75) are much higher than the other two.
- India: Performs moderately, with an HDI value of 0.644 and a rank of 134. It is ahead of Pakistan in most indicators but lags far behind China.
- Pakistan: Lags behind both India and China, with an HDI value of 0.540 and a rank of 164.
Specific Indicators:
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Health:
- Life Expectancy: China leads with 78.6 years, followed by India (67.7 years) and Pakistan (66.4 years).
- Mortality Rates: China has very low infant (5.1 per 1000) and maternal (23 per 1 lakh) mortality rates. Pakistan has the highest rates in both categories (52.5 and 154 respectively). India's performance is in between.
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Economic Well-being:
- GNI per Capita: China's GNI per capita (PPP 6,951) and Pakistan's ($5,374).
- Poverty: China has nearly eradicated extreme poverty (0.0%). India and Pakistan both report a similar proportion of the population below the national poverty line (21.9%).
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Education and Basic Amenities:
- Mean Years of Schooling: China is ahead with 8.1 years, followed by India (6.6 years) and Pakistan (4.4 years).
- Sanitation: China has the best access to basic sanitation (94%), followed by India (75%) and Pakistan (69%).
In conclusion, while all three are developing nations, China's strategies, particularly those in the pre-reform era focusing on health and education, have enabled it to achieve a much higher level of human development compared to India and Pakistan.
Q16EXERCISES
Comment on the growth rate trends witnessed in China and India in the last two decades.
Solution
Based on the data presented in the chapter (Tables 8.2 and 8.4), the growth rate trends in China and India have shown a significant shift over the last few decades.
China:
- In the 1980s and 1990s, China experienced phenomenal economic growth, with its GDP growing at an average of 10.3% per annum. This rapid expansion was driven by its manufacturing and service sectors, which grew at 10.8% and 13.5% respectively during 1980-90.
- In recent years, China's growth has witnessed a marked deceleration. The GDP growth rate declined to 6.8% in the 2015-2017 period and further to 3.0% in 2022. This slowdown is also reflected in its sectoral growth, with industry and service sector growth rates falling significantly compared to the earlier period.
India:
- In the 1980s, India's GDP growth was moderate, averaging 5.7%. Its growth was primarily driven by the industrial (7.4%) and service (6.9%) sectors.
- In recent times, India's growth has been relatively robust and has shown an increase from the 1980s level. The GDP growth rate was 7.3% in 2015-2017 and 7.0% in 2022. This growth has been led predominantly by the service sector, which grew at 7.6% during 2014-18.
Conclusion:
The trend indicates a reversal of roles to some extent. While China was the undisputed fast-growing economy for decades, it is now experiencing a structural slowdown. India, on the other hand, has maintained and even moderately increased its growth momentum, becoming one of the fastest-growing major economies in the world in recent years, primarily on the strength of its service sector.
Q17EXERCISES
Fill in the blanks
(a)
First Five Year Plan of __________ commenced in the year 1956. (Pakistan/China)
(b)
Maternal mortality rate is high in __________. (China/ Pakistan)
(c)
Proportion of people below poverty line is more in __________. (India/Pakistan)
(d)
Reforms in __________ were introduced in 1978. (China/ Pakistan)
Solution
(a) First Five Year Plan of Pakistan commenced in the year 1956.
(b) Maternal mortality rate is high in Pakistan.
(c) Proportion of people below poverty line is more in India. (Note: While Table 8.5 shows an identical figure of 21.9% for both, the text in Section 8.5 states, "China and Pakistan are ahead of India in reducing proportion of people below the poverty line," implying India's proportion is considered higher in this context.)
(d) Reforms in China were introduced in 1978.